10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Form 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2016

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File No. 001-07511

STATE STREET CORPORATION

(Exact name of registrant as specified in its charter)

Massachusetts	04-2456637
(State or other jurisdiction of incorporation)	(I.R.S. Employer Identification No.)
One Lincoln Street Boston, Massachusetts	02111
(Address of principal executive office)	(Zip Code)
617-786-3000 (Registrant’s telephone number, including area code)

______________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  YesxNo¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  YesxNo¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  x	Accelerated filer ¨	Non-accelerated filer  ¨	Smaller reporting company  ¨
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes  ¨  No  x

The number of shares of the registrant’s common stock outstanding as of July 31, 2016 was 390,015,216.

STATE STREET CORPORATION

QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED

June 30, 2016

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Table of Contents for Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Management’s Discussion and Analysis of Financial Condition and Results of Operations	5
Quantitative and Qualitative Disclosures About Market Risk	51
Controls and Procedures	51
Consolidated Statement of Income (Unaudited) for the three and six months ended June 30, 2016 and 2015	52
Consolidated Statement of Comprehensive Income (Unaudited) for the three and six months ended June 30, 2016 and 2015	53
Consolidated Statement of Condition as of June 30, 2016 (Unaudited) and December 31, 2015	54
Consolidated Statement of Changes in Shareholders' Equity (Unaudited) for the six months ended June 30, 2016 and 2015	55
Consolidated Statement of Cash Flows (Unaudited) for the six months ended June 30, 2016 and 2015	56
Condensed Notes to Consolidated Financial Statements (Unaudited)	57
Review Report of Independent Registered Public Accounting Firm	103
PART II. OTHER INFORMATION
Unregistered Sales of Equity Securities and Use of Proceeds	104
Exhibits	104
Signatures	105
Exhibit Index	106

ACRONYMS
2015 Form 10-K	State Street Corporation Annual Report on Form 10-K for the year ended December 31, 2015	FRBB	Federal Reserve Bank of Boston
ABS	Asset-backed securities	FSB	Financial Stability Board
AFS	Available-for-sale	FX	Foreign exchange
ALLL	Allowance for loan and lease losses	GAAP	Generally accepted accounting principles
AML	Anti-money laundering	G-SIB	Global systemically important bank
AOCI	Accumulated other comprehensive income (loss)	HQLA(1)	High-quality liquid assets
ASU	Accounting Standards Update	HTM	Held-to-maturity
AUCA	Assets under custody and administration	LCR(1)	Liquidity coverage ratio
AUM	Assets under management	MRAC	Management Risk and Capital Committee
BCBS	Basel Committee on Banking Supervision	NIR	Net interest revenue
Board	Board of Directors	OCI	Other comprehensive income (loss)
CCAR	Comprehensive Capital Analysis and Review	OCIO	Outsourced Chief Investment Officer
CD	Certificates of deposit	OFAC	Office of Foreign Assets Control
CET1(1)	Common equity tier 1	OTC	Over-the-counter
CLO	Collateralized loan obligations	OTTI	Other-than-temporary-impairment
CRE	Commercial real estate	Parent Company	State Street Corporation
CVA	Credit valuation adjustment	PCA	Prompt corrective action
Dodd-Frank Act	Dodd-Frank Wall Street Reform and Consumer Protection Act	P&L	Profit-and-loss
ECB	European Central Bank	RC	Risk Committee
EPS	Earnings per share	RWA(1)	Risk-weighted assets
ERISA	Employee Retirement Income Security Act	SEC	Securities and Exchange Commission
ERM	Enterprise Risk Management	SIFI	Systemically important financial institutions
ETF	Exchange-Traded Fund	SLR(1)	Supplementary leverage ratio
EVE	Economic value of equity	SSGA	State Street Global Advisors
FASB	Financial Accounting Standards Board	State Street Bank	State Street Bank and Trust Company
FCA	Financial Conduct Authority	TMRC	Trading and Markets Risk Committee
FDIC	Federal Deposit Insurance Corporation	VaR	Value-at-risk
Federal Reserve	Board of Governors of the Federal Reserve System	VIE	Variable interest entity
FHLB	Federal Home Loan Bank of Boston

⁽¹⁾ As defined by the applicable U.S. regulations.

STATE STREET CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

TABLE OF CONTENTS

General	5
Overview of Financial Results	9
Consolidated Results of Operations	11
Total Revenue	11
Fee Revenue	12
Net Interest Revenue	13
Expenses	17
Income Tax Expense	19
Line of Business Information	19
Financial Condition	25
Investment Securities	26
Loans and Leases	29
Cross-Border Outstandings	30
Risk Management	31
Credit Risk Management	31
Liquidity Risk Management	32
Operational Risk Management	35
Market Risk Management	35
Model Risk Management	38
Capital	38
Off-Balance Sheet Arrangements	50
Recent Accounting Developments	50

We use acronyms and other defined terms for certain business terms and abbreviations, as defined on the acronyms list following the table of contents to this Form 10-Q.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

GENERAL

State Street Corporation, referred to as the parent company, is a financial holding company organized in 1969 under the laws of the Commonwealth of Massachusetts. Our executive offices are located at One Lincoln Street, Boston, Massachusetts 02111 (telephone (617) 786-3000). For purposes of this Form 10-Q, unless the context requires otherwise, references to “State Street,” “we,” “us,” “our” or similar terms mean State Street Corporation and its subsidiaries on a consolidated basis. The parent company is a source of financial and managerial strength to our subsidiaries. Through our subsidiaries, including our principal banking subsidiary, State Street Bank and Trust Company, referred to as State Street Bank, we provide a broad range of financial products and services to institutional investors worldwide, with $27.79 trillion of AUCA and $2.30 trillion of AUM as of June 30, 2016.

As of June 30, 2016, we had consolidated total assets of $255.39 billion, consolidated total deposits of $193.13 billion, consolidated total shareholders' equity of $22.07 billion and 32,636 employees. We operate in more than 100 geographic markets worldwide, including in the U.S., Canada, Europe, the Middle East and Asia.

Our operations are organized for management reporting purposes into 2 lines of business: Investment Servicing and Investment Management, which are defined based on products and services provided.

Investment Servicing provides services for institutional clients, including mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations and endowments worldwide. Products include custody; product- and participant-level accounting; daily pricing and administration; master trust and master custody; record-keeping; cash management; foreign exchange, brokerage and other trading services; securities finance; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; and performance, risk and compliance analytics to support institutional investors.

Investment Management, through SSGA, provides a broad array of investment management, investment research and investment advisory services to corporations, public funds and other sophisticated investors. SSGA offers active and passive asset management strategies across equity, fixed-income and cash asset classes. Products are distributed directly and through intermediaries using a

variety of investment vehicles, including ETFs, such as the SPDR^® ETF brand.

For financial and other information about our lines of business, refer to “Line of Business Information” included in this Management's Discussion and Analysis and Note 17 to the consolidated financial statements included in this Form 10-Q.

This Management's Discussion and Analysis is part of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, and updates the Management's Discussion and Analysis in our 2015 Form 10-K previously filed with the SEC. You should read the financial information contained in this Management's Discussion and Analysis and elsewhere in this Form 10-Q in conjunction with the financial and other information contained in our 2015 Form 10-K. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation.

We prepare our consolidated financial statements in conformity with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in its application of certain accounting policies that materially affect the reported amounts of assets, liabilities, equity, revenue and expenses.

The significant accounting policies that require us to make judgments, estimates and assumptions that are difficult, subjective or complex about matters that are uncertain and may change in subsequent periods include accounting for fair value measurements; other-than-temporary impairment of investment securities; impairment of goodwill and other intangible assets; and contingencies. These significant accounting policies require the most subjective or complex judgments, and underlying estimates and assumptions could be subject to revision as new information becomes available. Additional information about these significant accounting policies is included under “Significant Accounting Estimates” in Management's Discussion and Analysis in our 2015 Form 10-K. We did not change these significant accounting policies in the first six months of 2016.

Certain financial information provided in this Form 10-Q, including this Management's Discussion and Analysis, is prepared on both a U.S. GAAP, or reported basis, and a non-GAAP basis, including certain non-GAAP measures used in the calculation of identified regulatory ratios. We measure and compare certain financial information on a non-GAAP basis, including information (such as capital ratios calculated under regulatory standards scheduled to

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

be effective in the future) that management uses in evaluating our business and activities.

Non-GAAP financial information should be considered in addition to, not as a substitute for or superior to, financial information prepared in conformity with U.S. GAAP. Any non-GAAP financial information presented in this Form 10-Q, including this Management’s Discussion and Analysis, is reconciled to its most directly comparable currently applicable regulatory ratio or U.S. GAAP-basis measure.

We further believe that our presentation of fully taxable-equivalent net interest revenue, which reports non-taxable revenue, such as interest revenue associated with tax-exempt investment securities, on a fully taxable-equivalent basis, facilitates an investor's understanding and analysis of our underlying financial performance and trends.

We provide additional disclosures required by applicable bank regulatory standards, including supplemental qualitative and quantitative information with respect to regulatory capital (including market risk associated with our trading activities), summary results of semi-annual State Street-run stress tests which we conduct under the Dodd-Frank Act, and resolution plan disclosures required under the Dodd-Frank Act. These additional disclosures are accessible on the “Investor Relations” section of our corporate website at www.statestreet.com.

We have included our website address in this report as an inactive textual reference only. Information on our website is not incorporated by reference into this Form 10-Q.

We use acronyms and other defined terms for certain business terms and abbreviations, as defined on the acronyms list following the table of contents to this Form 10-Q.

Forward-Looking Statements

This Form 10-Q, as well as other reports and proxy materials submitted by us under the Securities Exchange Act of 1934, registration statements filed by us under the Securities Act of 1933, our annual report to shareholders and other public statements we may make, contain statements (including statements in the Management's Discussion and Analysis) that are considered “forward-looking statements” within the meaning of U.S. securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, strategies, financial portfolio performance, dividend and stock purchase programs, expected outcomes of legal proceedings, market growth, acquisitions, joint ventures and divestitures and new technologies, services and opportunities, as well as regarding industry, regulatory, economic and market trends, initiatives and developments, the business

environment and other matters that do not relate strictly to historical facts.

Terminology such as “plan,” “expect,” “intend,” “objective,” “forecast,” “outlook,” “believe,” "priority," “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” “strategy” and “goal,” or similar statements or variations of such terms, are intended to identify forward-looking statements, although not all forward-looking statements contain such terms.

Forward-looking statements are subject to various risks and uncertainties, which change over time, are based on management's expectations and assumptions at the time the statements are made, and are not guarantees of future results. Management's expectations and assumptions, and the continued validity of the forward-looking statements, are subject to change due to a broad range of factors affecting the national and global economies, regulatory environment and the equity, debt, currency and other financial markets, as well as factors specific to State Street and its subsidiaries, including State Street Bank. Factors that could cause changes in the expectations or assumptions on which forward-looking statements are based cannot be foreseen with certainty and include, but are not limited to:

• the financial strength and continuing viability of the counterparties with which we or our clients do business and to which we have investment, credit or financial exposure, including, for example, the direct and indirect effects on counterparties of the sovereign-debt risks in the U.S., Europe and other regions;

• increases in the volatility of, or declines in the level of, our net interest revenue, changes in the composition or valuation of the assets recorded in our consolidated statement of condition (and our ability to measure the fair value of investment securities) and the possibility that we may change the manner in which we fund those assets;

• the liquidity of the U.S. and international securities markets, particularly the markets for fixed-income securities and inter-bank credits, and the liquidity requirements of our clients;

• the level and volatility of interest rates, the valuation of the U.S. dollar relative to other currencies in which we record revenue or accrue expenses and the performance and volatility of securities, credit, currency and other markets in the U.S. and internationally;

• the credit quality, credit-agency ratings and fair values of the securities in our investment securities portfolio, a deterioration or

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

downgrade of which could lead to other-than-temporary impairment of the respective securities and the recognition of an impairment loss in our consolidated statement of income;

• our ability to attract deposits and other low-cost, short-term funding, our ability to manage levels of such deposits and the relative portion of our deposits that are determined to be operational under regulatory guidelines and our ability to deploy deposits in a profitable manner consistent with our liquidity requirements and risk profile;

• the manner and timing with which the Federal Reserve and other U.S. and foreign regulators implement changes to the regulatory framework applicable to our operations, including implementation of the Dodd-Frank Act, the Basel III final rule and European legislation (such as the Alternative Investment Fund Managers Directive, Undertakings for Collective Investment in Transferable Securities Directives and Markets in Financial Instruments Directive II); among other consequences, these regulatory changes impact the levels of regulatory capital we must maintain, acceptable levels of credit exposure to third parties, margin requirements applicable to derivatives, and restrictions on banking and financial activities. In addition, our regulatory posture and related expenses have been and will continue to be affected by changes in regulatory expectations for global systemically important financial institutions applicable to, among other things, risk management, liquidity and capital planning and compliance programs, and changes in governmental enforcement approaches to perceived failures to comply with regulatory or legal obligations;

• we may not successfully implement our plans to address the deficiencies jointly identified by the Federal Reserve and the FDIC in April 2016 with respect to our 2015 resolution plan, or those plans may not be considered to be sufficient by the Federal Reserve and the FDIC, due to a number of factors, including, but not limited to challenges we may experience in interpreting and addressing regulatory expectations, failure to implement remediation in a timely manner, the  complexities of development of a comprehensive plan to resolve a global custodial bank and related costs and dependencies. If we fail to meet regulatory

expectations to the satisfaction of the Federal Reserve and the FDIC in our resolution plan submission due on October 1, 2016 or in any future submission, we could be subject to more stringent capital, leverage or liquidity requirements, or restrictions on our growth, activities or operations;

• adverse changes in the regulatory ratios that we are required or will be required to meet, whether arising under the Dodd-Frank Act or the Basel III final rule, or due to changes in regulatory positions, practices or regulations in jurisdictions in which we engage in banking activities, including changes in internal or external data, formulae, models, assumptions or other advanced systems used in the calculation of our capital ratios that cause changes in those ratios as they are measured from period to period;

• increasing requirements to obtain the prior approval of the Federal Reserve or our other U.S. and non-U.S. regulators for the use, allocation or distribution of our capital or other specific capital actions or programs, including acquisitions, dividends and stock purchases, without which our growth plans, distributions to shareholders, share repurchase programs or other capital initiatives may be restricted;

• changes in law or regulation, or the enforcement of law or regulation, that may adversely affect our business activities or those of our clients or our counterparties, and the products or services that we sell, including additional or increased taxes or assessments thereon, capital adequacy requirements, margin requirements and changes that expose us to risks related to the adequacy of our controls or compliance programs;

• economic or financial market disruptions in the U.S. or internationally, including that which may result from recessions or political instability, for example, the decision by the U.K.'s referendum to exit from the European Union may continue to disrupt financial markets or economic growth in Europe;

• our ability to develop and execute State Street Beacon, our multi-year transformation program to create cost efficiencies and to fully digitize our business to support the development of new solutions and capabilities for our clients, any failure of which, in whole or in part, may among other things, reduce our competitive position, diminish the cost-effectiveness of our systems and processes or provide an

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

insufficient return on our associated investment;

• our ability to promote a strong culture of risk management, operating controls, compliance oversight and governance that meet our expectations and those of our clients and our regulators;

• the results of our review of our billing practices, including additional amounts we may be required to reimburse clients, as well as potential consequences of such review, including damage to our client relationships and adverse actions by governmental authorities;

• the results of, and costs associated with, governmental or regulatory inquiries and investigations, litigation and similar claims, disputes, or civil or criminal proceedings;

• the potential for losses arising from our investments in sponsored investment funds;

• the possibility that our clients will incur substantial losses in investment pools for which we act as agent, and the possibility of significant reductions in the liquidity or valuation of assets underlying those pools;

• our ability to anticipate and manage the level and timing of redemptions and withdrawals from our collateral pools and other collective investment products;

• the credit agency ratings of our debt and depositary obligations and investor and client perceptions of our financial strength;

• adverse publicity, whether specific to State Street or regarding other industry participants or industry-wide factors, or other reputational harm;

• our ability to control operational risks, data security breach risks and outsourcing risks, our ability to protect our intellectual property rights, the possibility of errors in the quantitative models we use to manage our business and the possibility that our controls will prove insufficient, fail or be circumvented;

• our ability to expand our use of technology to enhance the efficiency, accuracy and reliability of our operations and our dependencies on information technology and our ability to control related risks, including cyber-crime and other threats to our information technology infrastructure and systems and their effective operation both independently and with external systems, and complexities and costs of protecting the security of our systems and data;

• our ability to grow revenue, manage expenses, attract and retain highly skilled people and raise the capital necessary to achieve our business goals and comply with regulatory requirements and expectations;

• changes or potential changes to the competitive environment, including changes due to regulatory and technological changes, the effects of industry consolidation and perceptions of State Street as a suitable service provider or counterparty;

• changes or potential changes in the amount of compensation we receive from clients for our services, and the mix of services provided by us that clients choose;

• our ability to complete acquisitions, joint ventures and divestitures, including the ability to obtain regulatory approvals, the ability to arrange financing as required and the ability to satisfy closing conditions;

• the risks that our acquired businesses and joint ventures will not achieve their anticipated financial and operational benefits or will not be integrated successfully, or that the integration will take longer than anticipated, that expected synergies will not be achieved or unexpected negative synergies or liabilities will be experienced, that client and deposit retention goals will not be met, that other regulatory or operational challenges will be experienced, and that disruptions from the transaction will harm our relationships with our clients, our employees or regulators;

• our ability to recognize emerging needs of our clients and to develop products that are responsive to such trends and profitable to us, the performance of and demand for the products and services we offer, and the potential for new products and services to impose additional costs on us and expose us to increased operational risk;

• changes in accounting standards and practices; and

• changes in tax legislation and in the interpretation of existing tax laws by U.S. and non-U.S. tax authorities that affect the amount of taxes due.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

Actual outcomes and results may differ materially from what is expressed in our forward-looking statements and from our historical financial results due to the factors discussed in this section and elsewhere in this Form 10-Q or disclosed in our other SEC filings, including the risk factors discussed in our 2015 Form 10-K. Forward-looking statements in this Form 10-Q should not be relied on as representing our expectations or beliefs as of any date subsequent to the time this Form 10-Q is filed with the SEC. We undertake no obligation to revise our forward-looking statements after the time they are made. The factors discussed herein are not intended to be a complete statement of all risks and uncertainties that may affect our businesses. We cannot anticipate all developments that may adversely affect our business or operations or our consolidated results of operations, financial condition or cash flows.

Forward-looking statements should not be viewed as predictions, and should not be the primary basis on which investors evaluate State Street. Any investor in State Street should consider all risks and uncertainties disclosed in our SEC filings, including our filings under the Securities Exchange Act of 1934, in particular our annual reports on Form 10-K, our quarterly reports on Form 10-Q and our current reports on Form 8-K, or registration statements filed under the Securities Act of 1933, all of which are accessible on the SEC's website at www.sec.gov or on the “Investor Relations” section of our corporate website at www.statestreet.com.

OVERVIEW OF FINANCIAL RESULTS

TABLE 1: OVERVIEW OF FINANCIAL RESULTS
	Quarters Ended June 30,
(Dollars in millions, except per share amounts)	2016			2015			% Change
Total fee revenue	$	2,053		$	2,076		(1	)%
Net interest revenue	521			535			(3	)
Gains (losses) related to investment securities, net	(1		)	(3		)	nm
Total revenue	2,573			2,608			(1	)
Provision for loan losses	4			2			100
Total expenses	1,860			2,134			(13	)
Income before income tax expense	709			472			50
Income tax expense	92			54			70
Net Income from non-controlling interest	2			—			nm
Net income	$	619		$	418		48
Adjustments to net income:
Dividends on preferred stock(1)	(33		)	(29		)	14
Earnings allocated to participating securities(2)	(1		)	—			nm
Net income available to common shareholders	$	585		$	389		50
Earnings per common share:
Basic	$	1.48		$	.95		56
Diluted	1.47			.93			58
Average common shares outstanding (in thousands):
Basic	394,160			410,674
Diluted	398,847			416,712
Cash dividends declared per common share	$	.34		$	.34
Return on average common equity	12.4		%	8.2		%
	Six Months Ended June 30,
	2016			2015			% Change
(Dollars in millions, except per share amounts)
Total fee revenue	$	4,023		$	4,131		(3	)%
Net interest revenue	1,033			1,081			(4	)
Gains (losses) related to investment securities, net	1			(4		)	nm
Total revenue	5,057			5,208			(3	)
Provision for loan losses	8			6			33
Total expenses	3,910			4,231			(8	)
Income before income tax expense	1,139			971			17
Income tax expense	154			148			4
Net income from non-controlling interest	2			—			nm
Net income	$	987		$	823		20
Adjustments to net income:
Dividends on preferred stock(1)	(82		)	(60		)	37
Earnings allocated to participating securities(2)	(1		)	(1		)	—
Net income available to common shareholders	$	904		$	762		19
Earnings per common share:
Basic	$	2.28		$	1.85		23
Diluted	2.25			1.83			23
Average common shares outstanding (in thousands):
Basic	396,790			411,445
Diluted	401,113			417,643
Cash dividends declared per common share	$	.68		$	.64
Return on average common equity	9.6		%	8.0		%

⁽¹⁾ Refer to Note 12 of the consolidated financial statements included in this Form 10-Q for additional information regarding our preferred stock dividends.

⁽²⁾ Refer to Note 16 of the consolidated financial statements included in this Form 10-Q.

^nm Not meaningful

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

The following “Highlights” and “Financial Results” sections provide information related to significant events, as well as highlights of our consolidated financial results for the quarter ended June 30, 2016 presented in Table 1: Overview of Financial Results. More detailed information about our consolidated financial results, including comparisons of our financial results for the quarter ended June 30, 2016 to those for the quarter ended June 30, 2015 and for the six months ended June 30, 2016 to those for the six months ended June 30, 2015, is provided under “Consolidated Results of Operations,” which follows these sections. In this Management’s Discussion and Analysis, where we describe the effects of changes in foreign exchange rates, those effects are determined by applying applicable weighted average foreign exchange rates from the relevant 2015 period to the relevant 2016 results.

Highlights

• We secured new asset servicing mandates of $750 billion in the second quarter of 2016; of that total, approximately $90.7 billion was installed prior to June 30, 2016, with the remaining balance expected to be installed in the remainder of 2016 or later. Of the total $750 billion, $583 billion of new asset servicing mandates resulted from our appointment by two European asset managers to provide a range of investment services, as announced in May 2016.

• Net outflows of AUM totaled $21 billion in the six months ended June 30, 2016.

• We declared common stock dividends of $0.34 per share, totaling approximately $268 million in the second quarter of 2016.

• In the second quarter of 2016, we purchased approximately 6.5 million shares of our common stock at an average per-share cost of $59.66 and an aggregate cost of approximately $390 million under our prior common stock purchase program approved by our Board in March 2015. In July 2016, our Board approved a $1.4 billion common stock purchase program, covering the period from July 1, 2016 through June 30, 2017.

Additional information with respect to our common stock purchase program is provided under "Financial Condition - Capital" in this Management's Discussion and Analysis.

• In the second quarter of 2016, we sold the WM/Reuters branded foreign exchange benchmark business to Thomson Reuters. This sale resulted in a pre-tax gain of

approximately $53 million ($40 million after-tax) in our results of operations.

• In April 2016, we issued 20,000,000 depositary shares each representing a 1/4,000th ownership interest in a share of our Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series G, without par value per share, with a liquidation preference of $100,000 per share (equivalent to $25 per Depositary Share) and an initial dividend rate of 5.35% per annum.

• In May 2016, we issued $750 million of 1.95% senior notes due May 19, 2021 and $750 million of 2.65% senior notes due May 19, 2026.

• In July 2016, we completed our previously announced acquisition of GE Asset Management, a leading asset manager, from General Electric Company, in a cash transaction with a total purchase price of $435 million, with up to an additional $50 million tied to incremental opportunities with General Electric. As we integrate GE Asset Management into our business, we expect to incur total merger and integration costs of approximately $70 million to $80 million through 2018. The results of this acquisition will be reflected in our third quarter 2016 financial condition and results of operations.

Financial Results

• In the second quarter of 2016, we recorded a net pre-tax charge of approximately $58 million to increase our previously established reserve related to amounts we invoiced clients for certain expenses, of which $43 million was recorded as a reduction of fee revenue and $15 million was included in other expenses.

• Total revenue in the second quarter of 2016 decreased 1% compared to the second quarter of 2015, primarily due to a 6% decrease in servicing fee revenue partially offset by an increase in processing fees and other revenue.

• Servicing fee revenue decreased 6% in the second quarter of 2016 compared to the second quarter of 2015, primarily due to the aforementioned increase in our reserve for amounts invoiced to clients for certain expenses, as well as lower global equity markets and the effect of the stronger U.S. dollar.

• Management fee revenue decreased 4% in the second quarter of 2016 compared to the second quarter of 2015, primarily due to

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

lower global equity markets and a decline in AUM, partially offset by lower money market fee waivers.

• In the second quarter of 2016, we recorded restructuring charges of $13 million related to State Street Beacon, our multi-year transformation program to fully digitize our business to support the development of new solutions and capabilities for our clients and to create cost efficiencies. We are on track to generate at least $140 million in estimated annual year-over-year pre-tax savings in 2016 related to State Street Beacon, all else equal. These savings include the effects of the targeted staff reductions announced in October 2015. The full effect of these savings will be felt in 2017. Actual expenses may increase or decrease in the future due to other factors.

• Total expenses in the second quarter of 2016 decreased 13% compared to the second quarter of 2015, primarily driven by legal accruals recorded in the second quarter of 2015 as well as a decrease in professional services, partially offset by increases in information systems and communications expenses and restructuring costs.

• Return on average common shareholders' equity increased to 12.4% in the second quarter of 2016 compared to 8.2% in the second quarter of 2015.

CONSOLIDATED RESULTS OF OPERATIONS

This section discusses our consolidated results of operations for the second quarter and first six months of 2016 compared to the same periods in 2015, and should be read in conjunction with the consolidated financial statements and accompanying condensed notes to the consolidated financial statements included in this Form 10-Q.

TOTAL REVENUE

TABLE 2: TOTAL REVENUE
	Quarters Ended June 30,
(Dollars in millions)	2016			2015			%  Change
Fee revenue:
Servicing fees	$	1,239		$	1,319		(6	)%
Management fees	293			304			(4	)
Trading services:
Foreign exchange trading	157			167			(6	)
Brokerage and other trading services	110			114			(4	)
Total trading services	267			281			(5	)
Securities finance	156			155			1
Processing fees and other	98			17			476
Total fee revenue	2,053			2,076			(1	)
Net interest revenue:
Interest revenue	620			629			(1	)
Interest expense	99			94			5
Net interest revenue	521			535			(3	)
Gains (losses) related to investment securities, net	(1		)	(3		)
Total revenue	$	2,573		$	2,608		(1	)
	Six Months Ended June 30,
(Dollars in millions)	2016			2015			%  Change
Fee revenue:
Servicing fees	$	2,481		$	2,587		(4	)%
Management fees	563			605			(7	)
Trading services:
Foreign exchange trading	313			370			(15	)
Brokerage and other trading services	226			235			(4	)
Total trading services	539			605			(11	)
Securities finance	290			256			13
Processing fees and other	150			78			92
Total fee revenue	4,023			4,131			(3	)
Net interest revenue:
Interest revenue	1,249			1,271			(2	)
Interest expense	216			190			14
Net interest revenue	1,033			1,081			(4	)
Gains (losses) related to investment securities, net	1			(4		)
Total revenue	$	5,057		$	5,208		(3	)

11

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

FEE REVENUE

Table 2: Total Revenue, provides the breakout of fee revenue for the quarters and six months endedJune 30, 2016 and 2015.

Servicing and management fees collectively made up approximately 75% and 76% of our total fee revenue in the second quarter and first six months of 2016, respectively, compared to approximately 78% and 77% in the second quarter and first six months of 2015. The level of these fees is influenced by several factors, including the mix and volume of our assets under custody and administration and our assets under management, the value and type of securities positions held (with respect to assets under custody), the volume of portfolio transactions, and the types of products and services used by our clients, and is generally affected by changes in worldwide equity and fixed-income security valuations and trends in market asset class preferences.

Generally, servicing fees are affected by changes in daily average valuations of assets under custody and administration. Additional factors, such as the relative mix of assets serviced, the level of transaction volumes, changes in service level, the nature of services provided, balance credits, client minimum balances, pricing concessions, the geographical location in which services are provided and other factors, may have a significant effect on our servicing fee revenue.

Management fees are generally affected by changes in month-end valuations of assets under management. Management fees for certain components of managed assets, such as ETFs, are affected by daily average valuations of assets under management. Management fee revenue is more sensitive to market valuations than servicing fee revenue, as a higher proportion of the underlying services provided, and the associated management fees earned, are dependent on equity and fixed-income security valuations. Additional factors, such as the relative mix of assets managed, may have a significant effect on our management fee revenue. While certain management fees are directly determined by the values of assets under management and the investment strategies employed, management fees may reflect other factors as well, including performance fee arrangements, as well as our relationship pricing for clients using multiple services.

Asset-based management fees for actively managed products are generally charged at a higher percentage of assets under management than for passive products. Actively managed products may also include performance fee arrangements which are recorded when the performance period is complete. Performance fees are generated when the performance of certain managed portfolios exceeds benchmarks specified in the management agreements. Generally, we experience more volatility with performance fees than with more traditional management fees.

In light of the above, we estimate, using relevant information as of June 30, 2016 and assuming that all other factors remain constant, that:

• A 10% increase or decrease in worldwide equity valuations, over the relevant periods for which our servicing and management fees are calculated, would result in a corresponding change in our total revenue of approximately 2%; and

• A 10% increase or decrease in worldwide fixed income security valuations, over the relevant periods for which our servicing and management fees are calculated, would result in a corresponding change in our total revenue of approximately 1%.

See Table 3: Daily, Month-End and Quarter-End Indices, for selected equity market indices. While the specific indices presented are indicative of general market trends, the asset types and classes relevant to individual client portfolios can and do differ, and the performance of associated relevant indices can therefore differ from the performance of the indices presented.

Daily averages and the averages of month-end indices demonstrate worldwide changes in equity markets that affect our servicing and management fee revenue. Quarter-end indices affect the values of assets under custody and administration and assets under management as of those dates. The index names listed in the table are service marks of their respective owners.

Further discussion of fee revenue is provided under “Line of Business Information” in this Management's Discussion and Analysis.

12

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

TABLE 3: DAILY, MONTH-END AND QUARTER-END INDICES
	Daily Averages of Indices				Averages of Month-End Indices				Quarter-End Indices
	Quarters Ended June 30,				Quarters Ended June 30,				As of June 30,
	2016	2015	% Change		2016	2015	% Change		2016	2015	% Change
S&P 500®	2,075	2,102	(1	)%	2,087	2,085	—	%	2,099	2,063	2	%
NASDAQ®	4,846	5,030	(4	)	4,855	4,999	(3	)	4,843	4,987	(3	)
MSCI® EAFE®	1,648	1,905	(13	)	1,656	1,887	(12	)	1,608	1,842	(13	)
MSCI® Emerging Markets	819	1,016	(19	)	827	1,008	(18	)	834	972	(14	)
	Daily Averages of Indices				Averages of Month-End Indices
	Six Months Ended June 30,				Six Months Ended June 30,
	2016	2015	% Change		2016	2015	% Change
S&P 500®	2,015	2,083	(3	)%	2,032	2,071	(2	)%
NASDAQ®	4,733	4,929	(4	)	4,768	4,916	(3	)
MSCI EAFE®	1,621	1,861	(13	)	1,629	1,863	(13	)
MSCI® Emerging Markets	788	992	(21	)	800	992	(19	)

NET INTEREST REVENUE

See Table 2: Total Revenue, for the breakout of interest revenue and interest expense for the quarters and six months endedJune 30, 2016 and 2015.

Net interest revenue is defined as interest revenue earned on interest-earning assets less interest expense incurred on interest-bearing liabilities. Interest-earning assets, which principally consist of investment securities, interest-bearing deposits with banks, repurchase agreements, loans and leases and other liquid assets, are financed primarily by client deposits, short-term borrowings and long-term debt.

Net interest margin represents the relationship between annualized fully taxable-equivalent net interest revenue and average total interest-earning assets for the period. It is calculated by dividing fully taxable-equivalent net interest revenue by average interest-earning assets. Revenue that is exempt from income taxes, mainly that earned from certain investment securities (state and political subdivisions), is adjusted to a fully taxable-equivalent basis using a federal statutory income tax rate of 35%, adjusted for applicable state income taxes, net of the related federal tax benefit.

13

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

TABLE 4: AVERAGE BALANCES AND INTEREST RATES - FULLY TAXABLE-EQUIVALENT BASIS
	Quarters Ended June 30,
	2016							2015
(Dollars in millions; fully taxable-equivalent basis)	Average Balance		Interest Revenue/ Expense			Rate		Average Balance		Interest Revenue/ Expense			Rate
Interest-bearing deposits with banks	$	51,084	$	30		.24	%	$	79,435	$	54		.27	%
Securities purchased under resale agreements(1)	2,673		35			5.32		2,662		15			2.24
Trading account assets	870		—			—		1,243		—			—
Investment securities	102,391		492			1.92		108,953		525			1.93
Loans and leases	18,662		93			2.00		17,508		77			1.77
Other interest-earning assets	22,563		10			.18		23,610		2			.03
Average total interest-earning assets	$	198,243	$	660		1.34		$	233,411	$	673		1.16
Interest-bearing deposits:
U.S.	$	30,363	$	31		.41	%	$	28,165	$	9		.13	%
Non-U.S.	96,446		(15		)	(.06	)	110,942		5			.02
Securities sold under repurchase agreements(1)	4,103		—			—		10,155		1			.02
Federal funds purchased	61		—			—		22		—			—
Other short-term borrowings	1,928		2			.38		4,400		2			.16
Long-term debt	10,998		62			2.24		9,126		61			2.68
Other interest-bearing liabilities	5,054		19			1.54		8,609		16			.74
Average total interest-bearing liabilities	$	148,953	$	99		.27		$	171,419	$	94		.22
Interest-rate spread						1.07	%						.94	%
Net interest revenue—fully taxable-equivalent basis			$	561						$	579
Net interest margin—fully taxable-equivalent basis						1.14	%						1.00	%
Tax-equivalent adjustment			(40		)					(44		)
Net interest revenue—GAAP basis			$	521						$	535
	Six Months Ended June 30,
	2016							2015
(Dollars in millions; fully taxable-equivalent basis)	Average Balance		Interest Revenue/ Expense			Rate		Average Balance		Interest Revenue/ Expense			Rate
Interest-bearing deposits with banks	$	49,815	$	73		.29	%	$	75,523	$	108		.29	%
Securities purchased under resale agreements(1)	2,581		71			5.58		2,556		26			2.07
Trading account assets	865		1			.12		1,181		—			—
Investment securities	101,645		980			1.93		110,795		1,069			1.93
Loans and leases	18,639		184			1.98		17,765		151			1.71
Other interest-earning assets	22,617		22			.20		22,085		5			.05
Average total interest-earning assets	$	196,162	$	1,331		1.37		$	229,905	$	1,359		1.19
Interest-bearing deposits:
U.S.	$	28,729	$	58		.40	%	$	29,164	$	19		.13	%
Non-U.S.	94,708		(4		)	(.01	)	107,406		21			.04
Securities sold under repurchase agreements(1)	4,173		1			.03		9,757		—			—
Federal funds purchased	38		—			—		23		—			—
Other short-term borrowings	1,808		2			.24		4,424		3			.15
Long-term debt	11,013		122			2.22		9,415		123			2.61
Other interest-bearing liabilities	5,502		37			1.37		8,040		24			.59
Average total interest-bearing liabilities	$	145,971	$	216		.30		$	168,229	$	190		.23
Interest-rate spread						1.07	%						.96	%
Net interest revenue—fully taxable-equivalent basis			$	1,115						$	1,169
Net interest margin—fully taxable-equivalent basis						1.14	%						1.03	%
Tax-equivalent adjustment			(82		)					(88		)
Net interest revenue—GAAP basis			$	1,033						$	1,081

⁽¹⁾ Reflects the impact of balance sheet netting under enforceable netting agreements.

14

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

Net interest revenue decreased3% on a fully taxable-equivalent basis in the second quarter of 2016 compared to the second quarter of 2015 and decreased5% in the six months ended June 30, 2016 compared to the same period in 2015. The decrease was generally the result of management actions to reduce the size of our balance sheet in 2015. These actions contributed to a reduction of interest and non-interest bearing client deposits of $25 billion as of June 30, 2016 compared to June 30, 2015. The second quarter of 2016 reduction in net interest revenue also reflects our efforts to manage the size and composition of our investment portfolio as we seek to optimize our capital and liquidity positions in light of the evolving regulatory environment. Benefits during the second quarter of 2016 from the U.S. rate hike in December 2015 were partially offset by lower global interest rates that affected our revenue from certain floating-rate assets, the rate at which payments from the maturity or prepayment on portfolio holdings could be reinvested, and the effect of the stronger U.S. dollar.

The effect of the stronger U.S. dollar relative to other currencies, particularly the Euro, also negatively impacted our net interest revenue as we maintain a portion of our investment portfolio in Euro denominated securities.  The stronger U.S. dollar had the effect of reducing fully taxable-equivalent net interest revenue by approximately $2 million in the second quarter of 2016 compared to the second quarter of 2015.

We recorded aggregate discount accretion in interest revenue of $15 million and $30 million for the second quarter and first six months of 2016, respectively, related to the assets we consolidated onto our balance sheet in 2009 from our asset-backed commercial paper conduits. Subsequent to the commercial paper conduit consolidation in 2009, we have recorded total discount accretion in interest revenue as follows:

TABLE 5: TOTAL DISCOUNT ACCRETION IN INTEREST REVENUE
	Discount Accretion in Interest Revenue
(In millions)
Twelve Months Ended December 31, 2009	$	621
Twelve Months Ended December 31, 2010	712
Twelve Months Ended December 31, 2011	220
Twelve Months Ended December 31, 2012	215
Twelve Months Ended December 31, 2013	137
Twelve Months Ended December 31, 2014	119
Twelve Months Ended December 31, 2015	98
Six Months Ended June 30, 2016	30
Total Discount Accretion	$	2,152

The timing and ultimate recognition of any applicable discount accretion depends, in part, on factors that are outside of our control, including anticipated prepayment speeds and credit quality. The impact of these factors is uncertain and can be significantly influenced by general economic and financial market conditions. The timing and recognition of any applicable discount accretion can also be influenced by our ongoing management of the risks and other characteristics associated with our investment securities portfolio, including sales of securities which would otherwise generate interest revenue through accretion.

Depending on the factors discussed above, among others, we anticipate that until the former conduit securities remaining in our investment portfolio mature or are sold, discount accretion will continue to contribute to our net interest revenue, though generally in declining amounts. Assuming that we hold them to maturity, all else being equal, we expect the remaining former conduit securities carried in our investment portfolio as of June 30, 2016 to generate aggregate discount accretion in future periods of approximately $204 million over their remaining terms, with approximately half of this discount accretion to be recorded through 2019. We estimate that we will have approximately $20 million to $25 million of discount accretion during the second half of 2016.

Changes in the components of interest-earning assets and interest-bearing liabilities are discussed in more detail below. Additional detail about the components of interest revenue and interest expense is provided in Note 14 to the consolidated financial statements included in this Form 10-Q.

Average total interest-earning assets were lower for the second quarter and first six months endedJune 30, 2016 compared to the second quarter and first six months endedJune 30, 2015 as a result of the previously described management actions.

The lower level of investment in interest-bearing deposits with banks during the quarter ended June 30, 2016 compared to the quarter ended June 30, 2015 also resulted from the previously discussed management actions, while the increase in average loans and leases resulted from growth in municipal loans and our continued investment in senior secured loans, offset by a reduction in mutual fund lending.

Even though we have seen reductions in the overall level of excess deposits during the past year, our clients have continued to place elevated levels of deposits with us, as central bank actions have resulted in high levels of liquidity and low global interest rates. We evaluate deposits as either inherent in our relationship with our custodial clients, which we generally invest in our investment portfolio,

15

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

or transient, or excess deposits, which we generally deposit with central banks.Deposits with central banks generate low returns. Consequently, the elevated levels of these transient deposits have contributed to a reduction of our net interest margin relative to historical levels.

The deposits with central banks are also included in our total consolidated assets, and lower deposit levels impact our regulatory leverage ratios. If global interest rates increase, we would expect to see some additional decreases in client deposits. In general, we continue to anticipate higher levels of client deposits when compared to longer-term historical trends, irrespective of the interest rate environment, particularly during periods of market stress. If ECB monetary policy continues to pressure European interest rates downward and the U.S. dollar remains strong or strengthens, the negative effects on our net interest revenue may continue or worsen.

Interest-bearing deposits with banks averaged $51.08 billion and $49.82 billion for the second quarter and first six months of 2016, respectively, compared to $79.44 billion and $75.52 billion for the same periods of 2015, respectively. These decreases reflect management’s effort to reduce elevated client deposit levels as a component of our balance sheet management actions. These lower levels of deposits reflected our maintenance of cash balances at the Federal Reserve, the ECB and other non-U.S. central banks both to satisfy regulatory reserve requirements, and elevated levels of client deposits and our investment of the excess deposits with central banks.

We expect to continue to invest deposits we deem as elevated in investment securities or short-term assets, including central bank deposits, depending on our assessment of the underlying characteristics of the deposits.

TABLE 6: U.S. AND NON-U.S. SHORT-DURATION ADVANCES
	Quarters Ended June 30,
(Dollars in millions, except where otherwise noted)	2016			2015
Average U.S. short-duration advances	$	2,144		$	2,263
Average non-U.S. short-duration advances	1,471			1,454
Average total short-duration advances	$	3,615		$	3,717
Average short-duration advances to average loans and leases	19		%	21		%
	Six Months Ended June 30,
(Dollars in millions, except where otherwise noted)	2016			2015
Average U.S. short-duration advances	$	2,187		$	2,313
Average non-U.S. short-duration advances	1,368			1,487
Average total short-duration advances	$	3,555		$	3,800
Average short-duration advances to average loans and leases	19		%	21		%

Average loans and leases also includes short-duration advances. The decline in the proportion of average short-duration advances to average loans and leases is primarily due to growth in the other segments of the loan and lease portfolio. Short-duration advances provide liquidity to clients in support of their investment activities.

Average other interest-earning assets decreased to $22.56 billion and increased to $22.62 billion for the second quarter and first six months of 2016, respectively, from $23.61 billion and $22.09 billion for the same periods of 2015, respectively. Our average other interest-earning assets, largely associated with our enhanced custody business, comprised approximately 11% and 12% of our average total interest-earning assets for the second quarter and first six months of 2016, respectively, compared to approximately 10% for both the second quarter and first six months of 2015. The enhanced custody business, which is our principal securities financing business for our custody clients, supports our overall profitability by generating securities finance revenue. The net interest revenue earned on these transactions is generally lower than the interest earned on other alternative investments.

Aggregate average interest-bearing deposits decreased to $126.81 billion and $123.44 billion for the second quarter and first six months of 2016, respectively, from $139.11 billion and $136.57 billion for the same periods of 2015, respectively. The lower levels in the second quarter of 2016 and the first six months of 2016 were primarily the result of management's actions to reduce both U.S. and non-U.S. transaction accounts, offset by increases in time deposits. Future deposit levels will be influenced by the underlying asset servicing business, client deposit behavior, as well as market conditions, including the general levels of U.S. and non-U.S. interest rates.

Average other short-term borrowings declined to $1.93 billion and $1.81 billion for the second quarter and first six months of 2016, respectively, from $4.40 billion and $4.42 billion for the same periods of 2015, respectively. The decrease was the result of the phase-out of our commercial paper program during 2015, consistent with the objectives of our 2015 recovery and resolution plan developed pursuant to the requirements of the Dodd-Frank Act.

