Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The following table presents information about our assets and liabilities measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. Unless otherwise noted below, assets and liabilities in the following table are recorded at fair value through net income.

	Fair Value Measurements on a Recurring Basis
June 30, 2023	Level 1		Level 2		Level 3		Gross Balance		Netting(1)		Net Balance
	(in millions)
Assets:
Trading assets, excluding derivatives:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	$	2,791	$	764	$	—	$	3,555	$	—	$	3,555
Debt securities issued by foreign entities	1,649		—		—		1,649		—		1,649
Equity securities	10,261		—		—		10,261		—		10,261
Precious metals trading	—		2,605		—		2,605		—		2,605
Derivatives:(2)
Interest rate contracts	5		1,457		1		1,463		—		1,463
Foreign exchange contracts	—		14,805		8		14,813		—		14,813
Equity contracts	—		775		170		945		—		945
Precious metals contracts	7		1,197		—		1,204		—		1,204
Credit contracts	—		75		2		77		—		77
Other contracts(3)	—		—		3		3		—		3
Derivatives netting	—		—		—		—		(17,056)		(17,056)
Total derivatives	12		18,309		184		18,505		(17,056)		1,449
Securities available-for-sale:(4)
U.S. Treasury, U.S. Government agencies and sponsored enterprises	8,236		16,268		—		24,504		—		24,504
Asset-backed securities:
Home equity	—		—		13		13		—		13
Other	—		—		92		92		—		92
Debt securities issued by foreign entities	1,543		107		—		1,650		—		1,650
Loans(5)	—		17		—		17		—		17
Loans held for sale(5)	—		371		3		374		—		374
Other assets:
Mortgage servicing rights	—		—		21		21		—		21
Equity securities	—		126		—		126		—		126
Equity securities measured at net asset value(6)	—		—		—		141		—		141
Other(5)(7)	—		61		—		61		—		61
Total assets	$	24,492	$	38,628	$	313	$	63,574	$	(17,056)	$	46,518
Liabilities:
Domestic deposits(5)	$	—	$	1,111	$	241	$	1,352	$	—	$	1,352
Trading liabilities, excluding derivatives	1,267		—		—		1,267		—		1,267
Derivatives:(2)
Interest rate contracts	11		1,187		6		1,204		—		1,204
Foreign exchange contracts	—		13,730		8		13,738		—		13,738
Equity contracts	—		879		195		1,074		—		1,074
Precious metals contracts	—		1,104		—		1,104		—		1,104
Credit contracts	—		105		—		105		—		105
Other contracts(3)	—		—		27		27		—		27
Derivatives netting	—		—		—		—		(15,671)		(15,671)
Total derivatives	11		17,005		236		17,252		(15,671)		1,581
Long-term debt(5)	—		6,915		2,291		9,206		—		9,206
Other liabilities(5)(7)	—		61		—		61		—		61
Total liabilities	$	1,278	$	25,092	$	2,768	$	29,138	$	(15,671)	$	13,467

	Fair Value Measurements on a Recurring Basis
December 31, 2022	Level 1		Level 2		Level 3		Gross Balance		Netting(1)		Net Balance
	(in millions)
Assets:
Trading assets, excluding derivatives:
U.S. Treasury, U.S. Government agencies and sponsored enterprises	$	1,670	$	369	$	—	$	2,039	$	—	$	2,039
Debt securities issued by foreign entities	6,337		54		—		6,391		—		6,391
Equity securities	7,855		—		—		7,855		—		7,855
Precious metals trading	—		3,831		—		3,831		—		3,831
Derivatives:(2)
Interest rate contracts	8		1,846		2		1,856		—		1,856
Foreign exchange contracts	—		15,734		10		15,744		—		15,744
Equity contracts	—		956		72		1,028		—		1,028
Precious metals contracts	—		1,201		—		1,201		—		1,201
Credit contracts	—		108		2		110		—		110
Other contracts(3)	—		—		5		5		—		5
Derivatives netting	—		—		—		—		(18,278)		(18,278)
Total derivatives	8		19,845		91		19,944		(18,278)		1,666
Securities available-for-sale:(4)
U.S. Treasury, U.S. Government agencies and sponsored enterprises	8,195		17,196		—		25,391		—		25,391
Asset-backed securities:
Home equity	—		—		15		15		—		15
Other	—		—		93		93		—		93
Debt securities issued by foreign entities	1,740		106		—		1,846		—		1,846
Loans(5)	—		20		—		20		—		20
Loans held for sale(5)	—		188		49		237		—		237
Other assets:
Mortgage servicing rights	—		—		22		22		—		22
Equity securities			127				127		—		127
Equity securities measured at net asset value(6)	—		—		—		140		—		140
Other(5)(7)	—		325		—		325		—		325
Total assets	$	25,805	$	42,061	$	270	$	68,276	$	(18,278)	$	49,998
Liabilities:
Domestic deposits(5)	$	—	$	1,181	$	373	$	1,554	$	—	$	1,554
Trading liabilities, excluding derivatives	837		—		—		837		—		837
Derivatives:(2)
Interest rate contracts	6		1,471		7		1,484		—		1,484
Foreign exchange contracts	—		15,500		10		15,510		—		15,510
Equity contracts	4		625		298		927		—		927
Precious metals contracts	1		1,254		—		1,255		—		1,255
Credit contracts	—		106		—		106		—		106
Other contracts(3)	—		—		38		38		—		38
Derivatives netting	—		—		—		—		(17,154)		(17,154)
Total derivatives	11		18,956		353		19,320		(17,154)		2,166
Long-term debt(5)	—		5,739		2,639		8,378		—		8,378
Other liabilities(5)(7)	—		325		—		325		—		325
Total liabilities	$	848	$	26,201	$	3,365	$	30,414	$	(17,154)	$	13,260

