Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present the financial instruments carried at fair value at March 31, 2014 and Dec. 31, 2013, by caption on the consolidated balance sheet and by ASC 820 valuation hierarchy (as described above). We have included credit ratings information in certain of the tables because the information indicates the degree of credit risk to which we are exposed, and significant changes in ratings classifications could result in increased risk for us. There were no material transfers between Level 1 and Level 2 during the first quarter of 2014.

Assets measured at fair value on a recurring basis at March 31, 2014
(dollar amounts in millions)	Level 1			Level 2			Level 3			Netting (a)			Total carrying value
Available-for-sale securities:
U.S. Treasury	$	13,572		$	—		$	—		$	—		$	13,572
U.S. Government agencies	—			449			—			—			449
Sovereign debt	150			12,031			—			—			12,181
State and political subdivisions (b)	—			6,641			11			—			6,652
Agency RMBS	—			25,085			—			—			25,085
Non-agency RMBS	—			1,101			—			—			1,101
Other RMBS	—			2,084			—			—			2,084
Commercial MBS	—			2,185			—			—			2,185
Agency commercial MBS	—			2,063			—			—			2,063
Asset-backed CLOs	—			1,449			—			—			1,449
Other asset-backed securities	—			3,364			—			—			3,364
Equity securities	17			—			—			—			17
Money market funds (b)	849			—			—			—			849
Corporate bonds	—			1,781			—			—			1,781
Other debt securities	—			2,031			—			—			2,031
Foreign covered bonds	2,091			625			—			—			2,716
Non-agency RMBS (c)	—			2,637			—			—			2,637
Total available-for-sale securities	16,679			63,526			11			—			80,216
Trading assets:
Debt and equity instruments (b)	4,867			3,095			1			—			7,963
Derivative assets not designated as hedging:
Interest rate	3			14,484			5			(12,810		)	1,682
Foreign exchange	—			2,208			1			(1,363		)	846
Equity	188			368			13			(228		)	341
Total derivative assets not designated as hedging	191			17,060			19			(14,401		)	2,869
Total trading assets	5,058			20,155			20			(14,401		)	10,832
Other assets:
Derivative assets designated as hedging:
Interest rate	—			945			—			—			945
Foreign exchange	—			60			—			—			60
Total - derivative assets designated as hedging	—			1,005			—			—			1,005
Other assets (d)	148			492			110			—			750
Total other assets	148			1,497			110			—			1,755
Subtotal assets of operations at fair value	21,885			85,178			141			(14,401		)	92,803
Percentage of assets prior to netting	20		%	80		%	—		%
Assets of consolidated investment management funds:
Trading assets	226			10,034			—			—			10,260
Other assets	1,049			142			—			—			1,191
Total assets of consolidated investment management funds	1,275			10,176			—			—			11,451
Total assets	$	23,160		$	95,354		$	141		$	(14,401	)	$	104,254
Percentage of assets prior to netting	20		%	80		%	—		%

Liabilities measured at fair value on a recurring basis at March 31, 2014
(dollar amounts in millions)	Level 1			Level 2			Level 3			Netting (a)			Total carrying value
Trading liabilities:
Debt and equity instruments	$	1,819		$	651		$	—		$	—		$	2,470
Derivative liabilities not designated as hedging:
Interest rate	8			15,014			36			(12,404		)	2,654
Foreign exchange	—			2,066			—			(1,218		)	848
Equity and other contracts	100			697			5			(234		)	568
Total derivative liabilities not designated as hedging	108			17,777			41			(13,856		)	4,070
Total trading liabilities	1,927			18,428			41			(13,856		)	6,540
Long-term debt (b)	—			329			—			—			329
Other liabilities - derivative liabilities designated as hedging:
Interest rate	—			172			—			—			172
Foreign exchange	—			223			—			—			223
Total other liabilities - derivative liabilities	—			395			—			—			395
Subtotal liabilities of operations at fair value	1,927			19,152			41			(13,856		)	7,264
Percentage of liabilities prior to netting	9		%	91		%	—		%
Liabilities of consolidated investment management funds:
Trading liabilities	147			9,855			—			—			10,002
Other liabilities	—			156			—			—			156
Total liabilities of consolidated investment management funds	147			10,011			—			—			10,158
Total liabilities	$	2,074		$	29,163		$	41		$	(13,856	)	$	17,422
Percentage of liabilities prior to netting	7		%	93		%	—		%

(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. The Grantor Trust was dissolved in 2011.

(d) Includes private equity investments and seed capital.

