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Goodwill and Other Intangible Assets (Tables)
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3 Months Ended |
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Mar. 31, 2012
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| Goodwill and Other Intangible Assets (Tables) [Abstract] |
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| Goodwill and other intangible assets |
| | | | | | | | (in millions) | March 31, 2012 | December 31, 2011 | Goodwill | $ | 48,208 |
| $ | 48,188 |
| Mortgage servicing rights | 8,039 |
| 7,223 |
| Other intangible assets: | | | Purchased credit card relationships | $ | 535 |
| $ | 602 |
| Other credit card-related intangibles | 467 |
| 488 |
| Core deposit intangibles | 533 |
| 594 |
| Other intangibles | 1,494 |
| 1,523 |
| Total other intangible assets | $ | 3,029 |
| $ | 3,207 |
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| Goodwill attributed to the business segments |
| | | | | | | | (in millions) | March 31, 2012 | December 31, 2011 | Investment Bank | $ | 5,275 |
| $ | 5,276 |
| Retail Financial Services | 16,484 |
| 16,489 |
| Card Services & Auto | 14,530 |
| 14,507 |
| Commercial Banking | 2,863 |
| 2,864 |
| Treasury & Securities Services | 1,669 |
| 1,668 |
| Asset Management | 7,010 |
| 7,007 |
| Corporate/Private Equity | 377 |
| 377 |
| Total goodwill | $ | 48,208 |
| $ | 48,188 |
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| Changes in the carrying amount of goodwill |
| | | | | | | | | Three months ended March 31, (in millions) | 2012 | | 2011 | Balance at beginning of period(a) | $ | 48,188 |
| | $ | 48,854 |
| Changes during the period from: | | | | Business combinations | 10 |
| | (5 | ) | Dispositions | — |
| | — |
| Other(b) | 10 |
| | 7 |
| Balance at March 31,(a) | $ | 48,208 |
| | $ | 48,856 |
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| | (a) | Reflects gross goodwill balances as the Firm has not recognized any impairment losses to date. |
| | (b) | Includes foreign currency translation adjustments and other tax-related adjustments. |
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| Mortgage servicing rights activity |
| | | | | | | | | Three months March 31, (in millions, except where otherwise noted) | 2012 |
| | 2011 |
| Fair value at beginning of period | $ | 7,223 |
| | $ | 13,649 |
| MSR activity | | | | Originations of MSRs | 572 |
| | 757 |
| Purchase of MSRs | 1 |
| | 1 |
| Disposition of MSRs | — |
| | — |
| Changes due to modeled amortization | (353 | ) | | (563 | ) | Net additions and amortization | 220 |
| | 195 |
| Changes due to market interest rates | 644 |
| | 379 |
| Other changes in valuation due to inputs and assumptions(a) | (48 | ) | | (1,130 | ) | Total change in fair value of MSRs(b) | 596 |
| | (751 | ) | Fair value at March 31(c) | $ | 8,039 |
| | $ | 13,093 |
| Change in unrealized gains/(losses) included in income related to MSRs held at March 31 | $ | 596 |
| | $ | (751 | ) | Contractual service fees, late fees and other ancillary fees included in income | $ | 1,033 |
| | $ | 1,025 |
| Third-party mortgage loans serviced at March 31 (in billions) | $ | 892 |
| | $ | 963 |
| Servicer advances at March 31 (in billions)(d) | $ | 11.2 |
| | $ | 10.8 |
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| | (a) | Represents the aggregate impact of changes in model inputs and assumptions such as costs to service, home prices, mortgage spreads, ancillary income, and assumptions used to derive prepayment speeds, as well as changes to the valuation models themselves. |
| | (b) | Includes changes related to commercial real estate of $(2) million and $(2) million for the three months ended March 31, 2012 and 2011, respectively. |
| | (c) | Includes $29 million and $38 million related to commercial real estate at March 31, 2012 and 2011, respectively. |
| | (d) | Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest to a trust, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk associated with these advances is minimal because reimbursement of the advances is senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment if the collateral is insufficient to cover the advance. |
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| RFS mortgage fees and related income |
| | | | | | | | | Three months ended March 31, (in millions) | 2012 | | 2011 | RFS mortgage fees and related income | | | | Net production revenue: | | | | Production revenue | $ | 1,432 |
| | $ | 679 |
| Repurchase losses | (302 | ) | | (420 | ) | Net production revenue | 1,130 |