(1)Represents counterparty and cash collateral netting which allow the offsetting of amounts relating to certain contracts if certain conditions are met.

(2)Includes trading derivative assets of $1,321 million and $1,614 million and trading derivative liabilities of $1,432 million and $1,966 million at June 30, 2023 and December 31, 2022, respectively, as well as derivatives held for hedging and other non-qualifying economic hedging activities. See Note 10, "Derivative Financial Instruments," for additional information. Excluding changes in fair value of a derivative instrument associated with a qualifying cash flow hedge, which are recognized initially in other comprehensive income (loss), derivative assets and liabilities are recorded at fair value through net income.

(3)Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares.

(4)Securities available-for-sale are recorded at fair value through other comprehensive income (loss). Changes in the allowance for credit losses on securities available-for-sale are recorded through net income.

(5)See Note 11, "Fair Value Option," for additional information. Excluding the fair value movement on fair value option liabilities attributable to our own credit spread, which is recorded in other comprehensive income (loss), fair value option assets and liabilities are recorded at fair value through net income.

(6)Investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy.

(7)Consists of assets and liabilities associated with certain client share repurchase transactions.

Changes in Fair Value of Level 3 Assets and Liabilities

The following table summarizes additional information about changes in the fair value of Level 3 assets and liabilities during the three and six months ended June 30, 2023 and 2022. As a risk management practice, we may risk manage the Level 3 assets and liabilities, in whole or in part, using securities and derivative positions that are classified as Level 1 or Level 2 measurements within the fair value hierarchy. Since those Level 1 and Level 2 risk management positions are not included in the table below, the information provided does not reflect the effect of such risk management activities related to the Level 3 assets and liabilities.

	Apr. 1, 2023		Total Realized / Unrealized Gains (Losses) Included in				Purch- ases		Issu- ances		Settle- ments		Transfers Into Level 3		Transfers Out of Level 3		Jun. 30, 2023		Current Period Unrealized Gains (Losses) Still Held Included in
			Earnings		Other Compre- hensive Income (Loss)														Earnings		Other Compre- hensive Income (Loss)
	(in millions)
Assets:
Derivatives, net:(1)
Interest rate contracts	$	(4)	$	(1)	$	—	$	—	$	—	$	—	$	—	$	—	$	(5)	$	(1)	$	—
Foreign exchange contracts	—		—		—		—		—		—		—		—		—		—		—
Equity contracts	(84)		61		—		—		—		5		—		(7)		(25)		51		—
Credit contracts	2		—		—		—		—		—		—		—		2		—		—
Other contracts(2)	(24)		(7)		—		—		—		7		—		—		(24)		—		—
Asset-backed securities available-for-sale(3)	107		—		(2)		—		—		—		—		—		105		—		(2)
Loans held for sale(4)	50		—		—		2		—		(37)		—		(12)		3		—		—
Mortgage servicing rights(5)	21		—		—		—		—		—		—		—		21		—		—
Total assets	$	68	$	53	$	(2)	$	2	$	—	$	(25)	$	—	$	(19)	$	77	$	50	$	(2)
Liabilities:
Domestic deposits(4)	$	(270)	$	5	$	(3)	$	—	$	(2)	$	23	$	—	$	6	$	(241)	$	5	$	(3)
Long-term debt(4)	(2,395)		(94)		(19)		—		(185)		237		(35)		200		(2,291)		(55)		(19)
Total liabilities	$	(2,665)	$	(89)	$	(22)	$	—	$	(187)	$	260	$	(35)	$	206	$	(2,532)	$	(50)	$	(22)

