Equity Securities (Tables)

3 Months Ended

Mar. 31, 2021

Equity Securities [Abstract]

Equity Securities

Table 6.1 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 6.1: Equity Securities

(in millions)	Mar 31, 2021		Dec 31, 2020
Held for trading at fair value:
Marketable equity securities	$	20,254	23,032
Not held for trading:
Fair value:
Marketable equity securities	2,102		1,564
Nonmarketable equity securities	9,045		9,413
Total equity securities at fair value	11,147		10,977
Equity method:
Low-income housing tax credit investments	11,492		11,628
Private equity	2,893		2,960
Tax-advantaged renewable energy	5,562		5,458
New market tax credit and other	405		409
Total equity method	20,352		20,455
Other:
Federal Reserve Bank stock and other at cost (1)	3,585		3,588
Private equity (2)	4,643		4,208
Total equity securities not held for trading	39,727		39,228
Total equity securities	$	59,981	62,260

(1)    Substantially alll relates to investments in Federal Reserve Bank stock at both March 31, 2021, and December 31, 2020.

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

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

Table 6.2 provides a summary of the net gains and losses from equity securities not held for trading, which excludes equity method adjustments for our share of the investee’s earnings or losses that are recognized in other noninterest income. Gains and losses for securities held for trading are reported in net gains on trading and securities.

Table 6.2: Net Gains (Losses) from Equity Securities Not Held for Trading

	Quarter ended March 31,
(in millions)	2021		2020
Net gains (losses) from equity securities carried at fair value:
Marketable equity securities	$	60	(803)
Nonmarketable equity securities	(358)		(1,104)
Total equity securities carried at fair value	(298)		(1,907)
Net gains (losses) from nonmarketable equity securities not carried at fair value (1):
Impairment write-downs	(15)		(935)
Net unrealized gains related to measurement alternative observable transactions	225		222
Net realized gains on sale	55		—
Total nonmarketable equity securities not carried at fair value	265		(713)
Net losses from economic hedge derivatives (2)	425		1,219
Total net gains from equity securities not held for trading	$	392	(1,401)

(1)Includes impairment write-downs and net realized gains on sale related to private equity and venture capital investments in consolidated portfolio companies, which are not reported in equity securities on our consolidated balance sheet.

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

Net Gains (Losses) from Measurement Alternative Equity Securities

Table 6.3 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 6.2.

Table 6.3: Net Gains (Losses) from Measurement Alternative Equity Securities

	Quarter ended March 31,
(in millions)	2021		2020
Net gains (losses) recognized in earnings during the period:
Gross unrealized gains due to observable price changes	$	225	222
Impairment write-downs	(12)		(354)
Realized net gains from sale	—		2
Total net gains recognized during the period	$	213	(130)

Measurement Alternative Cumulative Gains (Losses)

Table 6.4 presents cumulative carrying value adjustments to nonmarketable equity securities accounted for under the measurement alternative that were still held at the end of each reporting period presented.

Table 6.4: Measurement Alternative Cumulative Gains (Losses)

(in millions)	Mar 31, 2020		Dec 31, 2020
Cumulative gains (losses):
Gross unrealized gains due to observable price changes	$	2,581	2,356
Gross unrealized losses due to observable price changes	(25)		(25)
Impairment write-downs	(981)		(969)