Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis at March 31, 2013
(dollar amounts in millions)	Level 1			Level 2			Level 3			Netting (a)			Total carrying value
Available-for-sale securities:
U.S. Treasury	$	17,792		$	—		$	—		$	—		$	17,792
U.S. Government agencies	—			1,060			—			—			1,060
Sovereign debt	41			10,047			—			—			10,088
State and political subdivisions (b)	—			6,206			44			—			6,250
Agency RMBS	—			36,453			—			—			36,453
Alt-A RMBS	—			285			—			—			285
Prime RMBS	—			616			—			—			616
Subprime RMBS	—			436			—			—			436
Other RMBS	—			2,635			—			—			2,635
Commercial MBS	—			2,940			—			—			2,940
Asset-backed CLOs	—			1,456			—			—			1,456
Other asset-backed securities	—			2,026			—			—			2,026
Equity securities	28			—			—			—			28
Money market funds (b)	2,457			—			—			—			2,457
Corporate bonds	—			1,572			—			—			1,572
Other debt securities	—			2,311			—			—			2,311
Foreign covered bonds	2,722			668			—			—			3,390
Alt-A RMBS (c)	—			1,968			—			—			1,968
Prime RMBS (c)	—			981			—			—			981
Subprime RMBS (c)	—			134			—			—			134
Total available-for-sale	23,040			71,794			44			—			94,878
Trading assets:
Debt and equity instruments (b)	2,710			5,227			11			—			7,948
Derivative assets not designated as hedging:
Interest rate	2			19,877			10			(17,877		)	2,012
Foreign exchange	4,028			212			1			(2,239		)	2,002
Equity	112			283			31			(163		)	263
Total derivative assets not designated as hedging	4,142			20,372			42			(20,279		)	4,277
Total trading assets	6,852			25,599			53			(20,279		)	12,225
Other assets:
Derivative assets designated as hedging:
Interest rate	—			897			—			—			897
Foreign exchange	238			—			—			—			238
Total other assets - derivative assets	238			897			—			—			1,135
Other assets (d)	112			101			112			—			325
Total other assets	350			998			112			—			1,460
Subtotal assets of operations at fair value	30,242			98,391			209			(20,279		)	108,563
Percentage of assets prior to netting	24		%	76		%	—		%
Assets of consolidated investment management funds:
Trading assets	17			10,339			44			—			10,400
Other assets	691			145			—			—			836
Total assets of consolidated investment management funds	708			10,484			44			—			11,236
Total assets	$	30,950		$	108,875		$	253		$	(20,279	)	$	119,799
Percentage of assets prior to netting	22		%	78		%	—		%

Liabilities measured at fair value on a recurring basis at March 31, 2013
(dollar amounts in millions)	Level 1			Level 2			Level 3			Netting (a)			Total carrying value
Trading liabilities:
Debt and equity instruments	$	1,553		$	962		$	—		$	—		$	2,515
Derivative liabilities not designated as hedging:
Interest rate	—			20,261			115			(16,666		)	3,710
Foreign exchange	3,931			145			—			(1,913		)	2,163
Equity and other contracts	46			441			55			(163		)	378
Total derivative liabilities not designated as hedging	3,977			20,847			170			(18,742		)	6,252
Total trading liabilities	5,530			21,809			170			(18,742		)	8,767
Long-term debt (b)	—			341			—			—			341
Other liabilities - derivative liabilities designated as hedging:
Interest rate	—			251			—			—			251
Foreign exchange	59			—			—			—			59
Total other liabilities - derivative liabilities	59			251			—			—			310
Subtotal liabilities at fair value	5,589			22,401			170			(18,742		)	9,418
Percentage of liabilities prior to netting	20		%	80		%	—		%
Liabilities of consolidated investment management funds:
Trading liabilities	—			9,908			—			—			9,908
Other liabilities	—			34			—			—			34
Total liabilities of consolidated investment management funds	—			9,942			—			—			9,942
Total liabilities	$	5,589		$	32,343		$	170		$	(18,742	)	$	19,360
Percentage of liabilities prior to netting	15		%	85		%	—		%

a) ASC 815 permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities, and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product.

(b) Includes certain interests in securitizations.

(c) Previously included in the Grantor Trust.

(d) Includes private equity investments, seed capital and a brokerage account.