	Jan. 1, 2023		Total Realized / Unrealized Gains (Losses) Included in				Purch- ases		Issu- ances		Settle- ments		Transfers Into Level 3		Transfers Out of Level 3		Jun. 30, 2023		Current Period Unrealized Gains (Losses) Still Held Included in
			Earnings		Other Compre- hensive Income (Loss)														Earnings		Other Compre- hensive Income (Loss)
	(in millions)
Assets:
Derivatives, net:(1)
Interest rate contracts	$	(5)	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	(5)	$	—	$	—
Foreign exchange contracts	—		—		—		—		—		—		—		—		—		—		—
Equity contracts	(226)		189		—		—		—		17		—		(5)		(25)		146		—
Credit contracts	2		—		—		—		—		—		—		—		2		—		—
Other contracts(2)	(33)		(9)		—		—		—		18		—		—		(24)		—		—
Asset-backed securities available-for-sale(3)	108		—		(1)		—		—		(2)		—		—		105		—		(1)
Loans held for sale(4)	49		—		—		3		—		(37)		—		(12)		3		—		—
Mortgage servicing rights(5)	22		(1)		—		—		—		—		—		—		21		(1)		—
Total assets	$	(83)	$	179	$	(1)	$	3	$	—	$	(4)	$	—	$	(17)	$	77	$	145	$	(1)
Liabilities:
Domestic deposits(4)	$	(373)	$	(1)	$	1	$	—	$	(2)	$	103	$	—	$	31	$	(241)	$	3	$	1
Long-term debt(4)	(2,639)		(260)		3		—		(374)		412		(36)		603		(2,291)		(159)		3
Total liabilities	$	(3,012)	$	(261)	$	4	$	—	$	(376)	$	515	$	(36)	$	634	$	(2,532)	$	(156)	$	4

	Apr. 1, 2022		Total Realized / Unrealized Gains (Losses) Included in				Purch- ases		Issu- ances		Settle- ments		Transfers Into Level 3		Transfers Out of Level 3		Jun. 30, 2022		Current Period Unrealized Gains (Losses) Still Held Included in
			Earnings		Other Compre- hensive Income (Loss)														Earnings		Other Compre- hensive Income (Loss)
	(in millions)
Assets:
Derivatives, net:(1)
Interest rate contracts	$	(1)	$	(1)	$	—	$	—	$	—	$	—	$	(2)	$	—	$	(4)	$	—	$	—
Foreign exchange contracts	(1)		1		—		—		—		—		—		—		—		—		—
Equity contracts	(1)		(221)		—		—		—		(53)		(7)		—		(282)		(255)		—
Credit contracts	(2)		1		—		—		—		—		—		—		(1)		1		—
Other contracts(2)	(24)		(30)		—		—		—		7		—		—		(47)		—		—
Asset-backed securities available-for-sale(3)	114		—		(1)		—		—		—		—		—		113		—		(1)
Mortgage servicing rights(5)	21		—		—		—		1		—		—		—		22		—		—
Total assets	$	106	$	(250)	$	(1)	$	—	$	1	$	(46)	$	(9)	$	—	$	(199)	$	(254)	$	(1)
Liabilities:
Domestic deposits(4)	$	(492)	$	24	$	3	$	—	$	—	$	46	$	(81)	$	—	$	(500)	$	20	$	3
Long-term debt(4)	(2,072)		259		11		—		(358)		98		(31)		—		(2,093)		252		11
Total liabilities	$	(2,564)	$	283	$	14	$	—	$	(358)	$	144	$	(112)	$	—	$	(2,593)	$	272	$	14