Assets measured at fair value on a recurring basis at Dec. 31, 2013
(dollar amounts in millions)	Level 1			Level 2			Level 3			Netting (a)			Total carrying value
Available-for-sale securities:
U.S. Treasury	$	12,852		$	—		$	—		$	—		$	12,852
U.S. Government agencies	—			948			—			—			948
Sovereign debt	40			11,314			—			—			11,354
State and political subdivisions (b)	—			6,663			11			—			6,674
Agency RMBS	—			25,321			—			—			25,321
Non-agency RMBS	—			1,142			—			—			1,142
Other RMBS	—			2,285			—			—			2,285
Commercial MBS	—			2,357			—			—			2,357
Agency commercial MBS	—			1,789			—			—			1,789
Asset-backed CLOs	—			1,562			—			—			1,562
Other asset-backed securities	—			2,891			—			—			2,891
Equity securities	19			—			—			—			19
Money market funds (b)	938			—			—			—			938
Corporate bonds	—			1,815			—			—			1,815
Other debt securities	—			1,796			—			—			1,796
Foreign covered bonds	2,238			633			—			—			2,871
Non-agency RMBS (c)	—			2,695			—			—			2,695
Total available-for-sale securities	16,087			63,211			11			—			79,309
Trading assets:
Debt and equity instruments (b)	4,559			4,338			1			—			8,898
Derivative assets not designated as hedging:
Interest rate	4			14,702			6			(13,231		)	1,481
Foreign exchange	—			3,609			1			(2,294		)	1,316
Equity	274			395			15			(281		)	403
Total derivative assets not designated as hedging	278			18,706			22			(15,806		)	3,200
Total trading assets	4,837			23,044			23			(15,806		)	12,098
Other assets:
Derivative assets designated as hedging:
Interest rate	—			1,206			—			—			1,206
Foreign exchange	—			76			—			—			76
Total - derivative assets designated as hedging	—			1,282			—			—			1,282
Other assets (d)	148			193			105			—			446
Total other assets	148			1,475			105			—			1,728
Subtotal assets of operations at fair value	21,072			87,730			139			(15,806		)	93,135
Percentage of assets prior to netting	19		%	81		%	—		%
Assets of consolidated investment management funds:
Trading assets	61			10,336			—			—			10,397
Other assets	739			136			—			—			875
Total assets of consolidated investment management funds	800			10,472			—			—			11,272
Total assets	$	21,872		$	98,202		$	139		$	(15,806	)	$	104,407
Percentage of assets prior to netting	18		%	82		%	—		%

Liabilities measured at fair value on a recurring basis at Dec. 31, 2013
(dollar amounts in millions)	Level 1			Level 2			Level 3			Netting (a)			Total carrying value
Trading liabilities:
Debt and equity instruments	$	1,030		$	585		$	—		$	—		$	1,615
Derivative liabilities not designated as hedging:
Interest rate	3			15,178			31			(12,429		)	2,783
Foreign exchange	—			3,536			—			(1,711		)	1,825
Equity and other contracts	214			745			44			(281		)	722
Total derivative liabilities not designated as hedging	217			19,459			75			(14,421		)	5,330
Total trading liabilities	1,247			20,044			75			(14,421		)	6,945
Long-term debt (b)	—			321			—			—			321
Other liabilities - derivative liabilities designated as hedging:
Interest rate	—			167			—			—			167
Foreign exchange	—			336			—			—			336
Total other liabilities - derivative liabilities	—			503			—			—			503
Subtotal liabilities of operations at fair value	1,247			20,868			75			(14,421		)	7,769
Percentage of liabilities prior to netting	6		%	94		%	—		%
Liabilities of consolidated investment management funds:
Trading liabilities	16			10,069			—			—			10,085
Other liabilities	—			46			—			—			46
Total liabilities of consolidated investment management funds	16			10,115			—			—			10,131
Total liabilities	$	1,263		$	30,983		$	75		$	(14,421	)	$	17,900
Percentage of liabilities prior to netting	4		%	96		%	—		%

(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. The Grantor Trust was dissolved in 2011.

(d) Includes private equity investments and seed capital.