| | 259 |
| Net mortgage servicing revenue | | | | Operating revenue: | | | | Loan servicing revenue | 1,039 |
| | 1,052 |
| Changes in MSR asset fair value due to modeled amortization | (351 | ) | | (563 | ) | Total operating revenue | 688 |
| | 489 |
| Risk management: | | | | Changes in MSR asset fair value due to market interest rates | 644 |
| | 379 |
| Other changes in MSR asset fair value due to inputs or assumptions in model(a) | (48 | ) | | (1,130 | ) | Derivative valuation adjustments and other | (406 | ) | | (486 | ) | Total risk management | 190 |
| | (1,237 | ) | Total RFS net mortgage servicing revenue | 878 |
| | (748 | ) | All other | 2 |
| | 2 |
| Mortgage fees and related income | $ | 2,010 |
| | $ | (487 | ) |
| | (a) | Represents the aggregate impact of changes in model inputs and assumptions such as costs to service, home prices, mortgage spreads, ancillary income, and assumptions used to derive prepayment speeds, as well as changes to the valuation models themselves. |
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| Key economic assumptions used to determine the fair value of the Firm's Mortgage Servicing Rights (MSRs) |
| | | | | | | | | (in millions, except rates) | March 31, 2012 | | December 31, 2011 | Weighted-average prepayment speed assumption (“CPR”) | 14.32 | % | | 18.07 | % | Impact on fair value of 10% adverse change | $ | (581 | ) | | $ | (585 | ) | Impact on fair value of 20% adverse change | (1,114 | ) | | (1,118 | ) | Weighted-average option adjusted spread | 7.72 | % | | 7.83 | % | Impact on fair value of 100 basis points adverse change | $ | (320 | ) | | $ | (269 | ) | Impact on fair value of 200 basis points adverse change | (616 | ) | | (518 | ) |
CPR: Constant prepayment rate. |
| Intangible assets components of credit card relationships, core deposits and other intangible assets |
| | | | | | | | | | | | | | March 31, 2012 | (in millions) | | Gross amount(a) | Accumulated amortization(a) | Net carrying value | Purchased credit card relationships | | $ | 3,775 |
| $ | 3,240 |
| $ | 535 |
| Other credit card-related intangibles | | 850 |
| 383 |
| 467 |
| Core deposit intangibles | | 4,133 |
| 3,600 |
| 533 |
| Other intangibles(b) | | 2,418 |
| 924 |
| 1,494 |
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| | | | | | | | | | | | | | December 31, 2011 | (in millions) | | Gross amount | Accumulated amortization | Net carrying value | Purchased credit card relationships | | $ | 3,826 |
| $ | 3,224 |
| $ | 602 |
| Other credit card-related intangibles | | 844 |
| 356 |
| 488 |
| Core deposit intangibles | | 4,133 |
| 3,539 |
| 594 |
| Other intangibles(b) | | 2,467 |
| 944 |
| 1,523 |
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| | (a) | The decrease in the gross amount and accumulated amortization from December 31, 2011, was due to the removal of fully amortized assets. |
| | (b) | Includes intangible assets of approximately $600 million consisting primarily of asset management advisory contracts, which were determined to have an indefinite life and are not amortized. |
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| Amortization expense related to credit card relationships, core deposits and other intangible assets |
| | | | | | | | | | | Three months ended March 31, | (in millions) | | 2012 | 2011 | Purchased credit card relationships | | $ | 69 |
| $ | 80 |
| Other credit card-related intangibles | | 27 |
| 26 |
| Core deposit intangibles | | 61 |
| 72 |
| Other intangibles | | 36 |
| 39 |
| Total amortization expense | | $ | 193 |
| $ | 217 |
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| Estimated future amortization expense related to credit card relationships, core deposits and other intangible assets |
| | | | | | | | | | | | | | | | | For the year (in millions) | Purchased credit card relationships | Other credit card-related intangibles | Core deposit intangibles | Other intangibles | Total | 2012(a) | $ | 253 |
| $ | 108 |
| $ | 240 |
| $ | 147 |
| $ | 748 |
| 2013 | 213 |
| 105 |
| 195 |
| 140 |
| 653 |
| 2014 | 109 |
| 103 |
| 102 |
| 122 |
| 436 |
| 2015 | 23 |
| 95 |
| 26 |
| 103 |
| 247 |
| 2016 | 4 |
| 34 |
| 14 |
| 96 |
| 148 |
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| | (a) | Includes $69 million, $27 million, $61 million, and $36 million of amortization expense related to purchased credit card relationships, other credit card related intangibles, core deposit intangibles and other intangibles, respectively, recognized during the three months ended March 31, 2012. |
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