	Jan. 1, 2022		Total Realized / Unrealized Gains (Losses) Included in				Purch- ases		Issu- ances		Settle- ments		Transfers Into Level 3		Transfers Out of Level 3		Jun. 30, 2022		Current Period Unrealized Gains (Losses) Still Held Included in
			Earnings		Other Compre- hensive Income (Loss)														Earnings		Other Compre- hensive Income (Loss)
	(in millions)
Assets:
Derivatives, net:(1)
Interest rate contracts	$	—	$	(1)	$	—	$	—	$	—	$	—	$	(3)	$	—	$	(4)	$	(1)	$	—
Foreign exchange contracts	(2)		2		—		—		—		—		—		—		—		—		—
Equity contracts	46		(341)		—		—		—		(52)		22		43		(282)		(339)		—
Credit contracts	(2)		1		—		—		—		—		—		—		(1)		1		—
Other contracts(2)	(33)		(31)		—		—		—		17		—		—		(47)		—		—
Asset-backed securities available-for-sale(3)	120		—		(4)		—		—		(3)		—		—		113		—		(4)
Mortgage servicing rights(5)	16		4		—		—		2		—		—		—		22		2		—
Total assets	$	145	$	(366)	$	(4)	$	—	$	2	$	(38)	$	19	$	43	$	(199)	$	(337)	$	(4)
Liabilities:
Domestic deposits(4)	$	(535)	$	45	$	1	$	—	$	—	$	116	$	(130)	$	3	$	(500)	$	38	$	1
Long-term debt(4)	(1,853)		353		16		—		(658)		200		(237)		86		(2,093)		319		16
Total liabilities	$	(2,388)	$	398	$	17	$	—	$	(658)	$	316	$	(367)	$	89	$	(2,593)	$	357	$	17

(1)Level 3 net derivatives included derivative assets of $184 million and derivative liabilities of $236 million at June 30, 2023 and derivative assets of $96 million and derivative liabilities of $430 million at June 30, 2022. Gains (losses) on derivatives, net are predominantly included in trading revenue and gain (loss) on instruments designated at fair value and related derivatives in the consolidated statement of income.

(2)Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares. Gains (losses) on these swap agreements are included in other income (loss) in the consolidated statement of income.

(3)Realized gains (losses) on securities available-for-sale are included in other securities gains, net in the consolidated statement of income. Changes in the allowance for credit losses on securities available-for-sale are included in the provision for credit losses in the consolidated statement of income. Unrealized gains (losses) on securities available-for-sale are included in other comprehensive income (loss).

(4)Excluding unrealized gains (losses) on fair value option liabilities attributable to our own credit spread, which are recorded in other comprehensive income (loss), gains (losses) on fair value option assets and liabilities are included in gain (loss) on instruments designated at fair value and related derivatives in the consolidated statement of income.

(5)Gains (losses) on mortgage servicing rights are included in other income (loss) in the consolidated statement of income.

Quantitative Information about Recurring Fair Value Measurement of Assets and Liabilities Classified as Level 3

The following table presents quantitative information about the unobservable inputs used to determine the recurring fair value measurement of assets and liabilities classified as Level 3 fair value measurements at June 30, 2023 and December 31, 2022:

June 30, 2023
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs	Weighted Average(1)
Interest rate derivative contracts	$	(5)	Market comparable adjusted for probability to fund and, where applicable, option pricing model	Probability to fund for rate lock commitments	43% - 91%	81%
				Interest rate yield curve	8%	N/A
Foreign exchange derivative contracts	$	—	Option pricing model	Cross-currency basis	72bps	N/A
Equity derivative contracts(2)	$	(25)	Option pricing model	Equity / Equity Index volatility	6% - 95%	33%
				Equity / Equity and Equity / Index correlation	45% - 97%	83%
				Equity forward price	$40 - $6,053	$346
Credit derivative contracts	$	2	Option pricing model and, where applicable, discounted cash flows	Credit default swap spreads	807bps - 1,346bps	1,239bps
Other derivative contracts	$	(24)	Discounted cash flows	Conversion rate	1.6 times	N/A
				Expected duration	0.5 years	N/A
Asset-backed securities available-for-sale	$	105	Discounted cash flows	Market assumptions related to yields for comparable instruments	1% - 3%	2%
Loans held for sale	$	3	Market comparables and internal assumptions	Adjusted market price	89% - 100%	95%
Mortgage servicing rights	$	21	Discounted cash flows	Constant prepayment rates	6% - 15%	6%
				Discount rate	9% - 13%	9%
				Estimated annualized costs to service	$72 - $76 per account	$74 per account
Domestic deposits (structured deposits)(2)(3)	$	(241)	Option adjusted discounted cash flows	Equity / Equity Index volatility	8% - 27%	13%
				Equity / Equity and Equity / Index correlation	49% - 92%	65%
Long-term debt (structured notes)(2)(3)	$	(2,291)	Option adjusted discounted cash flows	Equity / Equity Index volatility	8% - 95%	18%
				Equity / Equity and Equity / Index correlation	45% - 97%	83%
				Credit default swap spreads	1,150bps	NA