Average long-term debt increased to $11.00 billion and $11.01 billion for the second quarter and first six months of 2016, respectively, from $9.13 billion and $9.42 billion for the same periods of 2015, respectively. The increase primarily reflected the issuance of $3.0 billion of senior debt in August 2015 and $1.5 billion of senior debt in May 2016 which was offset by a $900 million extendible note called at the end of February 2015 and the maturities of $200

16

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

million of senior debt in December 2015, $400 million of senior debt in January 2016 and $1.0 billion of senior debt in March 2016.

Average other interest-bearing liabilities decreased to $5.05 billion and $5.50 billion for the second quarter and first six months of 2016, respectively, from $8.61 billion and $8.04 billion for the same periods of 2015, respectively, primarily the result of lower levels of cash collateral received from clients in connection with our enhanced custody business, which is presented on a net basis in accordance with enforceable netting agreements.

Several factors could affect future levels of our net interest revenue and margin, including the volume and mix of client liabilities; actions of various central banks; changes in U.S. and non-U.S. interest rates; changes in the various yield curves around the world; revised or proposed regulatory capital or liquidity standards, or interpretations of those standards; the amount of discount accretion generated by the former conduit securities that remain in our investment securities portfolio; the yields earned on securities purchased compared to the yields earned on securities sold or matured; and changes in our enhanced custody business.

Based on market conditions and other factors, including regulatory requirements, we continue to reinvest the majority of the proceeds from pay-downs and maturities of investment securities in highly-rated securities, such as U.S. Treasury and agency securities, municipal securities, federal agency mortgage-backed securities and U.S. and non-U.S. mortgage- and asset-backed securities. The pace at which we continue to reinvest and the types of investment securities purchased will depend on the impact of market conditions, the implementation of regulatory standards, and other factors over time. We expect these factors and the levels of global interest rates to influence what effect our reinvestment program will have on future levels of our net interest revenue and net interest margin.

EXPENSES

Table 7: Expenses, provides the breakout of expenses for the quarters and six months endedJune 30, 2016 and 2015.

TABLE 7: EXPENSES
	Quarters Ended June 30,
(Dollars in millions)	2016		2015		% Change
Compensation and employee benefits	$	989	$	984	1	%
Information systems and communications	270		249		8
Transaction processing services	201		201		—
Occupancy	111		109		2
Acquisition costs	7		3		nm
Restructuring charges, net	13		—		nm
Other:
Professional services	82		136		(40	)
Amortization of other intangible assets	49		49		—
Securities processing costs	6		14		(57	)
Regulatory fees and assessments	18		25		(28	)
Other	114		364		(69	)
Total other	269		588		(54	)
Total expenses	$	1,860	$	2,134	(13	)
Number of employees at quarter-end	32,636		31,070
	Six Months Ended June 30,
(Dollars in millions)	2016		2015		% Change
Compensation and employee benefits	$	2,096	$	2,071	1	%
Information systems and communications	542		496		9
Transaction processing services	401		398		1
Occupancy	224		222		1
Acquisition costs	14		8		75
Restructuring charges, net	110		1		nm
Other:
Professional services	175		232		(25	)
Amortization of other intangible assets	98		99		(1	)
Securities processing costs	10		34		(71	)
Regulatory fees and assessments	38		58		(34	)
Other	202		612		(67	)
Total other	523		1,035		(49	)
Total expenses	$	3,910	$	4,231	(8	)

^nm Not meaningful

Compensation and employee benefits expenses in the six months ended June 30, 2016 and 2015 included approximately $122 million and $137 million, respectively, of seasonal deferred incentive compensation expense for retirement-eligible employees and payroll taxes. These seasonal expenses result from the annual compensation cycle in the first quarter and do not appear in other quarters.

17

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

Information systems and communications expenses increased 8% in the second quarter of 2016 compared to the second quarter of 2015 and 9% in the six months ended June 30, 2016 compared to the same period in 2015. The increase for both comparative periods was primarily related to increased depreciation expense for new assets placed in service.

Other expenses decreased 54% in the second quarter of 2016 compared to the second quarter of 2015 and 49% in the six months ended June 30, 2016 compared to the same period in 2015. The decrease in both comparative periods was primarily due to legal accruals of $400 million in the first six months of 2015, of which $250 million was recorded in the second quarter of 2015, as well as lower levels of professional services, securities processing, travel and insurance expenses in 2016.

Our compliance obligations have increased due to new regulations in the U.S. and internationally that have been adopted or proposed in response to the financial crisis. As a systemically important financial institution, we are subject to enhanced supervision and prudential standards. Our status as a G-SIB has also resulted in heightened prudential and conduct expectations of our U.S. and international regulators with respect to our capital and liquidity management and our compliance and risk oversight programs. These heightened expectations have increased our regulatory compliance costs, including personnel and systems, as well as significant additional implementation and related costs to enhance our regulatory compliance programs. We anticipate that these evolving and increasing regulatory compliance requirements and expectations, including our efforts to address the deficiencies identified in our resolution plan submitted to the Federal Reserve and FDIC on July 1, 2015, as discussed within the Liquidity Risk Management section included in this Form 10-Q, will continue to affect our expenses. Our employee compensation and benefits, information systems and other expenses could increase, as we further adjust our operations in response to new or proposed requirements and heightened expectations.

Acquisition Costs

We recorded acquisition costs of $7 million in the second quarter of 2016, compared to $3 million in the second quarter of 2015 and $14 million in the six months ended June 30, 2016 compared to $8 million during the six months ended June 30, 2015. These amounts related to previously announced acquisitions, including GE Asset Management. In July 2016, we closed our acquisition of GE Asset Management in a cash transaction with a total purchase price of $435 million, with up to an additional $50 million tied to incremental opportunities with General Electric. As we integrate GE Asset Management into our business, we expect to incur total merger and integration costs of approximately $70 million to $80 million through 2018. The results of this acquisition will be reflected in our third quarter 2016 statement of condition and results of operations.

Restructuring Charges

We expect to incur aggregate pre-tax restructuring charges of approximately $300 million to $400 million beginning in 2016 through December 31, 2020 to implement State Street Beacon, our previously announced multi-year transformation program to fully digitize our business to support the development of new solutions and capabilities for our clients and to create cost efficiencies. We estimate those charges will include approximately $250 million to $300 million in severance and benefits costs associated with targeted staff reductions (a substantial portion of which will result in future cash expenditures) and approximately $50 million to $100 million in information technology application rationalization and real estate actions.

In the second quarter and six months ended June 30, 2016, we recorded net restructuring charges of $13 million and $110 million, respectively, compared to zero and $1 million in the same periods of 2015. The increase in both comparative periods was primarily due to costs associated with State Street Beacon.

The following table presents aggregate restructuring activity for the periods indicated.

TABLE 8: RESTRUCTURING CHARGES
(In millions)	Employee Related Costs			Real Estate Consolidation			Asset and Other Write-Offs			Total
Balance at December 31, 2015	$	9		$	11		$	3		$	23
Accruals for State Street Beacon	86			—			11			97
Payments and Other Adjustments	(4		)	(1		)	(7		)	(12		)
Balance at March 31, 2016	91			10			7			108
Accruals for State Street Beacon	(1		)	15			(1		)	13
Payments and Other Adjustments	(35		)	(3		)	(1		)	(39		)
Balance at June 30, 2016	$	55		$	22		$	5		$	82

18

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

INCOME TAX EXPENSE

Income tax expense was $92 million in the second quarter of 2016 compared to $54 million in the second quarter of 2015. In the first six months of 2016 and 2015, income tax expense was $154 million and $148 million, respectively. Our effective tax rate for the first six months of 2016 was 13.5% compared to 15.2% for the same period in 2015. The decrease in the effective tax rate for the first six months of 2016 reflects a benefit from additional alternative energy investments in 2016, partially offset by a nonrecurring net benefit recognized in the second quarter of 2015.

LINE OF BUSINESS INFORMATION

Our operations are organized for management reporting purposes into two lines of business: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry. For information about our two lines of business, as well as the revenues, expenses and capital allocation methodologies associated with them, refer to Note 24 to the consolidated financial statements included in our 2015 Form 10-K and Note 17 to the consolidated financial statements included in this Form 10-Q.

Investment Servicing

TABLE 9: INVESTMENT SERVICING LINE OF BUSINESS RESULTS
	Quarters Ended June 30,								Six Months Ended June 30,
(Dollars in millions, except where otherwise noted)	2016			2015			% Change		2016			2015			% Change
Servicing fees	$	1,239		$	1,319		(6	)%	$	2,481		$	2,587		(4	)%
Trading services	255			271			(6	)	517			586			(12	)
Securities finance	156			155			1		290			256			13
Processing fees and other	102			22			364		147			81			81
Total fee revenue	1,752			1,767			(1	)	3,435			3,510			(2	)
Net interest revenue	520			534			(3	)	1,032			1,079			(4	)
Gains (losses) related to investment securities, net	(1		)	(3		)	nm		1			(4		)	nm
Total revenue	2,271			2,298			(1	)	4,468			4,585			(3	)
Provision for loan losses	4			2			nm		8			6			33
Total expenses	1,599			1,880			(15	)	3,286			3,716			(12	)
Income before income tax expense	$	668		$	416		61		$	1,174		$	863		36
Pre-tax margin	29		%	18		%			26		%	19		%

^nm- Not meaningful

Net interest revenue decreased3% and 4% in the second quarter and first six months of 2016, respectively, compared to the same periods in 2015. The decreases were generally the result of our efforts to optimize our capital position, lower yields on interest-earning assets, as well as lower global interest rates, which affect our revenue from floating-rate assets, and the effect of the stronger U.S. dollar, partially offset by the benefit of higher levels of certain interest-earning assets. A discussion of net interest revenue is provided under “Net Interest Revenue” in “Total Revenue” in this Management's Discussion and Analysis.

Total expenses decreased15% and 12% in the second quarter and first six months of 2016, respectively, compared to the same periods in 2015. The decreases primarily resulted from expenses for legal accruals recorded in the first six months of 2015 in connection with management's intention to seek to resolve some, but not all, of the outstanding and potential claims arising out of our indirect FX client activities.

In December 2015, we announced a review of the manner in which we invoiced certain expenses to certain of our Investment Servicing clients, primarily in the United States, during a period going back to 1998. We have informed our clients that we will pay to them the expenses we concluded were incorrectly invoiced to them, plus interest. In the second quarter of 2016, we increased our reserve for this matter by $58 million, of which $48 million is recorded as a reduction in servicing fee revenue. In conjunction with that review, we are evaluating other aspects of invoicing relating to billing our Investment Servicing clients, including calculation of asset-based fees. See Note 10 to the consolidated financial statements included in this Form 10-Q.

19

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

Servicing Fees

Servicing fees decreased6% and 4% in the second quarter and first six months of 2016, respectively, compared to the same periods of 2015. The decreases were primarily due to the previously mentioned increase in our reserve for amounts invoiced to clients for certain expenses, which was recorded in part as a reduction to revenue, lower global equity markets, and the effect of the stronger U.S. dollar, partially offset by net new business.

Servicing fees generated outside the U.S. were approximately 43% and 42% of total servicing fees in the second quarter and first six months of 2016, respectively, compared to approximately 41% for the same periods in 2015, respectively.

TABLE 10: COMPONENTS OF ASSETS UNDER CUSTODY AND ADMINISTRATION
(In billions)	June 30, 2016		December 31, 2015		June 30, 2015
Mutual funds	$	6,734	$	6,768	$	7,107
Collective funds	7,234		7,088		7,189
Pension products	5,496		5,510		5,830
Insurance and other products	8,322		8,142		8,524
Total	$	27,786	$	27,508	$	28,650

TABLE 11: COMPOSITION OF ASSETS UNDER CUSTODY AND ADMINISTRATION
(In billions)	June 30, 2016		December 31, 2015		June 30, 2015
Equities	$	14,960	$	14,888	$	16,006
Fixed-income	9,530		9,264		8,939
Short-term and other investments	3,296		3,356		3,705
Total	$	27,786	$	27,508	$	28,650

TABLE 12: GEORGRAPHIC MIX OF ASSETS UNDER CUSTODY AND ADMINISTRATION(1)
(In billions)	June 30, 2016		December 31, 2015		June 30, 2015
North America	$	21,072	$	20,842	$	21,667
Europe/Middle East/Africa	5,356		5,387		5,621
Asia/Pacific	1,358		1,279		1,362
Total	$	27,786	$	27,508	$	28,650

⁽¹⁾ Geographic mix is based on the location in which the assets are serviced.

Asset levels as of June 30, 2016 did not reflect the estimated $1,038 billion of new business in assets to be serviced, which was awarded to us in the second quarter of 2016 and prior periods but not installed prior to June 30, 2016. This new business will be reflected in AUCA in future periods after installation and will generate servicing fee revenue in subsequent periods.

With respect to these new assets, we will provide various services, including accounting, bank loan servicing, compliance reporting and monitoring, custody, depository banking services, foreign

exchange, fund administration, hedge fund servicing, middle-office outsourcing, performance and analytics, private equity administration, real estate administration, securities finance, transfer agency, and wealth management services.

Trading Services

TABLE 13: TRADING SERVICES REVENUE
	Quarters Ended June 30,
(Dollars in millions)	2016		2015		% Change
Foreign exchange trading:
Direct sales and trading	$	87	$	88	(1	)%
Indirect foreign exchange trading	70		79		(11	)
Total foreign exchange trading	157		167		(6	)
Brokerage and other trading services:
Electronic foreign exchange services	43		44		(2	)
Other trading, transition management and brokerage	55		60		(8	)
Total brokerage and other trading services	98		104		(6	)
Total trading services revenue	$	255	$	271	(6	)

	Six Months Ended June 30,
(Dollars in millions)	2016		2015		% Change
Foreign exchange trading:
Direct sales and trading	$	177	$	223	(21	)%
Indirect foreign exchange trading	136		147		(7	)
Total foreign exchange trading	313		370		(15	)
Brokerage and other trading services:
Electronic foreign exchange services	87		92		(5	)
Other trading, transition management and brokerage	117		124		(6	)
Total brokerage and other trading services	204		216		(6	)
Total trading services revenue	$	517	$	586	(12	)

Trading services revenue is composed of revenue generated by FX trading, as well as revenue generated by brokerage and other trading services. We primarily earn FX trading revenue by acting as a principal market-maker. We offer a range of FX products, services and execution models. Most of our FX products and execution services can be grouped into three broad categories, which are further explained below: “direct sales and trading,” “indirect FX trading” and “electronic FX services.” With respect to electronic FX services, we provide an execution venue, but do not act as agent or principal.

We also offer a range of brokerage and other trading products tailored specifically to meet the needs of the global pension community, including transition management and commission recapture. In addition, we act as distribution agent for the SPDR^® Gold ETF. These products and services are generally differentiated by our role as an agent of the institutional investor. Revenue earned from these services is recorded in other trading, transition management and brokerage revenue within brokerage and other trading services revenue.

20

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

Our FX trading revenue is influenced by multiple factors, including: the volume and type of client FX transactions and related spreads; currency volatility, reflecting market conditions; and our management of exchange rate, interest rate and other market risks associated with our foreign exchange activities. The relative impact of these factors on our total FX trading revenues often differs from period to period. For example, assuming all other factors remain constant, increases or decreases in volumes or spreads across product mix tend to result in increases or decreases, as the case may be, in client-related FX revenue. Revenue earned from direct sales and trading and indirect FX trading is recorded in FX trading revenue.

Total FX trading revenue decreased 6% and 15% in the second quarter and first six months of 2016, respectively, compared to the same periods of 2015, primarily due to lower volumes and market volatility. In the prior periods, significant market events in Europe in 2015 stimulated trading activity, in contrast to the same periods in 2016 in which trading volumes were lower in advance of the U.K.'s referendum to exit from the European Union, or "Brexit".

We enter into FX transactions with clients and investment managers that contact our trading desk directly. These trades are all executed at negotiated rates. We refer to this activity, and our principal market-making activities, as “direct sales and trading” and it includes many transactions for funds serviced by third party custodians or prime brokers, as well as those funds under custody at State Street. Direct sales and trading revenue represented 55% and 57% of total foreign exchange trading revenue in the second quarter and first six months of 2016, respectively, compared to 53% and 61% for the same periods in 2015.

Alternatively, clients or their investment managers may elect to route FX transactions to our FX desk through our asset-servicing operation; we refer to this activity as “indirect FX trading” and, in all cases, we are the funds' custodian. We execute indirect FX trades as a principal at rates disclosed to our clients. Estimated indirect sales and trading revenue represented 45% and 43% of total foreign exchange trading revenue in the second quarter and first six months of 2016, respectively, as compared to 47% and 39% for the same periods in 2015. We calculate revenue for indirect FX trading using an attribution methodology. This methodology takes into consideration estimated mark-ups/downs and observed client volumes. Direct sales and trading revenue is all other FX trading revenue other than the revenue attributed to indirect FX trading.

Our clients that utilize indirect FX trading can, in addition to executing their FX transactions through dealers not affiliated with us, transition from indirect FX trading to either direct sales and trading execution, including our “Street FX” service, or to one of our electronic trading platforms. Street FX, in which we continue to act as a principal market-maker, enables our clients to define their FX execution strategy and automate the FX trade execution process, both for funds under custody with us as well as those under custody at another bank.

Our direct sales and trading revenue decreased by 1% for the second quarter of 2016, as compared to the second quarter of 2015, and decreased by 21% for the first six months of 2016, as compared to the same period in 2015. The decrease in the first six months of 2016 primarily resulted from lower volumes and volatility. Our estimated indirect FX trading revenue decreased 11% and 7% in the second quarter and first six months of 2016, respectively, as compared to the same periods in 2015. The decreases mainly resulted from lower volumes.

We continue to expect that some clients may choose, over time, to reduce their level of indirect FX trading transactions in favor of other execution methods, including either direct sales and trading transactions or electronic FX services which we provide. To the extent that clients shift to other execution methods that we provide, our FX trading revenue may decrease, even if volumes remain consistent.

Total brokerage and other trading services revenue decreased 6% and 6% in the second quarter and first six months of 2016, respectively, compared to the same periods in 2015. The decreases were primarily due to lower revenues resulting from the sale of WM/Reuters in April 2016 and lower activity caused by market volatility, including lower trading volumes in advance of the Brexit referendum, and significant market events in the prior periods.

Our clients may choose to execute FX transactions through one of our electronic trading platforms. These transactions generate revenue through a “click” fee. Revenue from such electronic FX services decreased 2% and 5% in the second quarter and first six months of 2016, respectively, compared to the same periods of 2015, mainly due to declines in client volumes.

Other trading, transition management and brokerage revenue decreased 8% and 6% in the second quarter and first six months of 2016, respectively, compared to the same periods in 2015, primarily due to the aforementioned Brexit referendum and lower revenues resulting from the sale of WM/Reuters.

21

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

In recent years, our transition management revenue was adversely affected by compliance issues in our U.K. business during 2010 and 2011. The reputational and regulatory impact of those compliance issues continues and may adversely affect our revenue in future periods. See Note 10 to the consolidated financial statements included in this Form 10-Q.

Securities Finance

Our securities finance business consists of three components:

(1) an agency lending program for SSGA-managed investment funds with a broad range of investment objectives, which we refer to as the SSGA lending funds;

(2) an agency lending program for third-party investment managers and asset owners, which we refer to as the agency lending funds; and

(3) security lending transactions which we enter into as principal, which we refer to as our enhanced custody business.

See Table 9: Investment Servicing Line of Business Results, for the comparison of securities finance revenue for the quarters and six months endedJune 30, 2016 and 2015.

Securities finance revenue earned from our agency lending activities, which is composed of our split of both the spreads related to cash collateral and the fees related to non-cash collateral, is principally a function of the volume of securities on loan, the interest-rate spreads and fees earned on the underlying collateral, and our share of the fee split.

As principal, our enhanced custody business borrows securities from the lending client and then lends such securities to the subsequent borrower, either a State Street client or a broker/dealer. We act as principal when the lending client is unable to, or elects not to, transact directly with the market and execute the transaction and furnish the securities. In our role as principal, we provide support to the transaction through our credit rating. While we source a significant proportion of the securities furnished by us in our role as principal from third parties, we have the ability to source securities through our assets under custody and administration from clients who have designated State Street as an eligible borrower.

Securities finance revenue increased1% and 13% in the second quarter and first six months of 2016, respectively, compared to the same periods in 2015. The increase was primarily the result of growth in our enhanced custody business and higher agency lending during the first quarter of 2016.

Market influences may continue to affect client demand for securities finance, and as a result our revenue from, and the profitability of, our securities lending activities in future periods. In addition, the constantly evolving regulatory environment may affect the volume of our securities lending activity and related revenue and profitability in future periods.

Processing Fees and Other

Processing fees and other revenue includes diverse types of fees and revenue, including fees from our structured products business, fees from software licensing and maintenance, equity income from our joint venture investments, gains and losses on sales of leased equipment and other assets, and amortization of our tax-advantaged investments.

Processing fees and other revenue, presented in Table 9: Investment Servicing Line of Business Results, increased364% and 81% in the second quarter and first six months of 2016, respectively, compared to the same periods in 2015, primarily due to a pre-tax gain of $53 million on the sale of WM/Reuters in the second quarter of 2016, and a net gain on fair value hedges in the current year period, partially offset by lower earnings from equity method investments.

22

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

Investment Management

TABLE 14: INVESTMENT MANAGEMENT LINE OF BUSINESS RESULTS
	Quarters Ended June 30,								Six Months Ended June 30,
(Dollars in millions, except where otherwise noted)	2016			2015			% Change		2016			2015			% Change
Management fees	$	293		$	304		(4	)%	$	563		$	605		(7	)%
Trading services	12			10			20		22			19			16
Processing fees and other	(4		)	(5		)	nm		3			(3		)	nm
Total fee revenue	301			309			(3	)	588			621			(5	)
Net interest revenue	1			1			—		1			2			(50	)
Total revenue	302			310			(3	)	589			623			(5	)
Total expenses	244			251			(3	)	500			507			(1	)
Income before income tax expense	$	58		$	59		(2	)	$	89		$	116		(23	)
Pre-tax margin	19		%	19		%			15		%	19		%

^nm Not meaningful

Total revenue for our Investment Management Line of Business, presented in Table 14: Investment Management Line of Business Results, decreased3% and 5% in the second quarter and first six months of 2016, respectively, compared to the same periods in 2015. Total fee revenue decreased3% and 5% in the second quarter and first six months of 2016, respectively, compared to the same periods in 2015.

Total expenses decreased in the second quarter of 2016 compared to the second quarter of 2015 resulting from declines in other operating expenses.

In July 2016, we closed our acquisition of GE Asset Management in a cash transaction with a total purchase price of $435 million, with up to an additional $50 million tied to incremental opportunities with General Electric. The transaction includes approximately $110 billion of acquired AUM. The results of this acquisition will be reflected in our third quarter 2016 statement of condition and results of operations.

Management Fees

Through SSGA, we provide a broad range of investment management strategies, specialized investment management advisory services, OCIO and other financial services for corporations, public funds, and other sophisticated investors. SSGA offers an array of investment management strategies, including passive and active, such as enhanced indexing, using quantitative and fundamental methods for both U.S. and global equity and fixed income securities. SSGA also offers ETFs, such as the SPDR^® ETF brand. While certain management fees are directly determined by the values of assets under management and the investment strategies employed, management fees reflect other factors as well, including our relationship pricing for clients who use multiple services, and the benchmarks specified in the respective management agreements related to performance fees.

Management fees decreased4% and 7%, in the second quarter and first six months of 2016, respectively, compared to the same periods of 2015 primarily due to lower global equity markets and net outflows of AUM, partially offset by lower money market fee waivers.

Management fees generated outside the U.S. were approximately 34% and 35% of total management fees in the second quarter and first six months of 2016, respectively, compared to 36% and 35% for the same periods of 2015, respectively.

TABLE 15: ASSETS UNDER MANAGEMENT BY ASSET CLASS AND INVESTMENT APPROACH(1)
(In billions)	June 30, 2016		December 31, 2015		June 30, 2015
Equity:
Active	$	32	$	32	$	36
Passive	1,275		1,294		1,386
Total Equity	1,307		1,326		1,422
Fixed-Income:
Active	17		18		17
Passive	318		294		303
Total Fixed-Income	335		312		320
Cash(1)	380		368		376
Multi-Asset-Class Solutions:
Active	17		17		29
Passive	100		86		89
Total Multi-Asset-Class Solutions	117		103		118
Alternative Investments(2):
Active	18		17		18
Passive	144		119		120
Total Alternative Investments	162		136		138
Total	$	2,301	$	2,245	$	2,374

⁽¹⁾ Includes both floating- and constant-net-asset-value portfolios held in commingled structures or separate accounts.

⁽²⁾ Includes real estate investment trusts, currency and commodities, including SPDR^® Gold Fund, for which State Street is not the investment manager, but acts as distribution agent.

23

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

TABLE 16: EXCHANGE - TRADED FUNDS BY ASSET CLASS(1)(2)
(In billions)	June 30, 2016		December 31, 2015		June 30, 2015
Alternative Investments(2)	$	54	$	34	$	37
Cash	2		3		2
Equity	348		350		342
Fixed-income	48		41		41
Total Exchange-Traded Funds	$	452	$	428	$	422

⁽¹⁾ ETFs are a component of assets under management presented in the preceding table.

⁽²⁾ Includes SPDR^® Gold Fund, for which State Street is not the investment manager, but acts as distribution agent.

TABLE 17: GEOGRAPHIC MIX OF ASSETS UNDER MANAGEMENT(1)
(In billions)	June 30, 2016		December 31, 2015		June 30, 2015
North America	$	1,501	$	1,452	$	1,486
Europe/Middle East/Africa	492		489		563
Asia/Pacific	308		304		325
Total	$	2,301	$	2,245	$	2,374

⁽¹⁾ Geographic mix is based on client location or fund management location.

TABLE 18: ACTIVITY IN ASSETS UNDER MANAGEMENT BY PRODUCT CATEGORY
(In billions)	Equity			Fixed-Income			Cash(2)			Multi-Asset-Class Solutions			Alternative Investments(3)			Total
Balance as of June 30, 2015	$	1,422		$	320		$	376		$	118		$	138		$	2,374
Long-term institutional inflows(1)	148			28			—			23			21			220
Long-term institutional outflows(1)	(197		)	(40		)	—			(22		)	(22		)	(281		)
Long-term institutional flows, net	(49		)	(12		)	—			1			(1		)	(61		)
ETF flows, net	19			2			1			—			(2		)	20
Cash fund flows, net	—			—			(7		)	—			—			(7		)
Total flows, net	(30		)	(10		)	(6		)	1			(3		)	(48		)
Market appreciation	(57		)	5			—			(14		)	5			(61		)
Foreign exchange impact	(9		)	(3		)	(2		)	(2		)	(4		)	(20		)
Total market/foreign exchange impact	(66		)	2			(2		)	(16		)	1			(81		)
Balance as of December 31, 2015	1,326			312			368			103			136			2,245
Long-term institutional inflows(1)	106			36			—			21			6			169
Long-term institutional outflows(1)	(144		)	(40		)	—			(17		)	(5		)	(206		)
Long-term institutional flows, net	(38		)	(4		)	—			4			1			(37		)
ETF flows, net	(12		)	5			(1		)	—			12			4
Cash fund flows, net	—			—			12			—			—			12
Total flows, net	(50		)	1			11			4			13			(21		)
Market appreciation	22			17			1			10			12			62
Foreign exchange impact	9			5			—			—			1			15
Total market/foreign exchange impact	31			22			1			10			13			77
Balance as of June 30, 2016	$	1,307		$	335		$	380		$	117		$	162		$	2,301

⁽¹⁾ Amounts represent long-term portfolios, excluding ETFs.

⁽²⁾ Includes both floating- and constant-net-asset-value portfolios held in commingled structures or separate accounts.

⁽³⁾ Includes real estate investment trusts, currency and commodities, including SPDR^® Gold Fund, for which State Street is not the investment manager, but acts as distribution agent.

The preceding table did not include new asset management business which was awarded to SSGA but not installed as of June 30, 2016. New business will be reflected in AUM in future periods after installation and will generate management fee revenue in subsequent periods. Total AUM as of June 30, 2016 included managed assets lost but not liquidated. Lost business occurs from time to time and it is difficult to predict the timing of client behavior in transitioning these assets. This timing can vary significantly.

24

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

FINANCIAL CONDITION

The structure of our consolidated statement of condition is primarily driven by the liabilities generated by our Investment Servicing and Investment Management lines of business. Our clients' needs and our operating objectives determine balance sheet volume, mix, and currency denomination. As our clients execute their worldwide cash management and investment activities, they utilize deposits and short-term investments that constitute the majority of our liabilities. These liabilities are generally in the form of interest-bearing transaction account deposits, which are denominated in a variety of currencies; non-interest-bearing demand deposits; and repurchase agreements, which generally serve as short-term investment alternatives for our clients.

Deposits and other liabilities resulting from client initiated transactions are invested in assets that generally have contractual maturities significantly longer than our liabilities; however, we evaluate the operational nature of our deposits and seek to maintain appropriate short-term liquidity of those liabilities that are not operational in nature and maintain longer-termed assets for our operational deposits. Our assets consist primarily of securities held in our available-for-sale or held-to-maturity portfolios and short-duration financial instruments, such as interest-bearing deposits with banks and securities purchased under resale agreements. The actual mix of assets is determined by the characteristics of the client liabilities and our desire to maintain a well-diversified portfolio of high-quality assets.

TABLE 19: AVERAGE STATEMENT OF CONDITION(1)
	Six Months Ended June 30,
	2016		2015
(In millions)	Average Balance		Average Balance
Assets:
Interest-bearing deposits with banks	$	49,815	$	75,523
Securities purchased under resale agreements	2,581		2,556
Trading account assets	865		1,181
Investment securities	101,645		110,795
Loans and leases	18,639		17,765
Other interest-earning assets	22,617		22,085
Average total interest-earning assets	196,162		229,905
Cash and due from banks	3,317		2,603
Other noninterest-earning assets	26,932		28,949
Average total assets	$	226,411	$	261,457
Liabilities and shareholders’ equity:
Interest-bearing deposits:
U.S.	$	28,729	$	29,164
Non-U.S.	94,708		107,406
Total interest-bearing deposits	123,437		136,570
Securities sold under repurchase agreements	4,173		9,757
Federal funds purchased	38		23
Other short-term borrowings	1,808		4,424
Long-term debt	11,013		9,415
Other interest-bearing liabilities	5,502		8,040
Average total interest-bearing liabilities	145,971		168,229
Noninterest-bearing deposits	43,495		55,676
Other noninterest-bearing liabilities	15,049		16,381
Preferred shareholders’ equity	2,923		2,129
Common shareholders’ equity	18,973		19,042
Average total liabilities and shareholders’ equity	$	226,411	$	261,457

⁽¹⁾ Additional information about our average statement of condition, primarily our interest-earning assets and interest-bearing liabilities, is included under “Consolidated Results of Operations - Total Revenue - Net Interest Revenue” in this Management's Discussion and Analysis.

25

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

Investment Securities

TABLE 20: CARRYING VALUES OF INVESTMENT SECURITIES
(In millions)	June 30, 2016		December 31, 2015
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	6,332	$	5,718
Mortgage-backed securities	19,075		18,165
Asset-backed securities:
Student loans(1)	6,954		7,176
Credit cards	1,380		1,341
Sub-prime	369		419
Other	1,710		1,764
Total asset-backed securities	10,413		10,700
Non-U.S. debt securities:
Mortgage-backed securities	7,268		7,071
Asset-backed securities	2,668		3,267
Government securities	5,405		4,355
Other	5,374		4,834
Total non-U.S. debt securities	20,715		19,527
State and political subdivisions	10,603		9,746
Collateralized mortgage obligations	2,741		2,987
Other U.S. debt securities	2,390		2,624
U.S. equity securities	41		39
Non-U.S. equity securities	3		3
U.S. money-market mutual funds	405		542
Non-U.S. money-market mutual funds	17		19
Total	$	72,735	$	70,070
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	21,577	$	20,878
Mortgage-backed securities	1,521		610
Asset-backed securities:
Student loans(1)	1,489		1,592
Credit cards	897		897
Other	138		366
Total asset-backed securities	2,524		2,855
Non-U.S. debt securities:
Mortgage-backed securities	1,900		2,202
Asset-backed securities	870		1,415
Government securities	309		239
Other	191		65
Total non-U.S. debt securities	3,270		3,921
State and political subdivisions	—		1
Collateralized mortgage obligations	1,494		1,687
Total	$	30,386	$	29,952

⁽¹⁾ Primarily composed of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans.

Additional information about our investment securities portfolio is provided in Note 3 to the consolidated financial statements included in this Form 10-Q.

We manage our investment securities portfolio to align with the interest-rate and duration characteristics of our client liabilities that we consider to be operational deposits and in the context of the overall structure of our consolidated statement of condition, in consideration of the global interest-rate environment. We consider a well-diversified, high-credit quality investment securities portfolio to be an important element in the management of our consolidated statement of condition.

Approximately 93% of the carrying value of the portfolio was rated “AAA” or “AA” as of June 30, 2016 and 92% as of December 31, 2015.

TABLE 21: INVESTMENT PORTFOLIO BY EXTERNAL CREDIT RATING
	June 30, 2016		December 31, 2015
AAA(1)	80	%	80	%
AA	13		12
A	4		5
BBB	2		2
Below BBB	1		1
	100	%	100	%

(1)Includes U.S. Treasury and federal agency securities that are split-rated, “AAA” by Moody’s Investors Service and “AA+” by Standard & Poor’s.

As of June 30, 2016, the investment portfolio of 12,735 securities was diversified with respect to asset class. Approximately 49% of the aggregate carrying value of the portfolio as of June 30, 2016 was composed of mortgage-backed and asset-backed securities, compared to 51% as of December 31, 2015. The asset-backed securities portfolio, of which approximately 92% of the carrying value as of both June 30, 2016 and December 31, 2015 was floating-rate, consisted primarily of student loan-backed and credit card-backed securities. Mortgage-backed securities were composed of securities issued by the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, as well as U.S. and non-U.S. large-issuer collateralized mortgage obligations.

In December 2013, U.S. regulators issued final regulations to implement the Volcker rule. The Volcker rule will prohibit banking entities, including us and our affiliates, from engaging in certain prohibited proprietary trading activities, as defined in the final Volcker rule regulations, subject to exemptions for market making-related activities, risk-mitigating hedging, underwriting and certain other activities. The Volcker rule will require banking entities to either restructure or divest certain ownership interests in, and relationships with, covered funds (as such terms are defined in the final Volcker rule regulations).

The Volcker rule became effective in July 2012, and the final implementing regulations became effective in April 2014. Under a 2016 conformance

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

period extension issued by the Federal Reserve, all investments in and relationships with investments in a covered fund made or entered into after December 31, 2013 by a banking entity and its affiliates, and all proprietary trading activities of those entities, were required to be in conformance with the Volcker rule and its final implementing regulations by July 21, 2015. The Federal Reserve stated in the 2016 conformance period extension that it intends to grant a final one-year extension of the general conformance period, to July 21, 2017, for banking entities to conform ownership interests in and relationships with legacy covered funds. On July 7, 2016, the Federal Reserve formally announced the extension of the general conformance period to July 21, 2017.

Whether certain types of investment securities or structures such as CLOs constitute covered funds, as defined in the final Volcker rule regulations, and do not benefit from the exemptions provided in the Volcker rule, and whether a banking organization's investments therein constitute ownership interests remain subject to (1) market, and ultimately regulatory, interpretation, and (2) the specific terms and other characteristics relevant to such investment securities and structures.

As of June 30, 2016, we held approximately $1.90 billion of investments in CLOs. As of the same date, these investments had an aggregate pre-tax net unrealized gain of approximately $28 million, composed of gross unrealized gains of $30 million and gross unrealized losses of $2 million. Comparatively, as of December 31, 2015, we held approximately $2.10 billion of investments in CLOs which had an aggregate pre-tax net unrealized gain of approximately $43 million, composed of gross unrealized gains of $46 million and gross unrealized losses of $3 million. In the event that we or our banking regulators conclude that such investments in CLOs, or other investments, are covered funds under the Volker rule, we may be required to divest of such investments. If other banking entities reach similar conclusions with respect to similar investments held by them, the prices of such investments could decline significantly, and we may be required to divest of such investments at a significant discount compared to the investments' book value. This could result in a material adverse effect on our consolidated results of operations or on our consolidated financial condition in the period in which such a divestiture occurs.

The final Volcker rule regulations also require banking entities to establish extensive programs designed to ensure compliance with the restrictions of the Volcker rule. We have established a compliance program which we believe complies with the final Volcker rule regulations as currently in effect. Such compliance program restricts our ability in the future

to service certain types of funds, in particular covered funds for which SSGA acts as an advisor and certain types of trustee relationships. Consequently, Volcker rule compliance entails both the cost of a compliance program and loss of certain revenue and future opportunities.

Non-U.S. Debt Securities

Approximately 23% of the aggregate carrying value of our investment securities portfolio was non-U.S. debt securities as of June 30, 2016 and December 31, 2015.

TABLE 22: NON-U.S. DEBT SECURITIES
(In millions)	June 30, 2016		December 31, 2015
Available-for-sale:
United Kingdom	$	5,845	$	5,754
Australia	3,688		3,316
Canada	2,696		2,400
Japan	1,584		1,348
Netherlands	1,507		1,839
South Korea	969		1,052
France	894		954
Germany	872		990
Italy	661		389
Norway	554		524
Hong Kong	391		—
Finland	273		319
Belgium	240		234
Sweden	218		123
Other(1)	323		285
Total	$	20,715	$	19,527
Held-to-maturity:
United Kingdom	$	828	$	1,067
Australia	745		917
Netherlands	671		684
Germany	571		832
Singapore	197		129
Spain	106		108
Italy	55		59
Ireland	10		10
Other(2)	87		115
Total	$	3,270	$	3,921

⁽¹⁾ Included approximately $241 million and $205 million as of June 30, 2016 and December 31, 2015, respectively, related to Portugal, Ireland, Austria and Spain, all of which were related to mortgage-backed securities and auto loans.

⁽²⁾ Included approximately $31 million as of June 30, 2016 and December 31, 2015, of securities related to Portugal, all of which were mortgage-backed securities.

Approximately 87% and 89% of the aggregate carrying value of these non-U.S. debt securities was rated “AAA” or “AA” as of June 30, 2016 and December 31, 2015, respectively. The majority of these securities comprised senior positions within the security structures; these positions have a level of protection provided through subordination and other forms of credit protection. As of June 30, 2016 and December 31, 2015, approximately 67% and 70%, respectively, of the aggregate carrying value of these non-U.S. debt securities was floating-rate, and

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

accordingly, we consider these securities to have minimal interest-rate risk.

As of June 30, 2016, our non-U.S. debt securities had an average market-to-book ratio of 100.5%, and an aggregate pre-tax net unrealized gain of approximately $130 million, composed of gross unrealized gains of $205 million and gross unrealized losses of $75 million. These unrealized amounts included a pre-tax net unrealized gain of $63 million, composed of gross unrealized gains of $103 million and gross unrealized losses of $40 million, associated with non-U.S. debt securities available-for- sale.

As of June 30, 2016, the underlying collateral for non-U.S. mortgage- and asset-backed securities primarily included U.K. prime mortgages, Australian and Dutch mortgages and German automobile loans. The securities listed under “Canada” were composed of Canadian government securities and corporate debt and covered bonds. The securities listed under “France” were composed of automobile loans, prime mortgages, and corporate debt and covered bonds. The securities listed under “Japan” were substantially composed of Japanese government securities. The securities listed under “South Korea” were composed of South Korean government securities.

Additional information on our exposures relating to Spain, Italy, Ireland and Portugal as of June 30, 2016 is provided under "Financial Condition - Cross-Border Outstandings" in this Management's Discussion and Analysis.

Municipal Obligations

We carried approximately $10.60 billion of municipal securities classified as state and political subdivisions in our investment securities portfolio as of June 30, 2016 as shown in Table 20: Carrying Values of Investment Securities. Substantially all of these securities were classified as AFS, with the remainder classified as HTM. As of the same date, we also provided approximately $9.03 billion of credit and liquidity facilities to municipal issuers.

TABLE 23: STATE AND MUNICIPAL OBLIGORS (1)
(Dollars in millions)	Total  Municipal Securities		Credit and Liquidity  Facilities(2)		Total		% of Total Municipal Exposure
June 30, 2016
State of Issuer:
Texas	$	1,683	$	1,773	$	3,456	18	%
California	537		2,336		2,873		15
Massachusetts	950		1,100		2,050		10
New York	788		1,083		1,871		10
Maryland	521		413		934		5
Total	$	4,479	$	6,705	$	11,184
December 31, 2015
State of Issuer:
Texas	$	1,250	$	1,962	$	3,212	17	%
California	444		2,220		2,664		14
New York	817		1,259		2,076		11
Massachusetts	927		731		1,658		9
Maryland	454		413		867		5
Total	$	3,892	$	6,585	$	10,477

⁽¹⁾ Represented 5% or more of our aggregate municipal credit exposure of approximately $19.63 billion and $18.50 billion across our businesses as of June 30, 2016 and December 31, 2015, respectively.

⁽²⁾ Includes municipal loans which are also presented within Table 25.

Our aggregate municipal securities exposure presented in Table 23: State and Municipal Obligors, was concentrated primarily with highly-rated counterparties, with approximately 92% of the obligors rated “AAA” or “AA” as of June 30, 2016. As of that date, approximately 51% and 44% of our aggregate municipal securities exposure was associated with general obligation and revenue bonds, respectively. In addition, we had no exposures associated with industrial development or land development bonds. The portfolios are also diversified geographically, with the states that represent our largest exposures widely dispersed across the U.S.

Impairment

Impairment exists when the fair value of an individual security is below its amortized cost basis. Impairment of a security is further assessed to determine whether such impairment is other-than-temporary. When the impairment is deemed to be other-than-temporary, we record the loss in our consolidated statement of income. In addition, for AFS and HTM debt securities, we record impairment in our consolidated statement of income when management intends to sell (or may be required to sell) the securities before they recover in value, or when management expects the present value of cash flows expected to be collected from the securities to be less than the amortized cost of the impaired security (a credit loss).

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

The increase in the net unrealized gain position as of June 30, 2016 as compared to December 31, 2015, presented in Table 24: Amortized Cost, Fair Value and Net Unrealized Gains (Losses) of Investment Securities, was primarily attributable to the decline in interest rates.

TABLE 24: AMORTIZED COST, FAIR VALUE AND NET UNREALIZED GAINS (LOSSES) OF INVESTMENT SECURITIES
	June 30, 2016						December 31, 2015
(In millions)	Amortized Cost		Net Unrealized Gains(Losses)		Fair Value		Amortized Cost		Net Unrealized Gains(Losses)			Fair Value
Available-for-sale(1)	$	71,940	$	795	$	72,735	$	69,843	$	227		$	70,070
Held-to-maturity(1)	30,386		509		30,895		29,952		(154		)	29,798
Total investment securities	$	102,326	$	1,304	$	103,630	$	99,795	$	73		$	99,868
Net after-tax unrealized gain (loss)			$	782					$	44

⁽¹⁾ AFS securities are carried at fair value, with after-tax net unrealized gains and losses recorded in AOCI. HTM securities are carried at amortized cost, and unrealized gains and losses are not recorded in our consolidated financial statements.

We conduct periodic reviews of individual securities to assess whether OTTI exists. Our assessment of OTTI involves an evaluation of economic and security-specific factors. Such factors are based on estimates, derived by management, which contemplate current market conditions and security-specific performance. To the extent that market conditions are worse than management's expectations or due to idiosyncratic bond performance, OTTI could increase, in particular the credit-related component that would be recorded in our consolidated statement of income.