Assets measured at fair value on a recurring basis at Dec. 31, 2012
(dollar amounts in millions)	Level 1			Level 2			Level 3			Netting (a)			Total carrying value
Available-for-sale securities:
U.S. Treasury	$	18,003		$	—		$	—		$	—		$	18,003
U.S. Government agencies	—			1,074			—			—			1,074
Sovereign debt	41			9,383			—			—			9,424
State and political subdivisions (b)	—			6,077			45			—			6,122
Agency RMBS	—			34,193			—			—			34,193
Alt-A RMBS	—			279			—			—			279
Prime RMBS	—			728			—			—			728
Subprime RMBS	—			452			—			—			452
Other RMBS	—			2,794			—			—			2,794
Commercial MBS	—			3,139			—			—			3,139
Asset-backed CLOs	—			1,282			—			—			1,282
Other asset-backed securities	—			2,131			—			—			2,131
Equity securities	27			—			—			—			27
Money market funds (b)	2,190			—			—			—			2,190
Corporate bonds	—			1,585			—			—			1,585
Other debt securities	—			2,368			—			—			2,368
Foreign covered bonds	2,995			723			—			—			3,718
Alt-A RMBS (c)	—			1,970			—			—			1,970
Prime RMBS (c)	—			1,010			—			—			1,010
Subprime RMBS (c)	—			130			—			—			130
Total available-for-sale	23,256			69,318			45			—			92,619
Trading assets:
Debt and equity instruments (b)	912			4,116			48			—			5,076
Derivative assets not designated as hedging:
Interest rate	36			22,734			19			(20,042		)	2,747
Foreign exchange	3,364			148			1			(2,171		)	1,342
Equity	121			152			38			(98		)	213
Total derivative assets not designated as hedging	3,521			23,034			58			(22,311		)	4,302
Total trading assets	4,433			27,150			106			(22,311		)	9,378
Other assets:
Derivative assets designated as hedging:
Interest rate	—			928			—			—			928
Foreign exchange	61			—			—			—			61
Total derivative assets	61			928			—			—			989
Other assets (d)	96			116			120			—			332
Total other assets	157			1,044			120			—			1,321
Subtotal assets of operations at fair value	27,846			97,512			271			(22,311		)	103,318
Percentage of assets prior to netting	22		%	78		%	—		%
Assets of consolidated investment management funds:
Trading assets	182			10,735			44			—			10,961
Other assets	390			130			—			—			520
Total assets of consolidated investment management funds	572			10,865			44			—			11,481
Total assets	$	28,418		$	108,377		$	315		$	(22,311	)	$	114,799
Percentage of assets prior to netting	21		%	79		%	—		%

Liabilities measured at fair value on a recurring basis at Dec. 31, 2012
(dollar amounts in millions)	Level 1			Level 2			Level 3			Netting (a)			Total carrying value
Trading liabilities:
Debt and equity instruments	$	1,121		$	659		$	—		$	—		$	1,780
Derivative liabilities not designated as hedging:
Interest rate	—			23,173			168			(19,069		)	4,272
Foreign exchange	3,535			97			—			(1,823		)	1,809
Equity	91			266			56			(98		)	315
Total derivative liabilities not designated as hedging	3,626			23,536			224			(20,990		)	6,396
Total trading liabilities	4,747			24,195			224			(20,990		)	8,176
Long-term debt (b)	—			345			—			—			345
Other liabilities - derivative liabilities designated as hedging:
Interest rate	—			343			—			—			343
Foreign exchange	361			—			—			—			361
Total other liabilities - derivative liabilities	361			343			—			—			704
Subtotal liabilities at fair value	5,108			24,883			224			(20,990		)	9,225
Percentage of liabilities prior to netting	17		%	82		%	1		%
Liabilities of consolidated investment management funds:
Trading liabilities	—			10,152			—			—			10,152
Other liabilities	—			29			—			—			29
Total liabilities of consolidated investment management funds	—			10,181			—			—			10,181
Total liabilities	$	5,108		$	35,064		$	224		$	(20,990	)	$	19,406
Percentage of liabilities prior to netting	13		%	87		%	—		%

(a) ASC 815 permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities, and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product.

(b) Includes certain interests in securitizations.

(c) Previously included in the Grantor Trust.

(d) Includes private equity investments, seed capital and a brokerage account.

