Equity Securities (Tables)

9 Months Ended

Sep. 30, 2019

Table 8.1 provides a summary of our equity securities by business purpose and accounting method, including equity securities with readily determinable fair values (marketable) and those without readily determinable fair values (nonmarketable).

Table 8.1: Equity Securities



(in millions)	Sep 30, 2019		Dec 31, 2018
Held for trading at fair value:
Marketable equity securities	$	24,436	19,449
Not held for trading:
Fair value:
Marketable equity securities (1)	6,639		4,513
Nonmarketable equity securities	7,293		5,594
Total equity securities at fair value	13,932		10,107
Equity method:
Low-income housing tax credit investments	11,068		10,999
Private equity	3,425		3,832
Tax-advantaged renewable energy	3,143		3,073
New market tax credit and other	390		311
Total equity method	18,026		18,215
Other:
Federal Reserve Bank stock and other at cost (2)	5,021		5,643
Private equity (3)	2,469		1,734
Total equity securities not held for trading	39,448		35,699
Total equity securities	$	63,884	55,148


(1)	Includes $3.5 billion and $3.2 billion at September 30, 2019, and December 31, 2018, respectively, related to securities held as economic hedges of our deferred compensation plan obligations.


(2)	Includes $5.0 billion and $5.6 billion at September 30, 2019, and December 31, 2018, respectively, related to investments in Federal Reserve Bank and Federal Home Loan Bank stock.


(3)	Represents nonmarketable equity securities accounted for under the measurement alternative.

Net Gains (Losses) from Equity Securities Not Held for Trading

Table 8.2 provides a summary of the net gains and losses from equity securities not held for trading. Gains and losses for

securities held for trading are reported in net gains from trading activities.

Table 8.2: Net Gains (Losses) from Equity Securities Not Held for Trading



	Quarter ended September 30,					Nine months ended September 30,
(in millions)	2019			2018		2019		2018
Net gains (losses) from equity securities carried at fair value:
Marketable equity securities	$	116		103		757		139
Nonmarketable equity securities	1,477			822		3,145		1,525
Total equity securities carried at fair value	1,593			925		3,902		1,664
Net gains (losses) from nonmarketable equity securities not carried at fair value:
Impairment write-downs	(43		)	(45	)	(110	)	(302	)
Net unrealized gains related to measurement alternative observable transactions	158			51		489		314
Net realized gains on sale	623			204		1,029		1,101
All other	—			—		—		34
Total nonmarketable equity securities not carried at fair value	738			210		1,408		1,147
Net losses from economic hedge derivatives (1)	(1,375		)	(719	)	(2,918	)	(1,317	)
Total net gains from equity securities	$	956		416		2,392		1,494


(1)	Includes net gains (losses) on derivatives not designated as hedging instruments.

Gains (Losses) from Measurement Alternative Equity Securities

Table 8.3 provides additional information about the impairment write-downs and observable price adjustments related to

nonmarketable equity securities accounted for under the measurement alternative. Gains and losses related to these adjustments are also included in Table 8.2.

Table 8.3: Net Gains (Losses) from Measurement Alternative Equity Securities



	Quarter ended September 30,					Nine months ended September 30,
(in millions)	2019			2018		2019		2018
Net gains (losses) recognized in earnings during the period:
Gross unrealized gains due to observable price changes	$	158		68		500		339
Gross unrealized losses due to observable price changes	—			(17	)	(11	)	(25	)
Impairment write-downs	(20		)	(6	)	(53	)	(18	)
Realized net gains from sale	36			186		161		277
Total net gains recognized during the period	$	174		231		597		573

Table 8.4 presents cumulative carrying value adjustments to nonmarketable equity securities accounted for under the measurement alternative that were still held as of the balance sheet date.

Table 8.4: Measurement Alternative Cumulative Gains (Losses)



(in millions)	Sep 30, 2019			Dec 31, 2018
Cumulative gains (losses):
Gross unrealized gains due to observable price changes	$	889		415
Gross unrealized losses due to observable price changes	(36		)	(25	)
Impairment write-downs	(71		)	(33	)