We had $1 million of OTTI in the six months ended June 30, 2016 and 2015. Management considers the aggregate decline in fair value of the remaining investment securities and the resulting gross unrealized losses of $474 million as of June 30, 2016 to be temporary and not the result of any material changes in the credit characteristics of the securities. Additional information with respect to OTTI, net impairment losses and gross unrealized losses is provided in Note 3 to the consolidated financial statements included in this Form 10-Q.

Our evaluation of potential OTTI of structured credit securities with collateral in the U.K. takes into account the outcome from the Brexit referendum and assumes no disruption of payments on these securities.

Our evaluation of potential OTTI of mortgage-backed securities with collateral in Spain, Italy, Ireland, and Portugal takes into account slow economic growth, austerity measures, and government intervention in the corresponding mortgage markets and assumes a conservative baseline macroeconomic environment. Our baseline view assumes a recessionary period characterized by high unemployment and by additional declines in housing prices between 3% and 21%. Our evaluation of OTTI in our base case does not assume a disorderly sovereign debt restructuring or a break-up of the Eurozone.

Loans and Leases

TABLE 25: U.S. AND NON- U.S. LOANS AND LEASES
(In millions)	June 30, 2016		December 31, 2015
Institutional:
U.S.	$	16,223	$	16,237
Non-U.S.	3,589		2,534
Commercial real estate:
U.S.	27		28
Total loans and leases	$	19,839	$	18,799

The increase in loans in the institutional segment as of June 30, 2016 as compared to December 31, 2015 was primarily driven by higher levels of short-duration advances, partially offset by a decrease in other commercial and financial loans.

Short-duration advances to our clients included in the institutional segment were $4.32 billion and $2.62 billion as of June 30, 2016 and December 31, 2015, respectively. These short-duration advances provide liquidity to fund clients in support of their transaction flows associated with securities settlement activities.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

As of June 30, 2016 and December 31, 2015, our investment in senior secured loans totaled approximately $3.30 billion and $3.14 billion, respectively. In addition, we had binding unfunded commitments as of June 30, 2016 and December 31, 2015 of $239 million and $186 million, respectively, to participate in such syndications.

These senior secured loans, which are primarily rated “speculative” under our internal risk-rating framework (refer to Note 4 to the consolidated financial statements included in this Form 10-Q), are externally rated “BBB,” “BB” or “B,” with approximately 92% and 93% of the loans rated “BB” or “B” as of June 30, 2016 and December 31, 2015, respectively. Our investment strategy involves limiting our investment to larger, more liquid credits underwritten by major global financial institutions, applying our internal credit analysis process to each potential investment, and diversifying our exposure by counterparty and industry segment. However, these loans have significant exposure to credit losses relative to higher-rated loans.

As of June 30, 2016 and December 31, 2015, unearned income deducted from our investment in leveraged lease financing was $98 million and $102 million, respectively, for U.S. leases and $203 million and $231 million, respectively, for non-U.S. leases.

The CRE loans are composed of the loans acquired in 2008 pursuant to indemnified repurchase agreements with an affiliate of Lehman as a result of the Lehman Brothers bankruptcy. Additional information about all of our loan-and-lease segments, as well as underlying classes, is provided in Note 4 to the consolidated financial statements included in this Form 10-Q.

No loans, including CRE loans, were modified in troubled debt restructurings in the first six months of 2016 and 2015.

TABLE 26: ALLOWANCE FOR LOAN AND LEASE LOSSES
	Six Months Ended June 30,
(In millions)	2016			2015
Allowance for loan and lease losses:
Beginning balance	$	46		$	37
Provision for loan losses	8			6
Charge-offs	(3		)	—
Ending balance	$	51		$	43

The provision of $8 million and the charge-offs of $3 million recorded in the first six months of 2016 were associated with our exposure to senior secured loans to non-investment grade institutional borrowers, which were purchased in connection with our participation in syndicated loans.

As of June 30, 2016, approximately $43 million of our allowance for loan and lease losses was related to senior secured loans included in the institutional segment. As this portfolio grows and matures, our allowance for loan and lease losses related to these loans may increase through additional provisions for credit losses. The remaining $8 million was related to other institutional segment loans.

Cross-Border Outstandings

Cross-border outstandings are amounts payable to us by non-U.S. counterparties which are denominated in U.S. dollars or other non-local currency, as well as non-U.S. local currency claims not funded by local currency liabilities. Our cross-border outstandings consist primarily of deposits with banks; loans and lease financing, including short-duration advances; investment securities; amounts related to foreign exchange and interest-rate contracts; and securities finance. In addition to credit risk, cross-border outstandings have the risk that, as a result of political or economic conditions in a country, borrowers may be unable to meet their contractual repayment obligations of principal and/or interest when due because of the unavailability of, or restrictions on, foreign exchange needed by borrowers to repay their obligations.

We place deposits with non-U.S. counterparties that have strong internal State Street risk ratings. Counterparties are approved and monitored by our Country Risk Committee. This process includes financial analysis of non-U.S. counterparties and the use of an internal risk-rating system. Each counterparty is reviewed at least annually and potentially more frequently based on deteriorating credit fundamentals or general market conditions. We also utilize risk mitigation and other facilities that may reduce our exposure through the use of cash collateral and/or balance sheet netting where we deem appropriate. In addition, the Country Risk Committee performs country-risk analyses and monitors limits on country exposure.

The total cross-border outstandings presented in Table 27: Cross-Border Outstandings, represented approximately 29% and 25% of our consolidated total assets as of June 30, 2016 and December 31, 2015, respectively.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

TABLE 27: CROSS-BORDER OUTSTANDINGS(1)
(In millions)	Investment Securities and Other Assets		Derivatives and Securities on Loan		Total Cross-Border Outstandings
June 30, 2016
United Kingdom	$	18,416	$	4,379	$	22,795
Germany	17,051		501		17,552
Japan	13,900		212		14,112
Australia	5,277		608		5,885
Canada	3,792		1,072		4,864
Luxembourg	3,397		1,056		4,453
Ireland	530		2,326		2,856
Netherlands	2,333		277		2,610
December 31, 2015
United Kingdom	$	16,965	$	1,589	$	18,554
Japan	17,328		87		17,415
Germany	12,111		569		12,680
Australia	4,035		292		4,327
Canada	3,156		1,113		4,269
Luxembourg	3,034		514		3,548

⁽¹⁾ Cross-border outstandings included countries in which we do business, and which amounted to at least 1% of our consolidated total assets as of the dates indicated.

As of June 30, 2016, aggregate cross-border outstandings in countries which amounted to between 0.75% and 1% of our consolidated assets totaled approximately $2.13 billion and $2.16 billion to France and Switzerland, respectively. As of December 31, 2015, aggregate cross-border outstandings in countries which amounted to between 0.75% and 1% of our total consolidated assets totaled approximately $2.20 billion to Netherlands.

TABLE 28: CROSS-BORDER OUTSTANDINGS (IRELAND, ITALY, SPAIN AND PORTUGAL)
(In millions)	Investment Securities and Other Assets		Derivatives and Securities on Loan		Total Cross-Border Outstandings
June 30, 2016
Ireland	$	530	$	2,326	$	2,856
Italy	1,060		7		1,067
Spain	226		39		265
Portugal	55		—		55
December 31, 2015
Ireland	$	326	$	678	$	1,004
Italy	460		—		460
Spain	150		12		162
Portugal	26		—		26

As market and economic conditions change, the major independent credit rating agencies may downgrade U.S. and non-U.S. financial institutions and sovereign issuers which have been, and may in the future be, significant counterparties to us, or whose financial instruments serve as collateral on which we rely for credit risk mitigation purposes, and may do so again in the future. As a result, we may be exposed to increased counterparty risk, leading to negative ratings volatility.

Risk Management

In the normal course of our global business activities, we are exposed to a variety of risks, some inherent in the financial services industry, others more specific to our business activities. Our risk management framework focuses on material risks, which include the following:

• credit and counterparty risk;

• liquidity risk, funding and management;

• operational risk;

• information technology risk;

• market risk associated with our trading activities;

• market risk associated with our non-trading activities, which we refer to as asset-and-liability management, and which consists primarily of interest-rate risk;

• strategic risk;

• model risk; and

• reputational, fiduciary and business conduct risk.

Many of these risks, as well as certain of the factors underlying each of these risks that could affect our businesses and our consolidated financial statements, are discussed in detail under Item 1A, “Risk Factors,” included in our 2015 Form 10-K.

For additional information on our risk management, including our risk appetite framework and risk governance committee structure, refer to pages 77 to 82 in our 2015 Form 10-K.

Credit Risk Management

We define credit risk as the risk of financial loss if a counterparty, borrower or obligor, collectively referred to as a counterparty, is either unable or unwilling to repay borrowings or settle a transaction in accordance with underlying contractual terms. We assume credit risk in our traditional non-trading lending activities, such as loans and contingent commitments, in our investment securities portfolio, where recourse to a counterparty exists, and in our direct and indirect trading activities, such as principal securities lending and foreign exchange and indemnified agency securities lending. We also assume credit risk in our day-to-day treasury and securities and other settlement operations, in the form of deposit placements and other cash balances, with central banks or private sector institutions.     

For additional information on our credit risk management, including our core policies and principles, structure and organization, credit ratings, risk parameter estimates, credit risk mitigation, credit limits, reporting, monitoring, controls and reserve for credit losses, refer to pages 82 to 87 in our 2015 Form 10-K.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

Liquidity Risk Management

Our liquidity framework contemplates areas of potential risk based on our activities, size, and other appropriate risk-related factors. In managing liquidity risk we employ limits, maintain established metrics and early warning indicators, and perform routine stress testing to identify potential liquidity needs. This process involves the evaluation of a combination of internal and external scenarios which assist us in measuring our liquidity position and in identifying potential increases in cash needs or decreases in available sources of cash, as well as the potential impairment of our ability to access the global capital markets.

We manage our liquidity on a global, consolidated basis. We also manage liquidity on a stand-alone basis at the parent company, as well as at certain branches and subsidiaries of State Street Bank. State Street Bank generally has access to markets and funding sources limited to banks, such as the federal funds market and the Federal Reserve's discount window. Our parent company is managed to a more conservative liquidity profile, reflecting narrower market access. Our parent company typically holds enough cash, primarily in the form of interest-bearing deposits or time deposits with its banking subsidiaries, to meet its current debt maturities and cash needs, as well as those projected over the next one-year period. As of June 30, 2016, the value of our parent company's net liquid assets totaled $5.99 billion, compared with $5.73 billion as of December 31, 2015. As of June 30, 2016, our parent company and State Street Bank had approximately $450 million of senior notes outstanding that will mature in the next twelve months.

For additional information on our liquidity risk management, as well as liquidity risk metrics, refer to pages 87 to 88 in our 2015 Form 10-K. For additional information on our liquidity ratios, including LCR and Net Stable Funding Ratio, refer to page 9 in our 2015 Form 10-K. Beginning in July 2015, we were required to report our LCR to the Federal Reserve on a daily basis. As of June 30, 2016, our LCR was in excess of 100%.

Asset Liquidity

Central to the management of our liquidity is asset liquidity, which consists primarily of unencumbered highly liquid securities, cash and cash equivalents reported on our consolidated statement of condition. We restrict the eligibility of securities of asset liquidity to U.S. Government and federal agency securities (including mortgage-backed securities), selected non-U.S. Government and supranational securities as well as certain other high- quality securities which generally are more liquid than other types of assets even in times of stress. Our

asset liquidity metric is similar to the HQLA under the U.S. LCR, and our HQLA, under the LCR final rule definition, were estimated to be $113.67 billion and $109.39 billion as of June 30, 2016 and December 31, 2015, respectively.

TABLE 29: COMPONENTS OF HQLA BY TYPE OF ASSET
(In millions)	June 30, 2016		December 31, 2015
Excess Central Bank Balances	$	68,550	$	66,063
U.S. Treasuries	19,745		22,518
Other Investment securities	20,576		16,952
Foreign government	4,800		3,861
Total	$	113,671	$	109,394

With respect to highly liquid short-term investments presented in the preceding table, due to the continued elevated level of client deposits as of June 30, 2016, we maintained cash balances in excess of regulatory requirements governing deposits with the Federal Reserve of approximately $68.55 billion at the Federal Reserve, the ECB and other non-U.S. central banks, compared to $66.06 billion as of December 31, 2015.The higher levels of deposits with central banks as ofJune 30, 2016 compared to December 31, 2015 was due to normal deposit volatility. The increase in other investment securities as of June 30, 2016 compared to December 31, 2015, presented in the table above, was primarily associated with repositioning the investment portfolio in light of the liquidity requirements of the LCR.

Liquid securities carried in our asset liquidity include securities pledged without corresponding advances from the FRBB, the FHLB, and other non-U.S. central banks. State Street Bank is a member of the FHLB. This membership allows for advances of liquidity in varying terms against high-quality collateral, which helps facilitate asset-and-liability management.

Access to primary, intra-day and contingent liquidity provided by these utilities is an important source of contingent liquidity with utilization subject to underlying conditions. As of June 30, 2016 and December 31, 2015, we had no outstanding primary credit borrowings from the FRBB discount window or any other central bank facility, and as of the same dates, no FHLB advances were outstanding.

In addition to the securities included in our asset liquidity, we have significant amounts of other unencumbered investment securities. The aggregate fair value of those securities was $40.84 billion as of June 30, 2016, compared to $41.00 billion as of December 31, 2015. These securities are available sources of liquidity, although not as rapidly deployed as those included in our asset liquidity.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

Uses of Liquidity

Significant uses of our liquidity could result from the following: withdrawals of client deposits; draw-downs of unfunded commitments to extend credit or to purchase securities, generally provided through lines of credit; and short-duration advance facilities. Such circumstances would generally arise under stress conditions including deterioration in credit ratings. We had unfunded commitments to extend credit with gross contractual amounts totaling $22.60 billion and $22.58 billion as of June 30, 2016 and December 31, 2015, respectively. These amounts do not reflect the value of any collateral. As of June 30, 2016, approximately 77% of our unfunded commitments to extend credit expire within one year. Since many of our commitments are expected to expire or renew without being drawn upon, the gross contractual amounts do not necessarily represent our future cash requirements.

State Street Corporation, like other bank holding companies with total consolidated assets of $50 billion or more, periodically submits a plan for rapid and orderly resolution in the event of material financial distress or failure--commonly referred to as a resolution plan or a living will--to the Federal Reserve and the FDIC under Section 165(d) of the Dodd-Frank Act. Through resolution planning, we seek, in the event of the insolvency of State Street, to maintain State Street Bank’s role as a key infrastructure provider within the financial system, while minimizing risk to the financial system and maximizing value for the benefit of our stakeholders. We have and will continue to focus management attention and resources to meet regulatory expectations with respect to resolution planning. As set out in our 2015 resolution plan, in the event of material financial distress or failure, our preferred resolution strategy, referred to as the single point of entry strategy, provides for the recapitalization of State Street Bank by the parent company (for example, by forgiving inter-company indebtedness of State Street Bank owed to the parent company) prior to the parent company’s entry into bankruptcy proceedings. The recapitalization is intended to enable State Street Bank and its material subsidiaries to continue operating. Under this single point of entry strategy, State Street Bank and its material entity subsidiaries would not themselves enter into resolution proceedings; they would instead be transferred to a newly organized holding company held by a reorganization trust for the benefit of the parent company’s claimants. In the event that such recapitalization actions occur and were unsuccessful in stabilizing State Street Bank, the parent company's financial condition would be adversely impacted and equity and debt holders of the parent company, may

as a consequence, be in a worse position than if the recapitalization did not occur.

We submitted our 2015 resolution plan to the Federal Reserve and the FDIC on July 1, 2015.  On April 13, 2016, the regulatory authorities announced the completion of their review of the resolution plan.  While the Federal Reserve and the FDIC noted improvements in the plan over State Street’s prior resolution plans, the regulatory authorities jointly determined that the 2015 resolution plan is not credible or would not facilitate an orderly resolution.  We are required to address the deficiencies jointly identified by the Federal Reserve and the FDIC by October 1, 2016.  We may not successfully implement our plans to address the deficiencies jointly identified by the Federal Reserve and the FDIC with respect to our 2015 resolution plan or these plans may not be considered to be sufficient by the Federal Reserve and the FDIC, due to a number of factors, including, but not limited to challenges we may experience in interpreting and addressing regulatory expectations, failure to implement remediation in a timely manner, the complexities of development of a comprehensive plan to resolve a global custodial bank and related costs and dependencies. If we fail to meet regulatory expectations to the satisfaction of the Federal Reserve and the FDIC in our resolution plan submission due on October 1, 2016 or in any future submission, we could be subject to more stringent capital, leverage or liquidity requirements, or restrictions on our growth, activities or operations.

Funding

Deposits

We provide products and services including custody, accounting, administration, daily pricing, foreign exchange services, cash management, financial asset management, securities finance and investment advisory services. As a provider of these products and services, we generate client deposits, which have generally provided a stable, low-cost source of funds. As a global custodian, clients place deposits with State Street entities in various currencies. We invest these client deposits in a combination of investment securities and short-duration financial instruments whose mix is determined by the characteristics of the deposits.

For the past several years, we have frequently experienced higher client deposit inflows toward the end of each fiscal quarter or the end of the fiscal year. As a result, we believe average client deposit balances are more reflective of ongoing funding than period-end balances.

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TABLE 30: CLIENT DEPOSITS
					Average Balance
	June 30,				Six Months Ended June 30,
(In millions)	2016		2015		2016		2015
Client deposits(1)	$	177,065	$	220,233	$	152,143	$	181,203

⁽¹⁾ Balance as of June 30, 2016 and June 30, 2015 excluded term wholesale CDs of $16.06 billion and $10.36 billion, respectively; average balances for the periods ended June 30, 2016 and June 30, 2015 excluded average CDs of $14.79 billion and $11.04 billion, respectively.

Short-Term Funding

State Street phased out its commercial paper program prior to December 31, 2015, consistent with the objectives of its 2015 recovery and resolution plan developed pursuant to the requirements of the Dodd-Frank Act. Accordingly, we had no commercial paper outstanding at June 30, 2016 or December 31, 2015.

Our on-balance sheet liquid assets are also an integral component of our liquidity management strategy. These assets provide liquidity through maturities of the assets, but more importantly, they provide us with the ability to raise funds by pledging the securities as collateral for borrowings or through outright sales. In addition, our access to the global capital markets gives us the ability to source incremental funding at reasonable rates of interest from wholesale investors. As discussed earlier under “Asset Liquidity,” State Street Bank's membership in the FHLB allows for advances of liquidity with varying terms against high-quality collateral.

Short-term secured funding also comes in the form of securities lent or sold under agreements to repurchase. These transactions are short-term in nature, generally overnight, and are collateralized by high-quality investment securities. These balances were $4.35 billion and $4.50 billion as of June 30, 2016 and December 31, 2015, respectively.

State Street Bank currently maintains a line of credit with a financial institution of CAD 1.40 billion, or approximately $1.08 billion as of June 30, 2016, to support its Canadian securities processing operations. The line of credit has no stated termination date and is cancelable by either party with prior notice. As of June 30, 2016, there was no balance outstanding on this line of credit.

Long-Term Funding

As of June 30, 2016, State Street Bank had Board authority to issue unsecured senior debt securities from time to time, provided that the aggregate principal amount of such unsecured senior debt outstanding at any one time does not exceed $5 billion. As of June 30, 2016, $5 billion was available for issuance pursuant to this authority. As of June 30, 2016, State Street Bank also had Board authority to issue an additional $500 million of subordinated debt.

State Street Corporation maintains an effective universal shelf registration that allows for the public offering and sale of debt securities, capital securities, common stock, depositary shares and preferred stock, and warrants to purchase such securities, including any shares into which the preferred stock and depositary shares may be convertible, or any combination thereof. We have issued in the past, and we may issue in the future, securities pursuant to our shelf registration. The issuance of debt or equity securities will depend on future market conditions, funding needs and other factors.

Agency Credit Ratings

Our ability to maintain consistent access to liquidity is fostered by the maintenance of high investment-grade ratings as measured by the major independent credit rating agencies. Factors essential to maintaining high credit ratings include diverse and stable core earnings; relative market position; strong risk management; strong capital ratios; diverse liquidity sources, including the global capital markets and client deposits; strong liquidity monitoring procedures; and preparedness for current or future regulatory developments. High ratings limit borrowing costs and enhance our liquidity by providing assurance for unsecured funding and depositors, increasing the potential market for our debt and improving our ability to offer products, serve markets, and engage in transactions in which clients value high credit ratings. A downgrade or reduction of our credit ratings could have a material adverse effect on our liquidity by restricting our ability to access the capital markets, which could increase the related cost of funds. In turn, this could cause the sudden and large-scale withdrawal of unsecured deposits by our clients, which could lead to draw-downs of unfunded commitments to extend credit or trigger requirements under securities purchase commitments; or require additional collateral or force terminations of certain trading derivative contracts.

A majority of our derivative contracts have been entered into under bilateral agreements with counterparties who may require us to post collateral or terminate the transactions based on changes in our credit ratings. We assess the impact of these arrangements by determining the collateral or termination payments that would be required assuming a downgrade by all rating agencies. The additional collateral or termination payments related to our net derivative liabilities under these arrangements that could have been called by counterparties in the event of a downgrade in our credit ratings below levels specified in the agreements is disclosed in Note 7 to the consolidated financial statements included in this Form 10-Q. Other funding sources, such as secured financing transactions and other margin requirements, for

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which there are no explicit triggers, could also be adversely affected.

Operational Risk Management

Overview

We consider operational risk to be the risk of loss resulting from inadequate or failed internal processes and systems, human error, or from external events. Operational risk encompasses fiduciary risk and legal risk. Fiduciary risk is defined as the risk that State Street fails to properly exercise its fiduciary duties in its provision of products or services to clients. Legal risk is the risk of loss resulting from failure to comply with laws and contractual obligations as well as prudent ethical standards in business practices in addition to exposure to litigation from all aspects of State Street’s activities.

For additional information about our operational risk framework, refer to pages 92 to 95 in our 2015 Form 10-K.

Market Risk Management

Market risk is defined by U.S. banking regulators as the risk of loss that could result from broad market movements, such as changes in the general level of interest rates, credit spreads, foreign exchange rates or commodity prices. We are exposed to market risk in both our trading and certain of our non-trading, or asset-and-liability management, activities.

Information about the market risk associated with our trading activities is provided below under “Trading Activities.” Information about the market risk associated with our non-trading activities, which consists primarily of interest-rate risk, is provided below under “Asset-and-Liability Management Activities.”

Trading Activities

In the conduct of our trading activities, we assume market risk, the level of which is a function of our overall risk appetite, business objectives and liquidity needs, our clients' requirements and market volatility, and our execution against those factors.

For additional information about the market risk associated with our trading activities, refer to pages 95 to 96 in our 2015 Form 10-K.

As part of our trading activities, we assume positions in the foreign exchange and interest-rate markets by buying and selling cash instruments and entering into derivative instruments, including foreign exchange forward contracts, foreign exchange and interest-rate options and interest-rate swaps, interest-rate forward contracts, and interest-rate futures. As of June 30, 2016, the notional amount of these derivative contracts was $1.45 trillion, of which $1.42 trillion was composed of foreign exchange forward,

swap and spot contracts. We seek to match positions closely with the objective of minimizing related currency and interest-rate risk. All foreign exchange contracts are valued daily at current market rates.

Value-at-Risk, Stress Testing and Stressed VaR

We use a variety of risk measurement tools and methodologies, including VaR, which is an estimate of potential loss for a given period within a stated statistical confidence interval. We use a risk measurement methodology to measure trading-related VaR daily. We have adopted standards for measuring trading-related VaR, and we maintain regulatory capital for market risk associated with our trading activities in conformity with currently applicable bank regulatory market risk requirements.

For additional information about our VaR measurement tools and methodologies, refer to pages 97 to 101 in our 2015 Form 10-K.

Stress Testing and Stressed VaR

We have a corporate-wide stress testing program in place that incorporates an array of techniques to measure the potential loss we could suffer in a hypothetical scenario of adverse economic and financial conditions. We also monitor concentrations of risk such as concentration by branch, risk component, and currency pairs. We conduct stress testing on a daily basis based on selected historical stress events that are relevant to our positions in order to estimate the potential impact to our current portfolio should similar market conditions recur, and we also perform stress testing as part of the Federal Reserve's CCAR process. Stress testing is conducted, analyzed and reported at the corporate, trading desk, division and risk-factor level (for example, exchange risk, interest-rate risk and volatility risk).

We calculate a stressed VaR-based measure using the same model we use to calculate VaR, but with model inputs calibrated to historical data from a range of continuous twelve-month periods that reflect significant financial stress. The stressed VaR model identifies the second-worst outcome occurring in the worst continuous one-year rolling period since July 2007. This stressed VaR meets the regulatory requirement as the rolling ten-day period with an outcome that is worse than 99% of other outcomes during that twelve-month period of financial stress. For each portfolio, the stress period is determined algorithmically by seeking the one-year time horizon that produces the largest ten-business-day VaR from within the available historical data. This historical data set includes the financial crisis of 2008, the highly volatile period surrounding the Eurozone sovereign debt crisis and the Standard & Poor's downgrade of U.S. Treasury debt in August 2011. As the historical data set used to determine the stress

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

period expands over time, future market stress events will be automatically incorporated.

Stress testing results and limits are actively monitored on a daily basis by ERM and reported to the TMRC. Limit breaches are addressed by ERM risk managers in conjunction with the business units, escalated as appropriate, and reviewed by the TMRC if material. In addition, we have established several action triggers that prompt immediate review by management and the implementation of a remediation plan.

Validation and Back-Testing

We perform frequent back-testing to assess the accuracy of our VaR-based model in estimating loss at the stated confidence level. This back-testing involves the comparison of estimated VaR model outputs to daily, actual profit-and-loss outcomes, or P&L, observed from daily market movements. We

back-test our VaR model using “clean” P&L, which excludes non-trading revenue such as fees, commissions and net interest revenue, as well as estimated revenue from intra-day trading. Our VaR definition of trading losses excludes items that are not specific to the price movement of the trading assets and liabilities themselves, such as fees, commissions, changes to reserves and gains or losses from intra-day activity.

We had no back-testing exceptions in the quarters ended June 30, 2016 and March 31, 2016.

The following tables present VaR and stressed VaR associated with our trading activities for covered positions held during the quarters ended June 30, 2016 and March 31, 2016, and as of June 30, 2016 and March 31, 2016, as measured by our VaR methodology:

TABLE 31: TEN-DAY VaR ASSOCIATED WITH TRADING ACTIVITIES FOR COVERED POSITIONS
	Quarter Ended June 30, 2016						Quarter Ended March 31, 2016						As of June 30, 2016		As of March 31, 2016
(In thousands)	Average		Maximum		Minimum		Average		Maximum		Minimum		VaR		VaR
Global Markets	$	6,051	$	12,827	$	3,605	$	4,778	$	7,453	$	2,969	$	5,830	$	5,315
Global Treasury	601		767		433		441		1,067		159		590		637
Total VaR	$	5,986	$	12,838	$	3,410	$	4,687	$	7,728	$	2,877	$	5,706	$	5,312

TABLE 32: TEN-DAY STRESSED VaR ASSOCIATED WITH TRADING ACTIVITIES FOR COVERED POSITIONS
	Quarter Ended June 30, 2016						Quarter Ended March 31, 2016						As of June 30, 2016		As of March 31, 2016
(In thousands)	Average		Maximum		Minimum		Average		Maximum		Minimum		Stressed VaR		Stressed VaR
Global Markets	$	32,573	$	40,723	$	20,363	$	29,468	$	42,989	$	17,255	$	30,486	$	31,880
Global Treasury	12,294		17,420		8,508		12,912		25,059		6,612		12,536		13,387
Total Stressed VaR	$	35,410	$	44,846	$	24,726	$	34,760	$	53,106	$	20,996	$	32,378	$	35,454

The three month average of our stressed VaR-based measure was approximately $35 million for the quarter ended June 30, 2016, compared to a three month average of approximately $35 million for the quarter ended March 31, 2016.

The increase in the three month average of our VaR and stressed VaR-based measures for the quarter ended June 30, 2016, compared to the quarter ended March 31, 2016, was driven by larger Euro and Japanese Yen foreign exchange positions taken in the context of monetary policy divergence from central banks in Europe, Japan and the U.S. regarding their interest rate decisions.

The VaR-based measures presented in the preceding tables are primarily a reflection of the overall level of market volatility and our appetite for taking market risk in our trading activities. Overall levels of volatility have been low both on an absolute basis and relative to the historical information observed at the beginning of the period used for the calculations. Both the ten-day VaR-based measures and the stressed VaR-based measures are based on historical changes observed during rolling ten-day periods for the portfolios as of the close of business each day over the past one-year period.

We may in the future modify and adjust our models and methodologies used to calculate VaR and stressed VaR, subject to regulatory review and approval, and these modifications and adjustments may result in changes in our VaR-based and stressed VaR-based measures.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

The following tables present the VaR and stressed-VaR associated with our trading activities attributable to foreign exchange risk, interest-rate risk and volatility risk as of June 30, 2016 and March 31, 2016. The totals of the VaR-based and stressed VaR-based measures for the three attributes for each VaR and stressed-VaR component exceeded the related total VaR and total stressed VaR presented in the foregoing tables as of each period-end, primarily due to the benefits of diversification across risk types.

TABLE 33: TEN-DAY VaR ASSOCIATED WITH TRADING ACTIVITIES BY RISK FACTOR(1)
	As of June 30, 2016						As of March 31, 2016
(In thousands)	Foreign Exchange Risk		Interest Rate Risk		Volatility Risk		Foreign Exchange Risk		Interest Rate Risk		Volatility Risk
By component:
Global Markets	$	3,272	$	3,009	$	—	$	3,610	$	4,117	$	—
Global Treasury	161		595		—		170		635		—
Total VaR	$	3,353	$	3,012	$	—	$	3,762	$	4,058	$	—

TABLE 34: TEN-DAY STRESSED VaR ASSOCIATED WITH TRADING ACTIVITIES BY RISK FACTOR(1)
	As of June 30, 2016						As of March 31, 2016
(In thousands)	Foreign Exchange Risk		Interest Rate Risk		Volatility Risk		Foreign Exchange Risk		Interest Rate Risk		Volatility Risk
By component:
Global Markets	$	5,704	$	33,817	$	—	$	6,695	$	36,996	$	—
Global Treasury	183		12,665		—		204		13,505		—
Total Stressed VaR	$	5,730	$	37,141	$	—	$	6,708	$	37,697	$	—

⁽¹⁾ For purposes of risk attribution by component, foreign exchange refers only to the risk from market movements in period-end rates. Forwards, futures, options and swaps with maturities greater than period-end have embedded interest-rate risk that is captured by the measures used for interest-rate risk.  Accordingly, the interest-rate risk embedded in these foreign exchange instruments is included in the interest-rate risk component.

Asset-and-Liability Management Activities

The primary objective of asset-and-liability management is to provide sustainable NIR under varying economic conditions, while protecting the economic value of the assets and liabilities carried in our consolidated statement of condition from the adverse effects of changes in interest rates. While many market factors affect the level of NIR and the economic value of our assets and liabilities, one of the most significant factors is our exposure to movements in interest rates. Most of our NIR is earned from the investment of client deposits generated by our businesses. We invest these client deposits in assets that conform generally to the characteristics of our balance sheet liabilities, including the currency composition of our significant non-U.S. dollar denominated client liabilities.

We quantify NIR sensitivity using an earnings simulation model that includes our expectations for new business growth, changes in balance sheet mix and investment portfolio positioning. This measure compares our baseline view of NIR over a twelve-month horizon, based on our internal forecast of interest rates, to a wide range of instantaneous and gradual rate shocks. Economic value of equity sensitivity is a discounted cash flow model designed to estimate the fair value of assets and liabilities under a series of interest rate shocks over a long-term horizon. Each approach is routinely monitored as market conditions change and within internally-approved risk limits and guidelines.

For additional information on our Asset-and-Liability Management Activities, refer to pages 101 to 104 in our 2015 Form 10-K.

In the table below, we report the expected change in NIR over the next twelve months from +/-100 basis point instantaneous and gradual parallel rate shocks. Each scenario assumes no management action is taken to mitigate the adverse effects of interest rate changes on our financial performance. While investment securities balances can fluctuate due to prepayment assumptions in our rate shocks, our deposit balances are consistent with the baseline forecast.

TABLE 35: NIR EXPOSURE/BENEFIT
	Exposure and Benefit to Net Interest Revenue
(In millions)	June 30, 2016			December 31, 2015
Rate change:	Exposure/Benefit
+100 bps shock	$	477		$	471
–100 bps shock	(205		)	(181		)
+100 bps ramp	220			198
–100 bps ramp	(111		)	(96		)

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AND RESULTS OF OPERATIONS (Continued)

As ofJune 30, 2016, NIR sensitivity remains positioned to benefit from a rise in interest rates. The increase in asset sensitivity is driven by slower forecasted re-pricing on interest-bearing deposits as well as an increase in floating-rate assets driven by deposit growth. Gradual rate shocks have a similar positioning compared with instantaneous shocks, but are less impactful due to the severity of the rate shift.

The following table highlights our economic value of equity sensitivity to a +/-200 basis point instantaneous rate shock, relative to spot interest rates. Management compares the change in EVE sensitivity against State Street's aggregate tier 1 and tier 2 risk-based capital, calculated in conformity with current applicable regulatory requirements. Economic value of equity sensitivity is dependent on the timing of interest and principal cash flows. Also, the measure only evaluates the spot balance sheet and does not include the impact of new business assumptions.

TABLE 36: EVE EXPOSURE/BENEFIT
	Sensitivity of Economic Value of Equity
(In millions)	June 30, 2016			December 31, 2015			December 31, 2015
				(pro forma)			(as reported)
Rate change:	Exposure/Benefit
+200 bps shock	$	(569	)	$	(791	)	$	(2,355	)
–200 bps shock	(28		)	(25		)	1,655

As of June 30, 2016, economic value of equity sensitivity remains most exposed to upward shifts in interest rates. The change in each scenario was primarily driven by an increase in our modeled deposit duration and the significant decline in long-term market rates. In the second quarter of 2016, we refined our deposit modeling framework to better reflect recent client activity and pricing actions. These enhancements extended our expected deposit duration resulting in a significant exposure reduction in the up 200 basis point scenario. To allow for comparison between periods, we have included December 31, 2015 pro-forma information to show what the results would have been under the same model refinements that have been made for June 30, 2016.

Model Risk Management

The use of quantitative models is widespread throughout the financial services industry, with large and complex organizations relying on sophisticated models to support numerous aspects of their financial decision making. The models contemporaneously represent both a significant advancement in financial management and a new source of risk. In large banking organizations like State Street, model results influence business decisions, and model failure could have a harmful effect on our financial performance.

As a result, we manage model risk within a model risk management framework.

For additional information on our model risk management, including our governance and model validation, refer to pages 104 to 105 in our 2015 Form 10-K.

Capital

Managing our capital involves evaluating whether our actual and projected levels of capital are commensurate with our risk profile, are in compliance with all applicable regulatory requirements, and are sufficient to provide us with the financial flexibility to undertake future strategic business initiatives. We assess capital adequacy based on relevant regulatory capital requirements, as well as our own internal capital goals, targets and other relevant metrics.

We have a hierarchical structure supporting appropriate committee review of relevant risk and capital information. The ongoing responsibility for capital management rests with our Treasurer. The Capital Management group within Global Treasury is responsible for the Capital Policy and guidelines, development of the Capital Plan, the management of global capital, capital optimization, as well as enterprise stress testing, including stress revenue and expense modeling and information technology related matters associated with stress testing models.

MRAC provides oversight of our capital management, our capital adequacy, our internal targets and the expectations of the major independent credit rating agencies. In addition, MRAC approves our balance sheet strategy and related activities. The Board’s RC assists the Board in fulfilling its oversight responsibilities related to the assessment and management of risk and capital. Our Capital Policy is reviewed and approved annually by the Board's RC.

For additional information about our capital, refer to pages 105 to 115 in our 2015 Form 10-K.

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Regulatory Capital

We and State Street Bank, as advanced approaches banking organizations, are subject to the current U.S. Basel III minimum risk-based capital and leverage ratio guidelines. The Basel III final rule incorporates several multi-year transition provisions for capital components and minimum ratio requirements for common equity tier 1 capital, tier 1 capital and total capital. The transition period started in January 2014 and will be completed by January 1, 2019 which is concurrent with the full implementation of the Basel III final rule in the U.S.

Among other things, the U.S. Basel III final rule introduced a minimum common equity tier 1 risk-based capital ratio of 4.5% and raises the minimum tier 1 risk-based capital ratio from 4% to 6%. In addition, for advanced approaches banking organizations such as State Street, the U.S. Basel III final rule imposes a minimum supplementary tier 1 leverage ratio of 3%, the numerator of which is tier 1 capital and the denominator of which includes both on-balance sheet assets and certain off-balance sheet exposures.

The U.S. Basel III final rule also introduced a capital conservation buffer and a countercyclical capital buffer that add to the minimum risk-based capital ratios. Specifically, the final rule limits a banking organization’s ability to make capital distributions and discretionary bonus payments to executive officers if it fails to maintain a common equity tier 1 capital conservation buffer of more than 2.5% of total risk-weighted assets and, if deployed during periods of excessive credit growth, a common equity tier 1 countercyclical capital buffer of up to 2.5% of total risk-weighted assets, above each of the minimum common equity tier 1, and tier 1 and total risk-based capital ratios. Banking regulators have initially set the countercyclical capital buffer at zero.

To maintain the status of our parent company as a financial holding company, we and our insured depository institution subsidiaries are required to be “well-capitalized” by maintaining capital ratios above the minimum requirements. Effective on January 1, 2015, the “well-capitalized” standard for our banking subsidiaries was revised to reflect the higher capital requirements in the U.S. Basel III final rule.

In addition to introducing new capital ratios and buffers, the U.S. Basel III final rule revises the eligibility criteria for regulatory capital instruments and provides for the phase-out of existing capital instruments that do not satisfy the new criteria. For example, existing trust preferred capital securities were phased out from tier 1 capital over a two-year period that ended on January 1, 2016, and subsequently, the qualification of these securities as

tier 2 capital will be phased out over a multi-year transition period beginning on January 1, 2016 and ending on January 1, 2022. As of June 30, 2016 we had $890 million of trust preferred securities included in tier 2 regulatory capital.

Under the U.S. Basel III final rule, certain new items are deducted from common equity tier 1 capital and certain regulatory capital deductions were modified as compared to the previously applicable capital regulations. Among other things, the final rule requires significant investments in the common stock of unconsolidated financial institutions, as defined, and certain deferred tax assets that exceed specified individual and aggregate thresholds to be deducted from common equity tier 1 capital. As an advanced approaches banking organization, after-tax unrealized gains and losses on AFS investment securities flow through to and affect State Street’s and State Street Bank's common equity tier 1 capital, subject to a phase-in schedule.

We are required to use the advanced approaches framework as provided in the Basel III final rule to determine our risk-based capital requirements. The Dodd-Frank Act applies a "capital floor" to advanced approaches banking organizations, such asState Street and State Street Bank. We are subject to the more stringent of the risk-based capital ratios calculated under the standardized approach and those calculated under the advanced approaches in the assessment of our capital adequacy under the PCA framework.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

The following table sets forth the transition to full implementation and the minimum risk-based capital ratio requirements under the Basel III final rule. This does not include the potential imposition of an additional countercyclical capital buffer.

TABLE 37: BASEL III FINAL RULES TRANSITION ARRANGEMENTS AND MINIMUM RISK-BASED CAPITAL RATIOS(1),(2)
	2015		2016		2017		2018		2019
Capital conservation buffer (Common Equity Tier 1)	—	%	0.625	%	1.250	%	1.875	%	2.500	%
G-SIB surcharge (CET1)(1)	—		0.375		0.750		1.125		1.500
Minimum common equity tier 1(3)	4.5		5.500		6.500		7.500		8.500
Minimum tier 1 capital(3)	6.0		7.000		8.000		9.000		10.000
Minimum total capital(3)	8.0		9.000		10.000		11.000		12.000

⁽¹⁾ As part of the G-SIB Surcharge final rule, the Federal Reserve published estimated G-SIB surcharges for the eight U.S. G-SIBs based on relevant data from 2012-2014 and the estimated resulting G-SIB surcharge for State Street is 1.5%. Including the 1.5% surcharge, State Street's minimum risk-based capital ratio requirements, as of January 1, 2019 would be 8.5% for common equity tier 1, 10.0% for tier 1 capital and 12.0% for total capital.

⁽²⁾ Minimum ratios shown above do not reflect the countercyclical buffer, currently set at zero by U.S. banking regulators.

⁽³⁾ Minimum common equity tier 1 capital, minimum tier 1 capital and minimum total capital presented include the transitional capital conservation buffer as well as the estimated transitional G-SIB surcharge being phased-in beginning January 1, 2016 through January 1, 2019 based on an estimated 1.5% surcharge in all periods.

The specific calculation of State Street's and State Street Bank's risk-based capital ratios will change as the provisions of the Basel III final rule related to the numerator (capital) and denominator (risk-weighted assets) are phased in, and as our risk-weighted assets calculated using the advanced approaches change due to potential changes in methodology. These ongoing methodological changes will result in differences in our reported capital ratios from one reporting period to the next that are independent of applicable changes to our capital base, our asset composition, our off-balance sheet exposures or our risk profile.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

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The following table presents the regulatory capital structure and related regulatory capital ratios for State Street and State Street Bank as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period, as the provisions of the Basel III final rule are phased in, the ratios presented in the table for each period are not directly comparable. Refer to the footnotes following the table.

TABLE 38: REGULATORY CAPITAL STRUCTURE AND RELATED REGULATORY CAPITAL RATIOS
					State Street												State Street Bank
(Dollars in millions)					Basel III Advanced Approaches June 30, 2016(1)			Basel III Standardized Approach June 30, 2016(2)			Basel III Advanced Approaches December 31, 2015(1)			Basel III Standardized Approach December 31, 2015(2)			Basel III Advanced Approaches June 30, 2016(1)			Basel III Standardized Approach June 30, 2016(2)			Basel III Advanced Approaches December 31, 2015(1)			Basel III Standardized Approach December 31, 2015(2)
Common shareholders' equity:
Common stock and related surplus					$	10,271		$	10,271		$	10,250		$	10,250		$	10,941		$	10,941		$	10,938		$	10,938
Retained earnings					16,686			16,686			16,049			16,049			11,638			11,638			10,655			10,655
Accumulated other comprehensive income (loss)					(1,124		)	(1,124		)	(1,422		)	(1,422		)	(907		)	(907		)	(1,230		)	(1,230		)
Treasury stock, at cost					(7,083		)	(7,083		)	(6,457		)	(6,457		)	—			—			—			—
Total					18,750			18,750			18,420			18,420			21,672			21,672			20,363			20,363
Regulatory capital adjustments:
Goodwill and other intangible assets, net of associated deferred tax liabilities(3)					(6,144		)	(6,144		)	(5,927		)	(5,927		)	(5,844		)	(5,844		)	(5,631		)	(5,631		)
Other adjustments					(88		)	(88		)	(60		)	(60		)	(86		)	(86		)	(85		)	(85		)
Common equity tier 1 capital					12,518			12,518			12,433			12,433			15,742			15,742			14,647			14,647
Preferred stock					3,196			3,196			2,703			2,703			—			—			—			—
Trust preferred capital securities subject to phase-out from tier 1 capital					—			—			237			237			—			—			—			—
Other adjustments					(72		)	(72		)	(109		)	(109		)	—			—			—			—
Tier 1 capital					15,642			15,642			15,264			15,264			15,742			15,742			14,647			14,647
Qualifying subordinated long-term debt					1,259			1,259			1,358			1,358			1,270			1,270			1,371			1,371
Trust preferred capital securities phased out of tier 1 capital					890			890			713			713			—			—			—			—
ALLL and other					3			78			12			66			—			78			8			66
Other adjustments					—			—			2			2			—			—			—			—
Total capital					$	17,794		$	17,869		$	17,349		$	17,403		$	17,012		$	17,090		$	16,026		$	16,084
Risk-weighted assets:
Credit risk					$	55,748		$	102,932		$	51,733		$	93,515		$	51,328		$	98,387		$	47,677		$	89,164
Operational risk					44,436			NA			43,882			NA			43,899			NA			43,324			NA
Market risk(4)					3,828			1,560			3,937			2,378			3,831			1,560			3,939			2,378
Total risk-weighted assets					$	104,012		$	104,492		$	99,552		$	95,893		$	99,058		$	99,947		$	94,940		$	91,542
Adjusted quarterly average assets					$	222,666		$	222,666		$	221,880		$	221,880		$	218,363		$	218,363		$	217,358		$	217,358
Capital Ratios:	2016 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge(5)		2015 Minimum Requirements(6)
Common equity tier 1 capital	5.5	%	4.5	%	12.0		%	12.0		%	12.5		%	13.0		%	15.9		%	15.8		%	15.4		%	16.0		%
Tier 1 capital	7.0		6.0		15.0			15.0			15.3			15.9			15.9			15.8			15.4			16.0
Total capital	9.0		8.0		17.1			17.1			17.4			18.1			17.2			17.1			16.9			17.6
Tier 1 leverage	4.0		4.0		7.0			7.0			6.9			6.9			7.2			7.2			6.7			6.7

NA: Not applicable.