Details of certain items measured at fair value  on a recurring basis	March 31, 2013										Dec. 31, 2012
	Total carrying value (a)		Ratings								Total carrying value (a)		Ratings
			AAA/ AA-		A+/ A-		BBB+/ BBB-		BB+ and lower					AAA/ AA-		A+/ A-		BBB+/ BBB-		BB+ and lower
(dollar amounts in millions)
Alt-A RMBS, originated in:
2006-2007	$	117	—	%	—	%	—	%	100	%	$	111	—	%	—	%	—	%	100	%
2005	109		—		—		—		100		107		—		—		—		100
2004 and earlier	59		3		9		25		63		61		4		9		25		62
Total Alt-A RMBS	$	285	1	%	2	%	5	%	92	%	$	279	1	%	2	%	6	%	91	%
Prime RMBS, originated in:
2007	$	102	—	%	—	%	45	%	55	%	$	106	—	%	—	%	45	%	55	%
2006	63		—		—		—		100		70		—		—		—		100
2005	160		—		43		—		57		215		—		33		7		60
2004 and earlier	291		9		42		8		41		337		16		42		7		35
Total prime RMBS	$	616	5	%	31	%	11	%	53	%	$	728	7	%	29	%	12	%	52	%
Subprime RMBS, originated in:
2005	$	111	—	%	8	%	37	%	55	%	$	108	4	%	8	%	34	%	54	%
2004 and earlier	325		2		5		6		87		344		3		4		6		87
Total subprime RMBS	$	436	2	%	5	%	14	%	79	%	$	452	3	%	5	%	13	%	79	%
Commercial MBS - Domestic, originated in:
2009-2012	$	322	93	%	7	%	—	%	—	%	$	283	97	%	3	%	—	%	—	%
2008	24		59		41		—		—		24		59		41		—		—
2007	682		78		16		6		—		707		78		16		6		—
2006	834		85		15		—		—		900		85		14		1		—
2005	618		98		1		1		—		640		98		1		1		—
2004 and earlier	267		96		4		—		—		285		100		—		—		—
Total commercial MBS - Domestic	$	2,747	88	%	10	%	2	%	—	%	$	2,839	89	%	9	%	2	%	—	%
Foreign covered bonds:
Canada	$	869	100	%	—	%	—	%	—	%	$	925	100	%	—	%	—	%	—	%
United Kingdom	732		100		—		—		—		756		100		—		—		—
Germany	624		98		2		—		—		866		98		2		—		—
Netherlands	282		100		—		—		—		360		100		—		—		—
Other	883		100		—		—		—		811		100		—		—		—
Total foreign covered bonds	$	3,390	100	%	—	%	—	%	—	%	$	3,718	100	%	—	%	—	%	—	%
European floating rate notes - available-for-sale:
United Kingdom	$	1,657	84	%	16	%	—	%	—	%	$	1,873	79	%	19	%	2	%	—	%
Netherlands	812		100		—		—		—		841		100		—		—		—
Ireland	157		16		—		—		84		161		15		—		—		85
Italy	116		—		100		—		—		125		—		100		—		—
Australia	69		94		6		—		—		77		94		6		—		—
Germany	63		—		3		—		97		68		—		9		—		91
Total European floating rate notes - available-for-sale	$	2,874	80	%	13	%	—	%	7	%	$	3,145	77	%	15	%	2	%	6	%
Sovereign debt:
United Kingdom	$	4,487	100	%	—	%	—	%	—	%	$	4,771	100	%	—	%	—	%	—	%
Germany	2,204		100		—		—		—		1,646		100		—		—		—
Netherlands	1,990		100		—		—		—		2,054		100		—		—		—
France	1,352		100		—		—		—		897		100		—		—		—
Other	55		100		—		—		—		56		100		—		—		—
Total sovereign debt	$	10,088	100	%	—	%	—	%	—	%	$	9,424	100	%	—	%	—	%	—	%
Alt-A RMBS (b), originated in:
2006-2007	$	1,138	—	%	—	%	—	%	100	%	$	1,128	—	%	—	%	—	%	100	%
2005	615		—		4		1		95		622		4		—		1		95
2004 and earlier	215		—		—		13		87		220		—		2		12		86
Total Alt-A RMBS (b)	$	1,968	—	%	1	%	2	%	97	%	$	1,970	1	%	—	%	2	%	97	%
Prime RMBS (b), originated in:
2006-2007	$	586	—	%	—	%	—	%	100	%	$	601	—	%	—	%	—	%	100	%
2005	366		—		1		1		98		378		—		1		2		97
2004 and earlier	29		—		7		24		69		31		—		8		24		68
Total prime RMBS (b)	$	981	—	%	—	%	1	%	99	%	$	1,010	—	%	1	%	1	%	98	%
Subprime RMBS (b), originated in:
2005-2007	$	98	—	%	—	%	—	%	100	%	$	94	—	%	—	%	—	%	100	%
2004 and earlier	36		1		5		37		57		36		5		—		36		59
Total subprime RMBS (b)	$	134	—	%	1	%	10	%	89	%	$	130	2	%	—	%	10	%	88	%

