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Off-Balance Sheet Lending-Related Financial Instruments, Guarantees and Other Commitments (Tables)
 3 Months Ended
Mar. 31, 2013
Off-Balance Sheet Lending-Related Financial Instruments, Guarantees and Other Commitments [Abstract]  
Off-Balance Sheet Lending Related Financial Instruments, and Guarantees and Other Commitments
The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at March 31, 2013, and December 31, 2012. The amounts in the table below for lending-related commitments represent the total available credit, inclusive of certain non-legally binding lines of credit. The Firm has not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time. The Firm can reduce or cancel these non-legally binding lines of credit by providing the borrower notice or, in some cases, without notice as permitted by law. The Firm may reduce or close home equity lines of credit when there are significant decreases in the value of the underlying property, or when there has been a demonstrable decline in the creditworthiness of the borrower. Also, the Firm typically closes credit card lines when the borrower is 60 days or more past due.
Off–balance sheet lending-related financial instruments, guarantees and other commitments
 
 
Contractual amount
 
Carrying value(g)
 
Mar 31, 2013
Dec 31,
2012
 
Mar 31,
2013
Dec 31,
2012
By remaining maturity
(in millions)
Expires in 1 year or less
Expires after
1 year through
3 years
Expires after
3 years through
5 years
Expires after 5 years
Total
Total
 
 
 
Lending-related
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card:
 
 
 
 
 
 
 
 
 
Home equity – senior lien
$
2,240

$
4,911

$
4,820

$
2,804

$
14,775

$
15,180

 
$
—

$
—

Home equity – junior lien
3,876

7,933

6,110

2,973

20,892

21,796

 
—

—

Prime mortgage
5,760

—

—

—

5,760

4,107

 
—

—

Subprime mortgage
—

—

—

—

—

—

 
—

—

Auto
7,317

137

154

45

7,653

7,185

 
1

1

Business banking
10,009

583

100

356

11,048

11,092

 
6

6

Student and other
108

158

7

473

746

796

 
—

—

Total consumer, excluding credit card
29,310

13,722

11,191

6,651

60,874

60,156

 
7

7

Credit card
537,455

—

—

—

537,455

533,018

 
—

—

Total consumer
566,765

13,722

11,191

6,651

598,329

593,174

 
7

7

Wholesale:
 
 
 
 
 
 
 
 
 
Other unfunded commitments to extend credit(a)(b)
57,173

79,704

96,724

6,087

239,688

243,225

 
431

377

Standby letters of credit and other financial guarantees(a)(b)(c)
27,229

31,513

37,798

1,659

98,199

100,929

 
638

647

Unused advised lines of credit
78,932

11,304

792

421

91,449

85,087

 
—

—

Other letters of credit(a)
4,176

1,407

309

53

5,945

5,573

 
2

2

Total wholesale
167,510

123,928

135,623

8,220

435,281

434,814

 
1,071

1,026

Total lending-related
$
734,275

$
137,650

$
146,814

$
14,871

$
1,033,610

$
1,027,988

 
$
1,078

$
1,033

Other guarantees and commitments
 
 
 
 
 
 
 
 
 
Securities lending indemnification agreements and guarantees(d)
$
182,526

$
—

$
—

$
—

$
182,526

$
166,493

 
NA

NA

Derivatives qualifying as guarantees
2,217

1,419

18,452

37,171

59,259

61,738

 
$
64

$
42

Unsettled reverse repurchase and securities borrowing agreements(e)
52,209

—

—

—

52,209

34,871

 
—

—

Loan sale and securitization-related indemnifications:
 
 
 
 
 
 
 
 
 