⁽¹⁾ Common equity tier 1 capital, tier 1 capital and total capital ratios as of June 30, 2016 and December 31, 2015 were calculated in conformity with the advanced approaches provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2016 and December 31, 2015 were calculated in conformity with the Basel III final rule.

⁽²⁾ Common equity tier 1 capital, tier 1 capital and total capital ratios as of June 30, 2016 and December 31, 2015 were calculated in conformity with the standardized approach provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2016 and December 31, 2015 were calculated in conformity with the Basel III final rule.

⁽³⁾ Amounts for State Street and State Street Bank as of June 30, 2016 consisted of goodwill, net of associated deferred tax liabilities, and 60% of other intangible assets, net of associated deferred tax liabilities. Amounts for State Street and State Street Bank as of December 31, 2015 consisted of goodwill, net of deferred tax liabilities and 40% of other intangible assets, net of associated deferred tax liabilities. Intangible assets, net of associated deferred tax liabilities is phased in as a deduction from capital, in conformity with the Basel III final rule.

⁽⁴⁾ Market risk risk-weighted assets reported in conformity with the Basel III advanced approaches included a CVA which reflected the risk of potential fair-value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts.  The CVA was not provided for in the final market risk capital rule; however, it was required by the advanced approaches provisions of the Basel III final rule.  We used the simple CVA approach in conformity with the Basel III advanced approaches.

⁽⁵⁾ Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of June 30, 2016. See Table 37: Basel III Final Rules Transition Arrangements and Minimum Risk Based Capital Ratios.

⁽⁶⁾ Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2015. See Table 37: Basel III Final Rules Transition Arrangements and Minimum Risk Based Capital Ratios.

41

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

As of January 1, 2015 we used the standardized provisions of the Basel III final rule in addition to the advanced approaches provisions which were previously implemented in the second quarter of 2014, and the lower of our regulatory capital ratios calculated under the advanced approaches and those ratios calculated under the standardized approach are applied in the assessment of our capital adequacy for regulatory capital purposes. Beginning in the second quarter of 2014, until January 1, 2015, we used the advanced approaches provisions in the Basel III final rule, and transitional provisions of the Basel III final rule, and the lower of our regulatory capital ratios calculated under the advanced approaches and those ratios calculated under the transitional provisions were applied in the assessment of our capital adequacy for regulatory capital purposes.

Our common equity tier 1 capital increased $85 million as of June 30, 2016 compared to December 31, 2015 as a result of net income and the positive effect of unrealized gains related to AFS investment securities on accumulated other comprehensive income, mostly offset by purchases by us of our common stock of approximately $715 million, declarations of common and preferred stock dividends of $350 million and the impact of the phase-in provisions of the Basel III final rule related to other intangible assets. In the same comparative period, our tier 1 capital increased $378 million, due to the $500 million issuance of preferred stock in April 2016, partly offset by the phase-out of trust preferred capital securities from tier 1 capital into tier 2 capital. Total capital increased $445 million under advanced approaches and increased $466 million under standardized approach due to the changes to tier 1 capital, partially offset by the inclusion of trust preferred capital securities in tier 2 capital. State Street Bank's tier 1 capital increased $1.10 billion, and total capital increased $986 million and $1.01 billion under the advanced and standardized approaches, respectively, as of June 30, 2016, compared to December 31, 2015, the result of year-to-date net income and the previously-described impact to accumulated other comprehensive income, partially offset by the phase-in provisions of the Basel III final rule related to other intangible assets.

The table below presents a roll-forward of common equity tier 1 capital, tier 1 capital and total capital for the six months ended June 30, 2016 and for the year ended December 31, 2015.

TABLE 39: CAPITAL ROLL-FORWARD
	State Street
(In millions)	Basel III Advanced Approaches June 30, 2016			Basel III Standardized Approach June 30, 2016			Basel III Advanced Approaches December 31, 2015			Basel III Standardized Approach December 31, 2015
Common equity tier 1 capital:
Common equity tier 1 capital balance, beginning of period	$	12,433		$	12,433		$	13,327		$	13,327
Net income	987			987			1,980			1,980
Changes in treasury stock, at cost	(626		)	(626		)	(1,299		)	(1,299		)
Dividends declared	(350		)	(350		)	(666		)	(666		)
Goodwill and other intangible assets, net of associated deferred tax liabilities	(217		)	(217		)	(58		)	(58		)
Effect of certain items in accumulated other comprehensive income (loss)	298			298			(780		)	(780		)
Other adjustments	(7		)	(7		)	(71		)	(71		)
Changes in common equity tier 1 capital	85			85			(894		)	(894		)
Common equity tier 1 capital balance, end of period	12,518			12,518			12,433			12,433
Additional tier 1 capital:
Tier 1 capital balance, beginning of period	15,264			15,264			15,618			15,618
Change in common equity tier 1 capital	85			85			(894		)	(894		)
Net issuance of preferred stock	493			493			742			742
Trust preferred capital securities phased out of tier 1 capital	(237		)	(237		)	(238		)	(238		)
Other adjustments	37			37			36			36
Changes in tier 1 capital	378			378			(354		)	(354		)
Tier 1 capital balance, end of period	15,642			15,642			15,264			15,264
Tier 2 capital:
Tier 2 capital balance, beginning of period	2,085			2,139			2,097			2,097
Net issuance and changes in long-term debt qualifying as tier 2	(99		)	(99		)	(260		)	(260		)
Trust preferred capital securities phased into tier 2 capital	177			177			238			238
Changes in ALLL and other	(9		)	12			12			66
Change in other adjustments	(2		)	(2		)	(2		)	(2		)
Changes in tier 2 capital	67			88			(12		)	42
Tier 2 capital balance, end of period	2,152			2,227			2,085			2,139
Total capital:
Total capital balance, beginning of period	17,349			17,403			17,715			17,715
Changes in tier 1 capital	378			378			(354		)	(354		)
Changes in tier 2 capital	67			88			(12		)	42
Total capital balance, end of period	$	17,794		$	17,869		$	17,349		$	17,403

42

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

The following table presents a roll-forward of the Basel III advanced approaches risk-weighted assets for the six months ended June 30, 2016 and for the year ended December 31, 2015.

TABLE 40: ADVANCED APPROACHES RWA ROLL-FORWARD
	State Street
(In millions)	Six Months Ended June 30, 2016			Year Ended December 31, 2015
Total risk-weighted assets, beginning of period	$	99,552		$	107,827
Changes in credit risk-weighted assets:
Net increase (decrease) in investment securities-wholesale	700			597
Net increase (decrease) in loans and leases	276			(944		)
Net increase (decrease) in securitization exposures	(1,320		)	(9,569		)
Net increase (decrease) in repo-style transaction exposures	889			842
Net increase (decrease) in OTC derivatives exposures	1,679			(1,317		)
Net increase (decrease) in all other(1)	1,791			(4,750		)
Net increase (decrease) in credit risk-weighted assets	4,015			(15,141		)
Net increase (decrease) in credit valuation adjustment	709			(618		)
Net increase (decrease) in market risk-weighted assets	(818		)	(532		)
Net increase (decrease) in operational risk-weighted assets	554			8,016
Total risk-weighted assets, end of period	$	104,012		$	99,552

⁽¹⁾ Includes assets not in a definable category, cleared transactions, non-material portfolio, other wholesale, cash and due from, and interest-bearing deposits with banks, equity exposures, and 6% credit risk supervisory charge.

As of June 30, 2016, total advanced approaches risk-weighted assets increased $4.46 billion compared to December 31, 2015, due to an increase in credit risk for over-the-counter foreign exchange derivatives resulting from an increase in both market values and volume and a corresponding increase in CVA; an increase in cash and placements driven by an increase in customer deposits; an increase in securities finance agency lending; and purchases of HQLA investment securities. These increases were partly offset by maturities and amortization of the securitized investment portfolio and a reduction in market risk resulting from a lower stressed VaR.

As of December 31, 2015, total advanced approaches risk-weighted assets decreased $8.28 billion compared to December 31, 2014, primarily the result of a reduction in credit risk due to sales, maturities and amortization of the securitized investment portfolio and the subsequent reinvestment in HQLA, a decrease associated with the usage of the alternative modified look through approach for investments in investment funds, and a decline in over-the-counter foreign exchange derivatives mainly due to a decrease in volumes and the addition of new netting agreements. The decreases were partiallyoffset by an $8.02 billion increase in operational risk, which reflects adjustments to the model inputs.

The following table presents a roll-forward of the Basel III standardized approach risk-weighted assets for the six months ended June 30, 2016 and for the year ended December 31, 2015.

TABLE 41: STANDARDIZED APPROACH RWA ROLL-FORWARD
	State Street
(In millions)		Six Months Ended June 30, 2016			Year Ended December 31, 2015
Total estimated risk-weighted assets, beginning of period (1)		$	95,893		$	125,011
Changes in credit risk-weighted assets:
Net increase (decrease) in investment securities- wholesale		(89		)	(2,579		)
Net increase (decrease) in loans and leases		885			(539		)
Net increase (decrease) in securitization exposures		(1,320		)	(9,569		)
Net increase (decrease) in repo-style transaction exposures		4,472			(7,535		)
Net increase (decrease) in OTC derivatives exposures		4,617			(4,007		)
Net increase (decrease) in all other(2)		852			(4,357		)
Net increase (decrease) in credit risk-weighted assets		9,417			(28,586		)
Net increase (decrease) in market risk-weighted assets		(818		)	(532		)
Total risk-weighted assets, end of period		$	104,492		$	95,893

⁽¹⁾ Standardized approach risk-weighted assets as of the periods noted above were calculated using State Street’s estimates, based on our then current interpretation of the Basel III final rule.

⁽²⁾ Includes assets not in a definable category, cleared transactions, other wholesale, cash and due from, and interest-bearing deposits with banks and equity exposures.

As of June 30, 2016, total standardized approach risk-weighted assets increased $8.60 billion compared to December 31, 2015, primarily the result of an increase in securities finance agency lending and an increase in over-the-counter foreign exchange derivatives resulting from higher market values and volume, partly offset by maturities and amortization of the securitized investment portfolio and a reduction in market risk resulting from a lower stressed VaR.

43

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

As of December 31, 2015, total standardized approach risk-weighted assets decreased $29.12 billion compared to December 31, 2014, primarily the result of a reduction in credit risk due to sales, maturities and pay-downs of both securitized and wholesale investment portfolio and the subsequent reinvestment in HQLA, a decrease in securities financing exposure, a decrease associated with the usage of the alternative modified look through approach for investments in investment funds and a decline in over-the-counter foreign exchange derivatives primarily due to a decrease in volumes and the addition of new netting agreements.

The regulatory capital ratios as of June 30, 2016, presented in Table 38: Regulatory Capital Structure and Related Regulatory Capital Ratios, are calculated under the standardized approach and advanced approaches in conformity with the Basel III final rule. The advanced approaches-based ratios (actual and estimated pro forma) reflect calculations and determinations with respect to our capital and related matters as of June 30, 2016, based on State Street and external data, quantitative formulae, statistical models, historical correlations and assumptions, collectively referred to as “advanced systems,” in effect and used by State Street for those purposes as of the time we first reported such ratios in a quarterly report on Form 10-Q. Significant components of these advanced systems involve the exercise of judgment by us and our regulators, and our advanced systems may not, individually or collectively, precisely represent or calculate the scenarios, circumstances, outputs or other results for which they are designed or intended.

Due to the influence of changes in these advanced systems, whether resulting from changes in data inputs, regulation or regulatory supervision or interpretation, State Street-specific or market activities or experiences or other updates or factors, we expect that our advanced systems and our capital ratios calculated in conformity with the Basel III final rule will change and may be volatile over time, and that those latter changes or volatility could be material as calculated and measured from period to period. Models implemented under the Basel III final rule, particularly those implementing the advanced approaches, remain subject to regulatory review and approval. The full effects of the Basel III final rule on State Street and State Street Bank are therefore subject to further evaluation and also to further regulatory guidance, action or rule-making.

Estimated Basel III Fully Phased-in Capital Ratios

Table 42: Regulatory Capital Structure and Related Regulatory Capital Ratios - State Street, and Table 43: Regulatory Capital Structure and Related Regulatory Capital Ratios - State Street Bank, present our capital ratios for State Street and State Street Bank as of June 30, 2016, calculated in conformity with the advanced approaches provisions and standardized approach of the Basel III final rule on a, pro forma basis under the fully phased-in provisions of the Basel III final rule.

44

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

TABLE 42: REGULATORY CAPITAL STRUCTURE AND RELATED REGULATORY CAPITAL RATIOS - STATE STREET
June 30, 2016 (In millions)				Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Total common shareholders' equity				$	18,750		$	127		$	18,877		$	18,750		$	127		$	18,877
Regulatory capital adjustments:
Goodwill and other intangible assets, net of associated deferred tax liabilities				(6,144		)	(521		)	(6,665		)	(6,144		)	(521		)	(6,665		)
Other adjustments				(88		)	(58		)	(146		)	(88		)	(58		)	(146		)
Common equity tier 1 capital				12,518			(452		)	12,066			12,518			(452		)	12,066
Additional tier 1 capital:
Preferred stock				3,196			—			3,196			3,196			—			3,196
Trust preferred capital securities				—			—			—			—			—			—
Other adjustments				(72		)	59			(13		)	(72		)	59			(13		)
Additional tier 1 capital				3,124			59			3,183			3,124			59			3,183
Tier 1 capital				15,642			(393		)	15,249			15,642			(393		)	15,249
Tier 2 capital:
Qualifying subordinated long-term debt				1,259			—			1,259			1,259			—			1,259
Trust preferred capital securities				890			(45		)	845			890			(45		)	845
ALLL and other				3			—			3			78			—			78
Other				—			—			—			—			—			—
Tier 2 capital				2,152			(45		)	2,107			2,227			(45		)	2,182
Total capital				$	17,794		$	(438	)	$	17,356		$	17,869		$	(438	)	$	17,431
Risk weighted assets				$	104,012		$	65		$	104,077		$	104,492		$	62		$	104,554
Adjusted average assets				222,666			(283		)	222,383			222,666			(283		)	222,383
Total assets for SLR				249,050			(283		)	248,767			249,050			(283		)	248,767
Capital ratios(1):	Minimum Requirement	Minimum Requirement Including Capital Conservation Buffer and G-SIB Surcharge 2016	Minimum Requirement Including Capital Conservation Buffer and G-SIB Surcharge 2019
Common equity tier 1 capital(2)	4.5%	5.5%	8.5%	12.0		%				11.6		%	12.0		%				11.5		%
Tier 1 capital	6.0	7.0	10.0	15.0						14.7			15.0						14.6
Total capital	8.0	9.0	12.0	17.1						16.7			17.1						16.7
Tier 1 leverage	4.0	NA	NA	7.0						6.9			7.0						6.9
Supplementary leverage	5.0	NA	NA	6.3						6.1			6.3						6.1

NA: Not applicable.

⁽¹⁾ Common equity tier 1 ratio is calculated by dividing common equity tier 1 capital (numerator) by risk-weighted assets (denominator); tier 1 capital ratio is calculated by dividing tier 1 capital (numerator) by risk-weighted assets (denominator); total capital ratio is calculated by dividing total capital (numerator) by risk-weighted assets (denominator); tier 1 leverage ratio is calculated by dividing tier 1 capital (numerator) by adjusted average assets (denominator); and supplementary leverage ratio, or SLR, is calculated by dividing tier 1 capital (numerator) by total assets for SLR (denominator).

⁽²⁾ Common equity tier 1 ratios were calculated in conformity with the provisions of the Basel III final rule; refer to Table 38: Regulatory Capital Structure and Related Regulatory Capital Ratios.

45

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

TABLE 43: REGULATORY CAPITAL STRUCTURE AND RELATED REGULATORY CAPITAL RATIOS - STATE STREET BANK
June 30, 2016 (In millions)				Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Total common shareholders' equity				$	21,672		$	135		$	21,807		$	21,672		$	135		$	21,807
Regulatory capital adjustments:
Goodwill and other intangible assets, net of associated deferred tax liabilities				(5,844		)	(492		)	(6,336		)	(5,844		)	(492		)	(6,336		)
Other adjustments				(86		)	—			(86		)	(86		)	—			(86		)
Common equity tier 1 capital				15,742			(357		)	15,385			15,742			(357		)	15,385
Additional tier 1 capital:
Preferred stock				—			—			—			—			—			—
Trust preferred capital securities				—			—			—			—			—			—
Other adjustments				—			—			—			—			—			—
Additional tier 1 capital				—			—			—			—			—			—
Tier 1 capital				15,742			(357		)	15,385			15,742			(357		)	15,385
Tier 2 capital:
Qualifying subordinated long-term debt				1,270			—			1,270			1,270			—			1,270
Trust preferred capital securities				—			—			—			—			—			—
ALLL and other				—			—			—			78			—			78
Other				—			—			—			—			—			—
Tier 2 capital				1,270			—			1,270			1,348			—			1,348
Total capital				$	17,012		$	(357	)	$	16,655		$	17,090		$	(357	)	$	16,733
Risk weighted assets				$	99,058		$	(460	)	$	98,598		$	99,947		$	(434	)	$	99,513
Adjusted average assets				218,363			(257		)	218,106			218,363			(257		)	218,106
Total assets for SLR				244,483			(257		)	244,226			244,483			(257		)	244,226
Capital ratios(1):	Minimum Requirement	Minimum Requirement Including Capital Conservation Buffer and G-SIB Surcharge 2016	Minimum Requirement Including Capital Conservation Buffer and G-SIB Surcharge 2019
Common equity tier 1 capital(2)	4.5%	5.5%	8.5%	15.9		%				15.6		%	15.8		%				15.5		%
Tier 1 capital	6.0	7.0	10.0	15.9						15.6			15.8						15.5
Total capital	8.0	9.0	12.0	17.2						16.9			17.1						16.8
Tier 1 leverage	4.0	NA	NA	7.2						7.1			7.2						7.1
Supplementary leverage	6.0	NA	NA	6.4						6.3			6.4						6.3

NA: Not applicable.

⁽¹⁾ Common equity tier 1 capital ratio is calculated by dividing common equity tier 1 capital (numerator) by risk-weighted assets (denominator); tier 1 capital ratio is calculated by dividing tier 1 capital (numerator) by risk-weighted assets (denominator); total capital ratio is calculated by dividing total capital (numerator) by risk-weighted assets (denominator); tier 1 leverage ratio is calculated by dividing tier 1 capital (numerator) by adjusted average assets (denominator); and supplementary leverage ratio is calculated by dividing tier 1 capital (numerator) by total assets for SLR (denominator).

⁽²⁾ Common equity tier 1 ratios were calculated in conformity with the provisions of the Basel III final rule; refer to Table 38: Regulatory Capital Structure and Related Regulatory Capital Ratios.

46

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

Fully phased-in pro-forma estimates of common shareholders' equity include 100% of accumulated other comprehensive income, including accumulated other comprehensive income attributable to available-for-sale securities, cash flow hedges and defined benefit pension plans. Fully phased-in pro-forma estimates of common equity tier 1 capital reflect 100% of applicable deductions, including but not limited to, intangible assets net of deferred tax liabilities. Fully phased-in tier 1 capital reflects the transition of trust preferred capital securities from tier 1 capital to tier 2 capital. For both Basel III advanced and standardized approaches, fully phased-in pro-forma estimates of risk-weighted assets reflect the exclusion of intangible assets, offset by additions related to non-significant equity exposures and deferred tax assets related to temporary differences.

The Volcker rule, including the required capital deduction for investments in a covered fund, became effective on July 21, 2015, for investments in and relationships with a covered fund made after December 31, 2013. The Federal Reserve issued an order extending the Volcker rule's general conformance period until July 21, 2016 for legacy covered funds and announced its intention to grant banking entities an additional one-year extension of the conformance period until July 21, 2017. As a result, for legacy covered funds, the Volcker rule capital deduction will not become effective until July 21, 2017. On July 7, 2016, the Federal Reserve formally announced the extension of the general conformance period to July 21, 2017. For additional information on the Volcker rule, refer to pages 10 to 11 in our 2015 Form 10-K.

Global Systemically Important Bank

We are designated as a large bank holding company subject to enhanced supervision and prudential standards, commonly referred to as a “systemically important financial institution,” or SIFI, and we are one among a group of 30 institutions worldwide that have been identified by the FSB and the BCBS as G-SIBs. Our designation as a G-SIB will require us to maintain an additional capital buffer above the Basel III final rule minimum common equity tier 1 capital ratio of 4.5%, based on a number of factors, as evaluated by banking regulators.

In addition to the U.S. Basel III final rule, the Dodd-Frank Act requires the Federal Reserve to establish more stringent capital requirements for large bank holding companies, including State Street. On August 14, 2015, the Federal Reserve published a final rule on the implementation of capital requirements that impose a capital surcharge on U.S. G-SIBs. The surcharge requirements within the final rule began to phase-in on January 1, 2016 and will be fully effective on January 1, 2019. The eight U.S.

banks deemed to be G-SIBs, including State Street, are required to calculate the G-SIB surcharge according to two methods, and be bound by the higher of the two:

• Method 1: Assesses systemic importance based upon five equally-weighted components: size, interconnectedness, complexity, cross-jurisdictional activity and substitutability

• Method 2: Alters the calculation from Method 1 by factoring in a wholesale funding score in place of substitutability and applying a 2x multiplier to the sum of the five components

As part of the final rule, the Federal Reserve published estimated G-SIB surcharges for the eight U.S. G-SIBs based on relevant data from 2012 to 2014. Method 2 is identified as the binding methodology for State Street and the applicable surcharge on January 1, 2016 is calculated to be 1.5%. Assuming completion of the phase-in period for the capital conservation buffer, and a countercyclical buffer of 0%, the minimum capital ratios as of January 1, 2019, including a capital conservation buffer of 2.5% and G-SIB surcharge of 1.5% in 2019, would be 10.0% for tier 1 risk-based capital, 12.0% for total risk-based capital, and 8.5% for common equity tier 1 capital, in order for State Street to make capital distributions and discretionary bonus payments without limitation. Not all of our competitors have similarly been designated as systemically important, and therefore some of our competitors may not be subject to the same additional capital requirements.

Supplementary Leverage Ratio

In 2014, U.S. banking regulators issued final rules implementing an SLR, for certain bank holding companies, like State Street, and their insured depository institution subsidiaries, like State Street Bank, which we refer to as the SLR final rule. Upon implementation, the SLR final rule requires that, as of January 1, 2018, (i) State Street Bank maintain an SLR of at least 6% to be well capitalized under the U.S. banking regulators’ PCA framework and (ii) State Street maintain an SLR of at least 5% to avoid limitations on capital distributions and discretionary bonus payments. In addition to the SLR, State Street is subject to a minimum tier 1 leverage ratio of 4%, which differs from the SLR primarily in that the denominator of the tier 1 leverage ratio is only a quarterly average of on-balance sheet assets and does not include any off-balance sheet exposures. Beginning with reporting for March 31, 2015, State Street was required to include SLR disclosures, calculated on a transitional basis, with its other Basel disclosures.

47

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

TABLE 44: SUPPLEMENTARY LEVERAGE RATIO
June 30, 2016	Transitional SLR			Phase-In Provisions			Fully Phased-in Pro Forma SLR Estimate
(Dollars in millions)
State Street:
Tier 1 capital	$	15,642		$	(393	)	$	15,249
On- and off-balance sheet leverage exposure	254,999			—			254,999
Less: regulatory deductions	(5,949		)	(283		)	(6,232		)
Total assets for SLR	$	249,050		$	(283	)	$	248,767
Supplementary leverage ratio	6.3		%	(0.2		)%	6.1		%
State Street Bank:
Tier 1 capital	$	15,742		$	(357	)	$	15,385
On- and off-balance sheet leverage exposure	250,061			—			250,061
Less: regulatory deductions	(5,578		)	(257		)	(5,835		)
Total assets for SLR	$	244,483		$	(257	)	$	244,226
Supplementary leverage ratio	6.4		%	(0.1		)%	6.3		%

Capital Actions

Preferred Stock

In April 2016, we issued 20 milliondepositary shares, each representing1/4,000thownership interest in shares of State Street's fixed-to-floating rate non-cumulative perpetual preferred stock, Series G, without par value per share, with a liquidation preference of$100,000per share (equivalent to $25per depositary share), in a public offering.

The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of June 30, 2016:

TABLE 45: PREFERRED STOCK ISSUED AND OUTSTANDING
	Issuance Date	Depositary Shares Issued	Ownership Interest per Depositary Share	Liquidation Preference Per Share		Liquidation Preference Per Depositary Share		Net Proceeds of Offering (in millions)		Redemption Date(1)
Preferred Stock:(2)
Series C	August 2012	20,000,000	1/4,000th	$	100,000	$	25	$	488	September 15, 2017
Series D	February 2014	30,000,000	1/4,000th	100,000		25		742		March 15, 2024
Series E	November 2014	30,000,000	1/4,000th	100,000		25		728		December 15, 2019
Series F	May 2015	750,000	1/100th	100,000		1,000		742		September 15, 2020
Series G	April 2016	20,000,000	1/4,000th	100,000		25		493		March 15, 2026

⁽¹⁾ On the redemption date, or any dividend declaration date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

⁽²⁾ The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

48

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

The following tables present the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated:

TABLE 46: PREFERRED STOCK DIVIDENDS QUARTERS TO DATE
	Quarters Ended June 30,
	2016						2015
	Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)(1)		Dividends Declared per Share		Dividends Declared per Depositary Share		Total  (in millions)
Preferred Stock:
Series C	$	1,313	$	0.33	$	6	$	1,313	$	0.33	$	7
Series D	1,475		0.37		11		1,475		0.37		11
Series E	1,500		0.38		11		1,500		0.38		11
Series F	—		—		—		—		—		—
Series G	951		0.24		5		—		—		—
Total					$	33					$	29

⁽¹⁾ Dividends were paid in June 2016.

TABLE 47: PREFERRED STOCK DIVIDENDS YEAR TO DATE
	Six Months Ended June 30,
	2016						2015
	Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)		Dividends Declared per Share		Dividends Declared per Depositary Share		Total  (in millions)
Preferred Stock:
Series C	$	2,626	$	0.66	$	13	$	2,626	$	0.66	$	13
Series D	2,950		0.74		22		2,950		0.74		22
Series E	3,000		0.76		22		3,333		0.84		25
Series F	2,625		26.25		20		—		—		—
Series G	951		0.24		5		—		—		—
Total					$	82					$	60

Common Stock

In June 2016, our Board approved a common stock purchase program authorizing the purchase of up to $1.4 billion of our common stock through June 30, 2017. No shares were purchased by us under this program in the quarter ended June 30, 2016.

In March 2015, our Board approved a common stock purchase program authorizing the purchase of up to $1.8 billion of our common stock through June 30, 2016 (the 2015 Program). The table below presents the activity under the 2015 Program during the periods indicated.

TABLE 48: SHARES REPURCHASED
	Quarters Ended June 30,					Six Months Ended June 30, 2016
	Shares Purchased (in millions)	Average Cost per Share		Total Purchased (in millions)		Shares Purchased (in millions)	Average Cost per Share		Total Purchased (in millions)
2015 Program	6.5	$	59.66	$	390	12.1	$	58.83	$	715

The table below presents the dividends declared on common stock for the periods indicated:

TABLE 49: COMMON STOCK DIVIDENDS
	Quarters Ended June 30,								Six Months Ended June 30,
	Dividends Declared per Share		Total (in millions)		Dividends Declared per Share		Total (in millions)		Dividends Declared per Share		Total (in millions)		Dividends Declared per Share		Total (in millions)
	2016				2015				2016				2015
Common Stock	$	0.34	$	133	$	0.34	$	139	$	0.68	$	268	$	0.64	$	262

49

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Continued)

Federal and state banking regulations place certain restrictions on dividends paid by subsidiary banks to the parent holding company. In addition, banking regulators have the authority to prohibit bank holding companies from paying dividends. For information concerning limitations on dividends from our subsidiary banks, refer to “Related Stockholder Matters” included under Item 5, and in Note 15 to the consolidated financial statements in our 2015 Form 10-K.

Stock purchases may be made using various types of mechanisms, including open market purchases or transactions off market, and may be made under Rule 10b5-1 trading programs. The timing of stock purchases, types of transactions and number of shares purchased will depend on several factors, including, market conditions and State Street’s capital positions, its financial performance and investment opportunities. The common stock purchase program does not have specific price targets and may be suspended at any time.

OFF-BALANCE SHEET ARRANGEMENTS

On behalf of clients enrolled in our securities lending program, we lend securities to banks, broker/dealers and other institutions. In most circumstances, we indemnify our clients for the fair market value of those securities against a failure of the borrower to return such securities. Though these transactions are collateralized, the substantial volume of these activities necessitates detailed credit-based underwriting and monitoring processes. The aggregate amount of indemnified securities on loan totaled $344.26 billion as of June 30, 2016, compared to $320.44 billion as of December 31, 2015. We require the borrower to provide collateral in an amount in excess of 100% of the fair market value of the securities borrowed. We hold the collateral received in connection with these securities lending services as agent, and the collateral is not recorded in our consolidated statement of condition. We revalue the securities on loan and the collateral daily to determine if additional collateral is necessary or if excess collateral is required to be returned to the borrower. We held, as agent, cash and securities totaling $356.49 billion and $335.42 billion as collateral for indemnified securities on loan as of June 30, 2016 and December 31, 2015, respectively.

The cash collateral held by us as agent is invested on behalf of our clients. In certain cases, the cash collateral is invested in third-party repurchase agreements, for which we indemnify the client against loss of the principal invested. We require the counterparty to the indemnified repurchase agreement to provide collateral in an amount in excess of 100% of the amount of the repurchase

agreement. In our role as agent, the indemnified repurchase agreements and the related collateral held by us are not recorded in our consolidated statement of condition. Of the collateral of $356.49 billion and $335.42 billion, referenced above, $68.52 billion and $63.06 billion was invested in indemnified repurchase agreements as of June 30, 2016 and December 31, 2015, respectively. We or our agents held $72.61 billion and $67.02 billion as collateral for indemnified investments in repurchase agreements as of June 30, 2016 and December 31, 2015, respectively.

Additional information about our securities finance activities and other off-balance sheet arrangements is provided in Notes 7 and 9 to the consolidated financial statements included in this Form 10-Q.

RECENT ACCOUNTING DEVELOPMENTS

Information with respect to recent accounting developments is provided in Note 1 to the consolidated financial statements included in this Form 10-Q.

50

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information provided under “Financial Condition - Market Risk Management” in Management’s Discussion and Analysis, included in this Form 10-Q, is incorporated by reference herein. For more information on our market risk associated with our trading activities, market risk governance, covered positions, VaR, stress testing and stressed VaR, refer to pages 95 to 101 in our 2015 Form 10-K.

CONTROLS AND PROCEDURES

State Street has established and maintains disclosure controls and procedures that are designed to ensure that material information related to State Street and its subsidiaries on a consolidated basis required to be disclosed in its reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to State Street's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. For the quarter ended June 30, 2016, State Street's management carried out an evaluation, with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of State Street's disclosure controls and procedures. Based on the evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that State Street's disclosure controls and procedures were effective as of June 30, 2016.

State Street has also established and maintains internal control over financial reporting as a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in conformity with GAAP. In the ordinary course of business, State Street routinely enhances its internal controls and procedures for financial reporting by either upgrading its current systems or implementing new systems. Changes have been made and may be made to State Street's internal controls and procedures for financial reporting as a result of these efforts. During the quarter ended June 30, 2016, no change occurred in State Street's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, State Street's internal control over financial reporting.

51

STATE STREET CORPORATION

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in millions, except per share amounts)	2016			2015			2016		2015
Fee revenue:
Servicing fees	$	1,239		$	1,319		$	2,481	$	2,587
Management fees	293			304			563		605
Trading services	267			281			539		605
Securities finance	156			155			290		256
Processing fees and other	98			17			150		78
Total fee revenue	2,053			2,076			4,023		4,131
Net interest revenue:
Interest revenue	620			629			1,249		1,271
Interest expense	99			94			216		190
Net interest revenue	521			535			1,033		1,081
Gains (losses) related to investment securities, net:
Net gains (losses) from sales of available-for-sale securities	(1		)	(3		)	1		(3		)
Losses from other-than-temporary impairment	—			—			—		(1		)
Gains (losses) related to investment securities, net	(1		)	(3		)	1		(4		)
Total revenue	2,573			2,608			5,057		5,208
Provision for loan losses	4			2			8		6
Expenses:
Compensation and employee benefits	989			984			2,096		2,071
Information systems and communications	270			249			542		496
Transaction processing services	201			201			401		398
Occupancy	111			109			224		222
Acquisition and restructuring costs	20			3			124		9
Professional services	82			136			175		232
Amortization of other intangible assets	49			49			98		99
Other	138			403			250		704
Total expenses	1,860			2,134			3,910		4,231
Income before income tax expense	709			472			1,139		971
Income tax expense	92			54			154		148
Net income from non-controlling interest	2			—			2		—
Net income	$	619		$	418		$	987	$	823
Net income available to common shareholders	$	585		$	389		$	904	$	762
Earnings per common share:
Basic	$	1.48		$	.95		$	2.28	$	1.85
Diluted	1.47			.93			2.25		1.83
Average common shares outstanding (in thousands):
Basic	394,160			410,674			396,790		411,445
Diluted	398,847			416,712			401,113		417,643
Cash dividends declared per common share	$	.34		$	.34		$	.68	$	.64

The accompanying condensed notes are an integral part of these consolidated financial statements.

52

STATE STREET CORPORATION

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(UNAUDITED)

	Three Months Ended June 30,
(In millions)	2016			2015
Net income	$	619		$	418
Other comprehensive income (loss), net of related taxes:
Foreign currency translation, net of related taxes of ($19) and $39, respectively	(213		)	289
Net unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment and net of related taxes of $187 and ($198), respectively	286			(337		)
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes of ($3) and $15, respectively	(3		)	22
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $1 and $1, respectively	2			3
Net unrealized gains (losses) on cash flow hedges, net of related taxes of ($72) and $30, respectively	(106		)	8
Net unrealized gains (losses) on retirement plans, net of related taxes of $1 and ($3), respectively	1			10
Other comprehensive income (loss)	(33		)	(5		)
Total comprehensive income	$	586		$	413
	Six Months Ended June 30,
(In millions)	2016			2015
Net income	$	987		$	823
Other comprehensive income (loss), net of related taxes:
Foreign currency translation, net of related taxes of ($10) and ($25), respectively	94			(410		)
Net unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment and net of related taxes of $358 and ($75), respectively	546			(143		)
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes of ($15) and $5, respectively	(22		)	7
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $2 and $4, respectively	3			7
Net unrealized gains (losses) on cash flow hedges, net of related taxes of ($117) and $22, respectively	(174		)	20
Net unrealized gains (losses) on retirement plans, net of related taxes of $3 and $1, respectively	(2		)	15
Other comprehensive income (loss)	445			(504		)
Total comprehensive income	$	1,432		$	319

The accompanying condensed notes are an integral part of these consolidated financial statements.

53

STATE STREET CORPORATION

CONSOLIDATED STATEMENT OF CONDITION

(UNAUDITED)

	June 30, 2016			December 31, 2015
(Dollars in millions, except per share amounts)	(Unaudited)
Assets:
Cash and due from banks	$	4,673		$	1,207
Interest-bearing deposits with banks	75,169			75,338
Securities purchased under resale agreements	2,010			3,404
Trading account assets	890			849
Investment securities available-for-sale	72,735			70,070
Investment securities held-to-maturity (fair value of $30,895 and $29,798)	30,386			29,952
Loans and leases (less allowance for losses of $51 and $46)	19,788			18,753
Premises and equipment (net of accumulated depreciation of $3,164 and $4,820)	1,994			1,894
Accrued interest and fees receivable	2,399			2,346
Goodwill	5,671			5,671
Other intangible assets	1,682			1,768
Other assets	37,989			33,903
Total assets	$	255,386		$	245,155
Liabilities:
Deposits:
Noninterest-bearing	$	57,268		$	65,800
Interest-bearing—U.S.	33,060			29,958
Interest-bearing—non-U.S.	102,802			95,869
Total deposits	193,130			191,627
Securities sold under repurchase agreements	4,350			4,499
Federal funds purchased	29			6
Other short-term borrowings	1,683			1,748
Accrued expenses and other liabilities	22,166			14,643
Long-term debt	11,924			11,497
Total liabilities	233,282			224,020
Commitments, guarantees and contingencies (Notes 9 and 10)
Shareholders’ equity:
Preferred stock, no par, 3,500,000 shares authorized:
Series C, 5,000 shares issued and outstanding	491			491
Series D, 7,500 shares issued and outstanding	742			742
Series E, 7,500 shares issued and outstanding	728			728
Series F, 7,500 shares issued and outstanding	742			742
Series G, 5,000 shares issued and outstanding	493			—
Common stock, $1 par, 750,000,000 shares authorized:
503,879,642 and 503,879,642 shares issued	504			504
Surplus	9,767			9,746
Retained earnings	16,686			16,049
Accumulated other comprehensive income (loss)	(997		)	(1,442		)
Treasury stock, at cost (114,229,535 and 104,227,647 shares)	(7,083		)	(6,457		)
Total shareholders’ equity	22,073			21,103
Non-controlling interest-equity	31			32
Total equity	22,104			21,135
Total liabilities and equity	$	255,386		$	245,155

The accompanying condensed notes are an integral part of these consolidated financial statements.

54

STATE STREET CORPORATION

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

(UNAUDITED)

(Dollars in millions, except per share amounts, shares in thousands)	PREFERRED STOCK		COMMON STOCK			Surplus			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			TREASURY STOCK					Total
			Shares	Amount											Shares		Amount
Balance as of December 31, 2014	$	1,961	503,880	$	504	$	9,791		$	14,737		$	(507	)	88,685		$	(5,158	)	$	21,328
Net income									823											823
Other comprehensive loss												(504		)						(504		)
Preferred stock issued	742																			742
Cash dividends declared:
Common stock - $.64 per share									(262		)									(262		)
Preferred stock									(60		)									(60		)
Common stock acquired															10,719		(820		)	(820		)
Common stock awards and options exercised, including income tax benefit of $44						(41		)							(3,274	)	148			107
Other						(6		)	(1		)				(4	)				(7		)
Balance as of June 30, 2015	$	2,703	503,880	$	504	$	9,744		$	15,237		$	(1,011	)	96,126		$	(5,830	)	$	21,347
Balance as of December 31, 2015	$	2,703	503,880	$	504	$	9,746		$	16,049		$	(1,442	)	104,228		$	(6,457	)	$	21,103
Net income									987											987
Other comprehensive income												445								445
Preferred stock issued	493																			493
Cash dividends declared:
Common stock - $.68 per share									(268		)									(268		)
Preferred stock									(82		)									(82		)
Common stock acquired															12,153		(715		)	(715		)
Common stock awards and options exercised, including income tax benefit of $3						21									(2,151	)	89			110
Balance as of June 30, 2016	$	3,196	503,880	$	504	$	9,767		$	16,686		$	(997	)	114,230		$	(7,083	)	$	22,073

The accompanying condensed notes are an integral part of these consolidated financial statements.

55

STATE STREET CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

	Six Months Ended June 30,
(In millions)	2016			2015
Operating Activities:
Net income	$	987		$	823
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Deferred income tax (benefit) expense	(32		)	52
Amortization of other intangible assets	98			99
Other non-cash adjustments for depreciation, amortization and accretion, net	362			285
(Gains) losses related to investment securities, net	(1		)	4
Change in trading account assets, net	(41		)	(449		)
Change in accrued interest and fees receivable, net	(53		)	(143		)
Change in collateral deposits, net	2,612			(7,544		)
Change in unrealized (gains) losses on foreign exchange derivatives, net	(139		)	829
Change in other assets, net	(307		)	28
Change in accrued expenses and other liabilities, net	1,343			1,331
Other, net	183			158
Net cash provided by (used in) operating activities	5,012			(4,527		)
Investing Activities:
Net decrease (increase) in interest-bearing deposits with banks	169			(23,205		)
Net decrease (increase) in securities purchased under resale agreements	1,394			(2,057		)
Proceeds from sales of available-for-sale securities	305			9,634
Proceeds from maturities of available-for-sale securities	13,621			13,440
Purchases of available-for-sale securities	(15,981		)	(14,991		)
Proceeds from maturities of held-to-maturity securities	2,344			1,889
Purchases of held-to-maturity securities	(2,649		)	(622		)
Net increase in loans and leases	(1,023		)	(370		)
Purchases of equity investments and other long-term assets	(214		)	(298		)
Purchases of premises and equipment, net	(328		)	(301		)
Other, net	76			44
Net cash used in investing activities	(2,286		)	(16,837		)
Financing Activities:
Net increase in time deposits	10,524			1,026
Net (decrease) increase in all other deposits	(9,021		)	20,525
Net (decrease) increase in other short-term borrowings	(191		)	2,422
Proceeds from issuance of long-term debt, net of issuance costs	1,492			—
Payments for long-term debt and obligations under capital leases	(1,420		)	(930		)
Proceeds from issuance of preferred stock, net	493			742
Proceeds from exercises of common stock options	—			4
Purchases of common stock	(715		)	(783		)
Excess tax benefit related to stock-based compensation	3			46
Repurchases of common stock for employee tax withholding	(72		)	(151		)
Payments for cash dividends	(353		)	(308		)
Net cash provided by financing activities	740			22,593
Net increase	3,466			1,229
Cash and due from banks at beginning of period	1,207			1,855
Cash and due from banks at end of period	$	4,673		$	3,084

The accompanying condensed notes are an integral part of these consolidated financial statements.

56

STATE STREET CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

TABLE OF CONTENTS

Note 1. Summary of Significant Accounting Policies	58
Note 2. Fair Value	60
Note 3. Investment Securities	70
Note 4. Loans and Leases	76
Note 5. Goodwill and Other Intangible Assets	79
Note 6. Other Assets	80
Note 7. Derivative Financial Instruments	80
Note 8. Offsetting Arrangements	85
Note 9. Commitments and Guarantees	89
Note 10. Contingencies	90
Note 11. Variable Interest Entities	93
Note 12. Shareholders’ Equity	94
Note 13. Regulatory Capital	97
Note 14. Net Interest Revenue	99
Note 15. Expenses	99
Note 16. Earnings Per Common Share	100
Note 17. Line of Business Information	101
Note 18. Non-U.S. Activities	102

We use acronyms and other defined terms and abbreviations, as defined on the acronym list following the table of contents to this Form 10-Q.

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CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 1.    Summary of Significant Accounting Policies

Basis of Presentation:

The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the parent company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary is State Street Bank.

The accompanying Consolidated Financial Statements should be read in conjunction with the financial and risk factor information included in our 2015 Form 10-K, which we previously filed with the SEC.