Details Of Certain Items Measured At Fair Value On Recurring Basis Table

Details of certain items measured at fair value  on a recurring basis	March 31, 2013										Dec. 31, 2012
	Total carrying value (a)		Ratings								Total carrying value (a)		Ratings
			AAA/ AA-		A+/ A-		BBB+/ BBB-		BB+ and lower					AAA/ AA-		A+/ A-		BBB+/ BBB-		BB+ and lower
(dollar amounts in millions)
Alt-A RMBS, originated in:
2006-2007	$	117	—	%	—	%	—	%	100	%	$	111	—	%	—	%	—	%	100	%
2005	109		—		—		—		100		107		—		—		—		100
2004 and earlier	59		3		9		25		63		61		4		9		25		62
Total Alt-A RMBS	$	285	1	%	2	%	5	%	92	%	$	279	1	%	2	%	6	%	91	%
Prime RMBS, originated in:
2007	$	102	—	%	—	%	45	%	55	%	$	106	—	%	—	%	45	%	55	%
2006	63		—		—		—		100		70		—		—		—		100
2005	160		—		43		—		57		215		—		33		7		60
2004 and earlier	291		9		42		8		41		337		16		42		7		35
Total prime RMBS	$	616	5	%	31	%	11	%	53	%	$	728	7	%	29	%	12	%	52	%
Subprime RMBS, originated in:
2005	$	111	—	%	8	%	37	%	55	%	$	108	4	%	8	%	34	%	54	%
2004 and earlier	325		2		5		6		87		344		3		4		6		87
Total subprime RMBS	$	436	2	%	5	%	14	%	79	%	$	452	3	%	5	%	13	%	79	%
Commercial MBS - Domestic, originated in:
2009-2012	$	322	93	%	7	%	—	%	—	%	$	283	97	%	3	%	—	%	—	%
2008	24		59		41		—		—		24		59		41		—		—
2007	682		78		16		6		—		707		78		16		6		—
2006	834		85		15		—		—		900		85		14		1		—
2005	618		98		1		1		—		640		98		1		1		—
2004 and earlier	267		96		4		—		—		285		100		—		—		—
Total commercial MBS - Domestic	$	2,747	88	%	10	%	2	%	—	%	$	2,839	89	%	9	%	2	%	—	%
Foreign covered bonds:
Canada	$	869	100	%	—	%	—	%	—	%	$	925	100	%	—	%	—	%	—	%
United Kingdom	732		100		—		—		—		756		100		—		—		—
Germany	624		98		2		—		—		866		98		2		—		—
Netherlands	282		100		—		—		—		360		100		—		—		—
Other	883		100		—		—		—		811		100		—		—		—
Total foreign covered bonds	$	3,390	100	%	—	%	—	%	—	%	$	3,718	100	%	—	%	—	%	—	%
European floating rate notes - available-for-sale:
United Kingdom	$	1,657	84	%	16	%	—	%	—	%	$	1,873	79	%	19	%	2	%	—	%
Netherlands	812		100		—		—		—		841		100		—		—		—
Ireland	157		16		—		—		84		161		15		—		—		85
Italy	116		—		100		—		—		125		—		100		—		—
Australia	69		94		6		—		—		77		94		6		—		—
Germany	63		—		3		—		97		68		—		9		—		91
Total European floating rate notes - available-for-sale	$	2,874	80	%	13	%	—	%	7	%	$	3,145	77	%	15	%	2	%	6	%
Sovereign debt:
United Kingdom	$	4,487	100	%	—	%	—	%	—	%	$	4,771	100	%	—	%	—	%	—	%
Germany	2,204		100		—		—		—		1,646		100		—		—		—
Netherlands	1,990		100		—		—		—		2,054		100		—		—		—
France	1,352		100		—		—		—		897		100		—		—		—
Other	55		100		—		—		—		56		100		—		—		—
Total sovereign debt	$	10,088	100	%	—	%	—	%	—	%	$	9,424	100	%	—	%	—	%	—	%
Alt-A RMBS (b), originated in:
2006-2007	$	1,138	—	%	—	%	—	%	100	%	$	1,128	—	%	—	%	—	%	100	%
2005	615		—		4		1		95		622		4		—		1		95
2004 and earlier	215		—		—		13		87		220		—		2		12		86
Total Alt-A RMBS (b)	$	1,968	—	%	1	%	2	%	97	%	$	1,970	1	%	—	%	2	%	97	%
Prime RMBS (b), originated in:
2006-2007	$	586	—	%	—	%	—	%	100	%	$	601	—	%	—	%	—	%	100	%
2005	366		—		1		1		98		378		—		1		2		97
2004 and earlier	29		—		7		24		69		31		—		8		24		68
Total prime RMBS (b)	$	981	—	%	—	%	1	%	99	%	$	1,010	—	%	1	%	1	%	98	%
Subprime RMBS (b), originated in:
2005-2007	$	98	—	%	—	%	—	%	100	%	$	94	—	%	—	%	—	%	100	%
2004 and earlier	36		1		5		37		57		36		5		—		36		59
Total subprime RMBS (b)	$	134	—	%	1	%	10	%	89	%	$	130	2	%	—	%	10	%	88	%