December 31, 2022
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs	Weighted Average(1)
Interest rate derivative contracts	$	(5)	Market comparable adjusted for probability to fund and, where applicable, option pricing model	Probability to fund for rate lock commitments	51% - 99%	84%
				Interest rate yield curve	9%	N/A
Foreign exchange derivative contracts	$	—	Option pricing model	Cross-currency basis	103bps	N/A
Equity derivative contracts(2)	$	(226)	Option pricing model	Equity / Equity Index volatility	8% - 101%	42%
				Equity / Equity and Equity / Index correlation	45% - 99%	85%
				Equity forward price	$39 - $5,271	$1,243
Credit derivative contracts	$	2	Option pricing model and, where applicable, discounted cash flows	Credit default swap spreads	491bps - 902bps	885bps
Other derivative contracts	$	(33)	Discounted cash flows	Conversion rate	1.6 times	N/A
				Expected duration	1.0 year	N/A
Asset-backed securities available-for-sale	$	108	Discounted cash flows	Market assumptions related to yields for comparable instruments	2% - 3%	2%
Loans held for sale	$	49	Market comparables and internal assumptions	Adjusted market price	5% - 80%	42%
Mortgage servicing rights	$	22	Discounted cash flows	Constant prepayment rates	6% - 14%	6%
				Discount rate	9% - 13%	9%
				Estimated annualized costs to service	$72 - $76 per account	$74 per account
Domestic deposits (structured deposits)(2)(3)	$	(373)	Option adjusted discounted cash flows	Equity / Equity Index volatility	8% - 24%	19%
				Equity / Equity and Equity / Index correlation	49% - 88%	63%
Long-term debt (structured notes)(2)(3)	$	(2,639)	Option adjusted discounted cash flows	Equity / Equity Index volatility	8% - 55%	29%
				Equity / Equity and Equity / Index correlation	45% - 99%	86%
				Credit default swap spreads	1,223bps	N/A

(1)For foreign exchange derivatives, equity derivatives, credit derivatives, structured deposits and structured notes, weighted averages are calculated based on the fair value of the instruments. For all remaining instrument types, weighted averages are calculated based on the notional value of the instruments.

(2)We are the client-facing entity and, except for structured notes and deposits with embedded credit derivative features, we enter into identical but opposite derivatives to transfer the resultant risks to our affiliates. With the exception of counterparty credit risks, we are market risk neutral in substantially all of the structured notes and deposits. The corresponding intra-group derivatives are presented as equity derivatives in the table.

(3)Structured deposits and structured notes contain embedded derivative features whose fair value measurements contain significant Level 3 inputs. See equity derivatives and credit derivatives below for a discussion of the uncertainty of Level 3 inputs related to structured deposits and structured notes.

N/A Not Applicable

Assets and Liabilities Recorded at Fair Value on a Non Recurring Basis

The following table presents the fair value hierarchy level within which the fair value of the financial and non-financial assets has been recorded at June 30, 2023 and December 31, 2022. The gains (losses) during the three and six months ended June 30, 2023 and 2022 are also included.

	Non-Recurring Fair Value Measurements at June 30, 2023								Total Gains (Losses) For the Three Months Ended June 30, 2023		Total Gains (Losses) For the Six Months Ended June 30, 2023
	Level 1		Level 2		Level 3		Total
	(in millions)
Consumer loans(1)	$	—	$	107	$	—	$	107	$	—	$	(1)
Commercial loans held for sale(2)	—		581		—		581		(36)		(37)
Commercial loans(3)	—		—		150		150		(12)		(9)
Leases(4)	—		—		—		—		1		(14)
Total assets at fair value on a non-recurring basis	$	—	$	688	$	150	$	838	$	(47)	$	(61)

	Non-Recurring Fair Value Measurements at December 31, 2022								Total Gains (Losses) For the Three Months Ended June 30, 2022		Total Gains (Losses) For the Six Months Ended June 30, 2022
	Level 1		Level 2		Level 3		Total
	(in millions)
Consumer loans held for sale(5)	$	—	$	1	$	—	$	1	$	(7)	$	(8)
Consumer loans(1)	—		112		—		112		1		3
Commercial loans(3)	—		—		52		52		(5)		—
Leases(4)	—		—		—		—		4		3
Total assets at fair value on a non-recurring basis	$	—	$	113	$	52	$	165	$	(7)	$	(2)

(1)Represents residential mortgage loans held for investment whose carrying amount was adjusted during the period based on the fair value of the underlying collateral.