The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the

date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC.

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue, and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. These accounting estimates reflect the best judgment of management, but actual results could differ.

Our consolidated statement of condition as of December 31, 2015 included in the accompanying consolidated financial statements was derived from the audited financial statements as of that date, but does not include all notes required by U.S. GAAP for a complete set of consolidated financial statements.

In July 2016, we completed our previously announced acquisition of GE Asset Management, a leading asset manager, from General Electric Company, in a cash transaction with a total purchase price of $435 million, subject to adjustments, with up to an additional $50 million tied to incremental opportunities with General Electric.

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(UNAUDITED)

Recent Accounting Developments:

Relevant standards that were recently issued but not yet adopted
Standard	Description	Date of Adoption	Effects on the financial statements or other significant matters
ASU 2014-09, Revenue from Contracts with Customers (Topic 606)	The standard, and its related amendments, will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements with customers. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date.	January 1, 2018	We are currently assessing the impact of the standard and its amendments on our consolidated financial statements and evaluating the alternative methods of adoption.
ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities	The standard makes limited amendments to the guidance on the classification and measurement of financial instruments. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting. In addition, the FASB clarified the guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. This standard must be applied on a retrospective basis.	January 1, 2018	We are currently assessing the impact of the standard on our consolidated financial statements.
ASU 2016-02, Leases (Topic 842)	The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities.	January 1, 2019	We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, as well as additional disclosure on our leases.
ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the Emerging Issues Task Force)	The standard clarifies that a change in the counterparty to a derivative instrument that is designated as a hedging instrument would result in dedesignation of the hedging relationship. This may be applied on a prospective or modified retrospective basis.	January 1, 2017	Our adoption of the standard will not have a material impact on our consolidated financial statements.
ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting	The standard simplifies the guidance related to stock compensation, including the accounting for income taxes by eliminating the windfall pool and requiring recognition of all excess tax benefits and deficiencies within the statement of income, as well as changes in the accounting for forfeitures, classification in the statement of cash flows and tax withholding requirements.	January 1, 2017	We anticipate increased income statement volatility due to the recognition of all excess tax benefits and deficiencies within the statement of income. We do not anticipate early adoption of this standard.
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	The standard requires all expected credit losses for financial assets held at the reporting date to be measured based on historical experience, current conditions, and reasonable supportable forecasts. The standard will utilize forward-looking information to determine credit loss estimates. It will require immediate recognition of the full amount of credit losses that are expected for certain financial assets.	January 1, 2020	We are currently assessing the impact of the standard on our consolidated financial statements.

Relevant standards that were adopted during the six months ended June 30, 2016:

We adopted ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, effective January 1, 2016. The implementation of the new standard did not result in any changes to our previous consolidation conclusions.

We adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, effective January 1, 2016 with retrospective application for all prior periods presented. The implementation of this standard resulted in debt issuance costs of $41 million and $37 million as of June 30, 2016 and December 31, 2015, respectively, being netted against long-term debt in our consolidated statement of condition.

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(UNAUDITED)

Note 2.    Fair Value

Fair-Value Measurements:

We carry trading account assets, AFS investment securities and various types of derivative financial instruments at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders' equity in our consolidated statement of condition.

We measure fair value for the above-described financial assets and liabilities in conformity with U.S. GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions

used to measure fair value conform to the provisions of U.S. GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. For information about our valuation techniques for financial assets and financial liabilities measured at fair value and the fair value hierarchy, refer to Note 2 to the consolidated financial statements on pages 132 to 142 of our 2015 Form 10-K.

The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated. No transfers of financial assets or liabilities between levels 1 and 2 occurred in the six months ended June 30, 2016 or the year ended December 31, 2015.

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(UNAUDITED)

	Fair-Value Measurements on a Recurring Basis
	as of June 30, 2016
(In millions)	Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)		Impact of Netting(1)			Total Net Carrying Value in Consolidated Statement of Condition
Assets:
Trading account assets:
U.S. government securities	$	44	$	—	$	—				$	44
Non-U.S. government securities	436		—		—					436
Other	17		393		—					410
Total trading account assets	497		393		—					890
AFS Investment securities:
U.S. Treasury and federal agencies:
Direct obligations	5,857		475		—					6,332
Mortgage-backed securities	—		19,050		25					19,075
Asset-backed securities:
Student loans	—		6,764		190					6,954
Credit cards	—		1,380		—					1,380
Sub-prime	—		369		—					369
Other(2)	—		—		1,710					1,710
Total asset-backed securities	—		8,513		1,900					10,413
Non-U.S. debt securities:
Mortgage-backed securities	—		7,268		—					7,268
Asset-backed securities	—		2,557		111					2,668
Government securities	—		5,405		—					5,405
Other(3)	—		5,113		261					5,374
Total non-U.S. debt securities	—		20,343		372					20,715
State and political subdivisions	—		10,570		33					10,603
Collateralized mortgage obligations	—		2,673		68					2,741
Other U.S. debt securities	—		2,390		—					2,390
U.S. equity securities	—		41		—					41
Non-U.S. equity securities	—		3		—					3
U.S. money-market mutual funds	—		405		—					405
Non-U.S. money-market mutual funds	—		17		—					17
Total investment securities available-for-sale	5,857		64,480		2,398					72,735
Other assets:
Derivative instruments:
Foreign exchange contracts	—		20,868		—		$	(12,130	)	8,738
Interest-rate contracts	—		507		—		(461		)	46
Other derivative contracts	—		5		—		(5		)	—
Total derivative instruments	—		21,380		—		(12,596		)	8,784
Other	347		—		—					347
Total assets carried at fair value	$	6,701	$	86,253	$	2,398	$	(12,596	)	$	82,756
Liabilities:
Accrued expenses and other liabilities:
Trading account liabilities:
U.S. government securities	$	16	$	—	$	—	$	—		$	16
Non-U.S. government securities	59		—		—		—			59
Other	5		6		—		—			11
Derivative instruments:
Foreign exchange contracts	—		20,620		—		(13,238		)	7,382
Interest-rate contracts	—		212		—		(47		)	165
Other derivative contracts	—		161		—		(5		)	156
Total derivative instruments	—		20,993		—		(13,290		)	7,703
Other	347		—		—		—			347
Total liabilities carried at fair value	$	427	$	20,999	$	—	$	(13,290	)	$	8,136

⁽¹⁾ Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $1.97 billion and $2.66 billion, respectively, for cash collateral received from and provided to derivative counterparties.

⁽²⁾ As of June 30, 2016, the fair value of other asset-backed securities was primarily composed of $1.71 billion of collateralized loan obligations.

⁽³⁾ As of June 30, 2016, the fair value of other non-U.S. debt securities was primarily composed of $3.40 billion of covered bonds and $970 million of corporate bonds.

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(UNAUDITED)

	Fair-Value Measurements on a Recurring Basis
	as of December 31, 2015
(In millions)	Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)		Impact of Netting(1)			Total Net Carrying Value in Consolidated Statement of Condition
Assets:
Trading account assets:
U.S. government securities	$	32	$	—	$	—				$	32
Non-U.S. government securities	479		—		—					479
Other	10		328		—					338
Total trading account assets	521		328		—					849
AFS Investment securities:
U.S. Treasury and federal agencies:
Direct obligations	5,206		512		—					5,718
Mortgage-backed securities	—		18,165		—					18,165
Asset-backed securities:
Student loans	—		6,987		189					7,176
Credit cards	—		1,341		—					1,341
Sub-prime	—		419		—					419
Other(2)	—		—		1,764					1,764
Total asset-backed securities	—		8,747		1,953					10,700
Non-U.S. debt securities:
Mortgage-backed securities	—		7,071		—					7,071
Asset-backed securities	—		3,093		174					3,267
Government securities	—		4,355		—					4,355
Other(3)	—		4,579		255					4,834
Total non-U.S. debt securities	—		19,098		429					19,527
State and political subdivisions	—		9,713		33					9,746
Collateralized mortgage obligations	—		2,948		39					2,987
Other U.S. debt securities	—		2,614		10					2,624
U.S. equity securities	—		39		—					39
Non-U.S. equity securities	—		3		—					3
U.S. money-market mutual funds	—		542		—					542
Non-U.S. money-market mutual funds	—		19		—					19
Total investment securities available-for-sale	5,206		62,400		2,464					70,070
Other assets:
Derivatives instruments:
Foreign exchange contracts	—		11,311		5		$	(6,562	)	4,754
Interest-rate contracts	—		135		—		(115		)	20
Other derivative contracts	—		5		—		(2		)	3
Total derivative instruments	—		11,451		5		(6,679		)	4,777
Other	2		—		—		—			2
Total assets carried at fair value	$	5,729	$	74,179	$	2,469	$	(6,679	)	$	75,698
Liabilities:
Accrued expenses and other liabilities:
Trading account liabilities:
U.S. government securities	$	5	$	—	$	—	$	—		$	5
Non-U.S. government securities	76		—		—		—			76
Other	5		13		—		—			18
Derivative instruments:
Foreign exchange contracts	—		10,863		5		(6,995		)	3,873
Interest-rate contracts	—		182		—		(24		)	158
Other derivative contracts	—		103		—		(2		)	101
Total derivative instruments	—		11,148		5		(7,021		)	4,132
Other	2		—		—		—			2
Total liabilities carried at fair value	$	88	$	11,161	$	5	$	(7,021	)	$	4,233

⁽¹⁾ Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $776 million and $1.12 billion, respectively, for cash collateral received from and provided to derivative counterparties.

⁽²⁾ As of December 31, 2015, the fair value of other asset-backed securities was primarily composed of $1.76 billion of collateralized loan obligations.

⁽³⁾ As of December 31, 2015, the fair value of other non-U.S. debt securities was primarily composed of $3.18 billion of covered bonds and $613 million of corporate bonds.

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CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

The following tables present activity related to our level-3 financial assets and liabilities during the three and six months ended June 30, 2016 and 2015, respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the three and six months ended June 30, 2016 and 2015, transfers out of level 3 were mainly related to certain mortgage- and asset-backed securities, including non-U.S. debt securities, for which fair value was measured using prices for which observable market information became available.

	Fair Value Measurements Using Significant Unobservable Inputs
	Three Months Ended June 30, 2016
	Fair Value  as of March 31, 2016		Total Realized and Unrealized Gains (Losses)					Purchases		Settlements			Transfers out of Level 3			Fair Value  as of June 30, 2016(1)		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2016
(In millions)			Recorded in Revenue		Recorded in Other Comprehensive Income
Assets:
AFS Investment securities:
U.S. Treasury and federal agencies, mortgage-backed securities	$	300	$	—	$	—		$	—	$	—		$	(275	)	$	25
Asset-backed securities:
Student loans	186		1		3			—		—			—			190
Other	1,813		9		(2		)	19		(129		)	—			1,710
Total asset-backed securities	1,999		10		1			19		(129		)	—			1,900
Non-U.S. debt securities:
Asset-backed securities	127		—		—			53		(16		)	(53		)	111
Other	295		—		2			—		(7		)	(29		)	261
Total non-U.S. debt securities	422		—		2			53		(23		)	(82		)	372
State and political subdivisions	32		—		1			—		—			—			33
Collateralized mortgage obligations	82		—		—			—		(14		)	—			68
Total AFS investment securities	2,835		10		4			72		(166		)	(357		)	2,398
Total assets carried at fair value	$	2,835	$	10	$	4		$	72	$	(166	)	$	(357	)	$	2,398	$	—

⁽¹⁾ There were no transfers of assets into level 3 during the three months ended June 30, 2016.

There was no activity related to our level-3 financial liabilities during the three months ended June 30, 2016.

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(UNAUDITED)

	Fair Value Measurements Using Significant Unobservable Inputs
	Six Months Ended June 30, 2016
	Fair Value  as of December 31, 2015		Total Realized and Unrealized Gains (Losses)					Purchases		Settlements			Transfers out of Level 3			Fair Value  as of June 30, 2016(1)		Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2016
(In millions)			Recorded in Revenue		Recorded in Other Comprehensive Income
Assets:
AFS Investment securities:
U.S. Treasury and federal agencies, mortgage-backed securities	$	—	$	—	$	—		$	300	$	—		$	(275	)	$	25
Asset-backed securities:
Student loans	189		1		—			—		—			—			190
Other	1,764		16		(13		)	132		(189		)	—			1,710
Total asset-backed securities	1,953		17		(13		)	132		(189		)	—			1,900
Non-U.S. debt securities:
Asset-backed securities	174		—		(1		)	107		(34		)	(135		)	111
Other	255		—		—			29		6			(29		)	261
Total Non-U.S. debt securities	429		—		(1		)	136		(28		)	(164		)	372
State and political subdivisions	33		—		1			—		(1		)	—			33
Collateralized mortgage obligations	39		—		—			50		(21		)	—			68
Other U.S. debt securities	10		—		—			—		(10		)	—			—
Total AFS investment securities	2,464		17		(13		)	618		(249		)	(439		)	2,398
Other assets:
Derivative instruments:
Foreign exchange contracts	5		3		—			—		(8		)	—			—		$	—
Total derivative instruments	5		3		—			—		(8		)	—			—		—
Total assets carried at fair value	$	2,469	$	20	$	(13	)	$	618	$	(257	)	$	(439	)	$	2,398	$	—

	Fair-Value Measurements Using Significant Unobservable Inputs
	Six Months Ended June 30, 2016
	Fair Value  as of December 31, 2015		Total Realized and Unrealized (Gains) Losses		Settlements			Fair Value  as of June 30, 2016(2)		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2016
(In millions)			Recorded in Revenue
Liabilities:
Accrued expenses and other liabilities:
Derivative instruments:
Foreign exchange contracts	$	5	$	5	$	(10	)	$	—	$	—
Total derivative instruments	5		5		(10		)	—		—
Total liabilities carried at fair value	$	5	$	5	$	(10	)	$	—	$	—

⁽¹⁾ There were no transfers of assets into level 3 during the six months ended June 30, 2016.

⁽²⁾ There were no transfers of liabilities into or out of level 3 during the six months ended June 30, 2016.

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(UNAUDITED)

	Fair Value Measurements Using Significant Unobservable Inputs
	Three Months Ended June 30, 2015
	Fair Value as of March 31, 2015		Total Realized and Unrealized Gains (Losses)						Purchases		Sales			Settlements			Transfers into Level 3		Transfers out of Level 3			Fair Value  as of June 30, 2015		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2015
(In millions)			Recorded in Revenue			Recorded in Other Comprehensive Income
Assets:
AFS Investment securities:
Asset-backed securities:
Student loans	$	257	$	—		$	—		$	—	$	—		$	(1	)	$	—	$	(22	)	$	234
Other	3,633		13			(6		)	—		(420		)	(287		)	—		—			2,933
Total asset-backed securities	3,890		13			(6		)	—		(420		)	(288		)	—		(22		)	3,167
Non-U.S. debt securities:
Mortgage-backed securities	43		—			—			—		—			—			97		(43		)	97
Asset-backed securities	228		—			—			—		—			(18		)	—		(17		)	193
Other	442		—			—			—		—			9			—		(187		)	264
Total Non-U.S. debt securities	713		—			—			—		—			(9		)	97		(247		)	554
State and political subdivisions	37		—			—			—		—			(1		)	—		—			36
Collateralized mortgage obligations	522		—			(1		)	—		(88		)	(29		)	—		(189		)	215
Other U.S. debt securities	9		—			—			—		—			—			—		—			9
Total investment securities available-for-sale	5,171		13			(7		)	—		(508		)	(327		)	97		(458		)	3,981
Other assets:
Derivative instruments:
Foreign exchange contracts	185		(96		)	—			10		—			(39		)	—		—			60		$	(30	)
Total derivative instruments	185		(96		)	—			10		—			(39		)	—		—			60		(30		)
Total assets carried at fair value	$	5,356	$	(83	)	$	(7	)	$	10	$	(508	)	$	(366	)	$	97	$	(458	)	$	4,041	$	(30	)

	Fair-Value Measurements Using Significant Unobservable Inputs
	Three Months Ended June 30, 2015
	Fair Value as of March 31, 2015		Total Realized and Unrealized Gains  (Losses)			Issuances		Settlements			Fair Value  as of June 30, 2015(1)		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2015
(In millions)			Recorded in Revenue
Liabilities:
Accrued expenses and other liabilities:
Derivative instruments:
Foreign exchange contracts	$	172	$	(90	)	$	8	$	(40	)	$	50	$	(26	)
Other	9		—			—		(9		)	—		—
Total derivative instruments	181		(90		)	8		(49		)	50		(26		)
Total liabilities carried at fair value	$	181	$	(90	)	$	8	$	(49	)	$	50	$	(26	)

⁽¹⁾ There were no transfers of liabilities into or out of level 3 during the three months ended June 30, 2015.

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(UNAUDITED)

	Fair-Value Measurements Using Significant Unobservable Inputs
	Six Months Ended June 30, 2015
	Fair Value  as of December 31, 2014		Total Realized and Unrealized Gains (Losses)					Purchases		Sales			Settlements			Transfers into Level 3		Transfers out of Level 3			Fair Value  as of June 30, 2015		Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2015
(In millions)			Recorded in Revenue		Recorded in Other Comprehensive Income
Assets:
Investment securities available-for-sale:
Asset-backed securities:
Student loans	$	259	$	—	$	1		$	—	$	—		$	(5	)	$	—	$	(21	)	$	234
Other	3,780		25		(18		)	—		(420		)	(434		)	—		—			2,933
Total asset-backed securities	4,039		25		(17		)	—		(420		)	(439		)	—		(21		)	3,167
Non-U.S. debt securities:
Mortgage-backed securities	—		—		—			43		—			—			97		(43		)	97
Asset-backed securities	295		1		—			—		—			(86		)	—		(17		)	193
Other	371		—		1			111		—			(32		)	—		(187		)	264
Total non-U.S. debt securities	666		1		1			154		—			(118		)	97		(247		)	554
State and political subdivisions	38		—		(1		)	—		—			(1		)	—		—			36
Collateralized mortgage obligations	614		—		(1		)	293		(88		)	(65		)	—		(538		)	215
Other U.S. debt securities	9		—		—			—		—			—			—		—			9
Total investment securities available-for-sale	5,366		26		(18		)	447		(508		)	(623		)	97		(806		)	3,981
Other assets:
Derivative instruments:
Derivative instruments, foreign exchange contracts	81		45		—			29		—			(95		)	—		—			60		$	12
Total derivative instruments	81		45		—			29		—			(95		)	—		—			60		12
Total assets carried at fair value	$	5,447	$	71	$	(18	)	$	476	$	(508	)	$	(718	)	$	97	$	(806	)	$	4,041	$	12

	Fair-Value Measurements Using Significant Unobservable Inputs
	Six Months Ended June 30, 2015
	Fair Value  as of December 31, 2014		Total Realized and Unrealized (Gains) Losses		Issuances		Settlements			Fair Value  as of June 30, 2015(1)		Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2015
(In millions)			Recorded in Revenue
Liabilities:
Accrued expenses and other liabilities:
Derivative instruments:
Foreign exchange contracts	$	74	$	19	$	33	$	(76	)	$	50	$	1
Other	9		—		—		(9		)	—		—
Total derivative instruments	83		19		33		(85		)	50		1
Total liabilities carried at fair value	$	83	$	19	$	33	$	(85	)	$	50	$	1

⁽¹⁾ There were no transfers of liabilities into or out of level 3 during the six months ended June 30, 2015.

66

STATE STREET CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

The following table presents total realized and unrealized gains and losses for our level-3 financial assets and liabilities and where they are presented in our consolidated statement of income for the periods indicated:

	Three Months Ended June 30,										Six Months Ended June 30,
	Total Realized and Unrealized Gains (Losses) Recorded in Revenue					Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30,					Total Realized and Unrealized Gains (Losses) Recorded in Revenue					Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30,
(In millions)	2016		2015			2016		2015			2016			2015		2016		2015
Fee revenue:
Trading services	$	—	$	(6	)	$	—	$	(4	)	$	(2	)	$	26	$	—	$	11
Total fee revenue	—		(6		)	—		(4		)	(2		)	26		—		11
Net interest revenue	10		13			—		—			17			26		—		—
Total revenue	$	10	$	7		$	—	$	(4	)	$	15		$	52	$	—	$	11

The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level-3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level-3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer.

	Quantitative Information about Level-3 Fair-Value Measurements
	Fair Value						Weighted-Average
(Dollars in millions)	As of June 30, 2016		As of December 31, 2015		Valuation Technique	Significant Unobservable Input(1)	As of June 30, 2016		As of December 31, 2015
Significant unobservable inputs readily available to State Street:
Assets:
Asset-backed securities, other	$	22	$	28	Discounted cash flows	Credit spread	0.3	%	(0.1	)%
State and political subdivisions	33		33		Discounted cash flows	Credit spread	2.1		2.2
Derivative instruments, foreign exchange contracts	—		5		Option model	Volatility			9.3
Total	$	55	$	66
Liabilities:
Derivative instruments, foreign exchange contracts	$	—	$	5	Option model	Volatility			9.2
Total	$	—	$	5

⁽¹⁾ Significant changes in these unobservable inputs would result in significant changes in fair value measure.

67

STATE STREET CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

The following tables present information with respect to the composition of our level-3 financial assets and liabilities, by availability of significant unobservable inputs, as of the dates indicated:

June 30, 2016	Significant Unobservable Inputs Readily Available to State Street(1)		Significant Unobservable Inputs Not Developed by State Street and Not Readily Available(2)		Total Assets and Liabilities with Significant Unobservable Inputs
(In millions)
Assets:
U.S. Treasury and federal agencies, mortgage-backed securities	$	—	$	25	$	25
Asset-backed securities, student loans	—		190		190
Asset-backed securities, other	22		1,688		1,710
Non-U.S. debt securities, asset-backed securities	—		111		111
Non-U.S. debt securities, other	—		261		261
State and political subdivisions	33		—		33
Collateralized mortgage obligations	—		68		68
Total	$	55	$	2,343	$	2,398

⁽¹⁾ Information with respect to these model-priced financial assets are provided in a separate table.

⁽²⁾ Fair value for these financial assets is measured using non-binding broker or dealer quotes.

December 31, 2015	Significant Unobservable Inputs Readily Available to State Street(1)		Significant Unobservable Inputs Not Developed by State Street and Not Readily Available(2)		Total Assets and Liabilities with Significant Unobservable Inputs
(In millions)
Assets:
Asset-backed securities, student loans	$	—	$	189	$	189
Asset-backed securities, other	28		1,736		1,764
Non-U.S. debt securities, asset-backed securities	—		174		174
Non-U.S. debt securities, other	—		255		255
State and political subdivisions	33		—		33
Collateralized mortgage obligations	—		39		39
Other U.S. debt securities	—		10		10
Derivative instruments, foreign exchange contracts	5		—		5
Total	$	66	$	2,403	$	2,469
Liabilities:
Derivative instruments, foreign exchange contracts	$	5	$	—	$	5
Total	$	5	$	—	$	5

⁽¹⁾ Information with respect to these model-priced financial assets and liabilities is provided in a separate table.

⁽²⁾ Fair value for these financial assets is measured using non-binding broker or dealer quotes.

We use internally-developed pricing models that incorporate discounted cash flow and option model techniques to measure the fair value of certain level-3 financial assets and liabilities. Use of these techniques requires the determination of relevant inputs and assumptions, some of which represent significant unobservable inputs as indicated in the preceding tables. Accordingly, changes in these unobservable inputs may have a significant impact on fair value.

Fair Value Estimates:

Estimates of fair value for financial instruments not carried at fair value on a recurring basis in our consolidated statement of condition are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information.

68

STATE STREET CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair-value hierarchy, as of the dates indicated.

					Fair-Value Hierarchy
June 30, 2016	Reported Amount		Estimated Fair Value		Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)
(In millions)
Financial Assets:
Cash and due from banks	$	4,673	$	4,673	$	4,673	$	—	$	—
Interest-bearing deposits with banks	75,169		75,169		—		75,169		—
Securities purchased under resale agreements	2,010		2,010		—		2,010		—
Investment securities held-to-maturity	30,386		30,895		17,928		12,830		137
Net loans (excluding leases)	18,962		18,940		—		18,836		104
Financial Liabilities:
Deposits:
Noninterest-bearing	$	57,268	$	57,268	$	—	$	57,268	$	—
Interest-bearing - U.S.	33,060		33,060		—		33,060		—
Interest-bearing - non-U.S.	102,802		102,802		—		102,802		—
Securities sold under repurchase agreements	4,350		4,350		—		4,350		—
Federal funds purchased	29		29		—		29		—
Other short-term borrowings	1,683		1,683		—		1,683		—
Long-term debt	11,924		12,033		—		11,660		373

					Fair-Value Hierarchy
December 31, 2015	Reported Amount		Estimated Fair Value		Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)
(In millions)
Financial Assets:
Cash and due from banks	$	1,207	$	1,207	$	1,207	$	—	$	—
Interest-bearing deposits with banks	75,338		75,338		—		75,338		—
Securities purchased under resale agreements	3,404		3,404		—		3,404		—
Investment securities held-to-maturity	29,952		29,798		—		29,798		—
Net loans (excluding leases)(1)	17,838		17,792		—		17,667		125
Financial Liabilities:
Deposits:
Noninterest-bearing	$	65,800	$	65,800	$	—	$	65,800	$	—
Interest-bearing - U.S.	29,958		29,958		—		29,958		—
Interest-bearing - non-U.S.	95,869		95,869		—		95,869		—
Securities sold under repurchase agreements	4,499		4,499		—		4,499		—
Federal funds purchased	6		6		—		6		—
Other short-term borrowings	1,748		1,748		—		1,748		—
Long-term debt	11,497		11,604		—		11,215		389

⁽¹⁾ Includes $14 million of loans classified as held-for-sale that were measured at fair value on a non-recurring basis as of December 31, 2015 .

69

STATE STREET CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Note 3.    Investment Securities

Investment securities held by us are classified as either trading, AFS, or HTM at the time of purchase and reassessed periodically, based on management’s intent.

Generally, trading assets are debt and equity securities purchased in connection with our trading activities and, as such, are expected to be sold in the near term. Our trading activities typically involve active and frequent buying and selling with the objective of generating profits on short-term movements. AFS investment securities are those securities that we intend to hold for an indefinite period of time. AFS investment securities include securities utilized as part of our asset-and-liability management activities that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. HTM securities are debt securities that management has the intent and the ability to hold to maturity.

Trading assets are carried at fair value. Both realized and unrealized gains and losses on trading assets are recorded in trading services revenue in our consolidated statement of income. Debt and marketable equity securities classified as AFS are carried at fair value, and after-tax net unrealized gains and losses are recorded in AOCI. Gains or losses realized on sales of AFS investment securities are computed using the specific identification method and are recorded in gains (losses) related to investment securities, net, in our consolidated statement of income. HTM investment securities are carried at cost, adjusted for amortization of premiums and accretion of discounts.

70

STATE STREET CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

The following table presents the amortized cost and fair value, and associated unrealized gains and losses, of investment securities as of the dates indicated:

	June 30, 2016								December 31, 2015
	Amortized Cost		Gross Unrealized				Fair Value		Amortized Cost		Gross Unrealized				Fair Value
(In millions)			Gains		Losses						Gains		Losses
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	6,301	$	32	$	1	$	6,332	$	5,717	$	6	$	5	$	5,718
Mortgage-backed securities	18,788		298		11		19,075		18,168		131		134		18,165
Asset-backed securities:
Student loans(1)	7,162		8		216		6,954		7,358		16		198		7,176
Credit cards	1,392		15		27		1,380		1,378		—		37		1,341
Sub-prime	396		1		28		369		448		2		31		419
Other(2)	1,684		27		1		1,710		1,724		43		3		1,764
Total asset-backed securities	10,634		51		272		10,413		10,908		61		269		10,700
Non-U.S. debt securities:
Mortgage-backed securities	7,254		42		28		7,268		7,010		72		11		7,071
Asset-backed securities	2,675		2		9		2,668		3,272		2		7		3,267
Government securities	5,385		20		—		5,405		4,348		7		—		4,355
Other(3)	5,341		37		4		5,374		4,817		29		12		4,834
Total non-U.S. debt securities	20,655		101		41		20,715		19,447		110		30		19,527
State and political subdivisions	10,065		563		25		10,603		9,402		371		27		9,746
Collateralized mortgage obligations	2,681		66		6		2,741		2,993		16		22		2,987
Other U.S. debt securities	2,357		42		9		2,390		2,611		31		18		2,624
U.S. equity securities	34		10		3		41		33		9		3		39
Non-U.S. equity securities	3		—		—		3		3		—		—		3
U.S. money-market mutual funds	405		—		—		405		542		—		—		542
Non-U.S. money-market mutual funds	17		—		—		17		19		—		—		19
Total	$	71,940	$	1,163	$	368	$	72,735	$	69,843	$	735	$	508	$	70,070
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	21,577	$	446	$	1	$	22,022	$	20,878	$	2	$	217	$	20,663
Mortgage-backed securities	1,521		14		—		1,535		610		2		8		604
Asset-backed securities:
Student loans(1)	1,489		—		51		1,438		1,592		—		47		1,545
Credit cards	897		1		—		898		897		—		1		896
Other	138		1		—		139		366		2		1		367
Total asset-backed securities	2,524		2		51		2,475		2,855		2		49		2,808
Non-U.S. debt securities:
Mortgage-backed securities	1,900		96		31		1,965		2,202		109		26		2,285
Asset-backed securities	870		—		4		866		1,415		4		3		1,416
Government securities	309		3		—		312		239		—		1		238
Other	191		3		—		194		65		—		—		65
Total non-U.S. debt securities	3,270		102		35		3,337		3,921		113		30		4,004
State and political subdivisions	—		—		—		—		1		—		—		1
Collateralized mortgage obligations	1,494		51		19		1,526		1,687		60		29		1,718
Total	$	30,386	$	615	$	106	$	30,895	$	29,952	$	179	$	333	$	29,798

⁽¹⁾ Primarily composed of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans.

⁽²⁾ As of June 30, 2016 and December 31, 2015, the fair value of other ABS was primarily composed of $1.71 billion and $1.76 billion, respectively, of collateralized loan obligations.

⁽³⁾ As of June 30, 2016 and December 31, 2015, the fair value of other non-U.S. debt securities was primarily composed of $3.40 billion and $3.18 billion, respectively, of covered bonds and $970 million and $613 million, as of June 30, 2016 and December 31, 2015, respectively, of corporate bonds.

71

STATE STREET CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Aggregate investment securities with carrying values of $34.10 billion and $34.18 billion as of June 30, 2016 and December 31, 2015, respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law.

The following tables present the aggregate fair values of investment securities that have been in a continuous unrealized loss position for less than 12 months, and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated:

	Less than 12 months				12 months or longer				Total
June 30, 2016	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
(In millions)
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	84	$	—	$	129	$	1	$	213	$	1
Mortgage-backed securities	828		2		1,189		9		2,017		11
Asset-backed securities:
Student loans	2,210		39		4,049		177		6,259		216
Credit cards	—		—		558		27		558		27
Sub-prime	1		—		349		28		350		28
Other	399		1		25		—		424		1
Total asset-backed securities	2,610		40		4,981		232		7,591		272
Non-U.S. debt securities:
Mortgage-backed securities	2,825		17		757		11		3,582		28
Asset-backed securities	1,276		7		233		2		1,509		9
Government securities	486		—		—		—		486		—
Other	1,003		2		572		2		1,575		4
Total non-U.S. debt securities	5,590		26		1,562		15		7,152		41
State and political subdivisions	102		—		612		25		714		25
Collateralized mortgage obligations	128		1		282		5		410		6
Other U.S. debt securities	51		—		166		9		217		9
U.S. equity securities	—		—		5		3		5		3
Non-U.S. equity securities	1		—		—		—		1		—
Total	$	9,394	$	69	$	8,926	$	299	$	18,320	$	368
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	2	$	—	$	91	$	1	$	93	$	1
Asset-backed securities:
Student loans	809		27		631		24		1,440		51
Credit cards	218		—		—		—		218		—
Other	6		—		50		—		56		—
Total asset-backed securities	1,033		27		681		24		1,714		51
Non-U.S. mortgage-backed securities:
Mortgage-backed securities	189		7		515		24		704		31
Asset-backed securities	421		4		51		—		472		4
Government securities	197		—		—		—		197		—
Total non-U.S. debt securities	807		11		566		24		1,373		35
Collateralized mortgage obligations	728		10		200		9		928		19
Total	$	2,570	$	48	$	1,538	$	58	$	4,108	$	106

72

STATE STREET CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

	Less than 12 months				12 months or longer				Total
December 31, 2015	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
(In millions)
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	3,123	$	4	$	121	$	1	$	3,244	$	5
Mortgage-backed securities	5,729		48		3,166		86		8,895		134
Asset-backed securities:
Student loans	2,841		54		3,217		144		6,058		198
Credit cards	838		7		490		30		1,328		37
Sub-prime	7		—		387		31		394		31
Other	720		3		43		—		763		3
Total asset-backed securities	4,406		64		4,137		205		8,543		269
Non-U.S. debt securities:
Mortgage-backed securities	1,457		7		437		4		1,894		11
Asset-backed securities	2,190		7		22		—		2,212		7
Government securities	1,691		—		—		—		1,691		—
Other	1,548		5		527		7		2,075		12
Total non-U.S. debt securities	6,886		19		986		11		7,872		30
State and political subdivisions	206		1		658		26		864		27
Collateralized mortgage obligations	1,511		14		217		8		1,728		22
Other U.S. debt securities	475		9		178		9		653		18
U.S. equity securities	—		—		5		3		5		3
Total	$	22,336	$	159	$	9,468	$	349	$	31,804	$	508
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	16,370	$	120	$	3,005	$	97	$	19,375	$	217
Mortgage-backed securities	560		8		—		—		560		8
Asset-backed securities:
Student loans	896		25		615		22		1,511		47
Credit cards	636		1		—		—		636		1
Other	102		—		31		1		133		1
Total asset-backed securities	1,634		26		646		23		2,280		49
Non-U.S. debt securities:
Mortgage-backed securities	338		2		524		24		862		26
Asset-backed securities	1,015		3		69		—		1,084		3
Government securities	128		1		—		—		128		1
Other	—		—		43		—		43		—
Total non-U.S. debt securities	1,481		6		636		24		2,117		30
Collateralized mortgage obligations	634		9		537		20		1,171		29
Total	$	20,679	$	169	$	4,824	$	164	$	25,503	$	333

73

STATE STREET CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

The following table presents contractual maturities of debt investment securities by carrying amount as of June 30, 2016:

	Under 1 Year		1 to 5 Years		6 to 10 Years		Over 10 Years			Total
(In millions)
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	4,508	$	1,154	$	252	$	418		$	6,332
Mortgage-backed securities	103		2,145		4,288		12,539			19,075
Asset-backed securities:
Student loans	426		3,782		1,354		1,392			6,954
Credit cards	4		261		1,115		—			1,380
Sub-prime	3		2		2		362			369
Other	2		158		1,401		149			1,710
Total asset-backed securities	435		4,203		3,872		1,903			10,413
Non-U.S. debt securities:
Mortgage-backed securities	876		4,091		709		1,592			7,268
Asset-backed securities	125		2,196		218		129			2,668
Government securities	3,907		1,354		144		—			5,405
Other	1,794		3,064		517		(1		)	5,374
Total non-U.S. debt securities	6,702		10,705		1,588		1,720			20,715
State and political subdivisions	428		2,314		5,630		2,231			10,603
Collateralized mortgage obligations	108		46		515		2,072			2,741
Other U.S. debt securities	806		1,149		390		45			2,390
Total	$	13,090	$	21,716	$	16,535	$	20,928		$	72,269
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	—	$	12,728	$	8,771	$	78		$	21,577
Mortgage-backed securities	—		10		171		1,340			1,521
Asset-backed securities:
Student loans	91		99		229		1,070			1,489
Credit cards	39		823		35		—			897
Other	30		55		51		2			138
Total asset-backed securities	160		977		315		1,072			2,524
Non-U.S. debt securities:
Mortgage-backed securities	323		470		79		1,028			1,900
Asset-backed securities	197		673		—		—			870
Government securities	197		112		—		—			309
Other	74		117		—		—			191
Total non-U.S. debt securities	791		1,372		79		1,028			3,270
Collateralized mortgage obligations	72		66		300		1,056			1,494
Total	$	1,023	$	15,153	$	9,636	$	4,574		$	30,386

The maturities of asset-backed securities, mortgage-backed securities, and collateralized mortgage obligations are based on expected principal payments.

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(UNAUDITED)

The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated.

	Six Months Ended June 30,
(In millions)	2016			2015
Balance, beginning of period	$	92		$	115
Additions:
Losses for which OTTI was previously recognized	1			1
Deductions:
Previously recognized losses related to securities sold or matured	(2		)	(15		)
Balance, end of period	$	91		$	101

Interest revenue related to debt securities is recognized in our consolidated statement of income using the effective interest method, or on a basis approximating a level rate of return over the contractual or estimated life of the security. The level rate of return considers any nonrefundable fees or costs, as well as purchase premiums or discounts, resulting in amortization or accretion, accordingly.

For debt securities acquired for which we consider it probable as of the date of acquisition that we will be unable to collect all contractually required principal, interest and other payments, the excess of our estimate of undiscounted future cash flows from these securities over their initial recorded investment is accreted into interest revenue on a level-yield basis over the securities’ estimated remaining terms. Subsequent decreases in these securities’ expected future cash flows are either recognized prospectively through an adjustment of the yields on the securities over their remaining terms, or are evaluated for other-than-temporary impairment. Increases in expected future cash flows are recognized prospectively over the securities’ estimated remaining terms through the recalculation of their yields.

For certain debt securities acquired which are considered to be beneficial interests in securitized financial assets, the excess of our estimate of undiscounted future cash flows from these securities over their initial recorded investment is accreted into interest revenue on a level-yield basis over the securities’ estimated remaining terms. Subsequent decreases in these securities’ expected future cash flows are either recognized prospectively through an adjustment of the yields on the securities over their remaining terms, or are evaluated for other-than-temporary impairment. Increases in expected future cash flows are recognized prospectively over the securities’ estimated remaining terms through the recalculation of their yields.

Impairment:

We conduct periodic reviews of individual securities to assess whether OTTI exists. For more information about the review of securities for impairment, refer to Note 3 in the consolidated financial statements on pages 149 to 152 in our 2015 Form 10-K.

We had $1 million of OTTI in the six months ended June 30, 2016 and 2015, which resulted from adverse changes in the timing of expected future cash flows from the securities.

After a review of the investment portfolio, taking into consideration current economic conditions, adverse situations that might affect our ability to fully collect principal and interest, the timing of future payments, the credit quality and performance of the collateral underlying mortgage- and asset-backed securities and other relevant factors, and excluding the OTTI recorded in the six months ended June 30, 2016, management considers the aggregate decline in fair value of the investment securities portfolio and the resulting gross pre-tax unrealized losses of $474 million related to 917 securities as of June 30, 2016 to be temporary, and not the result of any material changes in the credit characteristics of the securities.

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(UNAUDITED)

Note 4.    Loans and Leases

We segregate our loans and leases into two segments: institutional and CRE. Within the institutional and CRE segments, we further segregate the receivables into classes based on their risk characteristics, their initial measurement attributes and the methods we use to monitor and assess credit risk. For additional information on our loans and leases, including our internal risk-rating system used to assess our risk of credit loss for each loan or lease, refer to Note 4 to the consolidated financial statements on pages 152 to 156 in our 2015 Form 10-K.

The following table presents our recorded investment in loans and leases, by segment and class, as of the dates indicated:

(In millions)	June 30, 2016			December 31, 2015
Institutional:
Investment funds:
U.S.	$	11,893		$	11,136
Non-U.S.	2,540			1,678
Commercial and financial:
U.S.	3,916			4,671
Non-U.S.	505			278
Purchased receivables:
U.S.	79			93
Non-U.S.	—			—
Lease financing:
U.S.	335			337
Non-U.S.	544			578
Total institutional	19,812			18,771
Commercial real estate:
U.S.	27			28
Total loans and leases	19,839			18,799
Allowance for loan and lease losses	(51		)	(46		)
Loans and leases, net of allowance for loan and lease losses	$	19,788		$	18,753

Short-duration advances to our clients included in the institutional segment were $4.32 billion and $2.62 billion as of June 30, 2016 and December 31, 2015, respectively. These short-duration advances provide liquidity to fund clients in support of their transaction flows associated with securities settlement activities.

The commercial-and-financial class in the institutional segment presented in the preceding table included approximately $3.30 billion and $3.14 billion of senior secured loans as of June 30, 2016 and December 31, 2015, respectively. These senior secured loans are included in the “speculative”, "special mention" and "substandard" categories in the credit-quality-indicator tables presented below. As of June 30, 2016 and December 31, 2015, our allowance for loan and lease losses included approximately $43 million and $35 million, respectively, related to these loans.

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(UNAUDITED)

The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated:

	Institutional
June 30, 2016	Investment Funds		Commercial and Financial		Purchased Receivables		Lease Financing		Commercial Real Estate		Total Loans and Leases
(In millions)
Investment grade(1)	$	14,116	$	1,075	$	79	$	851	$	27	$	16,148
Speculative(2)	315		3,331		—		28		—		3,674
Special mention(3)	2		—		—		—		—		2
Doubtful(4)	—		15		—		—		—		15
Total	$	14,433	$	4,421	$	79	$	879	$	27	$	19,839

	Institutional
December 31, 2015	Investment Funds		Commercial and Financial		Purchased Receivables		Lease Financing		Commercial Real Estate		Total Loans and Leases
(In millions)
Investment grade(1)	$	12,415	$	1,780	$	93	$	888	$	28	$	15,204
Speculative(2)	399		3,138		—		27		—		3,564
Special mention(3)	—		31		—		—		—		31
Total	$	12,814	$	4,949	$	93	$	915	$	28	$	18,799

⁽¹⁾ Investment-grade loans and leases consist of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment.

⁽²⁾ Speculative loans and leases consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met.

⁽³⁾ Special mention loans and leases consist of counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects.

⁽⁴⁾ Doubtful loans and leases meet the same definition of substandard loans and leases (i.e., well-defined weaknesses that jeopardize repayment with the possibility that we will sustain some loss) with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable.

The following table presents our recorded investment in loans and leases, disaggregated based on our impairment methodology, as of the dates indicated:

	June 30, 2016						December 31, 2015
(In millions)	Institutional		Commercial Real Estate		Total Loans and Leases		Institutional		Commercial Real Estate		Total Loans and Leases
Loans and leases(1):
Individually evaluated for impairment	$	15	$	—	$	15	$	—	$	—	$	—
Collectively evaluated for impairment	19,797		27		19,824		18,771		28		18,799
Total	$	19,812	$	27	$	19,839	$	18,771	$	28	$	18,799

⁽¹⁾ For those portfolios where there are a small number of loans each with a large balance, we review each loan annually for indicators of impairment. For those loans where no such indicators are identified, the loans are collectively evaluated for impairment. As of June 30, 2016 and December 31, 2015, $2 million and zero, respectively, of the allowance for loan and lease loss related to institutional loans individually evaluated for impairment. As of June 30, 2016 and December 31, 2015, $49 million and $46 million, respectively, of the allowance for loan and lease loss related to institutional loans collectively evaluated for impairment.    

The following table presents information related to our recorded investment in impaired loans and leases for the dates or periods indicated:

	As of June 30, 2016						As of December 31, 2015
(In millions)	Recorded Investment		Unpaid Principal Balance		Related Allowance(1)		Recorded Investment		Unpaid Principal Balance		Related Allowance(1)
With no related allowance recorded:
CRE—property development—acquired credit-impaired	$	—	$	34	$	—	$	—	$	34	$	—
CRE—other—acquired credit-impaired	—		22		—		—		22		—
Total CRE	—		56		—		—		56		—
With an allowance recorded:
Institutional- commercial and financial lending(2)	15		15		2		—		—		—
Total Institutional	15		15		2		—		—		—
Total CRE and institutional	$	15	$	71	$	2	$	—	$	56	$	—

⁽¹⁾ As of June 30, 2016 and December 31, 2015, there was an additional allowance for loan and lease losses of $49 million and $46 million, respectively, related to loans that were not impaired.