(a) At March 31, 2013 and Dec. 31, 2012, foreign covered bonds were included in Level 1 and Level 2 in the valuation hierarchy. All other assets in the table are Level 2 assets in the valuation hierarchy.

(b) Previously included in the Grantor Trust.

Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation

The tables below include a roll forward of the balance sheet amounts for the quarter ended March 31, 2013 and 2012 (including the change in fair value), for financial instruments classified in Level 3 of the valuation hierarchy.

Fair value measurements for assets using significant unobservable inputs for the three months ended March 31, 2013
	Available-for-sale securities				Trading assets															Assets of consolidated management funds
(in millions)	State and  political subdivisions				Debt and  equity instruments				Derivative assets			(a)	Other assets				Total assets of operations
Fair value at Dec. 31, 2012	$	45			$	48			$	58			$	120			$	271		44
Transfers out of Level 3	—				—				(5		)		—				(5		)	—
Total gains or (losses) for the period:
Included in earnings (or changes in net assets)	(1		)	(b)	3			(c)	(11		)	(c)	(5		)	(d)	(14		)	—		(e)
Purchases, sales and settlements:
Purchases	—				—				—				3				3			—
Sales	—				(40		)		—				(6		)		(46		)	—
Fair value at March 31, 2013	$	44			$	11			$	42			$	112			$	209		$	44
Change in unrealized gains or (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period					$	—			$	(11	)		$	(2	)		$	(13	)	$	—

(a) Derivative assets are reported on a gross basis.

(b) Realized gains (losses) are reported in securities gains (losses). Unrealized gains (losses) are reported in accumulated other comprehensive income (loss) except for the credit portion of OTTI losses which are recorded in securities gains (losses).

(c) Reported in foreign exchange and other trading revenue.

(d) Reported in investment and other income.

(e) Reported in income from consolidated investment management funds.

Fair value measurements for liabilities using significant unobservable inputs for the three months ended March 31, 2013
	Trading liabilities				Total liabilities
(in millions)	Derivative liabilities			(a)
Fair value at Dec. 31, 2012	$	224			$	224
Total (gains) or losses for the period:
Included in earnings (or changes in net liabilities)	(56		)	(b)	(56		)
Settlements	2				2
Fair value at March 31, 2013	$	170			$	170
Change in unrealized (gains) or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period	$	(27	)		$	(27	)

(a) Derivative liabilities are reported on a gross basis.

(b) Reported in foreign exchange and other trading revenue.

