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Off-Balance Sheet Lending-Related Financial Instruments, Guarantees and Other Commitments (Tables)
 12 Months Ended
Dec. 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
Off–balance sheet lending-related financial instruments, guarantees and other commitments

 
 
Contractual amount
 
Carrying value(g)
 
2013
 
2012
 
2013
2012
By remaining maturity at December 31,
(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
$
2,471

$
4,411

$
4,202

$
2,074

$
13,158

 
$
15,180

 
$
—

$
—

Home equity – junior lien
3,918

6,908

4,865

2,146

17,837

 
21,796

 
—

—

Prime mortgage
4,817

—

—

—

4,817

 
4,107

 
—

—

Subprime mortgage
—

—

—

—

—

 
—

 
—

—

Auto
7,992

191

115

11

8,309

 
7,185

 
1

1

Business banking
10,282

548

101

320

11,251

 
11,092

 
7

6

Student and other
108

111

4

462

685

 
796

 
—

—

Total consumer, excluding credit card
29,588

12,169

9,287

5,013

56,057

 
60,156

 
8

7

Credit card
529,383

—

—

—

529,383

 
533,018

 
—

—

Total consumer
558,971

12,169

9,287

5,013

585,440

 
593,174

 
8

7

Wholesale:
 
 
 
 
 
 
 
 
 
 
Other unfunded commitments to extend credit(a)(b)
61,459

79,519

97,139

8,378

246,495

 
243,225

 
432

377

Standby letters of credit and other financial guarantees(a)(b)(c)
25,223

32,331

32,773

2,396

92,723

 
100,929

 
943

647

Unused advised lines of credit
88,443

12,411

423

717

101,994

 
85,087

 
—

—

Other letters of credit(a)
4,176

722

107

15

5,020

 
5,573

 
2

2

Total wholesale
179,301

124,983

130,442

11,506

446,232

 
434,814

 
1,377

1,026

Total lending-related
$
738,272

$
137,152

$
139,729

$
16,519

$
1,031,672

 
$
1,027,988

 
$
1,385

$
1,033

Other guarantees and commitments
 
 
 
 
 
 
 
 
 
 
Securities lending indemnification agreements and guarantees(d)
$
169,709

$
—

$
—

$
—

$
169,709

 
$
166,493

 
NA

NA

Derivatives qualifying as guarantees
1,922

765

16,061

37,526

56,274

 
61,738

 
$
72

$
42

Unsettled reverse repurchase and securities borrowing agreements(e)
38,211

—

—

—

38,211

 
34,871

 
—

—

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

 NA

 NA

 NA

NA

 
NA

 
681

2,811

Loans sold with recourse
 NA

 NA

 NA

 NA

7,692

 
9,305

 
131

141

Other guarantees and commitments(f)
654

256

1,484

4,392

6,786

 
6,780

 
(99
)
(75
)
(a)
At December 31, 2013 and 2012, reflects the contractual amount net of risk participations totaling $476 million and $473 million, respectively, for other unfunded commitments to extend credit; $14.8 billion and $16.6 billion, respectively, for standby letters of credit and other financial guarantees; and $622 million 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 December 31, 2013 and 2012, included credit enhancements and bond and commercial paper liquidity commitments to U.S. states and municipalities, hospitals and other non-profit entities of $18.9 billion and $21.3 billion, respectively, within other unfunded commitments to extend credit; and $17.2 billion and $23.2 billion, respectively, within standby letters of credit and other financial guarantees. These commitments also include liquidity facilities to nonconsolidated municipal bond VIEs; for further information, see Note 16 on pages 288–299 of this Annual Report.
(c)
At December 31, 2013 and 2012, included unissued standby letters of credit commitments of $42.8 billion and $44.4 billion, respectively.
(d)
At December 31, 2013 and 2012, collateral held by the Firm in support of securities lending indemnification agreements was $176.4 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 December 31, 2013 and 2012, the amount of commitments related to forward-starting reverse repurchase agreements and securities borrowing agreements were $9.9 billion and $13.2 billion, respectively. Commitments related to unsettled reverse repurchase agreements and securities borrowing agreements with regular-way settlement periods were $28.3 billion and $21.7 billion, at December 31, 2013 and 2012, respectively.
(f)
At December 31, 2013 and 2012, included unfunded commitments of $215 million and $370 million, respectively, to third-party private equity funds; and $1.9 billion and $1.5 billion, respectively, to other equity investments. These commitments included $184 million and $333 million, respectively, related to investments that are generally fair valued at net asset value as discussed in Note 3 on pages 195–215 of this Annual Report. In addition, at both December 31, 2013 and 2012, included letters of credit hedged by derivative transactions and managed on a market risk basis of $4.5 billion.
(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, 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 December 31, 2013 and 2012.
Standby letters of credit, other financial guarantees and other letters of credit
 
2013
 
2012
December 31,
(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)
 
$
69,109

 
$
3,939

 
 
$
77,081

 
$
3,998

Noninvestment-grade(a)
 
23,614

 
1,081

 
 
23,848

 
1,575

Total contractual amount
 
$
92,723

 
$
5,020

 
 
$
100,929

 
$
5,573

Allowance for lending-related commitments
 
$
263

 
$
2

 
 
$
282

 
$
2

Commitments with collateral
 
40,410

 
1,473

 
 
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
Year ended December 31,
(in millions)
2013
 
2012
 
2011
 
Repurchase liability at beginning of period
$
2,811

 
$
3,557

 
$
3,285

 
Net realized losses(a)(b)
(1,561
)
 
(1,158
)
 
(1,263
)
 
Reclassification to
  litigation reserve(c)
(179
)
 
—

 
—

 
Provision for repurchase losses(d)
(390
)
 
412

 
1,535

 
Repurchase liability at end of period
$
681

 
$
2,811

 
$
3,557

 
(a)
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 $414 million, $524 million and $640 million, for the years ended December 31, 2013, 2012 and 2011, respectively.
(b)
The 2013 amount includes $1.1 billion, for the FHFA Settlement Agreement.
(c)
Prior to December 31, 2013, in the absence of a repurchase demand by a party to the relevant contracts, the Firm’s decision to repurchase loans from private-label securitization trusts when it determined it had an obligation to do so was recognized in the mortgage repurchase liability. Pursuant to the terms of the RMBS Trust Settlement, all repurchase obligations relating to the subject private-label securitization trusts, whether resulting from a repurchase demand or otherwise, are now recognized in the Firm’s litigation reserves for this settlement. The RMBS Trust Settlement is fully accrued as of December 31, 2013.
(d)
Included a provision related to new loan sales of $20 million, $112 million and $52 million, for the years ended December 31, 2013, 2012 and 2011, respectively.