⁽²⁾ We identified $15 million of commercial and financing loans as impaired. The average recorded investment and related interest revenue recognized is $15 million and zero, respectively, for the three and six month periods ended June 30, 2016.

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(UNAUDITED)

In certain circumstances, we restructure troubled loans by granting concessions to borrowers experiencing financial difficulty. Once restructured, the loans are generally considered impaired until their maturity, regardless of whether the borrowers perform under the modified terms of the loans. No loans were modified in troubled debt restructurings during the six months ended June 30, 2016 and the year ended December 31, 2015.

As of June 30, 2016 and December 31, 2015, no institutional loans or leases and no CRE loans were on non-accrual status or 90 days or more contractually past due.

The following table presents activity in the allowance for loan and lease losses for the periods indicated:

	Three Months Ended June 30,
	2016			2015
(In millions)	Total Loans and Leases			Total Loans and Leases
Allowance for loan and lease losses(1):
Beginning balance	$	47		$	41
Provision for loan losses	4			2
Charge-offs	—			—
Ending balance	$	51		$	43
	Six Months Ended June 30,
	2016			2015
(In millions)	Total Loans and Leases			Total Loans and Leases
Allowance for loan and lease losses(1):
Beginning balance	$	46		$	37
Provision for loan losses	8			6
Charge-offs	(3		)	—
Ending balance	$	51		$	43

⁽¹⁾ As of June 30, 2016, approximately $43 million of our allowance for loan and lease losses was related to senior secured loans included in the institutional segment; the remaining $8 million was related to other institutional segment loans.

The provision of $8 million and $6 million recorded in the six months endedJune 30, 2016 and 2015, respectively, as well as the the charge-offs of $3 million recorded in the six months endedJune 30, 2016 were a result of exposure to senior secured loans to non-investment grade borrowers, purchased in connection with our participation in syndicated loans.

Loans and leases are reviewed on a regular basis, and any provisions for loan losses that are recorded reflect management's estimate of the amount necessary to maintain the allowance for loan and lease losses at a level considered appropriate to absorb estimated incurred losses in the loan-and-lease portfolio.

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(UNAUDITED)

Note 5.    Goodwill and Other Intangible Assets

The following table presents changes in the carrying amount of goodwill during the periods indicated:

	Six Months Ended June 30,
	2016								2015
(In millions)	Investment Servicing			Investment Management		Total			Investment Servicing			Investment Management			Total
Goodwill:
Beginning balance	$	5,641		$	30	$	5,671		$	5,793		$	33		$	5,826
Divestitures and other reductions	(11		)	—		(11		)	—			—			—
Foreign currency translation	11			—		11			(95		)	(2		)	(97		)
Ending balance	$	5,641		$	30	$	5,671		$	5,698		$	31		$	5,729

The following table presents changes in the net carrying amount of other intangible assets during the periods indicated:

	Six Months Ended June 30,
	2016									2015
(In millions)	Investment Servicing			Investment Management			Total			Investment Servicing			Investment Management			Total
Other intangible assets:
Beginning balance	$	1,753		$	15		$	1,768		$	1,998		$	27		$	2,025
Amortization	(94		)	(4		)	(98		)	(95		)	(4		)	(99		)
Foreign currency translation and other, net	12			—			12			(54		)	(1		)	(55		)
Ending balance	$	1,671		$	11		$	1,682		$	1,849		$	22		$	1,871

The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated:

	June 30, 2016							December 31, 2015
(In millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other intangible assets:
Client relationships	$	2,490	$	(1,268	)	$	1,222	$	2,486	$	(1,198	)	$	1,288
Core deposits	671		(265		)	406		667		(246		)	421
Other	151		(97		)	54		147		(88		)	59
Total	$	3,312	$	(1,630	)	$	1,682	$	3,300	$	(1,532	)	$	1,768

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(UNAUDITED)

Note 6.    Other Assets

The following table presents the components of other assets as of the dates indicated:

(In millions)	June 30, 2016		December 31, 2015
Collateral deposits, net	$	20,971	$	21,465
Derivative instruments, net	8,784		4,777
Bank-owned life insurance	3,118		3,078
Investments in joint ventures and other unconsolidated entities	2,262		2,034
Accounts receivable	961		1,018
Receivable for securities settlement	622		311
Prepaid expenses	344		284
Deferred tax assets, net of valuation allowance	225		182
Income taxes receivable	141		154
Deposits with clearing organizations	139		127
Other	422		473
Total	$	37,989	$	33,903

Note 7.    Derivative Financial Instruments

We use derivative financial instruments to support our clients' needs and to manage our interest-rate and currency risk. In undertaking these activities, we assume positions in both the foreign exchange and interest-rate markets by buying and selling cash instruments and using derivative financial instruments, including foreign exchange forward contracts, foreign exchange and interest-rate options and interest-rate swaps, interest-rate forward contracts and interest-rate futures. For information on our derivative instruments, including the related accounting policies, refer to Note 10 to the consolidated financial statements on pages 162 to 168 in our 2015 Form 10-K.

Derivative financial instruments are also subject to credit and counterparty risk, which we manage by performing credit reviews, maintaining individual counterparty limits, entering into netting arrangements and requiring the receipt of collateral. Cash collateral received from and provided to counterparties in connection with derivative financial instruments is recorded in accrued expenses and other liabilities and other assets, respectively, in our consolidated statement of condition. As of June 30, 2016 and December 31, 2015, we had recorded approximately $3.00 billion and $1.40 billion, respectively, of cash collateral received from counterparties and approximately $3.27 billion and $1.65 billion, respectively, of cash collateral provided to counterparties in connection with derivative financial instruments in our consolidated statement of condition.

Certain of our derivative assets and liabilities as of June 30, 2016 and December 31, 2015 are subject to master netting agreements with our derivative counterparties. Certain of these agreements contain credit risk-related contingent features in which the counterparty has the right to declare us in default and accelerate cash settlement of our net derivative liabilities with the counterparty in the event that our credit rating falls below specified levels. The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a net liability position as of June 30, 2016 totaled approximately $2.70 billion, against which we provided $54 million of underlying collateral. If our credit rating were downgraded below levels specified in the agreements, the maximum additional amount of payments related to termination events that could have been required pursuant to these contingent features, assuming no change in fair value, as of June 30, 2016 was approximately $2.64 billion. Such accelerated settlement would be at fair value and therefore not affect our consolidated results of operations.

Derivatives Not Designated as Hedging Instruments:

In connection with our trading activities, we use derivative financial instruments in our role as a financial intermediary and as both a manager and servicer of financial assets, in order to accommodate our clients' investment and risk management needs. In addition, we use derivative financial instruments for risk management purposes as economic hedges, which are not formally designated as accounting hedges, in order to contribute to our overall corporate earnings and liquidity. These activities are designed to generate trading services revenue and to manage volatility in our net interest revenue. The level of market risk that we assume is a function of our overall objectives and liquidity needs, our clients' requirements and market volatility. For additional information on derivatives not designated as hedging instruments, refer to Note 10 to the consolidated financial statements on pages 163 to 164 in our 2015 Form 10-K.

Derivatives Designated as Hedging Instruments:

In connection with our asset-and-liability management activities, we use derivative financial instruments to manage our interest-rate risk and foreign currency risk. Interest-rate risk, defined as the sensitivity of income or financial condition to variations in interest rates, is a significant non-trading market risk to which our assets and liabilities are exposed. We manage our interest-rate risk by identifying, quantifying and hedging our exposures, using fixed-rate portfolio securities and a variety of

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(UNAUDITED)

derivative financial instruments, most frequently interest-rate swaps and options (for example, interest-rate caps and floors). Interest-rate swap agreements alter the interest-rate characteristics of specific balance sheet assets or liabilities. When appropriate, forward-rate agreements, options on swaps, and exchange-traded futures and options are also used. We use foreign exchange forward and swap contracts to hedge foreign exchange exposure to various foreign currencies with respect to certain assets and liabilities. Our hedging relationships are formally designated, and qualify for hedge accounting, as fair value, cash flow or net investment hedges. For additional information on derivatives designated as hedging instruments, refer to Note 10 to the consolidated financial statements on pages 164 to 168 in our 2015 Form 10-K.

 Fair Value Hedges

We have entered into interest-rate swap agreements to modify our interest revenue from certain available-for-sale investment securities from a fixed rate to a floating rate. The hedged AFS investment securities included hedged trusts that had a weighted-average life of approximately 5.1 years as of June 30, 2016, compared to 5.4 years as of December 31, 2015.

We have entered into interest-rate swap agreements to modify our interest expense on eight senior notes and two subordinated notes from fixed rates to floating rates. The senior and subordinated notes are hedged with interest-rate swap contracts with notional amounts, maturities and fixed-rate coupon terms that align with the hedged notes. The table below summarizes the maturities and the paid fixed interest rates for the hedged senior and subordinated notes:

June 30, 2016	Maturity	Paid Fixed Interest Rate
Senior Notes
	2018	1.35%
	2020	2.55%
	2021	1.95%
	2021	4.38%
	2023	3.70%
	2024	3.30%
	2025	3.55%
	2026	2.65%
Subordinated Notes
	2018	4.96%
	2023	3.10%

We have entered into foreign exchange swap contracts to hedge the change in fair value attributable to foreign exchange movements in our foreign currency denominated investment securities and deposits. These forward contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the fair value of the securities and deposits attributable to changes in foreign exchange rates.

Cash Flow Hedges 

We have entered into foreign exchange contracts to hedge the change in cash flows attributable to foreign exchange movements in foreign currency denominated investment securities. These foreign exchange contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the cash flows of the securities attributable to changes in foreign exchange rates.

Net Investment Hedges

Derivatives categorized as net investment hedges are utilized to offset the fluctuation of foreign exchange rates. Effectiveness of net investment hedges is based on the overall changes in the fair value of the forward contracts.

We have entered into foreign exchange contracts to protect the net investment in our foreign operations against adverse changes in exchange rates. These foreign exchange contracts have maturities of less than three months. These forward contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the fair value of our net investments in our foreign operations attributable to changes in foreign exchange rates.

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(UNAUDITED)

The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments entered into in connection with our trading and asset-and-liability management activities as of the dates indicated:

(In millions)	June 30, 2016		December 31, 2015
Derivatives not designated as hedging instruments:
Interest-rate contracts:
Swap agreements and forwards	$	9	$	336
Futures	11,302		2,621
Foreign exchange contracts:
Forward, swap and spot	1,419,570		1,274,277
Options purchased	—		403
Options written	—		404
Futures	167		—
Credit derivative contracts:
Credit swap agreements(1)	37		141
Commodity and equity contracts:
Commodity(1)	151		113
Equity(1)	103		87
Other:
Stable value contracts	26,071		24,583
Deferred value awards(2)	506		320
Derivatives designated as hedging instruments:
Interest-rate contracts:
Swap agreements	10,364		9,398
Foreign exchange contracts:
Forward and swap	4,812		4,515

⁽¹⁾ Primarily composed of positions held by a consolidated sponsored investment fund, more fully described in Note 11.

⁽²⁾ Represents grants of deferred value awards to employees; refer to Note 12 in the 2015 Form 10-K , "Derivatives Not Designated as Hedging Instruments" for additional information.

In connection with our asset-and-liability management activities, we have entered into interest-rate contracts designated as fair value hedges to manage our interest-rate risk. The following tables present the aggregate notional amounts of these interest-rate contracts and the related assets or liabilities being hedged as of the dates indicated:

	June 30, 2016(1)
(In millions)	Fair Value Hedges
Investment securities available-for-sale	$	1,614
Long-term debt(2)	8,750
Total	$	10,364

	December 31, 2015(1)
(In millions)	Fair Value Hedges
Investment securities available-for-sale	$	1,698
Long-term debt(2)	7,700
Total	$	9,398

⁽¹⁾ As of June 30, 2016 and December 31, 2015, there were no interest-rate contracts designated as cash flow hedges.

⁽²⁾ As of June 30, 2016, these fair value hedges increased the carrying value of long-term debt presented in our consolidated statement of condition by $458 million. As of December 31, 2015, these fair value hedges increased the carrying value of long-term debt presented in our consolidated statement of condition by $105 million.

The following table presents the contractual and weighted-average interest rates for long-term debt, which include the effects of the fair value hedges presented in the table above, for the periods indicated:

	Three Months Ended June 30,
	2016				2015
	Contractual Rates		Rate  Including Impact of Hedges		Contractual Rates		Rate  Including Impact of Hedges
Long-term debt	3.43	%	2.24	%	3.70	%	2.67	%
	Six Months Ended June 30,
	2016				2015
	Contractual Rates		Rate  Including Impact of Hedges		Contractual Rates		Rate  Including Impact of Hedges
Long-term debt	3.43	%	2.22	%	3.61	%	2.60	%

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(UNAUDITED)

The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is disclosed in Note 8.

Derivative Assets(1)
	Fair Value
(In millions)	June 30, 2016		December 31, 2015
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	20,472	$	10,799
Interest-rate contracts	1		2
Other derivative contracts	5		5
Total	$	20,478	$	10,806
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	396	$	517
Interest-rate contracts	506		133
Total	$	902	$	650

⁽¹⁾ Derivative assets are included within other assets in our consolidated statement of condition.

Derivative Liabilities(1)
	Fair Value
(In millions)	June 30, 2016		December 31, 2015
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	20,522	$	10,795
Other derivative contracts	161		103
Interest-rate contracts	1		2
Total	$	20,684	$	10,900
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	98	$	73
Interest-rate contracts	211		180
Total	$	309	$	253

⁽¹⁾ Derivative liabilities are included within other liabilities in our consolidated statement of condition.

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The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
		Three Months Ended June 30,						Six Months Ended June 30,
(In millions)		2016			2015			2016			2015
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Trading services revenue	$	162		$	165		$	316		$	369
Interest-rate contracts	Processing fees and other revenue	—			—			1			—
Interest-rate contracts	Trading services revenue	(3		)	(1		)	(4		)	(1		)
Credit derivative contracts	Trading services revenue	—			—			(1		)	—
Other derivative contracts	Trading services revenue	(4		)	1			(4		)	3
Total		$	155		$	165		$	308		$	371

	Location of (Gain) Loss on Derivative in Consolidated Statement of Income	Amount of (Gain) Loss on Derivative Recognized in Consolidated Statement of Income
		Three Months Ended June 30,				Six Months Ended June 30,
(In millions)		2016		2015		2016		2015
Derivatives not designated as hedging instruments:
Other derivative contracts	Compensation and employee benefits	$	57	$	33	$	127	$	92
Total		$	57	$	33	$	127	$	92

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income						Hedged Item in Fair Value Hedging Relationship	Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income	Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income
		Three Months Ended June 30,								Three Months Ended June 30,
(In millions)		2016			2015					2016			2015
Derivatives designated as fair value hedges:
Foreign exchange contracts	Processing fees and other revenue	$	(25	)	$	12		Investment securities	Processing fees and other revenue	$	25		$	(12	)
Foreign exchange contracts	Processing fees and other revenue	(2		)	(13		)	FX deposit	Processing fees and other revenue	2			13
Interest-rate contracts	Processing fees and other revenue	(6		)	37			Available-for-sale securities	Processing fees and other revenue(1)	6			(38		)
Interest-rate contracts	Processing fees and other revenue	128			(85		)	Long-term debt	Processing fees and other revenue	(121		)	82
Total		$	95		$	(49	)			$	(88	)	$	45

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income						Hedged Item in Fair Value Hedging Relationship	Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income	Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income
		Six Months Ended June 30,								Six Months Ended June 30,
(In millions)		2016			2015					2016			2015
Derivatives designated as fair value hedges:
Foreign exchange contracts	Processing fees and other revenue	$	19		$	(52	)	Investment securities	Processing fees and other revenue	$	(19	)	$	52
Foreign exchange contracts	Processing fees and other revenue	246			(13		)	FX deposit	Processing fees and other revenue	(246		)	13
Interest-rate contracts	Processing fees and other revenue	(36		)	12			Available-for-sale securities	Processing fees and other revenue(2)	37			(12		)
Interest-rate contracts	Processing fees and other revenue	376			(17		)	Long-term debt	Processing fees and other revenue	(361		)	17
Total		$	605		$	(70	)			$	(589	)	$	70

⁽¹⁾ For the three months ended June 30, 2016 and 2015, $3 million and $22 million, respectively, of unrealized losses and unrealized gains, respectively, on AFS investment securities designated in fair value hedges was recognized in OCI.

⁽²⁾ For the six months ended June 30, 2016 and 2015, $22 million and $7 million, respectively, of unrealized losses and unrealized gains, respectively, on AFS investment securities designated in fair value hedges was recognized in OCI.

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Differences between the gains (losses) on the derivative and the gains (losses) on the hedged item, excluding any amounts recorded in net interest revenue, represent hedge ineffectiveness.

	Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income					Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income	Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income					Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
	Three Months Ended June 30,						Three Months Ended June 30,						Three Months Ended June 30,
(In millions)	2016			2015			2016		2015				2016		2015
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	—		$	—	Net interest revenue	$	—	$	(1	)	Net interest revenue	$	—	$	—
Foreign exchange contracts	(114		)	21		Net interest revenue	—		—			Net interest revenue	6		2
Total	$	(114	)	$	21		$	—	$	(1	)		$	6	$	2
Derivatives designated as net investment hedges:
Foreign exchange contracts	$	51		$	—	Gains (Losses) related to investment securities, net	$	—	$	—		Gains (Losses) related to investment securities, net	$	—	$	—
Total	$	51		$	—		$	—	$	—			$	—	$	—

	Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income					Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income	Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income					Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
	Six Months Ended June 30,						Six Months Ended June 30,						Six Months Ended June 30,
(In millions)	2016			2015			2016		2015				2016		2015
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	—		$	—	Net interest revenue	$	—	$	(2	)	Net interest revenue	$	—	$	—
Foreign exchange contracts	(227		)	41		Net interest revenue	—		—			Net interest revenue	11		4
Total	$	(227	)	$	41		$	—	$	(2	)		$	11	$	4
Derivatives designated as net investment hedges:
Foreign exchange contracts	$	51		$	—	Gains (Losses) related to investment securities, net	$	—	$	—		Gains (Losses) related to investment securities, net	$	—	$	—
Total	$	51		$	—		$	—	$	—			$	—	$	—

Note 8. Offsetting Arrangements

 We manage credit and counterparty risk by entering into enforceable netting agreements and other collateral arrangements with counterparties to derivative contracts and secured financing transactions, including resale and repurchase agreements, and principal securities borrowing and lending agreements. These netting agreements mitigate our counterparty credit risk by providing for a single net settlement with a counterparty of all financial transactions covered by the agreement in an event of default as defined under such agreement. In limited cases, a netting agreement may also provide

for the periodic netting of settlement payments with respect to multiple different transaction types in the normal course of business. For additional information on offsetting arrangements, refer to Note 11 to the consolidated financial statements on pages 169 to 172 in our 2015 Form 10-K.

As of June 30, 2016 and December 31, 2015, the fair value of securities received as collateral where we are permitted to transfer or re-pledge the securities totaled $2.18 billion and $3.05 billion, respectively, and the fair value of the portion that had been transferred or re-pledged as of the same date was $51 million and $262 million, respectively.

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The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated:

Assets:	June 30, 2016								December 31, 2015
(In millions)	Gross Amounts of Recognized Assets(1)(2)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Assets Presented in Statement of Condition			Gross Amounts of Recognized Assets(1)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Assets Presented in Statement of Condition
Derivatives:
Foreign exchange contracts	$	20,868	$	(10,615	)	$	10,253		$	11,316	$	(5,896	)	$	5,420
Interest-rate contracts	507		(10		)	497			135		(5		)	130
Other derivative contracts	5		(5		)	—			5		(2		)	3
Cash collateral netting	N/A		(1,966		)	(1,966		)	N/A		(776		)	(776		)
Total derivatives	$	21,380	$	(12,596	)	$	8,784		$	11,456	$	(6,679	)	$	4,777
Other financial instruments:
Resale agreements and securities borrowing(4)	$	60,336	$	(38,251	)	$	22,085		$	62,522	$	(38,997	)	$	23,525
Total derivatives and other financial instruments	$	81,716	$	(50,847	)	$	30,869		$	73,978	$	(45,676	)	$	28,302

⁽¹⁾ Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.

⁽²⁾ Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which are also carried at fair value. Refer to Note 1 to the consolidated financial statements on pages 129 to 132 in our 2015 Form 10-K for additional information on the measurement basis of these instruments.

⁽³⁾ Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.

⁽⁴⁾ Included in the $22,085 million as of June 30, 2016 were $2,010 million of resale agreements and $20,075 million of collateral provided related to securities borrowing. Included in the $23,525 million as of December 31, 2015 were $3,404 million of resale agreements and $20,121 million of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions.

	June 30, 2016										December 31, 2015
			Gross Amounts Not Offset in Statement of Condition										Gross Amounts Not Offset in Statement of Condition
(In millions)	Net Amount of Assets Presented in Statement of Condition		Counterparty Netting			Cash and Securities Received(1)			Net Amount(2)		Net Amount of Assets Presented in Statement of Condition		Counterparty Netting			Collateral Received(1)			Net Amount(2)
Derivatives	$	8,784	$	—		$	(445	)	$	8,339	$	4,777	$	—		$	(405	)	$	4,372
Resale agreements and securities borrowing	22,085		(108		)	(21,589		)	388		23,525		(63		)	(22,812		)	650
Total	$	30,869	$	(108	)	$	(22,034	)	$	8,727	$	28,302	$	(63	)	$	(23,217	)	$	5,022

⁽¹⁾ Includes securities in connection with our securities borrowing transactions.

⁽²⁾ Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.

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The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated:

Liabilities:	June 30, 2016								December 31, 2015
(In millions)	Gross Amounts of Recognized Liabilities(1)(2)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Liabilities Presented in Statement of Condition			Gross Amounts of Recognized Liabilities(1)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Liabilities Presented in Statement of Condition
Derivatives:
Foreign exchange contracts	$	20,620	$	(10,615	)	$	10,005		$	10,868	$	(5,896	)	$	4,972
Interest-rate contracts	212		(9		)	203			182		(5		)	177
Other derivative contracts	161		(5		)	156			103		(2		)	101
Cash collateral netting	N/A		(2,661		)	(2,661		)	N/A		(1,118		)	(1,118		)
Total derivatives	$	20,993	$	(13,290	)	$	7,703		$	11,153	$	(7,021	)	$	4,132
Other financial instruments:
Repurchase agreements and securities lending(4)	$	47,234	$	(38,251	)	$	8,983		$	46,766	$	(38,997	)	$	7,769
Total derivatives and other financial instruments	$	68,227	$	(51,541	)	$	16,686		$	57,919	$	(46,018	)	$	11,901

⁽¹⁾ Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.

⁽²⁾ Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which are also carried at fair value. Refer to Note 1 to the consolidated financial statements on pages 129 to 132 in our 2015 Form 10-K for additional information on the measurement basis of these instruments.

⁽³⁾ Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.

⁽⁴⁾ Included in the $8,983 million as of June 30, 2016 were $4,350 million of repurchase agreements and $4,633 million of collateral received related to securities lending. Included in the $7,769 million as of December 31, 2015 were $4,499 million of repurchase agreements and $3,270 million of collateral received related to securities lending. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions.

	June 30, 2016										December 31, 2015
			Gross Amounts Not Offset in Statement of Condition										Gross Amounts Not Offset in Statement of Condition
(In millions)	Net Amount of Liabilities Presented in Statement of Condition		Counterparty Netting			Cash and Securities Provided(1)			Net Amount(2)		Net Amount of Liabilities Presented in Statement of Condition		Counterparty Netting			Collateral Provided(1)			Net Amount(2)
Derivatives	$	7,703	$	—		$	(136	)	$	7,567	$	4,132	$	—		$	(64	)	$	4,068
Repurchase agreements and securities lending	8,983		(108		)	(6,622		)	2,253		7,769		(63		)	(5,287		)	2,419
Total	$	16,686	$	(108	)	$	(6,758	)	$	9,820	$	11,901	$	(63	)	$	(5,351	)	$	6,487

⁽¹⁾ Includes securities provided in connection with our securities lending transactions.

⁽²⁾ Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.

The securities transferred under resale and repurchase agreements typically are U.S. Treasury, agency and agency mortgage-backed securities. In our principal securities borrowing and lending arrangements, the securities transferred in exchange for the collateral are predominantly equity securities and some corporate debt securities. The fair value of the securities transferred may increase in value to an amount greater than the amount received under our

repurchase and securities lending arrangements, which exposes the Company with counterparty risk. We require the review of the price of the underlying securities in relation to the carrying value of the repurchase agreements and securities lending arrangements on a daily basis and when appropriate, adjust the cash or security to be obtained or returned to counterparties that is reflective of the required collateral levels.

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The following tables summarize our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated:

	Remaining Contractual Maturity of the Agreements
	As of June 30, 2016
(In millions)	Overnight and Continuous		Up to 30 days		30 – 90 days		Total
Repurchase agreements:
U.S. Treasury and agency securities	$	36,692	$	16	$	—	$	36,708
Equity securities	—		—		—		—
Non-U.S. sovereign debt	—		58		—		58
Total	36,692		74		—		36,766
Securities lending transactions:
Corporate debt securities	32		—		—		32
Equity securities	9,339		—		750		10,089
Non-U.S. sovereign debt	347		—		—		347
Total	9,718		—		750		10,468
Gross amount of recognized liabilities for repurchase agreements and securities lending	$	46,410	$	74	$	750	$	47,234

	Remaining Contractual Maturity of the Agreements
	As of December 31, 2015
(In millions)	Overnight and Continuous		Up to 30 days		30 – 90 days		Total
Repurchase agreements:
U.S. Treasury and agency securities	$	37,157	$	5	$	—	$	37,162
Non-U.S. sovereign debt	—		97		—		97
Total	37,157		102		—		37,259
Securities lending transactions:
Corporate debt securities	1		—		—		1
Equity securities	8,502		—		1,002		9,504
Non-U.S. sovereign debt	2		—		—		2
Total	8,505		—		1,002		9,507
Gross amount of recognized liabilities for repurchase agreements and securities lending	$	45,662	$	102	$	1,002	$	46,766

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Note 9.    Commitments and Guarantees

For additional information regarding our commitments and guarantees, refer to Note 12 in the consolidated financial statements on pages 173 to 174 in our 2015 Form 10-K.

Commitments:

We had unfunded off-balance sheet commitments to extend credit generally through lines of credit and short-duration advance facilities totaling $22.60 billion and $22.58 billion as of June 30, 2016 and December 31, 2015, respectively. The maximum possible losses associated with these commitments, excluding the value of any collateral, equal the gross contractual amounts. As of June 30, 2016, approximately 77% of our unfunded commitments to extend credit expire within one year. Since many of these commitments are expected to expire or renew without being drawn upon, the gross contractual amounts do not necessarily represent our future cash requirements.

Guarantees:

Off-balance sheet guarantees comprise indemnified securities financing, stable value protection, asset purchase agreements, and standby letters of credit. The following table, which presents the aggregate gross contractual amounts of our off-balance sheet guarantees as of the dates indicated, does not consider the value of any collateral, which may mitigate any potential loss. Amounts presented do not reflect participations to independent third parties.

(In millions)	June 30, 2016		December 31, 2015
Indemnified securities financing	$	344,257	$	320,436
Stable value protection	26,071		24,583
Asset purchase agreements	4,405		3,990
Standby letters of credit	4,159		4,700

Indemnified Securities Financing

On behalf of our clients, we lend their securities, as agent, to brokers and other institutions. In most circumstances, we indemnify our clients for the fair market value of those securities against a failure of the borrower to return such securities.

The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated:

(In millions)	June 30, 2016		December 31, 2015
Fair value of indemnified securities financing	$	344,257	$	320,436
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing	356,490		335,420
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements	68,524		63,055
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements	72,613		67,016

In certain cases, we participate in securities finance transactions as a principal. As a principal, we borrow securities from the lending client and then lend such securities to the subsequent borrower, either a State Street client or a broker/dealer. Collateral provided and received in connection with such transactions is recorded in other assets and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. As of June 30, 2016 and December 31, 2015, we had approximately $20.08 billion and $20.12 billion, respectively, of collateral provided and approximately $4.63 billion and $3.27 billion, respectively, of collateral received from clients in connection with our participation in principal securities finance transactions.

Stable Value Protection

In the normal course of our business, we offer products that provide book-value protection, primarily to plan participants in stable value funds managed by non-affiliated investment managers of post-retirement defined contribution benefit plans, particularly 401(k) plans. The book-value protection is provided on portfolios of intermediate investment grade fixed-income securities, and is intended to provide safety and stable growth of principal invested. The protection is intended to cover any shortfall in the event that a significant number of plan participants withdraw funds when book value exceeds market value and the liquidation of the assets is not sufficient to redeem the participants. The investment parameters of the underlying portfolios, combined with structural protections, are designed to provide cushion and guard against payments even under extreme stress scenarios.

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These contingencies are individually accounted for as derivative financial instruments. The notional amounts of the stable value contracts are presented as “derivatives not designated as hedging instruments” in the table of aggregate notional amounts of derivative financial instruments provided in Note 7. We have not made a payment under these contingencies that we consider material to our consolidated financial condition, and management believes that the probability of payment under these contingencies in the future, that we would consider material to our consolidated financial condition, is remote.

Note 10.    Contingencies

Legal and Regulatory Matters:

In the ordinary course of business, we and our subsidiaries are involved in disputes, litigation, and governmental or regulatory inquiries and investigations, both pending and threatened. These matters, if resolved adversely against us or settled, may result in monetary damages, fines and penalties or require changes in our business practices. The resolution or settlement of these matters is inherently difficult to predict. Based on our assessment of these pending matters, we do not believe that the amount of any judgment, settlement or other action arising from any pending matter is likely to have a material adverse effect on our consolidated financial condition.  However, an adverse outcome in certain of the matters described below could have a material adverse effect on our consolidated results of operations for the period in which such matter is resolved, or an accrual is determined to be required, on our consolidated financial condition, or on our reputation.

We evaluate our needs for accruals of loss contingencies related to legal proceedings on a case-by-case basis. When we have a liability that we deem probable and that we deem can be reasonably estimated as of the date of our consolidated financial statements, we accrue for our estimate of the loss. We also consider a loss probable and establish an accrual when we make, or intend to make, an offer of settlement. Once established, an accrual is subject to subsequent adjustment as a result of additional information. The resolution of proceedings and the reasonably estimable loss (or range thereof) are inherently difficult to predict, especially in the early stages of proceedings. Even if a loss is probable, due to many complex factors, such as speed of discovery and the timing of court decisions or rulings, a loss or range of loss might not be reasonably estimated until the later stages of the proceeding.

As of June 30, 2016, our aggregate accruals for legal loss contingencies and regulatory matters totaled approximately $574 million (excluding the remaining accrual of $283 million in connection with errors in invoicing certain of our Investment Servicing clients). To the extent that we have established accruals in our consolidated statement of condition for probable loss contingencies, such accruals may not be sufficient to cover our ultimate financial exposure associated with any settlements or judgments. We may be subject to proceedings in the future that, if adversely resolved, would have a material adverse effect on our businesses or on our future consolidated financial statements. Except where otherwise noted below, we have not established accruals with respect to the claims discussed and do not believe that potential exposure is probable and can be reasonably estimated.

The following discussion provides information with respect to significant legal and regulatory matters.

Foreign Exchange

We offer our custody clients and their investment managers the option to route foreign exchange transactions to our foreign exchange desk through our asset servicing operation. We record as revenue an amount approximately equal to the difference between the rates we set for those trades and indicative interbank market rates at the time of settlement of the trade.

As discussed more fully below, claims have been asserted on behalf of certain current and former custody clients, and future claims may be asserted, alleging that our indirect foreign exchange rates (including the differences between those rates and indicative interbank market rates at the time we executed the trades) were not adequately disclosed or were otherwise improper, and seeking to recover, among other things, the full amount of the revenue we obtained from our indirect foreign exchange trading with them.

Attorneys general and other government authorities from a number of jurisdictions, as well as U.S. Attorney's offices, the U.S. Department of Labor and the SEC, have requested information or issued subpoenas in connection with inquiries into the pricing of our indirect foreign exchange trading.

In February 2011, a putative class action was filed in federal court in Boston seeking unspecified damages, including treble damages, on behalf of all custodial clients that executed certain foreign exchange transactions with State Street from 1998 to 2009. The putative class action alleges, among other things, that the rates at which State Street executed

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foreign currency trades constituted an unfair and deceptive practice under Massachusetts law and a breach of the duty of loyalty.

Two other putative class actions are currently pending in federal court in Boston alleging various violations of ERISA on behalf of all ERISA plans custodied with us that executed indirect foreign exchange trades with State Street from 1998 onward. The complaints allege that State Street caused class members to pay unfair and unreasonable rates on indirect foreign exchange trades with State Street. The complaints seek unspecified damages, disgorgement of profits, and other equitable relief. Other claims may be asserted in the future, including in response to developments in the actions discussed above or governmental proceedings.

If these matters were to proceed to trial, we expect that plaintiffs would seek to recover their share of all or a portion of the revenue that we have recorded from indirect foreign exchange trades. We cannot predict whether a court, in the event of an adverse resolution, would consider our revenue to be the appropriate measure of damages.

The following table summarizes our estimated total revenue worldwide from indirect foreign exchange trading for the periods indicated:

(In millions)	Revenue from indirect foreign exchange trading
Twelve Months Ended December 31, 2008	$	462
Twelve Months Ended December 31, 2009	369
Twelve Months Ended December 31, 2010	336
Twelve Months Ended December 31, 2011	331
Twelve Months Ended December 31, 2012	248
Twelve Months Ended December 31, 2013	285
Twelve Months Ended December 31, 2014	246
Twelve Months Ended December 31, 2015	280
Six Months Ended June 30, 2016	136

We believe that the amount of our revenue from such trading has been of a similar or lesser order of magnitude for many years prior to 2008. Our revenue calculations related to indirect foreign exchange trading reflect a judgment concerning the relationship between the rates we charge for indirect foreign exchange execution and indicative interbank market rates near in time to execution. Our revenue from foreign exchange trading generally depends on the difference between the rates we set for those indirect trades and indicative interbank market rates at the time of settlement of the trade.

As of June 30, 2016, we have accrued a total of $565 million associated with our indirect foreign exchange business. On July 26, 2016, we announced that we have negotiated settlement agreements which we expect, subject to final approval, to resolve these matters. Settlements have been reached with the Department of Justice, the Department of Labor and the Massachusetts Attorney General and, subject to court approval, a class of State Street's U.S. custody customers. State Street has also reached an agreement in principle with the Securities and Exchange Commission. Each of these agreements depend upon certification, for settlement purposes, of a class of State Street's U.S. custody customers that executed indirect foreign exchange transactions with State Street between 1998 and 2009, and final approval by the United States District Court for the District of Massachusetts of the settlement agreement between State Street and the class. Although our current legal accrual is sufficient to satisfy our obligations under these settlements if they become final, there can be no assurance that the settlements will become final, that potential participants in the class action will not opt-out and pursue separate claims, or that other, potentially material, claims relating to our indirect foreign exchange business will not be asserted against us in the United States or elsewhere. These settlements or an adverse outcome with respect to one or more other currently unasserted claims, relating to our indirect foreign exchange business could have a material adverse effect on our reputation, and any additional claims not currently asserted could have a material adverse effect on our consolidated results of operations for the period in which the adverse outcome occurs (or an accrual is determined to be required), or on our consolidated financial condition.

Transition Management

In January 2014, we entered into a settlement with the U.K. FCA, pursuant to which we paid a fine of £22.9 million (approximately $37.8 million), as a result of our having charged six clients of our U.K. transition management business during 2010 and 2011 amounts in excess of the contractual terms. The SEC and the U.S. Attorney are conducting separate investigations into this matter. In April 2016, the U.S. Attorney’s office in Boston charged two former employees in our U.K. transition management business with criminal fraud in connection with their alleged role in this matter, and, in May 2016, the SEC commenced a parallel civil enforcement proceeding against one of these employees. We are in discussions with the SEC regarding a possible resolution of this matter with respect to State Street. We do not know at this time what actions the U.S.

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Attorney may take with respect to State Street. Any action by the SEC or U.S. Attorney with respect to State Street could include civil or criminal proceedings and could involve significant fines or other sanctions, any of which could have a material adverse effect on our reputation or on client demand for our products and services. As of June 30, 2016, we had remaining accruals of approximately $2.0 million for indemnification costs associated with this matter.

Federal Reserve/Massachusetts Division of Banks Written Agreement

On June 1, 2015, we entered into a written agreement with the Federal Reserve and the Massachusetts Division of Banks relating to deficiencies identified in its compliance programs with the requirements of the Bank Secrecy Act, AML regulations and U.S. economic sanctions regulations promulgated by OFAC. As part of this enforcement action, State Street is required to, among other things, implement improvements to our compliance programs and to retain an independent firm to conduct a review of account and transaction activity covering a prior three-month period to evaluate whether any suspicious activity not previously reported should have been identified and reported in accordance with applicable regulatory requirements. If deficiencies in our historical reporting are identified as a result of the transaction review or if we fail to comply with the terms of the written agreement, we may become subject to fines and other regulatory sanctions, which may have a material adverse effect on us.

Invoicing Matter

In December 2015, we announced a review of the manner in which we invoiced certain expenses to certain of our Investment Servicing clients, primarily in the United States, during an 18-year period going back to 1998 and our determination that we had incorrectly invoiced clients for certain expenses. We have informed our clients that we will pay to them the expenses we concluded were incorrectly invoiced to them, plus interest. As of June 30, 2016, we had identified approximately $283 million (excluding interest), of such expenses and we have begun to reimburse affected clients. In conjunction with that review, we are evaluating other aspects of invoicing relating to billing our Investment Servicing clients, including calculation of asset-based fees. We are in communication with certain governmental authorities about these matters, including the Department of Justice, the SEC, the Department of Labor and the Massachusetts Attorney General. In April 2016, the Massachusetts Secretary of State commenced an administrative enforcement proceeding against State

Street Global Markets, LLC, alleging that our allegedly unethical behavior concerning expense invoices caused State Street Global Markets, LLC to violate state law governing the securities industry by virtue of our alleged control of State Street Global Markets, LLC. The complaint seeks to impose a censure, a fine and to provide for reimbursement or other relief. It is possible that we may be required to reimburse clients for additional amounts, clients or governmental authorities may assert other theories of liability, or we may become subject to other regulatory proceedings and litigation in connection with these matters, any of which could have a material adverse effect on our reputation or business, including on client demand for our products and services.

Income Taxes:

In determining our provision for income taxes, we make certain judgments and interpretations with respect to tax laws in jurisdictions in which we have business operations. Because of the complex nature of these laws, in the normal course of our business, we are subject to challenges from U.S. and non-U.S. income tax authorities regarding the amount of income taxes due. These challenges may result in adjustments to the timing or amount of taxable income or deductions or the allocation of taxable income among tax jurisdictions. We recognize a tax benefit when it is more likely than not that our position will result in a tax deduction or credit. Unrecognized tax benefits have increased from approximately $63 million as of December 31, 2015 to $66 million as of June 30, 2016.

We are presently under audit by a number of tax authorities and the Internal Revenue Service is currently reviewing our U.S. income tax returns for the tax years 2012 and 2013. The earliest tax year open to examination in jurisdictions where we have material operations is 2009. Management believes that we have sufficiently accrued liabilities as of June 30, 2016 for tax exposures.

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Note 11.    Variable Interest Entities

For additional information on our VIEs, refer to Note 14 to the consolidated financial statements on pages 176 to 177 in our 2015 Form 10-K.

Tax-Exempt Investment Program:

In the normal course of our business, we structure and sell certificated interests in pools of tax-exempt investment-grade assets, principally to our mutual fund clients. We structure these pools as partnership trusts, and the assets and liabilities of the trusts are recorded in our consolidated statement of condition as AFS investment securities and other short-term borrowings. As of June 30, 2016 and December 31, 2015, we carried AFS investment securities, composed of securities related to state and political subdivisions, with a fair value of $2.03 billion and $2.10 billion, respectively, and other short-term borrowings of $1.67 billion and $1.75 billion, respectively, in our consolidated statement of condition in connection with these trusts. The interest revenue and interest expense generated by the investments and certificated interests, respectively, are recorded as components of net interest revenue when earned or incurred.

The trusts had a weighted-average life of approximately 5.1 years as of June 30, 2016, compared to approximately 5.4 years as of December 31, 2015.

Under separate legal agreements, we provide standby bond-purchase agreements to these trusts and, with respect to certain securities, letters of credit. Our commitments to the trusts under these standby bond-purchase agreements and letters of credit totaled $1.68 billion and $546 million, respectively. As of June 30, 2016, none of the standby bond-purchase agreements were utilized.

Interests in Sponsored Investment Funds:

As of June 30, 2016, the aggregate assets and liabilities of our consolidated sponsored investment funds totaled $268 million and $183 million, respectively. As of December 31, 2015, the aggregate assets and liabilities of our consolidated sponsored investment funds totaled $321 million and $228 million, respectively.

As of June 30, 2016, our potential maximum total exposure associated with the consolidated sponsored investment funds totaled $54 million and represented the value of our economic ownership interest in the fund.

As of June 30, 2016 and December 31, 2015, we managed certain sponsored investment funds, considered VIEs, in which we held a variable interest but for which we were not deemed to be the primary beneficiary. Our potential maximum loss exposure related to these unconsolidated funds totaled $128 million and $75 million as of June 30, 2016 and December 31, 2015, respectively, and represented the carrying value of our seed capital investment, which is recorded in either AFS investment securities or other assets in our consolidated statement of condition. The amount of loss we may recognize during any period is limited to the carrying amount of our seed capital investment in the unconsolidated fund.

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Note 12.    Shareholders' Equity

Preferred Stock:

In April 2016, we issued 20 milliondepositary shares, each representing1/4,000thownership interest in shares of State Street's fixed-to-floating rate non-cumulative perpetual preferred stock, Series G, without par value per share, with a liquidation preference of$100,000per share (equivalent to $25per depositary share), in a public offering.

The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of June 30, 2016:

	Issuance Date	Depositary Shares Issued	Ownership Interest per Depositary Share	Liquidation Preference Per Share		Liquidation Preference Per Depositary Share		Net Proceeds of Offering (in millions)		Redemption Date(1)
Preferred Stock:(2)
Series C	August 2012	20,000,000	1/4,000th	$	100,000	$	25	$	488	September 15, 2017
Series D	February 2014	30,000,000	1/4,000th	100,000		25		742		March 15, 2024
Series E	November 2014	30,000,000	1/4,000th	100,000		25		728		December 15, 2019
Series F	May 2015	750,000	1/100th	100,000		1,000		742		September 15, 2020
Series G	April 2016	20,000,000	1/4,000th	100,000		25		493		March 15, 2026

⁽¹⁾ On the redemption date, or any dividend declaration date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

⁽²⁾ The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

The following tables present the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated:

	Three Months Ended June 30,
	2016						2015
	Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)(1)		Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)
Preferred Stock:
Series C	$	1,313	$	0.33	$	6	$	1,313	$	0.33	$	7
Series D	1,475		0.37		11		1,475		0.37		11
Series E	1,500		0.38		11		1,500		0.38		11
Series F	—		—		—		—		—		—
Series G	951		0.24		5		—		—		—
Total					$	33					$	29
	Six Months Ended June 30,
	2016						2015
	Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)		Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)
Preferred Stock:
Series C	$	2,626	$	0.66	$	13	$	2,626	$	0.66	$	13
Series D	2,950		0.74		22		2,950		0.74		22
Series E	3,000		0.76		22		3,333		0.84		25
Series F	2,625		26.25		20		—		—		—
Series G	951		0.24		5		—		—		—
Total					$	82					$	60

⁽¹⁾ Dividends were paid in June 2016.