Fair value measurements for assets using significant unobservable inputs for the three months ended March 31, 2012
	Available-for-sale securities								Trading assets
(in millions)	State and  political subdivisions				Other debt securities				Debt and  equity instruments				Derivative assets			(a)	Other assets				Total assets
Fair value at Dec. 31, 2011	$	45			$	3			$	63			$	97			$	157			$	365
Total gains or (losses) for the period:
Included in earnings (or changes in net assets)	—			(b)	(3		)	(b)	(3		)	(c)	(25		)	(c)	3			(d)	(28		)
Purchases, sales and settlements:
Purchases	—				—				—				—				3				3
Sales	—				—				(2		)		—				(4		)		(6		)
Settlements	(2		)		—				—				—				(8		)		(10		)
Fair value at March 31, 2012	$	43			$	—			$	58			$	72			$	151			$	324
Change in unrealized gains or (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period									(3		)		(25		)		—				(28		)

(a) Derivative assets are reported on a gross basis.

(b) Realized gains (losses) are reported in securities gains (losses). Unrealized gains (losses) are reported in accumulated other comprehensive income (loss) except for the credit portion of OTTI losses which are recorded in securities gains (losses).

(c) Reported in foreign exchange and other trading revenue.

(d) Reported in investment and other income.

Fair value measurements for liabilities using significant unobservable inputs for the year ended March 31, 2012
	Trading liabilities				Total liabilities
(in millions)	Derivative liabilities			(a)
Fair value at Dec. 31, 2011	$	314			$	314
Total (gains) or losses for the period:
Included in earnings (or changes in net liabilities)	(68		)	(b)	(68		)
Fair value at March 31, 2012	$	246			$	246
Change in unrealized (gains) or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period	$	(51	)		$	(51	)

(a) Derivative liabilities are reported on a gross basis.

(b) Reported in foreign exchange and other trading revenue.

Assets Measured at Fair Value on Nonrecurring Basis

The following table presents the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy as of March 31, 2013 and Dec. 31, 2012, for which a nonrecurring change in fair value has been recorded during the quarters ended March 31, 2013 and Dec. 31, 2012. 

Assets measured at fair value on a nonrecurring basis at March 31, 2013							Total carrying value
(in millions)	Level 1		Level 2		Level 3
Loans (a)	$	—	$	178	$	21	$	199
Other assets (b)	—		52		—		52
Total assets at fair value on a nonrecurring basis	$	—	$	230	$	21	$	251

Assets measured at fair value on a nonrecurring basis at Dec. 31, 2012							Total carrying value
(in millions)	Level 1		Level 2		Level 3
Loans (a)	$	—	$	183	$	23	$	206
Other assets (b)	—		79		—		79
Total assets at fair value on a nonrecurring basis	$	—	$	262	$	23	$	285

(a) During the quarters ended March 31, 2013 and Dec. 31, 2012, the fair value of these loans was reduced $2 million and $2 million, based on the fair value of the underlying collateral as allowed by ASC 310, Accounting by Creditors for Impairment of a loan, with an offset to the allowance for credit losses.

(b) Includes other assets received in satisfaction of debt and loans held for sale. Loans held for sale are carried on the balance sheet at the lower of cost or market value.

Quantitative information about Level 3 fair value measurements of assets

The following tables present the unobservable inputs used in valuation of assets and liabilities classified as Level 3 within the fair value hierarchy.

Quantitative information about Level 3 fair value measurements of assets
(dollars in millions)	Fair value at March 31, 2013		Valuation techniques	Unobservable input	Range
Measured on a recurring basis:
Available-for-sale securities:
State and political subdivisions	$	44	Discounted cash flow	Expected credit loss	6%-37%
Trading assets:
Debt and equity instruments:
Distressed debt	11		Discounted cash flow	Expected maturity	1-15 years
				Credit spreads	200-1,000 bps
Derivative assets:
Interest rate:
Structured foreign exchange swaptions	10		Option pricing model (a)	Correlation risk	0%-25%
				Long-term foreign exchange volatility	11%-16%
Foreign exchange contracts:
Long-term foreign exchange options	1		Option pricing model (a)	Long-term foreign exchange volatility	18%
Equity:
Equity options	31		Option pricing model (a)	Long-term equity volatility	23%-28%
Measured on a nonrecurring basis:
Loans	21		Discounted cash flows	Timing of sale	0-12 months
				Cap rate	8%
				Cost to complete/sell	0%-30%

Quantitative Information about Level 3 Fair Value Measurements of Liabilities

Quantitative information about Level 3 fair value measurements of liabilities
(dollars in millions)	Fair value at March 31, 2013		Valuation techniques	Unobservable input	Range
Measured on a recurring basis:
Trading liabilities:
Derivative liabilities:
Interest rate:
Structured foreign exchange swaptions	$	115	Option pricing model (a)	Correlation risk	0%-25%
				Long-term foreign exchange volatility	11%-16%
Equity:
Equity options	55		Option pricing model (a)	Long-term equity volatility	22%-28%

(a) The option pricing model uses market inputs such as foreign currency exchange rates, interest rates and volatility to calculate the fair value of the option.