(2)At June 30, 2023, the fair value of the loans held for sale was below cost.

(3)Certain commercial loans are individually assessed for impairment. We measure the credit impairment of a collateral-dependent loan based on the fair value of the collateral asset. The collateral often involves real estate properties that are illiquid due to market conditions. As a result, these loans are classified as a Level 3 fair value measurement within the fair value hierarchy.

(4)During the six months ended June 30, 2023, we wrote down the lease ROU assets and leasehold improvement assets associated with the exit of certain office space. During the three and six months ended June 30, 2022, we reversed lease ROU asset and leasehold improvement asset impairment charges associated with certain office space that we determined we would exit.

(5)At December 31, 2022, the fair value of the loans held for sale was below cost.

Quantitative Information about Non Recurring Fair Value Measurement of Assets and Liabilities

The following tables present quantitative information about non-recurring fair value measurements of assets and liabilities classified with Level 3 of the fair value hierarchy at June 30, 2023 and December 31, 2022:

At June 30, 2023
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs	Weighted Average(1)
Commercial loans	$	150	Valuation of third party appraisal on underlying collateral	Loss severity rates	1% - 54%	28%

At December 31, 2022
Financial Instrument Type	Fair Value (in millions)		Valuation Technique(s)	Significant Unobservable Inputs	Range of Inputs	Weighted Average(1)
Commercial loans	$	52	Valuation of third party appraisal on underlying collateral	Loss severity rates	11% - 47%	31%

(1)Weighted average is calculated based on the carrying value of the loans.

Additional Information Relating to Asset-Backed Securities and Collateralized Debt Obligations

The following tables provide additional information relating to our available-for-sale asset-backed securities at June 30, 2023:

Rating of Securities:(1)	Collateral Type:	Level 3
		(in millions)
AAA - A	Home equity - Alt A	$	13
BBB - B	Other	92
		$	105

(1)We utilize S&P as the primary source of credit ratings in the tables above. If S&P ratings are not available, ratings by Moody's and Fitch are used in that order.

Carrying Value and Estimated Fair Value of Financial Instruments

The following table summarizes the carrying value and estimated fair value of our financial instruments, excluding financial instruments that are carried at fair value on a recurring basis, at June 30, 2023 and December 31, 2022, and their classification within the fair value hierarchy:

June 30, 2023	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(in millions)
Financial assets:
Short-term financial assets, net of allowance for credit losses	$	30,339	$	30,339	$	831	$	29,476	$	32
Federal funds sold and securities purchased under agreements to resell	12,519		12,519		—		12,519		—
Securities held-to-maturity, net of allowance for credit losses	13,428		12,872		—		12,872		—
Commercial loans, net of allowance for credit losses	39,218		39,568		—		—		39,568
Commercial loans held for sale	622		622		—		622		—
Consumer loans, net of allowance for credit losses	18,105		16,042		—		—		16,042
Consumer loans held for sale	1		1		—		1		—
Financial liabilities:
Short-term financial liabilities	$	8,259	$	8,259	$	—	$	8,227	$	32
Deposits	120,284		120,233		—		120,233		—
Long-term debt	10,465		11,024		—		11,024		—

December 31, 2022	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(in millions)
Financial assets:
Short-term financial assets, net of allowance for credit losses	$	18,802	$	18,802	$	1,004	$	17,744	$	54
Federal funds sold and securities purchased under agreements to resell	23,085		23,085		—		23,085		—
Securities held-to-maturity, net of allowance for credit losses	7,317		6,862		—		6,862		—
Commercial loans, net of allowance for credit losses	41,266		42,050		—		—		42,050
Commercial loans held for sale	112		112		—		112		—
Consumer loans, net of allowance for credit losses	17,510		15,984		—		—		15,984
Consumer loans held for sale	5		5		—		5		—
Financial liabilities:
Short-term financial liabilities	$	5,999	$	5,999	$	—	$	5,945	$	54
Deposits	121,669		121,652		—		121,652		—
Long-term debt	9,213		9,769		—		9,769		—