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Common Stock:

In June 2016, our Board approved a common stock purchase program authorizing the purchase of up to $1.4 billionof our common stock through June 30, 2017. No shares were purchased by us under this program in thequarter ended June 30, 2016.

In March 2015, our Board approved a common stock purchase program authorizing the purchase of up to$1.8 billion of our common stock through June 30, 2016(the 2015 Program). The table below presents the activity under the 2015 Program during the periods indicated.

	Three Months Ended June 30, 2016					Six Months Ended June 30, 2016
	Shares Purchased (in millions)	Average Cost per Share		Total Purchased (in millions)		Shares Purchased (in millions)	Average Cost per Share		Total Purchased (in millions)
2015 Program	6.5	$	59.66	$	390	12.1	$	58.83	$	715

The table below presents the dividends declared on common stock for the periods indicated:

	Three Months Ended June 30,								Six Months Ended June 30,
	Dividends Declared per Share		Total (in millions)		Dividends Declared per Share		Total (in millions)		Dividends Declared per Share		Total (in millions)		Dividends Declared per Share		Total (in millions)
	2016				2015				2016				2015
Common Stock	$	0.34	$	133	$	0.34	$	139	$	0.68	$	268	$	0.64	$	262

Accumulated Other Comprehensive Income (Loss):

The following table presents the after-tax components of AOCI as of the dates indicated:

(In millions)	June 30, 2016			December 31, 2015
Net unrealized gains on cash flow hedges	$	119		$	293
Net unrealized gains (losses) on available-for-sale securities portfolio	550			9
Net unrealized gains (losses) related to reclassified available-for-sale securities	(23		)	(28		)
Net unrealized gains (losses) on available-for-sale securities	527			(19		)
Net unrealized losses on available-for-sale securities designated in fair value hedges	(131		)	(109		)
Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries	37			(14		)
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(13		)	(16		)
Net unrealized losses on retirement plans	(185		)	(183		)
Foreign currency translation	(1,351		)	(1,394		)
Total	$	(997	)	$	(1,442	)

The following tables present changes in AOCI by component, net of related taxes, for the periods indicated:

	Six Months Ended June 30, 2016
(In millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Available-for-Sale Securities			Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries			Other-Than-Temporary Impairment on Held-to-Maturity Securities			Net Unrealized Losses on Retirement Plans			Foreign Currency Translation			Total
Balance as of December 31, 2015	$	293		$	(128	)	$	(14	)	$	(16	)	$	(183	)	$	(1,394	)	$	(1,442	)
Other comprehensive income (loss) before reclassifications	(174		)	522			51			4			(4		)	43			442
Amounts reclassified into (out of) earnings	—			2			—			(1		)	2			—			3
Other comprehensive income (loss)	(174		)	524			51			3			(2		)	43			445
Balance as of June 30, 2016	$	119		$	396		$	37		$	(13	)	$	(185	)	$	(1,351	)	$	(997	)

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	Six Months Ended June 30, 2015
(In millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available-for-Sale Securities			Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries			Other-Than-Temporary Impairment on Held-to-Maturity Securities			Net Unrealized Losses on Retirement Plans			Foreign Currency Translation			Total
Balance as of December 31, 2014	$	276	$	192		$	(14	)	$	(29	)	$	(272	)	$	(660	)	$	(507	)
Other comprehensive income (loss) before reclassifications	19		(134		)	—			8			—			(410		)	(517		)
Amounts reclassified into (out of) earnings	1		(2		)	—			(1		)	15			—			13
Other comprehensive income (loss)	20		(136		)	—			7			15			(410		)	(504		)
Balance as of June 30, 2015	$	296	$	56		$	(14	)	$	(22	)	$	(257	)	$	(1,070	)	$	(1,011	)

The following tables present after-tax reclassifications into (out of) earnings for the periods indicated:

	Three Months Ended June 30,
	2016			2015
(In millions)	Amounts Reclassified into (out of) Earnings						Affected Line Item in Consolidated Statement of Income
Available-for-sale securities:
Net realized gains from sales of available-for-sale securities, net of related taxes of $0 and ($1), respectively	$	(1	)	$	(2	)	Net gains (losses) from sales of available-for-sale securities
Held-to-maturity securities:
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(1		)	—			Losses reclassified (from) to other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of ($1) and $8, respectively	1			10			Compensation and employee benefits expenses
Total reclassifications in to (out of) AOCI	$	(1	)	$	8

	Six Months Ended June 30,
	2016			2015
(In millions)	Amounts Reclassified into (out of) Earnings						Affected Line Item in Consolidated Statement of Income
Cash flow hedges:
Interest-rate contracts, net of related taxes of $0 and ($1), respectively	$	—		$	1		Net interest revenue
Available-for-sale securities:
Net realized gains from sales of available-for-sale securities, net of related taxes of ($1) and ($1), respectively	2			(2		)	Net gains (losses) from sales of available-for-sale securities
Held-to-maturity securities:
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(1		)	(1		)	Losses reclassified (from) to other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of ($3) and $1, respectively	2			15			Compensation and employee benefits expenses
Total reclassifications into AOCI	$	3		$	13

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Note 13.    Regulatory Capital

We are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum regulatory capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial condition. Under current regulatory capital adequacy guidelines, we must meet specified capital requirements that involve quantitative measures of our consolidated assets, liabilities and off-balance sheet exposures calculated in conformity with regulatory accounting practices. Our capital components and their classifications are subject to qualitative judgments by regulators about components, risk weightings and other factors. For additional information on regulatory capital, and the requirements to which we are subject, refer to Note 16 to the consolidated financial statements on pages 180 and 181 in our 2015 Form 10-K.

As required by the Dodd-Frank Act, State Street and State Street Bank, as advanced approaches banking organizations, are subject to a permanent "capital floor" in the calculation and assessment of their regulatory capital adequacy by U.S. banking regulators. Beginning on January 1, 2015, we were required to calculate our risk-based capital ratios using both the advanced approaches and the standardized approach. As a result, from January 1, 2015 going forward, our risk-based capital ratios for regulatory assessment purposes are the lower of each ratio calculated under the standardized approach and the advanced approaches.

The methods for the calculation of our and State Street Bank's risk-based capital ratios will change as the provisions of the Basel III final rule related to the numerator (capital) and denominator (risk-weighted assets) are phased in, and as we begin calculating our risk-weighted assets using the advanced approaches. These ongoing methodological changes will result in differences in our reported capital ratios from one reporting period to the next that are independent of applicable changes to our capital base, our asset composition, our off-balance sheet exposures or our risk profile.

As of June 30, 2016, State Street and State Street Bank exceeded all regulatory capital adequacy requirements to which they were subject. As of June 30, 2016, State Street Bank was categorized as “well capitalized” under the applicable regulatory capital adequacy framework, and exceeded all “well capitalized” ratio guidelines to which it was subject. Management believes that no conditions or events have occurred since June 30, 2016 that have changed the capital categorization of State Street Bank.

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The following table presents the regulatory capital structure, total risk-weighted assets, related regulatory capital ratios and the minimum required regulatory capital ratios for State Street and State Street Bank as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III final rule are phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table.

					State Street												State Street Bank
(Dollars in millions)					Basel III Advanced Approaches June 30, 2016(1)			Basel III Standardized Approach June 30, 2016(2)			Basel III Advanced Approaches December 31, 2015(1)			Basel III Standardized Approach December 31, 2015(2)			Basel III Advanced Approaches June 30, 2016(1)			Basel III Standardized Approach June 30, 2016(2)			Basel III Advanced Approaches December 31, 2015(1)			Basel III Standardized Approach December 31, 2015(2)
Common shareholders' equity:
Common stock and related surplus					$	10,271		$	10,271		$	10,250		$	10,250		$	10,941		$	10,941		$	10,938		$	10,938
Retained earnings					16,686			16,686			16,049			16,049			11,638			11,638			10,655			10,655
Accumulated other comprehensive income (loss)					(1,124		)	(1,124		)	(1,422		)	(1,422		)	(907		)	(907		)	(1,230		)	(1,230		)
Treasury stock, at cost					(7,083		)	(7,083		)	(6,457		)	(6,457		)	—			—			—			—
Total					18,750			18,750			18,420			18,420			21,672			21,672			20,363			20,363
Regulatory capital adjustments:
Goodwill and other intangible assets, net of associated deferred tax liabilities(3)					(6,144		)	(6,144		)	(5,927		)	(5,927		)	(5,844		)	(5,844		)	(5,631		)	(5,631		)
Other adjustments					(88		)	(88		)	(60		)	(60		)	(86		)	(86		)	(85		)	(85		)
Common equity tier 1 capital					12,518			12,518			12,433			12,433			15,742			15,742			14,647			14,647
Preferred stock					3,196			3,196			2,703			2,703			—			—			—			—
Trust preferred capital securities subject to phase-out from tier 1 capital					—			—			237			237			—			—			—			—
Other adjustments					(72		)	(72		)	(109		)	(109		)	—			—			—			—
Tier 1 capital					15,642			15,642			15,264			15,264			15,742			15,742			14,647			14,647
Qualifying subordinated long-term debt					1,259			1,259			1,358			1,358			1,270			1,270			1,371			1,371
Trust preferred capital securities phased out of tier 1 capital					890			890			713			713			—			—			—			—
ALLL and other					3			78			12			66			—			78			8			66
Other adjustments					—			—			2			2			—			—			—			—
Total capital					$	17,794		$	17,869		$	17,349		$	17,403		$	17,012		$	17,090		$	16,026		$	16,084
Risk-weighted assets:
Credit risk					$	55,748		$	102,932		$	51,733		$	93,515		$	51,328		$	98,387		$	47,677		$	89,164
Operational risk					44,436			NA			43,882			NA			43,899			NA			43,324			NA
Market risk(4)					3,828			1,560			3,937			2,378			3,831			1,560			3,939			2,378
Total risk-weighted assets					$	104,012		$	104,492		$	99,552		$	95,893		$	99,058		$	99,947		$	94,940		$	91,542
Adjusted quarterly average assets					$	222,666		$	222,666		$	221,880		$	221,880		$	218,363		$	218,363		$	217,358		$	217,358
Capital Ratios:	2016 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge(5)		2015 Minimum Requirements(6)
Common equity tier 1 capital	5.5	%	4.5	%	12.0		%	12.0		%	12.5		%	13.0		%	15.9		%	15.8		%	15.4		%	16.0		%
Tier 1 capital	7.0		6.0		15.0			15.0			15.3			15.9			15.9			15.8			15.4			16.0
Total capital	9.0		8.0		17.1			17.1			17.4			18.1			17.2			17.1			16.9			17.6
Tier 1 leverage	4.0		4.0		7.0			7.0			6.9			6.9			7.2			7.2			6.7			6.7

NA: Not applicable.

⁽¹⁾ Common equity tier 1 capital, tier 1 capital and total capital ratios as of June 30, 2016 and December 31, 2015 were calculated in conformity with the advanced approaches provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2016 and December 31, 2015 were calculated in conformity with the Basel III final rule.

⁽²⁾ Common equity tier 1 capital, tier 1 capital and total capital ratios as of June 30, 2016 and and December 31, 2015 were calculated in conformity with the standardized approach provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2016 and December 31, 2015 were calculated in conformity with the Basel III final rule.

⁽³⁾ Amounts for State Street and State Street Bank as of June 30, 2016 consisted of goodwill, net of associated deferred tax liabilities, and 60% of other intangible assets, net of associated deferred tax liabilities. Amounts for State Street and State Street Bank as of December 31, 2015 consisted of goodwill, net of deferred tax liabilities and 40% of other intangible assets, net of associated deferred tax liabilities. Intangible assets, net of associated deferred tax liabilities is phased in as a deduction from capital, in conformity with the Basel III final rule.

⁽⁴⁾ Market risk risk-weighted assets reported in conformity with the Basel III advanced approaches included a CVA which reflected the risk of potential fair-value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts.  The CVA was not provided for in the final market risk capital rule; however, it was required by the advanced approaches provisions of the Basel III final rule.  State Street used the simple CVA approach in conformity with the Basel III advanced approaches.

⁽⁵⁾ Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of June 30, 2016.

⁽⁶⁾ Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2015.

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Note 14.    Net Interest Revenue

The following table presents the components of interest revenue and interest expense, and related net interest revenue, for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2016		2015		2016		2015
Interest revenue:
Deposits with banks	$	30	$	54	$	73	$	108
Investment securities:
U.S. Treasury and federal agencies	209		176		420		359
State and political subdivisions	54		58		108		116
Other investments	189		247		371		506
Securities purchased under resale agreements	35		15		71		26
Loans and leases	93		77		184		151
Other interest-earning assets	10		2		22		5
Total interest revenue	620		629		1,249		1,271
Interest expense:
Deposits	16		14		54		40
Securities sold under resale agreements	—		—		1		—
Short-term borrowings	2		3		2		3
Long-term debt	62		61		122		123
Other interest-bearing liabilities	19		16		37		24
Total interest expense	99		94		216		190
Net interest revenue	$	521	$	535	$	1,033	$	1,081

Note 15.    Expenses

The following table presents the components of other expenses for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2016		2015		2016		2015
Insurance	$	21	$	28	$	44	$	65
Regulatory fees and assessments	18		25		38		58
Securities processing	6		14		10		34
Litigation	—		253		—		403
Other	93		83		158		144
Total other expenses	$	138	$	403	$	250	$	704

Restructuring Charges

We expect to incur aggregate pre-tax restructuring charges of approximately $300 million to $400 million beginning in 2016 through December 31, 2020 to implement State Street Beacon, our previously announced multi-year transformation program to fully digitize our business to support the development of new solutions and capabilities for our clients and to create cost efficiencies. We estimate those charges will include approximately $250 million to $300 million in severance and benefits costs associated with targeted staff reductions (a substantial portion of which will result in future cash expenditures) and approximately $50 million to $100 million in information technology application rationalization and real estate actions.

In the second quarter and six months ended June 30, 2016, we recorded net restructuring charges of $13 million and $110 million, respectively, due to State Street Beacon.

The following table presents aggregate restructuring activity for the periods indicated.

(In millions)	Employee Related Costs			Real Estate Consolidation			Asset and Other Write-Offs			Total
Balance at December 31, 2015	$	9		$	11		$	3		$	23
Accruals for State Street Beacon	86			—			11			97
Payments and Other Adjustments	(4		)	(1		)	(7		)	(12		)
Balance at March 31, 2016	91			10			7			108
Accruals for State Street Beacon	(1		)	15			(1		)	13
Payments and Other Adjustments	(35		)	(3		)	(1		)	(39		)
Balance at June 30, 2016	$	55		$	22		$	5		$	82

99

STATE STREET CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Note 16.    Earnings Per Common Share

Basic EPS is calculated pursuant to the “two-class” method, by dividing net income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted EPS is calculated pursuant to the two-class method, by dividing net income available to common shareholders by the total weighted-average number of common shares outstanding for the period plus the shares representing the dilutive effect of common stock options and other equity-based awards. The effect of common stock options and other equity-based awards is excluded from the calculation of diluted EPS in periods in which their effect would be anti-dilutive.

The two-class method requires the allocation of undistributed net income between common and participating shareholders. Net income available to common shareholders, presented separately in our consolidated statement of income, is the basis for the calculation of both basic and diluted EPS. Participating securities are composed of unvested restricted stock and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings.

The following table presents the computation of basic and diluted earnings per common share for the periods indicated:

	Three Months Ended June 30,
(Dollars in millions, except per share amounts)	2016			2015
Net income	$	619		$	418
Less:
Preferred stock dividends	(33		)	(29		)
Dividends and undistributed earnings allocated to participating securities(1)	(1		)	—
Net income available to common shareholders	$	585		$	389
Average common shares outstanding (in thousands):
Basic average common shares	394,160			410,674
Effect of dilutive securities: common stock options and common stock awards	4,687			6,038
Diluted average common shares	398,847			416,712
Anti-dilutive securities(2)	3,277			619
Earnings per Common Share:
Basic	$	1.48		$	0.95
Diluted(3)	1.47			0.93
	Six Months Ended June 30,
(Dollars in millions, except per share amounts)	2016			2015
Net income	$	987		$	823
Less:
Preferred stock dividends	(82		)	(60		)
Dividends and undistributed earnings allocated to participating securities(1)	(1		)	(1		)
Net income available to common shareholders	$	904		$	762
Average common shares outstanding (in thousands):
Basic average common shares	396,790			411,445
Effect of dilutive securities: common stock options and common stock awards	4,323			6,198
Diluted average common shares	401,113			417,643
Anti-dilutive securities(2)	3,426			704
Earnings per Common Share:
Basic	$	2.28		$	1.85
Diluted(3)	2.25			1.83

⁽¹⁾ Represents the portion of net income available to common equity allocated to participating securities, composed of fully vested deferred director stock and unvested restricted stock that contain non-forfeitable rights to dividends during the vesting period on a basis equivalent to dividends paid to common shareholders.

⁽²⁾ Represents common stock options and other equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive.

⁽³⁾ Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method.

100

STATE STREET CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Note 17.    Line of Business Information

Our operations are organized for management reporting purposes into two lines of business: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry. For information about our two lines of business, as well as revenues, expenses and capital allocation methodologies associated with

them, refer to Note 24 to the consolidated financial statements on pages 188 to 189 in our 2015 Form 10-K.

The following is a summary of our line-of-business results for the periods indicated. The “Other” column represents costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies.

	Three Months Ended June 30,
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions, except where otherwise noted)	2016			2015			2016			2015			2016			2015			2016			2015
Servicing fees	$	1,239		$	1,319		$	—		$	—		$	—		$	—		$	1,239		$	1,319
Management fees	—			—			293			304			—			—			293			304
Trading services	255			271			12			10			—			—			267			281
Securities finance	156			155			—			—			—			—			156			155
Processing fees and other	102			22			(4		)	(5		)	—			—			98			17
Total fee revenue	1,752			1,767			301			309			—			—			2,053			2,076
Net interest revenue	520			534			1			1			—			—			521			535
Gains (losses) related to investment securities, net	(1		)	(3		)	—			—			—			—			(1		)	(3		)
Total revenue	2,271			2,298			302			310			—			—			2,573			2,608
Provision for loan losses	4			2			—			—			—			—			4			2
Total expenses	1,599			1,880			244			251			17			3			1,860			2,134
Income before income tax expense	$	668		$	416		$	58		$	59		$	(17	)	$	(3	)	$	709		$	472
Pre-tax margin	29		%	18		%	19		%	19		%							28		%	18		%
	Six Months Ended June 30,
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions, except where otherwise noted)	2016			2015			2016			2015			2016			2015			2016			2015
Servicing fees	$	2,481		$	2,587		$	—		$	—		$	—		$	—		$	2,481		$	2,587
Management fees	—			—			563			605			—			—			563			605
Trading services	517			586			22			19			—			—			539			605
Securities finance	290			256			—			—			—			—			290			256
Processing fees and other	147			81			3			(3		)	—			—			150			78
Total fee revenue	3,435			3,510			588			621			—			—			4,023			4,131
Net interest revenue	1,032			1,079			1			2			—			—			1,033			1,081
Gains (losses) related to investment securities, net	1			(4		)	—			—			—			—			1			(4		)
Total revenue	4,468			4,585			589			623			—			—			5,057			5,208
Provision for loan losses	8			6			—			—			—			—			8			6
Total expenses	3,286			3,716			500			507			124			8			3,910			4,231
Income before income tax expense	$	1,174		$	863		$	89		$	116		$	(124	)	$	(8	)	$	1,139		$	971
Pre-tax margin	26		%	19		%	15		%	19		%							23		%	19		%

101

STATE STREET CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Note 18.    Non-U.S. Activities

We define our non-U.S. activities as those revenue-producing business activities that arise from clients which are generally serviced or managed outside the U.S. Due to the integrated nature of our business, precise segregation of our U.S. and non-U.S. activities is not possible. Subjective estimates, assumptions and other judgments are applied to quantify the financial results and assets related to our

non-U.S. activities, including our application of funds transfer pricing, our asset-and-liability management policies and our allocation of certain indirect corporate expenses. Management periodically reviews and updates its processes for quantifying the financial results and assets related to our non-U.S. activities.

The following table presents our U.S. and non-U.S. financial results for the periods indicated:

	Three Months Ended June 30, 2016						Three Months Ended June 30, 2015
(In millions)	Non-U.S.		U.S.		Total		Non-U.S.		U.S.		Total
Total revenue	$	1,136	$	1,437	$	2,573	$	1,150	$	1,458	$	2,608
Income before income taxes	344		365		709		351		121		472
	Six Months Ended June 30, 2016						Six Months Ended June 30, 2015
(In millions)	Non-U.S.		U.S.		Total		Non-U.S.		U.S.		Total
Total revenue	$	2,161	$	2,896	$	5,057	$	2,297	$	2,911	$	5,208
Income before income taxes	521		618		1,139		693		278		971

Non-U.S. assets were $84.6 billion and $72.5 billion as of June 30, 2016 and 2015, respectively.

102

REVIEW REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Shareholders and Board of Directors of

State Street Corporation

We have reviewed the consolidated statement of condition of State Street Corporation (the “Corporation”) as of June 30, 2016, and the related consolidated statements of income and comprehensive income for the three- and six-month periods ended June 30, 2016 and 2015, and changes in shareholders' equity, and cash flows for the six-month periods ended June 30, 2016 and 2015. These financial statements are the responsibility of the Corporation's management.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the condensed consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated statement of condition of State Street Corporation as of December 31, 2015, and the related consolidated statements of income, comprehensive income, changes in shareholders' equity, and cash flows for the year then ended, not presented herein and we expressed an unqualified audit opinion on those consolidated financial statements in our report dated February 19, 2016. In our opinion, the information set forth in the accompanying consolidated statement of condition of State Street Corporation as of December 31, 2015, is fairly stated, in all material respects, in relation to the consolidated statement of condition from which it has been derived.

/s/ Ernst & Young LLP

Boston, Massachusetts

August 5, 2016

103

PART II. OTHER INFORMATION

ITEM 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(c) In June 2016, our Board approved a common stock purchase program authorizing the purchase of up to $1.4 billionof our common stock through June 30, 2017. No shares were purchased by us under this program in thequarter ended June 30, 2016.

In March 2015, our Board approved a common stock purchase program authorizing the purchase of up to$1.8 billion of our common stock through June 30, 2016(the 2015 Program).

Stock purchases may be made using various types of mechanisms, including open market purchases or transactions off market, and may be

made under Rule 10b5-1 trading programs. The timing of stock purchases, types of transactions and number of shares purchased will depend on several factors, including, market conditions and State Street’s capital positions, its financial performance and investment opportunities. The common stock purchase program does not have specific price targets and may be suspended at any time.

The following table presents purchases of our common stock under the 2015 Program and related information for each of the months in the quarter ended June 30, 2016. We may employ third-party broker/dealers to acquire shares on the open market in connection with our common stock purchase programs.

(Dollars in millions, except per share amounts, shares in thousands)	Total Number of Shares Purchased Under Publicly Announced Program	Average Price Paid Per Share		Approximate Dollar Value of Shares Purchased Under Publicly Announced Program		Approximate Dollar Value of Shares Yet to be Purchased Under Publicly Announced Program
Period:
April 1 - April 30, 2016	—	$	—	$	—	$	455
May 1 - May 31, 2016	2,094	61.55		129		326
June 1 - June 30, 2016	4,444	58.76		261		65
Total	6,538	$	59.66	$	390	$	65

ITEM 6.    EXHIBITS

The exhibits listed in the Exhibit Index following the signature page of this Form 10-Q are filed herewith or are incorporated herein by reference to other SEC filings.

104

SIGNATURES

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. 

			STATE STREET CORPORATION
			(Registrant)
Date:	August 5, 2016	By:	/s/ MICHAEL W. BELL
			Michael W. Bell,
			Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Date:	August 5, 2016	By:	/s/ SEAN P. NEWTH
			Sean P. Newth,
			Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)

105

EXHIBIT INDEX

	12	Statement of Ratios of Earnings to Fixed Charges
	15	Letter regarding unaudited interim financial information
	31.1	Rule 13a-14(a)/15d-14(a) Certification of Chairman, President and Chief Executive Officer
	31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
	32	Section 1350 Certifications
*	101.INS	XBRL Instance Document
*	101.SCH	XBRL Taxonomy Extension Schema Document
*	101.CAL	XBRL Taxonomy Calculation Linkbase Document
*	101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
*	101.LAB	XBRL Taxonomy Label Linkbase Document
*	101.PRE	XBRL Taxonomy Presentation Linkbase Document

†	Denotes management contract or compensatory plan or arrangement
*	Submitted electronically herewith

Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) consolidated statement of income for the three and six months ended June 30, 2016 and 2015, (ii) consolidated statement of comprehensive income for the three and six months ended June 30, 2016 and 2015, (iii) consolidated statement of condition as of June 30, 2016 and December 31, 2015, (iv) consolidated statement of changes in shareholders' equity for the six months ended June 30, 2016 and 2015, (v) consolidated statement of cash flows for the six months ended June 30, 2016 and 2015, and (vi) notes to consolidated financial statements.

106

EX-12

EXHIBIT 12

STATE STREET CORPORATION

Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends

		Six Months Ended June 30,			Years Ended December 31,
(Dollars in millions)		2016			2015			2014			2013		2012			2011
EXCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	1,139		$	2,298		$	2,437		$	2,666	$	2,747		$	2,518
Share of pre-tax income (loss) of unconsolidated entities		(210		)	(700		)	(10		)	1		(15		)	37
Fixed charges		155			321			318			365		370			462
Adjusted earnings	(A)	$	1,084		$	1,919		$	2,745		$	3,032	$	3,102		$	3,017
Interest on short-term borrowings		$	2		$	7		$	6		$	60	$	73		$	96
Interest on long-term debt, including amortization of debt issuance costs		111			219			206			184		176			241
Portion of long-term leases representative of the interest factor(1)		42			95			106			121		121			125
Preferred stock dividends and related adjustments(2)		95			112			61			33		39			27
Fixed charges and preferred stock dividends	(B)	$	250		$	433		$	379		$	398	$	409		$	489
Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, excluding interest on deposits	(A)/(B)	4.34 x			4.43x			7.24x			7.62x		7.58x			6.17x
INCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	1,139		$	2,298		$	2,437		$	2,666	$	2,747		$	2,518
Share of pre-tax income (loss) of unconsolidated entities		(210		)	(700		)	(10		)	1		(15		)	37
Fixed charges		209			418			416			458		536			682
Adjusted earnings	(C)	$	1,138		$	2,016		$	2,843		$	3,125	$	3,268		$	3,237
Interest on short-term borrowings and deposits		$	56		$	104		$	104		$	153	$	239		$	316
Interest on long-term debt, including amortization of debt issuance costs		111			219			206			184		176			241
Portion of long-term leases representative of the interest factor(1)		42			95			106			121		121			125
Preferred stock dividends and related adjustments(2)		95			112			61			33		39			27
Fixed charges and preferred stock dividends	(D)	$	304		$	530		$	477		$	491	$	575		$	709
Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, including interest on deposits	(C)/(D)	3.74 x			3.80x			5.96x			6.36x		5.68x			4.57x

___________________________

⁽¹⁾ The interest factor on long-term operating leases represented a reasonable approximation of the appropriate portion of operating lease expense considered to be representative of interest. The interest factor on long-term capital leases represented the amount recorded as interest expense in our consolidated statement of income.

⁽²⁾ Preferred dividends and related adjustments, including accretion, were adjusted to represent pre-tax earnings that would be required to cover dividend and accretion requirements.

STATE STREET CORPORATION

Ratios of Earnings to Fixed Charges

		Six Months Ended June 30,			Years Ended December 31,
(Dollars in millions)		2016			2015			2014			2013		2012			2011
EXCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	1,139		$	2,298		$	2,437		$	2,666	$	2,747		$	2,518
Share of pre-tax income (loss) of unconsolidated entities		(210		)	(700		)	(10		)	1		(15		)	37
Fixed charges		155			321			318			365		370			462
Adjusted earnings	(A)	$	1,084		$	1,919		$	2,745		$	3,032	$	3,102		$	3,017
Interest on short-term borrowings		$	2		$	7		$	6		$	60	$	73		$	96
Interest on long-term debt, including amortization of debt issuance costs		111			219			206			184		176			241
Portion of long-term leases representative of the interest factor(1)		42			95			106			121		121			125
Fixed charges	(B)	$	155		$	321		$	318		$	365	$	370		$	462
Consolidated ratios of adjusted earnings to fixed charges, excluding interest on deposits	(A)/(B)	6.99 x			5.98x			8.63x			8.31x		8.38x			6.53x
INCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	1,139		$	2,298		$	2,437		$	2,666	$	2,747		$	2,518
Share of pre-tax income (loss) of unconsolidated entities		(210		)	(700		)	(10		)	1		(15		)	37
Fixed charges		209			418			416			458		536			682
Adjusted earnings	(C)	$	1,138		$	2,016		$	2,843		$	3,125	$	3,268		$	3,237
Interest on short-term borrowings and deposits		$	56		$	104		$	104		$	153	$	239		$	316
Interest on long-term debt, including amortization of debt issuance costs		111			219			206			184		176			241
Portion of long-term leases representative of the interest factor(1)		42			95			106			121		121			125
Fixed charges	(D)	$	209		$	418		$	416		$	458	$	536		$	682
Consolidated ratios of adjusted earnings to fixed charges, including interest on deposits	(C)/(D)	5.44 x			4.82x			6.83x			6.82x		6.10x			4.75x

___________________________

⁽¹⁾ The interest factor on long-term operating leases represented a reasonable approximation of the appropriate portion of operating lease expense considered to be representative of interest. The interest factor on long-term capital leases represented the amount recorded as interest expense in our consolidated statement of income.

EX-15

EXHIBIT 15

Independent Registered Public Accounting Firm’s Acknowledgment Letter

The Shareholders and Board of Directors of

State Street Corporation

We are aware of the incorporation by reference in the Registration Statements (Form S-3 No. 333-200321, and Form S-8: Nos. 333-100001, 333-99989, 333-46678, 333-36793, 333-36409, 333-135696, 333-160171 and 333-183656) of State Street Corporation of our report dated August 4, 2016 relating to the unaudited condensed consolidated interim financial statements of State Street Corporation that are included in its Form 10-Q for the quarter ended June 30, 2016.

Under Rule 436(c) of the 1933 Act, our report is not part of the registration statements prepared or certified by accountants within the meaning of Section 7 or 11 of the 1933 Act.

/s/ Ernst & Young LLP

August 5, 2016

EX-31.1

EXHIBIT 31.1

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Joseph L. Hooley, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of State Street Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 5, 2016	By:	/s/  JOSEPH L. HOOLEY
			Joseph L. Hooley,
			Chairman and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Michael W. Bell, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of State Street Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 5, 2016	By:	/s/  MICHAEL W. BELL
			Michael W. Bell,
			Executive Vice President and Chief Financial Officer

EX-32

EXHIBIT 32

SECTION 1350 CERTIFICATIONS

To my knowledge, this Report on Form 10-Q for the period ended June 30, 2016 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of State Street Corporation.

Date:	August 5, 2016	By:	/s/  JOSEPH L. HOOLEY
			Joseph L. Hooley,
			Chairman and Chief Executive Officer
Date:	August 5, 2016	By:	/s/  MICHAEL W. BELL
			Michael W. Bell,
			Executive Vice President and Chief Financial Officer

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Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	STATE STREET Corp
Entity Central Index Key	0000093751
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		390,015,216

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Consolidated Statement of Income - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fee revenue:
Servicing fees	$ 1,239	$ 1,319	$ 2,481	$ 2,587
Management fees	293	304	563	605
Trading services	267	281	539	605
Securities finance	156	155	290	256
Processing fees and other	98	17	150	78
Total fee revenue	2,053	2,076	4,023	4,131
Net interest revenue:
Interest revenue	620	629	1,249	1,271
Interest expense	99	94	216	190
Net interest revenue	521	535	1,033	1,081
Gains (losses) related to investment securities, net:
Net gains (losses) from sales of available-for-sale securities	(1)	(3)	1	(3)
Losses from other-than-temporary impairment	0	0	0	(1)
Gains (losses) related to investment securities, net	(1)	(3)	1	(4)
Total revenue	2,573	2,608	5,057	5,208
Provision for loan losses	4	2	8	6
Expenses:
Compensation and employee benefits	989	984	2,096	2,071
Information systems and communications	270	249	542	496
Transaction processing services	201	201	401	398
Occupancy	111	109	224	222
Acquisition and restructuring costs	20	3	124	9
Professional services	82	136	175	232
Amortization of other intangible assets	49	49	98	99
Other	138	403	250	704
Total expenses	1,860	2,134	3,910	4,231
Income before income tax expense	709	472	1,139	971
Income tax expense	92	54	154	148
Net income from non-controlling interest	2	0	2	0
Net income	619	418	987	823
Net income available to common shareholders	$ 585	$ 389	$ 904	$ 762
Earnings per common share:
Basic (in USD per share)	$ 1.48	$ 0.95	$ 2.28	$ 1.85
Diluted (in USD per share)	$ 1.47	$ 0.93	$ 2.25	$ 1.83
Average common shares outstanding (in thousands):
Basic (in shares)	394,160	410,674	396,790	411,445
Diluted (in shares)	398,847	416,712	401,113	417,643
Cash dividends declared (in USD per share)	$ 0.34	$ 0.34	$ 0.68	$ 0.64

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Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 619	$ 418	$ 987	$ 823
Other comprehensive income (loss), net of related taxes:
Foreign currency translation, net of related taxes of ($19), $39, ($10) and ($25), respectively	(213)	289	94	(410)
Net unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment and net of related taxes of $187, ($198), $358 and ($75), respectively	286	(337)	546	(143)
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes of ($3), $15, ($15) and $5, respectively	(3)	22	(22)	7
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $1, $1, $2 and $4, respectively	2	3	3	7
Net unrealized gains (losses) on cash flow hedges, net of related taxes of $72, $30, ($117) and $22, respectively	(106)	8	(174)	20
Net unrealized gains (losses) on retirement plans, net of related taxes of $1, ($3), $3 and $1, respectively	1	10	(2)	15
Other comprehensive income (loss)	(33)	(5)	445	(504)
Total comprehensive income	$ 586	$ 413	$ 1,432	$ 319

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Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Foreign currency translation, Taxes	$ (19)	$ 39	$ (10)	$ (25)
Change in net unrealized losses on available-for-sale securities, Taxes	187	(198)	358	(75)
Change in net unrealized losses on available-for-sale securities designated in fair value hedges, Taxes	(3)	15	(15)	5
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, Taxes	1	1	2	4
Change in net unrealized losses on cash flow hedges, Taxes	(72)	30	(117)	22
Change in unrealized losses on retirement plans, Taxes	$ 1	$ (3)	$ 3	$ 1

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Consolidated Statement of Condition - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Assets:
Cash and due from banks	$ 4,673	$ 1,207
Interest-bearing deposits with banks	75,169	75,338
Securities purchased under resale agreements	2,010	3,404
Trading account assets	890	849
Investment securities available-for-sale	72,735	70,070
Investment securities held-to-maturity (fair value of $30,895 and $29,798)	30,386	29,952
Loans and leases (less allowance for losses of $51 and $46)	19,788	18,753
Premises and equipment (net of accumulated depreciation of $3,164 and $4,820)	1,994	1,894
Accrued interest and fees receivable	2,399	2,346
Goodwill	5,671	5,671
Other intangible assets	1,682	1,768
Other assets	37,989	33,903
Total assets	255,386	245,155
Deposits:
Noninterest-bearing	57,268	65,800
Interest-bearing—U.S.	33,060	29,958
Interest-bearing—non-U.S.	102,802	95,869
Total deposits	193,130	191,627
Securities sold under repurchase agreements	4,350	4,499
Federal funds purchased	29	6
Other short-term borrowings	1,683	1,748
Accrued expenses and other liabilities	22,166	14,643
Long-term debt	11,924	11,497
Total liabilities	233,282	224,020
Commitments, guarantees and contingencies (Notes 9 and 10)
Shareholders’ equity:
Common stock, $1 par: 750,000,000 shares authorized; 503,879,642 and 503,879,642 shares issued	504	504
Surplus	9,767	9,746
Retained earnings	16,686	16,049
Accumulated other comprehensive income (loss)	(997)	(1,442)
Treasury stock, at cost (114,229,535 and 104,227,647 shares)	(7,083)	(6,457)
Total shareholders’ equity	22,073	21,103
Non-controlling interest-equity	31	32
Total equity	22,104	21,135
Total liabilities and equity	255,386	245,155
Series C Preferred Stock
Shareholders’ equity:
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding	491	491
Series D Preferred Stock
Shareholders’ equity:
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding	742	742
Series E Preferred Stock
Shareholders’ equity:
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding	728	728
Series F Preferred Stock
Shareholders’ equity:
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding	742	742
Series G Preferred Stock
Shareholders’ equity:
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding	$ 493	$ 0

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Consolidated Statement of Condition (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Current Assets:
Investment securities held-to-maturity, fair value	$ 30,895	$ 29,798
Loans and leases, allowance for losses	51	46
Premises and equipment, accumulated depreciation	$ 3,164	$ 4,820
Stockholders' Equity:
Preferred stock, no par value (in USD per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	3,500,000	3,500,000
Common stock, par value (in USD per share)	$ 1.00	$ 1
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common stock, shares issued (in shares)	503,879,642	503,879,642
Treasury stock, shares (in shares)	114,229,535	104,227,647
Series C Preferred Stock
Stockholders' Equity:
Preferred stock, shares issued	5,000	5,000
Preferred stock, shares outstanding	5,000	5,000
Series D Preferred Stock
Stockholders' Equity:
Preferred stock, shares issued	7,500	7,500
Preferred stock, shares outstanding	7,500	7,500
Series E Preferred Stock
Stockholders' Equity:
Preferred stock, shares issued	7,500	7,500
Preferred stock, shares outstanding	7,500	7,500
Series F Preferred Stock
Stockholders' Equity:
Preferred stock, shares issued	7,500	7,500
Preferred stock, shares outstanding	7,500	7,500
Series G Preferred Stock
Stockholders' Equity:
Preferred stock, shares issued	5,000	0
Preferred stock, shares outstanding	5,000	0

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Consolidated Statement of Changes In Shareholders' Equity - USD ($) shares in Thousands, $ in Millions	Total	PREFERRED STOCK	COMMON STOCK	Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	TREASURY STOCK
Beginning balance at Dec. 31, 2014	$ 21,328	$ 1,961	$ 504	$ 9,791	$ 14,737	$ (507)	$ (5,158)
Beginning balance (shares) at Dec. 31, 2014			503,880				88,685
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	823				823
Other comprehensive income (loss)	(504)					(504)
Preferred stock issued	742	742
Cash dividends declared:
Common stock dividends	(262)				(262)
Preferred stock cash dividend	(60)				(60)
Common stock acquired	(820)						$ (820)
Common stock acquired (shares)							10,719
Common stock awards and options exercised, including related taxes	107			(41)			$ 148
Common stock awards and options exercised, including related taxes (shares)							(3,274)
Other	(7)			(6)	(1)
Other (shares)							(4)
Ending balance (shares) at Jun. 30, 2015			503,880				96,126
Ending balance at Jun. 30, 2015	21,347	2,703	$ 504	9,744	15,237	(1,011)	$ (5,830)
Beginning balance at Dec. 31, 2015	21,103	2,703	$ 504	9,746	16,049	(1,442)	$ (6,457)
Beginning balance (shares) at Dec. 31, 2015			503,880				104,228
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	987				987
Other comprehensive income (loss)	445					445
Preferred stock issued	493	493
Cash dividends declared:
Common stock dividends	(268)				(268)
Preferred stock cash dividend	(82)				(82)
Common stock acquired	(715)						$ (715)
Common stock acquired (shares)							12,153
Common stock awards and options exercised, including related taxes	110			21			$ 89
Common stock awards and options exercised, including related taxes (shares)							(2,151)
Ending balance (shares) at Jun. 30, 2016			503,880				114,230
Ending balance at Jun. 30, 2016	$ 22,073	$ 3,196	$ 504	$ 9,767	$ 16,686	$ (997)	$ (7,083)

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Consolidated Statement of Changes In Shareholders' Equity (Parenthetical) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in USD per share)	$ 0.68	$ 0.64
Common stock awards and options exercised, related taxes	$ 3	$ 44

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Consolidated Statement of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating Activities:
Net income	$ 987	$ 823
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Deferred income tax (benefit) expense	(32)	52
Amortization of other intangible assets	98	99
Other non-cash adjustments for depreciation, amortization and accretion, net	362	285
(Gains) losses related to investment securities, net	(1)	4
Change in trading account assets, net	(41)	(449)
Change in accrued interest and fees receivable, net	(53)	(143)
Change in collateral deposits, net	2,612	(7,544)
Change in unrealized (gains) losses on foreign exchange derivatives, net	(139)	829
Change in other assets, net	(307)	28
Change in accrued expenses and other liabilities, net	1,343	1,331
Other, net	183	158
Net cash provided by (used in) operating activities	5,012	(4,527)
Investing Activities:
Net decrease (increase) in interest-bearing deposits with banks	169	(23,205)
Net decrease (increase) in securities purchased under resale agreements	1,394	(2,057)
Proceeds from sales of available-for-sale securities	305	9,634
Proceeds from maturities of available-for-sale securities	13,621	13,440
Purchases of available-for-sale securities	(15,981)	(14,991)
Proceeds from maturities of available-for-sale securities	2,344	1,889
Purchases of held-to-maturity securities	(2,649)	(622)
Net increase in loans and leases	(1,023)	(370)
Purchases of equity investments and other long-term assets	(214)	(298)
Purchases of premises and equipment, net	(328)	(301)
Other, net	76	44
Net cash used in investing activities	(2,286)	(16,837)
Financing Activities:
Net increase in time deposits	10,524	1,026
Net (decrease) increase in all other deposits	(9,021)	20,525
Net (decrease) increase in other short-term borrowings	(191)	2,422
Proceeds from issuance of long-term debt, net of issuance costs	1,492	0
Payments for long-term debt and obligations under capital leases	(1,420)	(930)
Proceeds from issuance of preferred stock, net	493	742
Proceeds from exercises of common stock options	0	4
Purchases of common stock	(715)	(783)
Excess tax benefit related to stock-based compensation	3	46
Repurchases of common stock for employee tax withholding	(72)	(151)
Payments for cash dividends	(353)	(308)
Net cash provided by financing activities	740	22,593
Net increase	3,466	1,229
Cash and due from banks at beginning of period	1,207	1,855
Cash and due from banks at end of period	$ 4,673	$ 3,084

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation:

The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the parent company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary is State Street Bank.

The accompanying Consolidated Financial Statements should be read in conjunction with the financial and risk factor information included in our 2015 Form 10-K, which we previously filed with the SEC.

The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC.

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue, and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. These accounting estimates reflect the best judgment of management, but actual results could differ.

Our consolidated statement of condition as of December 31, 2015 included in the accompanying consolidated financial statements was derived from the audited financial statements as of that date, but does not include all notes required by U.S. GAAP for a complete set of consolidated financial statements.

In July 2016, we completed our previously announced acquisition of GE Asset Management, a leading asset manager, from General Electric Company, in a cash transaction with a total purchase price of $435 million, subject to adjustments, with up to an additional $50 million tied to incremental opportunities with General Electric.