Carrying Amount and Fair Value of Financial Instruments

The following table presents the estimated fair value and the carrying amount of financial instruments not carried at fair value on the consolidated balance sheet at March 31, 2013 and Dec. 31, 2012, by caption on the consolidated balance sheet and by ASC 820 valuation hierarchy (as described above).

Summary of financial instruments	March 31, 2013
(in millions)	Level 1		Level 2		Level 3		Total estimated fair value		Carrying amount
Assets:
Interest-bearing deposits with the Federal Reserve and other central banks	$	—	$	78,125	$	—	$	78,125	$	78,125
Interest-bearing deposits with banks	—		40,914		—		40,914		40,888
Federal funds sold and securities purchased under resale agreements	—		7,004		—		7,004		7,004
Securities held-to-maturity	2,277		9,568		—		11,845		11,678
Loans	—		46,800		—		46,800		46,667
Other financial assets	4,440		1,060		—		5,500		5,500
Total	$	6,717	$	183,471	$	—	$	190,188	$	189,862
Liabilities:
Noninterest-bearing deposits	$	—	$	80,915	$	—	$	80,915	$	80,915
Interest-bearing deposits	—		158,638		—		158,638		158,757
Federal funds purchased and securities sold under repurchase agreements	—		8,602		—		8,602		8,602
Payables to customers and broker-dealers	—		14,986		—		14,986		14,986
Borrowings	—		1,033		—		1,033		1,033
Long-term debt	—		20,360		—		20,360		19,513
Total	$	—	$	284,534	$	—	$	284,534	$	283,806

Summary of financial instruments	Dec. 31, 2012
(in millions)	Level 1		Level 2		Level 3		Total estimated fair value		Carrying amount
Assets:
Interest-bearing deposits with the Federal Reserve and other central banks	$	—	$	90,110	$	—	$	90,110	$	90,110
Interest-bearing deposits with banks	—		43,936		—		43,936		43,910
Federal funds sold and securities purchased under resale agreements	—		6,593		—		6,593		6,593
Securities held-to-maturity	1,070		7,319		—		8,389		8,205
Loans	—		44,031		—		44,031		44,010
Other financial assets	4,727		1,115		—		5,842		5,842
Total	$	5,797	$	193,104	$	—	$	198,901	$	198,670
Liabilities:
Noninterest-bearing deposits	$	—	$	93,019	$	—	$	93,019	$	93,019
Interest-bearing deposits	—		153,030		—		153,030		153,076
Federal funds purchased and securities sold under repurchase agreements	—		7,427		—		7,427		7,427
Payables to customers and broker-dealers	—		16,095		—		16,095		16,095
Borrowings	—		1,883		—		1,883		1,883
Long-term debt	—		19,397		—		19,397		18,530
Total	$	—	$	290,851	$	—	$	290,851	$	290,030

Summary of Carrying Amount of Hedged Financial Instruments, Related Notional Amount of Hedge and Estimated Fair Value of Derivatives

The table below summarizes the carrying amount of the hedged financial instruments, the notional amount of the hedge and the unrealized gain (loss) (estimated fair value) of the derivatives.

Hedged financial instruments	Carrying amount		Notional amount of hedge		Unrealized
(in millions)					Gain		(Loss)
At March 31, 2013:
Interest-bearing deposits with banks	$	6,932	$	6,932	$	88	$	(27	)
Securities available-for-sale	6,152		6,088		101		(246		)
Deposits	10		10		1		—
Long-term debt	15,088		14,414		795		(5		)
At Dec. 31, 2012:
Interest-bearing deposits with banks	$	11,328	$	11,328	$	38	$	(224	)
Securities available-for-sale	5,597		5,355		12		(339		)
Deposits	10		10		1		—
Long-term debt	15,100		14,314		911		(4		)