Mortgage repurchase liability
 NA

 NA

 NA

 NA

NA

NA

 
2,674

2,811

Loans sold with recourse
 NA

 NA

 NA

 NA

9,022

9,305

 
139

141

Other guarantees and commitments(f)
548

345

1,431

4,322

6,646

6,780

 
(73
)
(75
)
(a)
At March 31, 2013, and December 31, 2012, reflects the contractual amount net of risk participations totaling $428 million and $473 million, respectively, for other unfunded commitments to extend credit; $16.6 billion and $16.6 billion, respectively, for standby letters of credit and other financial guarantees; and $1.1 billion and $690 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.
(b)
At March 31, 2013, and December 31, 2012, included credit enhancements and bond and commercial paper liquidity commitments to U.S. states and municipalities, hospitals and other non profit entities of $43.2 billion and $44.5 billion, respectively. These commitments also include liquidity facilities to nonconsolidated municipal bond VIEs; for further information, see Note 15 on pages 151–158 of this Form 10-Q.
(c)
At March 31, 2013, and December 31, 2012, included unissued standby letters of credit commitments of $42.2 billion and $44.4 billion, respectively.
(d)
At March 31, 2013, and December 31, 2012, collateral held by the Firm in support of securities lending indemnification agreements was $183.2 billion and $165.1 billion, respectively. Securities lending collateral comprises primarily cash and securities issued by governments that are members of the Organisation for Economic Co-operation and Development (“OECD”) and U.S. government agencies.
(e)
At March 31, 2013, and December 31, 2012, the amount of commitments related to forward-starting reverse repurchase agreements and securities borrowing agreements were $10.5 billion and $13.2 billion, respectively. Commitments related to unsettled reverse repurchase agreements and securities borrowing agreements with regular-way settlement periods were $41.7 billion and $21.7 billion, at March 31, 2013, and December 31, 2012, respectively.
(f)
At March 31, 2013, and December 31, 2012, included unfunded commitments of $323 million and $370 million, respectively, to third-party private equity funds; and $1.4 billion and $1.5 billion, respectively, to other equity investments. These commitments included $236 million and $333 million, respectively, related to investments that are generally fair valued at net asset value as discussed in Note 3 on pages 96–107 of this Form 10-Q. In addition, at March 31, 2013, and December 31, 2012, included letters of credit hedged by derivative transactions and managed on a market risk basis of $4.6 billion and $4.5 billion, respectively.
(g)
For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivative-related products, the carrying value represents the fair value.
Standby letters of credit and other financial guarantees and other letters of credit
The following table summarizes the types of facilities under which standby letters of credit and other letters of credit arrangements are outstanding by the ratings profiles of the Firm’s customers, as of March 31, 2013, and December 31, 2012.
Standby letters of credit, other financial guarantees and other letters of credit
 
March 31, 2013
 
December 31, 2012
(in millions)
Standby letters of
credit and other financial guarantees
Other letters
of credit
 
Standby letters of
credit and other financial guarantees
Other letters
of credit
Investment-grade(a)
 
$
74,534

 
$
4,181

 
 
$
77,081

 
$
3,998

Noninvestment-grade(a)
 
23,665

 
1,764

 
 
23,848

 
1,575

Total contractual amount
 
$
98,199

 
$
5,945

 
 
$
100,929

 
$
5,573

Allowance for lending-related commitments
 
$
276

 
$
2

 
 
$
282

 
$
2

Commitments with collateral
 
41,757

 
887

 
 
42,654

 
1,145

(a)
The ratings scale is based on the Firm’s internal ratings which generally correspond to ratings as defined by S&P and Moody’s.
Summary of changes in mortgage repurchase liability
The following table summarizes the change in the mortgage repurchase liability for each of the periods presented.
Summary of changes in mortgage repurchase liability(a)
 
Three months ended March 31,
(in millions)
2013
 
2012
Repurchase liability at beginning of period
$
2,811

 
$
3,557

Net realized losses(b)
(212
)
 
(364
)
Provision for repurchase losses(c)
75

 
323

Repurchase liability at end of period
$
2,674

 
$
3,516

(a)
All mortgage repurchase demands associated with private-label securitizations are separately evaluated by the Firm in establishing its litigation reserves.
(b)
Realized repurchase losses are presented net of third-party recoveries and include principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants, and certain related expense. Make-whole settlements were $121 million and $186 million, for the three months ended March 31, 2013 and 2012, respectively.
(c)
Included $8 million and $27 million of provision related to new loan sales for the three months ended March 31, 2013 and 2012, respectively.