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, 2014										Dec. 31, 2013
	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)
Non-agency RMBS, originated in:
2007	$	88	—	%	—	%	—	%	100	%	$	90	—	%	—	%	41	%	59	%
2006	157		—		—		—		100		156		—		—		—		100
2005	320		—		23		16		61		330		—		24		16		60
2004 and earlier	536		3		6		30		61		566		3		6		30		61
Total non-agency RMBS	$	1,101	1	%	10	%	19	%	70	%	$	1,142	1	%	10	%	23	%	66	%
Commercial MBS - Domestic, originated in:
2009-2014	$	473	81	%	19	%	—	%	—	%	$	466	81	%	19	%	—	%	—	%
2008	22		59		41		—		—		22		59		41		—		—
2007	413		67		21		12		—		457		69		20		11		—
2006	656		83		17		—		—		683		84		16		—		—
2005	455		100		—		—		—		486		100		—		—		—
2004 and earlier	86		89		11		—		—		153		93		7		—		—
Total commercial MBS - Domestic	$	2,105	83	%	15	%	2	%	—	%	$	2,267	84	%	14	%	2	%	—	%
Foreign covered bonds:
Canada	$	884	100	%	—	%	—	%	—	%	$	851	100	%	—	%	—	%	—	%
United Kingdom	804		100		—		—		—		803		100		—		—		—
Netherlands	273		100		—		—		—		298		100		—		—		—
Other	755		100		—		—		—		919		100		—		—		—
Total foreign covered bonds	$	2,716	100	%	—	%	—	%	—	%	$	2,871	100	%	—	%	—	%	—	%
European floating rate notes - available-for-sale:
United Kingdom	$	1,586	83	%	17	%	—	%	—	%	$	1,668	79	%	21	%	—	%	—	%
Netherlands	418		99		—		—		1		434		100		—		—		—
Ireland	159		—		—		—		100		165		10		—		—		90
Italy	—		—		—		—		—		104		—		100		—		—
Other	37		96		4		—		—		42		89		5		—		6
Total European floating rate notes - available-for-sale	$	2,200	80	%	13	%	—	%	7	%	$	2,413	75	%	19	%	—	%	6	%
Sovereign debt:
United Kingdom	$	4,312	100	%	—	%	—	%	—	%	$	4,709	100	%	—	%	—	%	—	%
France	2,281		100		—		—		—		1,568		100		—		—		—
Netherlands	2,029		100		—		—		—		2,105		100		—		—		—
Germany	1,709		100		—		—		—		2,182		100		—		—		—
Spain	467		—		—		100		—		137		—		—		100		—
Italy	420		—		—		100		—		171		—		—		100		—
Other	963		89		—		11		—		482		100		—		—		—
Total sovereign debt	$	12,181	92	%	—	%	8	%	—	%	$	11,354	97	%	—	%	3	%	—	%
Non-agency RMBS (b), originated in:
2007	$	798	—	%	—	%	—	%	100	%	$	812	—	%	—	%	—	%	100	%
2006	756		—		—		1		99		780		—		—		1		99
2005	839		—		3		1		96		854		—		3		—		97
2004 and earlier	244		—		4		16		80		249		—		4		16		80
Total non-agency RMBS (b)	$	2,637	—	%	1	%	2	%	97	%	$	2,695	—	%	1	%	2	%	97	%

(a) At March 31, 2014 and Dec. 31, 2013, foreign covered bonds and sovereign debt 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. The Grantor Trust was dissolved in 2011.

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 quarters ended March 31, 2014 and 2013 (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, 2014
	Available-for-sale securities			Trading assets											Total assets of operations
(in millions)	State and political subdivisions			Debt and equity instruments			Derivative assets			(a)	Other assets
Fair value at Dec. 31, 2013	$	11		$	1		$	22			$	105			$	139
Transfers out of Level 3	—			—			(1		)		—				(1		)
Total gains or (losses) for the period:
Included in earnings (or changes in net assets)	—		(b)	—		(c)	(2		)	(c)	2			(d)	—
Purchases and sales:
Purchases	—			—			—				8				8
Sales	—			—			—				(5		)		(5		)
Fair value at March 31, 2014	$	11		$	1		$	19			$	110			$	141
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				$	—		$	(2	)		$	—			$	(2	)

(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 three months ended March 31, 2014
	Trading liabilities				Total liabilities
(in millions)	Derivative liabilities			(a)
Fair value at Dec. 31, 2013	$	75			$	75
Transfers out of Level 3	(37		)		(37		)
Total (gains) or losses for the period:
Included in earnings (or changes in net liabilities)	3			(b)	3
Fair value at March 31, 2014	$	41			$	41
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	$	3			$	3

(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, 2013
	Available-for-sale securities				Trading assets															Assets of consolidated investment 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 and sales:
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.

Assets Measured at Fair Value on Nonrecurring Basis

The following tables present the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy as of March 31, 2014 and Dec. 31, 2013, for which a nonrecurring change in fair value has been recorded during the quarters ended March 31, 2014 and Dec. 31, 2013.

Assets measured at fair value on a nonrecurring basis at March 31, 2014							Total carrying value
(in millions)	Level 1		Level 2		Level 3
Loans (a)	$	—	$	123	$	7	$	130
Other assets (b)	—		15		—		15
Total assets at fair value on a nonrecurring basis	$	—	$	138	$	7	$	145

Assets measured at fair value on a nonrecurring basis at Dec. 31, 2013							Total carrying value
(in millions)	Level 1		Level 2		Level 3
Loans (a)	$	—	$	128	$	9	$	137
Other assets (b)	—		15		—		15
Total assets at fair value on a nonrecurring basis	$	—	$	143	$	9	$	152

(a) During the quarters ended March 31, 2014 and Dec. 31, 2013, the fair value of these loans decreased $1 million and $1 million, respectively, 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.

Fair Value Inputs, Liabilities, Quantitative information

Quantitative information about Level 3 fair value measurements of liabilities
(dollars in millions)	Fair value at March 31, 2014			Valuation techniques	Unobservable input	Range
Measured on a recurring basis:
Trading liabilities:
Derivative liabilities:
Interest rate:
Structured foreign exchange swaptions		$	36	Option pricing model (a)	Correlation risk	0%-25%
					Long-term foreign exchange volatility	10%-17%
Equity:
Equity options		5		Option pricing model (a)	Long-term equity volatility	19%-26%

(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.

Summary Of Hedged Financial Instruments Disclosure

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)
March 31, 2014
Interest-bearing deposits with banks	$	1,368	$	1,368	$	13	$	(22	)
Securities available-for-sale	6,328		6,774		481		(115		)
Long-term debt	14,931		14,650		460		(57		)
Dec. 31, 2013
Interest-bearing deposits with banks	$	1,396	$	1,396	$	30	$	(19	)
Securities available-for-sale	5,914		6,647		721		(95		)
Long-term debt	15,036		14,755		483		(72		)

Fair Value Inputs, Assets, Quantitative Information

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, 2014			Valuation techniques	Unobservable input	Range
Measured on a recurring basis:
Available-for-sale securities:
State and political subdivisions		$	11	Discounted cash flow	Expected credit loss	4%
Trading assets:
Debt and equity instruments:
Distressed debt		1		Discounted cash flow	Expected maturity	1 - 10 years
					Credit spreads	126-2,879 bps
Derivative assets:
Interest rate:
Structured foreign exchange swaptions		5		Option pricing model (a)	Correlation risk	0%-25%
					Long-term foreign exchange volatility	10%-17%
Foreign exchange contracts:
Long-term foreign exchange options		1		Option pricing model (a)	Long-term foreign exchange volatility	18%
Equity:
Equity options		13		Option pricing model (a)	Long-term equity volatility	17%-25%
Measured on a nonrecurring basis:
Loans		7		Discounted cash flows	Timing of sale	0-12 months
					Cap rate	8%
					Cost to complete/sell	0%-30%

Fair Value by Balance Sheet Grouping

The following tables present the estimated fair value and the carrying amount of financial instruments not carried at fair value on the consolidated balance sheet at March 31, 2014 and Dec. 31, 2013, by caption on the consolidated balance sheet and by ASC 820 valuation hierarchy (as described above).

Summary of financial instruments	March 31, 2014
(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	$	—	$	82,602	$	—	$	82,602	$	82,602
Interest-bearing deposits with banks	—		42,820		—		42,820		42,795
Federal funds sold and securities purchased under resale agreements	—		12,223		—		12,223		12,223
Securities held-to-maturity	3,292		15,800		—		19,092		19,226
Loans	—		51,800		—		51,800		51,670
Other financial assets	6,092		1,046		—		7,138		7,138
Total	$	9,384	$	206,291	$	—	$	215,675	$	215,654
Liabilities:
Noninterest-bearing deposits	$	—	$	89,051	$	—	$	89,051	$	89,051
Interest-bearing deposits	—		162,611		—		162,611		163,176
Federal funds purchased and securities sold under repurchase agreements	—		9,935		—		9,935		9,935
Payables to customers and broker-dealers	—		16,822		—		16,822		16,822
Borrowings	—		1,479		—		1,479		1,479
Long-term debt	—		20,761		—		20,761		20,287
Total	$	—	$	300,659	$	—	$	300,659	$	300,750

Summary of financial instruments	Dec. 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	$	—	$	104,359	$	—	$	104,359	$	104,359
Interest-bearing deposits with banks	—		35,323		—		35,323		35,300
Federal funds sold and securities purchased under resale agreements	—		9,161		—		9,161		9,161
Securities held-to-maturity	3,268		16,175		—		19,443		19,743
Loans	—		49,316		—		49,316		49,180
Other financial assets	6,460		1,141		—		7,601		7,601
Total	$	9,728	$	215,475	$	—	$	225,203	$	225,344
Liabilities:
Noninterest-bearing deposits	$	—	$	95,475	$	—	$	95,475	$	95,475
Interest-bearing deposits	—		165,253		—		165,253		165,654
Federal funds purchased and securities sold under repurchase agreements	—		9,648		—		9,648		9,648
Payables to customers and broker-dealers	—		15,707		—		15,707		15,707
Borrowings	—		919		—		919		919
Long-term debt	—		19,965		—		19,965		19,543
Total	$	—	$	306,967	$	—	$	306,967	$	306,946