Recent Accounting Developments:

Relevant standards that were recently issued but not yet adopted
Standard	Description	Date of Adoption	Effects on the financial statements or other significant matters
ASU 2014-09, Revenue from Contracts with Customers (Topic 606)	The standard, and its related amendments, will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements with customers. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date.	January 1, 2018	We are currently assessing the impact of the standard and its amendments on our consolidated financial statements and evaluating the alternative methods of adoption.
ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities	The standard makes limited amendments to the guidance on the classification and measurement of financial instruments. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting. In addition, the FASB clarified the guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. This standard must be applied on a retrospective basis.	January 1, 2018	We are currently assessing the impact of the standard on our consolidated financial statements.
ASU 2016-02, Leases (Topic 842)	The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities.	January 1, 2019	We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, as well as additional disclosure on our leases.
ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the Emerging Issues Task Force)	The standard clarifies that a change in the counterparty to a derivative instrument that is designated as a hedging instrument would result in dedesignation of the hedging relationship. This may be applied on a prospective or modified retrospective basis.	January 1, 2017	Our adoption of the standard will not have a material impact on our consolidated financial statements.
ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting	The standard simplifies the guidance related to stock compensation, including the accounting for income taxes by eliminating the windfall pool and requiring recognition of all excess tax benefits and deficiencies within the statement of income, as well as changes in the accounting for forfeitures, classification in the statement of cash flows and tax withholding requirements.	January 1, 2017	We anticipate increased income statement volatility due to the recognition of all excess tax benefits and deficiencies within the statement of income. We do not anticipate early adoption of this standard.
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	The standard requires all expected credit losses for financial assets held at the reporting date to be measured based on historical experience, current conditions, and reasonable supportable forecasts. The standard will utilize forward-looking information to determine credit loss estimates. It will require immediate recognition of the full amount of credit losses that are expected for certain financial assets.	January 1, 2020	We are currently assessing the impact of the standard on our consolidated financial statements.

Relevant standards that were adopted during the six months ended June 30, 2016:

We adopted ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, effective January 1, 2016. The implementation of the new standard did not result in any changes to our previous consolidation conclusions.

We adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, effective January 1, 2016 with retrospective application for all prior periods presented. The implementation of this standard resulted in debt issuance costs of $41 million and $37 million as of June 30, 2016 and December 31, 2015, respectively, being netted against long-term debt in our consolidated statement of condition.

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Fair Value

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

Fair-Value Measurements:

We carry trading account assets, AFS investment securities and various types of derivative financial instruments at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders' equity in our consolidated statement of condition.

We measure fair value for the above-described financial assets and liabilities in conformity with U.S. GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of U.S. GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. For information about our valuation techniques for financial assets and financial liabilities measured at fair value and the fair value hierarchy, refer to Note 2 to the consolidated financial statements on pages 132 to 142 of our 2015 Form 10-K.

The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated. No transfers of financial assets or liabilities between levels 1 and 2 occurred in the six months ended June 30, 2016 or the year ended December 31, 2015.

	Fair-Value Measurements on a Recurring Basis
	as of June 30, 2016
(In millions)	Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)		Impact of Netting(1)			Total Net Carrying Value in Consolidated Statement of Condition
Assets:
Trading account assets:
U.S. government securities	$	44	$	—	$	—				$	44
Non-U.S. government securities	436		—		—					436
Other	17		393		—					410
Total trading account assets	497		393		—					890
AFS Investment securities:
U.S. Treasury and federal agencies:
Direct obligations	5,857		475		—					6,332
Mortgage-backed securities	—		19,050		25					19,075
Asset-backed securities:
Student loans	—		6,764		190					6,954
Credit cards	—		1,380		—					1,380
Sub-prime	—		369		—					369
Other(2)	—		—		1,710					1,710
Total asset-backed securities	—		8,513		1,900					10,413
Non-U.S. debt securities:
Mortgage-backed securities	—		7,268		—					7,268
Asset-backed securities	—		2,557		111					2,668
Government securities	—		5,405		—					5,405
Other(3)	—		5,113		261					5,374
Total non-U.S. debt securities	—		20,343		372					20,715
State and political subdivisions	—		10,570		33					10,603
Collateralized mortgage obligations	—		2,673		68					2,741
Other U.S. debt securities	—		2,390		—					2,390
U.S. equity securities	—		41		—					41
Non-U.S. equity securities	—		3		—					3
U.S. money-market mutual funds	—		405		—					405
Non-U.S. money-market mutual funds	—		17		—					17
Total investment securities available-for-sale	5,857		64,480		2,398					72,735
Other assets:
Derivative instruments:
Foreign exchange contracts	—		20,868		—		$	(12,130	)	8,738
Interest-rate contracts	—		507		—		(461		)	46
Other derivative contracts	—		5		—		(5		)	—
Total derivative instruments	—		21,380		—		(12,596		)	8,784
Other	347		—		—					347
Total assets carried at fair value	$	6,701	$	86,253	$	2,398	$	(12,596	)	$	82,756
Liabilities:
Accrued expenses and other liabilities:
Trading account liabilities:
U.S. government securities	$	16	$	—	$	—	$	—		$	16
Non-U.S. government securities	59		—		—		—			59
Other	5		6		—		—			11
Derivative instruments:
Foreign exchange contracts	—		20,620		—		(13,238		)	7,382
Interest-rate contracts	—		212		—		(47		)	165
Other derivative contracts	—		161		—		(5		)	156
Total derivative instruments	—		20,993		—		(13,290		)	7,703
Other	347		—		—		—			347
Total liabilities carried at fair value	$	427	$	20,999	$	—	$	(13,290	)	$	8,136

⁽¹⁾ Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $1.97 billion and $2.66 billion, respectively, for cash collateral received from and provided to derivative counterparties.

⁽²⁾ As of June 30, 2016, the fair value of other asset-backed securities was primarily composed of $1.71 billion of collateralized loan obligations.

⁽³⁾ As of June 30, 2016, the fair value of other non-U.S. debt securities was primarily composed of $3.40 billion of covered bonds and $970 million of corporate bonds.

	Fair-Value Measurements on a Recurring Basis
	as of December 31, 2015
(In millions)	Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)		Impact of Netting(1)			Total Net Carrying Value in Consolidated Statement of Condition
Assets:
Trading account assets:
U.S. government securities	$	32	$	—	$	—				$	32
Non-U.S. government securities	479		—		—					479
Other	10		328		—					338
Total trading account assets	521		328		—					849
AFS Investment securities:
U.S. Treasury and federal agencies:
Direct obligations	5,206		512		—					5,718
Mortgage-backed securities	—		18,165		—					18,165
Asset-backed securities:
Student loans	—		6,987		189					7,176
Credit cards	—		1,341		—					1,341
Sub-prime	—		419		—					419
Other(2)	—		—		1,764					1,764
Total asset-backed securities	—		8,747		1,953					10,700
Non-U.S. debt securities:
Mortgage-backed securities	—		7,071		—					7,071
Asset-backed securities	—		3,093		174					3,267
Government securities	—		4,355		—					4,355
Other(3)	—		4,579		255					4,834
Total non-U.S. debt securities	—		19,098		429					19,527
State and political subdivisions	—		9,713		33					9,746
Collateralized mortgage obligations	—		2,948		39					2,987
Other U.S. debt securities	—		2,614		10					2,624
U.S. equity securities	—		39		—					39
Non-U.S. equity securities	—		3		—					3
U.S. money-market mutual funds	—		542		—					542
Non-U.S. money-market mutual funds	—		19		—					19
Total investment securities available-for-sale	5,206		62,400		2,464					70,070
Other assets:
Derivatives instruments:
Foreign exchange contracts	—		11,311		5		$	(6,562	)	4,754
Interest-rate contracts	—		135		—		(115		)	20
Other derivative contracts	—		5		—		(2		)	3
Total derivative instruments	—		11,451		5		(6,679		)	4,777
Other	2		—		—		—			2
Total assets carried at fair value	$	5,729	$	74,179	$	2,469	$	(6,679	)	$	75,698
Liabilities:
Accrued expenses and other liabilities:
Trading account liabilities:
U.S. government securities	$	5	$	—	$	—	$	—		$	5
Non-U.S. government securities	76		—		—		—			76
Other	5		13		—		—			18
Derivative instruments:
Foreign exchange contracts	—		10,863		5		(6,995		)	3,873
Interest-rate contracts	—		182		—		(24		)	158
Other derivative contracts	—		103		—		(2		)	101
Total derivative instruments	—		11,148		5		(7,021		)	4,132
Other	2		—		—		—			2
Total liabilities carried at fair value	$	88	$	11,161	$	5	$	(7,021	)	$	4,233

⁽¹⁾ Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $776 million and $1.12 billion, respectively, for cash collateral received from and provided to derivative counterparties.

⁽²⁾ As of December 31, 2015, the fair value of other asset-backed securities was primarily composed of $1.76 billion of collateralized loan obligations.

⁽³⁾ As of December 31, 2015, the fair value of other non-U.S. debt securities was primarily composed of $3.18 billion of covered bonds and $613 million of corporate bonds.

The following tables present activity related to our level-3 financial assets and liabilities during the three and six months ended June 30, 2016 and 2015, respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the three and six months ended June 30, 2016 and 2015, transfers out of level 3 were mainly related to certain mortgage- and asset-backed securities, including non-U.S. debt securities, for which fair value was measured using prices for which observable market information became available.

	Fair Value Measurements Using Significant Unobservable Inputs
	Three Months Ended June 30, 2016
	Fair Value  as of March 31, 2016		Total Realized and Unrealized Gains (Losses)					Purchases		Settlements			Transfers out of Level 3			Fair Value  as of June 30, 2016(1)		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2016
(In millions)			Recorded in Revenue		Recorded in Other Comprehensive Income
Assets:
AFS Investment securities:
U.S. Treasury and federal agencies, mortgage-backed securities	$	300	$	—	$	—		$	—	$	—		$	(275	)	$	25
Asset-backed securities:
Student loans	186		1		3			—		—			—			190
Other	1,813		9		(2		)	19		(129		)	—			1,710
Total asset-backed securities	1,999		10		1			19		(129		)	—			1,900
Non-U.S. debt securities:
Asset-backed securities	127		—		—			53		(16		)	(53		)	111
Other	295		—		2			—		(7		)	(29		)	261
Total non-U.S. debt securities	422		—		2			53		(23		)	(82		)	372
State and political subdivisions	32		—		1			—		—			—			33
Collateralized mortgage obligations	82		—		—			—		(14		)	—			68
Total AFS investment securities	2,835		10		4			72		(166		)	(357		)	2,398
Total assets carried at fair value	$	2,835	$	10	$	4		$	72	$	(166	)	$	(357	)	$	2,398	$	—

⁽¹⁾ There were no transfers of assets into level 3 during the three months ended June 30, 2016.

There was no activity related to our level-3 financial liabilities during the three months ended June 30, 2016.

	Fair Value Measurements Using Significant Unobservable Inputs
	Six Months Ended June 30, 2016
	Fair Value  as of December 31, 2015		Total Realized and Unrealized Gains (Losses)					Purchases		Settlements			Transfers out of Level 3			Fair Value  as of June 30, 2016(1)		Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2016
(In millions)			Recorded in Revenue		Recorded in Other Comprehensive Income
Assets:
AFS Investment securities:
U.S. Treasury and federal agencies, mortgage-backed securities	$	—	$	—	$	—		$	300	$	—		$	(275	)	$	25
Asset-backed securities:
Student loans	189		1		—			—		—			—			190
Other	1,764		16		(13		)	132		(189		)	—			1,710
Total asset-backed securities	1,953		17		(13		)	132		(189		)	—			1,900
Non-U.S. debt securities:
Asset-backed securities	174		—		(1		)	107		(34		)	(135		)	111
Other	255		—		—			29		6			(29		)	261
Total Non-U.S. debt securities	429		—		(1		)	136		(28		)	(164		)	372
State and political subdivisions	33		—		1			—		(1		)	—			33
Collateralized mortgage obligations	39		—		—			50		(21		)	—			68
Other U.S. debt securities	10		—		—			—		(10		)	—			—
Total AFS investment securities	2,464		17		(13		)	618		(249		)	(439		)	2,398
Other assets:
Derivative instruments:
Foreign exchange contracts	5		3		—			—		(8		)	—			—		$	—
Total derivative instruments	5		3		—			—		(8		)	—			—		—
Total assets carried at fair value	$	2,469	$	20	$	(13	)	$	618	$	(257	)	$	(439	)	$	2,398	$	—

	Fair-Value Measurements Using Significant Unobservable Inputs
	Six Months Ended June 30, 2016
	Fair Value  as of December 31, 2015		Total Realized and Unrealized (Gains) Losses		Settlements			Fair Value  as of June 30, 2016(2)		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2016
(In millions)			Recorded in Revenue
Liabilities:
Accrued expenses and other liabilities:
Derivative instruments:
Foreign exchange contracts	$	5	$	5	$	(10	)	$	—	$	—
Total derivative instruments	5		5		(10		)	—		—
Total liabilities carried at fair value	$	5	$	5	$	(10	)	$	—	$	—

⁽¹⁾ There were no transfers of assets into level 3 during the six months ended June 30, 2016.

⁽²⁾ There were no transfers of liabilities into or out of level 3 during the six months ended June 30, 2016.

	Fair Value Measurements Using Significant Unobservable Inputs
	Three Months Ended June 30, 2015
	Fair Value as of March 31, 2015		Total Realized and Unrealized Gains (Losses)						Purchases		Sales			Settlements			Transfers into Level 3		Transfers out of Level 3			Fair Value  as of June 30, 2015		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2015
(In millions)			Recorded in Revenue			Recorded in Other Comprehensive Income
Assets:
AFS Investment securities:
Asset-backed securities:
Student loans	$	257	$	—		$	—		$	—	$	—		$	(1	)	$	—	$	(22	)	$	234
Other	3,633		13			(6		)	—		(420		)	(287		)	—		—			2,933
Total asset-backed securities	3,890		13			(6		)	—		(420		)	(288		)	—		(22		)	3,167
Non-U.S. debt securities:
Mortgage-backed securities	43		—			—			—		—			—			97		(43		)	97
Asset-backed securities	228		—			—			—		—			(18		)	—		(17		)	193
Other	442		—			—			—		—			9			—		(187		)	264
Total Non-U.S. debt securities	713		—			—			—		—			(9		)	97		(247		)	554
State and political subdivisions	37		—			—			—		—			(1		)	—		—			36
Collateralized mortgage obligations	522		—			(1		)	—		(88		)	(29		)	—		(189		)	215
Other U.S. debt securities	9		—			—			—		—			—			—		—			9
Total investment securities available-for-sale	5,171		13			(7		)	—		(508		)	(327		)	97		(458		)	3,981
Other assets:
Derivative instruments:
Foreign exchange contracts	185		(96		)	—			10		—			(39		)	—		—			60		$	(30	)
Total derivative instruments	185		(96		)	—			10		—			(39		)	—		—			60		(30		)
Total assets carried at fair value	$	5,356	$	(83	)	$	(7	)	$	10	$	(508	)	$	(366	)	$	97	$	(458	)	$	4,041	$	(30	)

	Fair-Value Measurements Using Significant Unobservable Inputs
	Three Months Ended June 30, 2015
	Fair Value as of March 31, 2015		Total Realized and Unrealized Gains  (Losses)			Issuances		Settlements			Fair Value  as of June 30, 2015(1)		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2015
(In millions)			Recorded in Revenue
Liabilities:
Accrued expenses and other liabilities:
Derivative instruments:
Foreign exchange contracts	$	172	$	(90	)	$	8	$	(40	)	$	50	$	(26	)
Other	9		—			—		(9		)	—		—
Total derivative instruments	181		(90		)	8		(49		)	50		(26		)
Total liabilities carried at fair value	$	181	$	(90	)	$	8	$	(49	)	$	50	$	(26	)

⁽¹⁾ There were no transfers of liabilities into or out of level 3 during the three months ended June 30, 2015.

	Fair-Value Measurements Using Significant Unobservable Inputs
	Six Months Ended June 30, 2015
	Fair Value  as of December 31, 2014		Total Realized and Unrealized Gains (Losses)					Purchases		Sales			Settlements			Transfers into Level 3		Transfers out of Level 3			Fair Value  as of June 30, 2015		Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2015
(In millions)			Recorded in Revenue		Recorded in Other Comprehensive Income
Assets:
Investment securities available-for-sale:
Asset-backed securities:
Student loans	$	259	$	—	$	1		$	—	$	—		$	(5	)	$	—	$	(21	)	$	234
Other	3,780		25		(18		)	—		(420		)	(434		)	—		—			2,933
Total asset-backed securities	4,039		25		(17		)	—		(420		)	(439		)	—		(21		)	3,167
Non-U.S. debt securities:
Mortgage-backed securities	—		—		—			43		—			—			97		(43		)	97
Asset-backed securities	295		1		—			—		—			(86		)	—		(17		)	193
Other	371		—		1			111		—			(32		)	—		(187		)	264
Total non-U.S. debt securities	666		1		1			154		—			(118		)	97		(247		)	554
State and political subdivisions	38		—		(1		)	—		—			(1		)	—		—			36
Collateralized mortgage obligations	614		—		(1		)	293		(88		)	(65		)	—		(538		)	215
Other U.S. debt securities	9		—		—			—		—			—			—		—			9
Total investment securities available-for-sale	5,366		26		(18		)	447		(508		)	(623		)	97		(806		)	3,981
Other assets:
Derivative instruments:
Derivative instruments, foreign exchange contracts	81		45		—			29		—			(95		)	—		—			60		$	12
Total derivative instruments	81		45		—			29		—			(95		)	—		—			60		12
Total assets carried at fair value	$	5,447	$	71	$	(18	)	$	476	$	(508	)	$	(718	)	$	97	$	(806	)	$	4,041	$	12

	Fair-Value Measurements Using Significant Unobservable Inputs
	Six Months Ended June 30, 2015
	Fair Value  as of December 31, 2014		Total Realized and Unrealized (Gains) Losses		Issuances		Settlements			Fair Value  as of June 30, 2015(1)		Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2015
(In millions)			Recorded in Revenue
Liabilities:
Accrued expenses and other liabilities:
Derivative instruments:
Foreign exchange contracts	$	74	$	19	$	33	$	(76	)	$	50	$	1
Other	9		—		—		(9		)	—		—
Total derivative instruments	83		19		33		(85		)	50		1
Total liabilities carried at fair value	$	83	$	19	$	33	$	(85	)	$	50	$	1

⁽¹⁾ There were no transfers of liabilities into or out of level 3 during the six months ended June 30, 2015.

The following table presents total realized and unrealized gains and losses for our level-3 financial assets and liabilities and where they are presented in our consolidated statement of income for the periods indicated:

	Three Months Ended June 30,										Six Months Ended June 30,
	Total Realized and Unrealized Gains (Losses) Recorded in Revenue					Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30,					Total Realized and Unrealized Gains (Losses) Recorded in Revenue					Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30,
(In millions)	2016		2015			2016		2015			2016			2015		2016		2015
Fee revenue:
Trading services	$	—	$	(6	)	$	—	$	(4	)	$	(2	)	$	26	$	—	$	11
Total fee revenue	—		(6		)	—		(4		)	(2		)	26		—		11
Net interest revenue	10		13			—		—			17			26		—		—
Total revenue	$	10	$	7		$	—	$	(4	)	$	15		$	52	$	—	$	11

The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level-3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level-3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer.

	Quantitative Information about Level-3 Fair-Value Measurements
	Fair Value						Weighted-Average
(Dollars in millions)	As of June 30, 2016		As of December 31, 2015		Valuation Technique	Significant Unobservable Input(1)	As of June 30, 2016		As of December 31, 2015
Significant unobservable inputs readily available to State Street:
Assets:
Asset-backed securities, other	$	22	$	28	Discounted cash flows	Credit spread	0.3	%	(0.1	)%
State and political subdivisions	33		33		Discounted cash flows	Credit spread	2.1		2.2
Derivative instruments, foreign exchange contracts	—		5		Option model	Volatility			9.3
Total	$	55	$	66
Liabilities:
Derivative instruments, foreign exchange contracts	$	—	$	5	Option model	Volatility			9.2
Total	$	—	$	5

⁽¹⁾ Significant changes in these unobservable inputs would result in significant changes in fair value measure.

The following tables present information with respect to the composition of our level-3 financial assets and liabilities, by availability of significant unobservable inputs, as of the dates indicated:

June 30, 2016	Significant Unobservable Inputs Readily Available to State Street(1)		Significant Unobservable Inputs Not Developed by State Street and Not Readily Available(2)		Total Assets and Liabilities with Significant Unobservable Inputs
(In millions)
Assets:
U.S. Treasury and federal agencies, mortgage-backed securities	$	—	$	25	$	25
Asset-backed securities, student loans	—		190		190
Asset-backed securities, other	22		1,688		1,710
Non-U.S. debt securities, asset-backed securities	—		111		111
Non-U.S. debt securities, other	—		261		261
State and political subdivisions	33		—		33
Collateralized mortgage obligations	—		68		68
Total	$	55	$	2,343	$	2,398

⁽¹⁾ Information with respect to these model-priced financial assets are provided in a separate table.

⁽²⁾ Fair value for these financial assets is measured using non-binding broker or dealer quotes.

December 31, 2015	Significant Unobservable Inputs Readily Available to State Street(1)		Significant Unobservable Inputs Not Developed by State Street and Not Readily Available(2)		Total Assets and Liabilities with Significant Unobservable Inputs
(In millions)
Assets:
Asset-backed securities, student loans	$	—	$	189	$	189
Asset-backed securities, other	28		1,736		1,764
Non-U.S. debt securities, asset-backed securities	—		174		174
Non-U.S. debt securities, other	—		255		255
State and political subdivisions	33		—		33
Collateralized mortgage obligations	—		39		39
Other U.S. debt securities	—		10		10
Derivative instruments, foreign exchange contracts	5		—		5
Total	$	66	$	2,403	$	2,469
Liabilities:
Derivative instruments, foreign exchange contracts	$	5	$	—	$	5
Total	$	5	$	—	$	5

⁽¹⁾ Information with respect to these model-priced financial assets and liabilities is provided in a separate table.

⁽²⁾ Fair value for these financial assets is measured using non-binding broker or dealer quotes.

We use internally-developed pricing models that incorporate discounted cash flow and option model techniques to measure the fair value of certain level-3 financial assets and liabilities. Use of these techniques requires the determination of relevant inputs and assumptions, some of which represent significant unobservable inputs as indicated in the preceding tables. Accordingly, changes in these unobservable inputs may have a significant impact on fair value.

Fair Value Estimates:

Estimates of fair value for financial instruments not carried at fair value on a recurring basis in our consolidated statement of condition are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information.

The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair-value hierarchy, as of the dates indicated.

					Fair-Value Hierarchy
June 30, 2016	Reported Amount		Estimated Fair Value		Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)
(In millions)
Financial Assets:
Cash and due from banks	$	4,673	$	4,673	$	4,673	$	—	$	—
Interest-bearing deposits with banks	75,169		75,169		—		75,169		—
Securities purchased under resale agreements	2,010		2,010		—		2,010		—
Investment securities held-to-maturity	30,386		30,895		17,928		12,830		137
Net loans (excluding leases)	18,962		18,940		—		18,836		104
Financial Liabilities:
Deposits:
Noninterest-bearing	$	57,268	$	57,268	$	—	$	57,268	$	—
Interest-bearing - U.S.	33,060		33,060		—		33,060		—
Interest-bearing - non-U.S.	102,802		102,802		—		102,802		—
Securities sold under repurchase agreements	4,350		4,350		—		4,350		—
Federal funds purchased	29		29		—		29		—
Other short-term borrowings	1,683		1,683		—		1,683		—
Long-term debt	11,924		12,033		—		11,660		373

					Fair-Value Hierarchy
December 31, 2015	Reported Amount		Estimated Fair Value		Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)
(In millions)
Financial Assets:
Cash and due from banks	$	1,207	$	1,207	$	1,207	$	—	$	—
Interest-bearing deposits with banks	75,338		75,338		—		75,338		—
Securities purchased under resale agreements	3,404		3,404		—		3,404		—
Investment securities held-to-maturity	29,952		29,798		—		29,798		—
Net loans (excluding leases)(1)	17,838		17,792		—		17,667		125
Financial Liabilities:
Deposits:
Noninterest-bearing	$	65,800	$	65,800	$	—	$	65,800	$	—
Interest-bearing - U.S.	29,958		29,958		—		29,958		—
Interest-bearing - non-U.S.	95,869		95,869		—		95,869		—
Securities sold under repurchase agreements	4,499		4,499		—		4,499		—
Federal funds purchased	6		6		—		6		—
Other short-term borrowings	1,748		1,748		—		1,748		—
Long-term debt	11,497		11,604		—		11,215		389

⁽¹⁾ Includes $14 million of loans classified as held-for-sale that were measured at fair value on a non-recurring basis as of December 31, 2015 .

XML

Investment Securities

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

Investment securities held by us are classified as either trading, AFS, or HTM at the time of purchase and reassessed periodically, based on management’s intent.

Generally, trading assets are debt and equity securities purchased in connection with our trading activities and, as such, are expected to be sold in the near term. Our trading activities typically involve active and frequent buying and selling with the objective of generating profits on short-term movements. AFS investment securities are those securities that we intend to hold for an indefinite period of time. AFS investment securities include securities utilized as part of our asset-and-liability management activities that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. HTM securities are debt securities that management has the intent and the ability to hold to maturity.

Trading assets are carried at fair value. Both realized and unrealized gains and losses on trading assets are recorded in trading services revenue in our consolidated statement of income. Debt and marketable equity securities classified as AFS are carried at fair value, and after-tax net unrealized gains and losses are recorded in AOCI. Gains or losses realized on sales of AFS investment securities are computed using the specific identification method and are recorded in gains (losses) related to investment securities, net, in our consolidated statement of income. HTM investment securities are carried at cost, adjusted for amortization of premiums and accretion of discounts.

The following table presents the amortized cost and fair value, and associated unrealized gains and losses, of investment securities as of the dates indicated:

	June 30, 2016								December 31, 2015
	Amortized Cost		Gross Unrealized				Fair Value		Amortized Cost		Gross Unrealized				Fair Value
(In millions)			Gains		Losses						Gains		Losses
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	6,301	$	32	$	1	$	6,332	$	5,717	$	6	$	5	$	5,718
Mortgage-backed securities	18,788		298		11		19,075		18,168		131		134		18,165
Asset-backed securities:
Student loans(1)	7,162		8		216		6,954		7,358		16		198		7,176
Credit cards	1,392		15		27		1,380		1,378		—		37		1,341
Sub-prime	396		1		28		369		448		2		31		419
Other(2)	1,684		27		1		1,710		1,724		43		3		1,764
Total asset-backed securities	10,634		51		272		10,413		10,908		61		269		10,700
Non-U.S. debt securities:
Mortgage-backed securities	7,254		42		28		7,268		7,010		72		11		7,071
Asset-backed securities	2,675		2		9		2,668		3,272		2		7		3,267
Government securities	5,385		20		—		5,405		4,348		7		—		4,355
Other(3)	5,341		37		4		5,374		4,817		29		12		4,834
Total non-U.S. debt securities	20,655		101		41		20,715		19,447		110		30		19,527
State and political subdivisions	10,065		563		25		10,603		9,402		371		27		9,746
Collateralized mortgage obligations	2,681		66		6		2,741		2,993		16		22		2,987
Other U.S. debt securities	2,357		42		9		2,390		2,611		31		18		2,624
U.S. equity securities	34		10		3		41		33		9		3		39
Non-U.S. equity securities	3		—		—		3		3		—		—		3
U.S. money-market mutual funds	405		—		—		405		542		—		—		542
Non-U.S. money-market mutual funds	17		—		—		17		19		—		—		19
Total	$	71,940	$	1,163	$	368	$	72,735	$	69,843	$	735	$	508	$	70,070
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	21,577	$	446	$	1	$	22,022	$	20,878	$	2	$	217	$	20,663
Mortgage-backed securities	1,521		14		—		1,535		610		2		8		604
Asset-backed securities:
Student loans(1)	1,489		—		51		1,438		1,592		—		47		1,545
Credit cards	897		1		—		898		897		—		1		896
Other	138		1		—		139		366		2		1		367
Total asset-backed securities	2,524		2		51		2,475		2,855		2		49		2,808
Non-U.S. debt securities:
Mortgage-backed securities	1,900		96		31		1,965		2,202		109		26		2,285
Asset-backed securities	870		—		4		866		1,415		4		3		1,416
Government securities	309		3		—		312		239		—		1		238
Other	191		3		—		194		65		—		—		65
Total non-U.S. debt securities	3,270		102		35		3,337		3,921		113		30		4,004
State and political subdivisions	—		—		—		—		1		—		—		1
Collateralized mortgage obligations	1,494		51		19		1,526		1,687		60		29		1,718
Total	$	30,386	$	615	$	106	$	30,895	$	29,952	$	179	$	333	$	29,798

⁽¹⁾ Primarily composed of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans.

⁽²⁾ As of June 30, 2016 and December 31, 2015, the fair value of other ABS was primarily composed of $1.71 billion and $1.76 billion, respectively, of collateralized loan obligations.

⁽³⁾ As of June 30, 2016 and December 31, 2015, the fair value of other non-U.S. debt securities was primarily composed of $3.40 billion and $3.18 billion, respectively, of covered bonds and $970 million and $613 million, as of June 30, 2016 and December 31, 2015, respectively, of corporate bonds.

Aggregate investment securities with carrying values of $34.10 billion and $34.18 billion as of June 30, 2016 and December 31, 2015, respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law.

The following tables present the aggregate fair values of investment securities that have been in a continuous unrealized loss position for less than 12 months, and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated:

	Less than 12 months				12 months or longer				Total
June 30, 2016	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
(In millions)
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	84	$	—	$	129	$	1	$	213	$	1
Mortgage-backed securities	828		2		1,189		9		2,017		11
Asset-backed securities:
Student loans	2,210		39		4,049		177		6,259		216
Credit cards	—		—		558		27		558		27
Sub-prime	1		—		349		28		350		28
Other	399		1		25		—		424		1
Total asset-backed securities	2,610		40		4,981		232		7,591		272
Non-U.S. debt securities:
Mortgage-backed securities	2,825		17		757		11		3,582		28
Asset-backed securities	1,276		7		233		2		1,509		9
Government securities	486		—		—		—		486		—
Other	1,003		2		572		2		1,575		4
Total non-U.S. debt securities	5,590		26		1,562		15		7,152		41
State and political subdivisions	102		—		612		25		714		25
Collateralized mortgage obligations	128		1		282		5		410		6
Other U.S. debt securities	51		—		166		9		217		9
U.S. equity securities	—		—		5		3		5		3
Non-U.S. equity securities	1		—		—		—		1		—
Total	$	9,394	$	69	$	8,926	$	299	$	18,320	$	368
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	2	$	—	$	91	$	1	$	93	$	1
Asset-backed securities:
Student loans	809		27		631		24		1,440		51
Credit cards	218		—		—		—		218		—
Other	6		—		50		—		56		—
Total asset-backed securities	1,033		27		681		24		1,714		51
Non-U.S. mortgage-backed securities:
Mortgage-backed securities	189		7		515		24		704		31
Asset-backed securities	421		4		51		—		472		4
Government securities	197		—		—		—		197		—
Total non-U.S. debt securities	807		11		566		24		1,373		35
Collateralized mortgage obligations	728		10		200		9		928		19
Total	$	2,570	$	48	$	1,538	$	58	$	4,108	$	106

	Less than 12 months				12 months or longer				Total
December 31, 2015	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
(In millions)
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	3,123	$	4	$	121	$	1	$	3,244	$	5
Mortgage-backed securities	5,729		48		3,166		86		8,895		134
Asset-backed securities:
Student loans	2,841		54		3,217		144		6,058		198
Credit cards	838		7		490		30		1,328		37
Sub-prime	7		—		387		31		394		31
Other	720		3		43		—		763		3
Total asset-backed securities	4,406		64		4,137		205		8,543		269
Non-U.S. debt securities:
Mortgage-backed securities	1,457		7		437		4		1,894		11
Asset-backed securities	2,190		7		22		—		2,212		7
Government securities	1,691		—		—		—		1,691		—
Other	1,548		5		527		7		2,075		12
Total non-U.S. debt securities	6,886		19		986		11		7,872		30
State and political subdivisions	206		1		658		26		864		27
Collateralized mortgage obligations	1,511		14		217		8		1,728		22
Other U.S. debt securities	475		9		178		9		653		18
U.S. equity securities	—		—		5		3		5		3
Total	$	22,336	$	159	$	9,468	$	349	$	31,804	$	508
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	16,370	$	120	$	3,005	$	97	$	19,375	$	217
Mortgage-backed securities	560		8		—		—		560		8
Asset-backed securities:
Student loans	896		25		615		22		1,511		47
Credit cards	636		1		—		—		636		1
Other	102		—		31		1		133		1
Total asset-backed securities	1,634		26		646		23		2,280		49
Non-U.S. debt securities:
Mortgage-backed securities	338		2		524		24		862		26
Asset-backed securities	1,015		3		69		—		1,084		3
Government securities	128		1		—		—		128		1
Other	—		—		43		—		43		—
Total non-U.S. debt securities	1,481		6		636		24		2,117		30
Collateralized mortgage obligations	634		9		537		20		1,171		29
Total	$	20,679	$	169	$	4,824	$	164	$	25,503	$	333

The following table presents contractual maturities of debt investment securities by carrying amount as of June 30, 2016:

	Under 1 Year		1 to 5 Years		6 to 10 Years		Over 10 Years			Total
(In millions)
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	4,508	$	1,154	$	252	$	418		$	6,332
Mortgage-backed securities	103		2,145		4,288		12,539			19,075
Asset-backed securities:
Student loans	426		3,782		1,354		1,392			6,954
Credit cards	4		261		1,115		—			1,380
Sub-prime	3		2		2		362			369
Other	2		158		1,401		149			1,710
Total asset-backed securities	435		4,203		3,872		1,903			10,413
Non-U.S. debt securities:
Mortgage-backed securities	876		4,091		709		1,592			7,268
Asset-backed securities	125		2,196		218		129			2,668
Government securities	3,907		1,354		144		—			5,405
Other	1,794		3,064		517		(1		)	5,374
Total non-U.S. debt securities	6,702		10,705		1,588		1,720			20,715
State and political subdivisions	428		2,314		5,630		2,231			10,603
Collateralized mortgage obligations	108		46		515		2,072			2,741
Other U.S. debt securities	806		1,149		390		45			2,390
Total	$	13,090	$	21,716	$	16,535	$	20,928		$	72,269
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	—	$	12,728	$	8,771	$	78		$	21,577
Mortgage-backed securities	—		10		171		1,340			1,521
Asset-backed securities:
Student loans	91		99		229		1,070			1,489
Credit cards	39		823		35		—			897
Other	30		55		51		2			138
Total asset-backed securities	160		977		315		1,072			2,524
Non-U.S. debt securities:
Mortgage-backed securities	323		470		79		1,028			1,900
Asset-backed securities	197		673		—		—			870
Government securities	197		112		—		—			309
Other	74		117		—		—			191
Total non-U.S. debt securities	791		1,372		79		1,028			3,270
Collateralized mortgage obligations	72		66		300		1,056			1,494
Total	$	1,023	$	15,153	$	9,636	$	4,574		$	30,386

The maturities of asset-backed securities, mortgage-backed securities, and collateralized mortgage obligations are based on expected principal payments.

The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated.

	Six Months Ended June 30,
(In millions)	2016			2015
Balance, beginning of period	$	92		$	115
Additions:
Losses for which OTTI was previously recognized	1			1
Deductions:
Previously recognized losses related to securities sold or matured	(2		)	(15		)
Balance, end of period	$	91		$	101

Interest revenue related to debt securities is recognized in our consolidated statement of income using the effective interest method, or on a basis approximating a level rate of return over the contractual or estimated life of the security. The level rate of return considers any nonrefundable fees or costs, as well as purchase premiums or discounts, resulting in amortization or accretion, accordingly.

For debt securities acquired for which we consider it probable as of the date of acquisition that we will be unable to collect all contractually required principal, interest and other payments, the excess of our estimate of undiscounted future cash flows from these securities over their initial recorded investment is accreted into interest revenue on a level-yield basis over the securities’ estimated remaining terms. Subsequent decreases in these securities’ expected future cash flows are either recognized prospectively through an adjustment of the yields on the securities over their remaining terms, or are evaluated for other-than-temporary impairment. Increases in expected future cash flows are recognized prospectively over the securities’ estimated remaining terms through the recalculation of their yields.

For certain debt securities acquired which are considered to be beneficial interests in securitized financial assets, the excess of our estimate of undiscounted future cash flows from these securities over their initial recorded investment is accreted into interest revenue on a level-yield basis over the securities’ estimated remaining terms. Subsequent decreases in these securities’ expected future cash flows are either recognized prospectively through an adjustment of the yields on the securities over their remaining terms, or are evaluated for other-than-temporary impairment. Increases in expected future cash flows are recognized prospectively over the securities’ estimated remaining terms through the recalculation of their yields.

Impairment:

We conduct periodic reviews of individual securities to assess whether OTTI exists. For more information about the review of securities for impairment, refer to Note 3 in the consolidated financial statements on pages 149 to 152 in our 2015 Form 10-K.

We had $1 million of OTTI in the six months ended June 30, 2016 and 2015, which resulted from adverse changes in the timing of expected future cash flows from the securities.

After a review of the investment portfolio, taking into consideration current economic conditions, adverse situations that might affect our ability to fully collect principal and interest, the timing of future payments, the credit quality and performance of the collateral underlying mortgage- and asset-backed securities and other relevant factors, and excluding the OTTI recorded in the six months ended June 30, 2016, management considers the aggregate decline in fair value of the investment securities portfolio and the resulting gross pre-tax unrealized losses of $474 million related to 917 securities as of June 30, 2016 to be temporary, and not the result of any material changes in the credit characteristics of the securities.

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Loans and Leases

6 Months Ended

Jun. 30, 2016

Loans and Leases Receivable Disclosure [Abstract]

Loans and Leases

Loans and Leases

We segregate our loans and leases into two segments: institutional and CRE. Within the institutional and CRE segments, we further segregate the receivables into classes based on their risk characteristics, their initial measurement attributes and the methods we use to monitor and assess credit risk. For additional information on our loans and leases, including our internal risk-rating system used to assess our risk of credit loss for each loan or lease, refer to Note 4 to the consolidated financial statements on pages 152 to 156 in our 2015 Form 10-K.

The following table presents our recorded investment in loans and leases, by segment and class, as of the dates indicated:

(In millions)	June 30, 2016			December 31, 2015
Institutional:
Investment funds:
U.S.	$	11,893		$	11,136
Non-U.S.	2,540			1,678
Commercial and financial:
U.S.	3,916			4,671
Non-U.S.	505			278
Purchased receivables:
U.S.	79			93
Non-U.S.	—			—
Lease financing:
U.S.	335			337
Non-U.S.	544			578
Total institutional	19,812			18,771
Commercial real estate:
U.S.	27			28
Total loans and leases	19,839			18,799
Allowance for loan and lease losses	(51		)	(46		)
Loans and leases, net of allowance for loan and lease losses	$	19,788		$	18,753

Short-duration advances to our clients included in the institutional segment were $4.32 billion and $2.62 billion as of June 30, 2016 and December 31, 2015, respectively. These short-duration advances provide liquidity to fund clients in support of their transaction flows associated with securities settlement activities.

The commercial-and-financial class in the institutional segment presented in the preceding table included approximately $3.30 billion and $3.14 billion of senior secured loans as of June 30, 2016 and December 31, 2015, respectively. These senior secured loans are included in the “speculative”, "special mention" and "substandard" categories in the credit-quality-indicator tables presented below. As of June 30, 2016 and December 31, 2015, our allowance for loan and lease losses included approximately $43 million and $35 million, respectively, related to these loans.

The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated:

	Institutional
June 30, 2016	Investment Funds		Commercial and Financial		Purchased Receivables		Lease Financing		Commercial Real Estate		Total Loans and Leases
(In millions)
Investment grade(1)	$	14,116	$	1,075	$	79	$	851	$	27	$	16,148
Speculative(2)	315		3,331		—		28		—		3,674
Special mention(3)	2		—		—		—		—		2
Doubtful(4)	—		15		—		—		—		15
Total	$	14,433	$	4,421	$	79	$	879	$	27	$	19,839

	Institutional
December 31, 2015	Investment Funds		Commercial and Financial		Purchased Receivables		Lease Financing		Commercial Real Estate		Total Loans and Leases
(In millions)
Investment grade(1)	$	12,415	$	1,780	$	93	$	888	$	28	$	15,204
Speculative(2)	399		3,138		—		27		—		3,564
Special mention(3)	—		31		—		—		—		31
Total	$	12,814	$	4,949	$	93	$	915	$	28	$	18,799

⁽¹⁾ Investment-grade loans and leases consist of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment.

⁽²⁾ Speculative loans and leases consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met.

⁽³⁾ Special mention loans and leases consist of counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects.

⁽⁴⁾ Doubtful loans and leases meet the same definition of substandard loans and leases (i.e., well-defined weaknesses that jeopardize repayment with the possibility that we will sustain some loss) with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable.

The following table presents our recorded investment in loans and leases, disaggregated based on our impairment methodology, as of the dates indicated:

	June 30, 2016						December 31, 2015
(In millions)	Institutional		Commercial Real Estate		Total Loans and Leases		Institutional		Commercial Real Estate		Total Loans and Leases
Loans and leases(1):
Individually evaluated for impairment	$	15	$	—	$	15	$	—	$	—	$	—
Collectively evaluated for impairment	19,797		27		19,824		18,771		28		18,799
Total	$	19,812	$	27	$	19,839	$	18,771	$	28	$	18,799

⁽¹⁾ For those portfolios where there are a small number of loans each with a large balance, we review each loan annually for indicators of impairment. For those loans where no such indicators are identified, the loans are collectively evaluated for impairment. As of June 30, 2016 and December 31, 2015, $2 million and zero, respectively, of the allowance for loan and lease loss related to institutional loans individually evaluated for impairment. As of June 30, 2016 and December 31, 2015, $49 million and $46 million, respectively, of the allowance for loan and lease loss related to institutional loans collectively evaluated for impairment.    

The following table presents information related to our recorded investment in impaired loans and leases for the dates or periods indicated:

	As of June 30, 2016						As of December 31, 2015
(In millions)	Recorded Investment		Unpaid Principal Balance		Related Allowance(1)		Recorded Investment		Unpaid Principal Balance		Related Allowance(1)
With no related allowance recorded:
CRE—property development—acquired credit-impaired	$	—	$	34	$	—	$	—	$	34	$	—
CRE—other—acquired credit-impaired	—		22		—		—		22		—
Total CRE	—		56		—		—		56		—
With an allowance recorded:
Institutional- commercial and financial lending(2)	15		15		2		—		—		—
Total Institutional	15		15		2		—		—		—
Total CRE and institutional	$	15	$	71	$	2	$	—	$	56	$	—

⁽¹⁾ As of June 30, 2016 and December 31, 2015, there was an additional allowance for loan and lease losses of $49 million and $46 million, respectively, related to loans that were not impaired.

⁽²⁾ We identified $15 million of commercial and financing loans as impaired. The average recorded investment and related interest revenue recognized is $15 million and zero, respectively, for the three and six month periods ended June 30, 2016.

In certain circumstances, we restructure troubled loans by granting concessions to borrowers experiencing financial difficulty. Once restructured, the loans are generally considered impaired until their maturity, regardless of whether the borrowers perform under the modified terms of the loans. No loans were modified in troubled debt restructurings during the six months ended June 30, 2016 and the year ended December 31, 2015.

As of June 30, 2016 and December 31, 2015, no institutional loans or leases and no CRE loans were on non-accrual status or 90 days or more contractually past due.

The following table presents activity in the allowance for loan and lease losses for the periods indicated:

	Three Months Ended June 30,
	2016			2015
(In millions)	Total Loans and Leases			Total Loans and Leases
Allowance for loan and lease losses(1):
Beginning balance	$	47		$	41
Provision for loan losses	4			2
Charge-offs	—			—
Ending balance	$	51		$	43
	Six Months Ended June 30,
	2016			2015
(In millions)	Total Loans and Leases			Total Loans and Leases
Allowance for loan and lease losses(1):
Beginning balance	$	46		$	37
Provision for loan losses	8			6
Charge-offs	(3		)	—
Ending balance	$	51		$	43

⁽¹⁾ As of June 30, 2016, approximately $43 million of our allowance for loan and lease losses was related to senior secured loans included in the institutional segment; the remaining $8 million was related to other institutional segment loans.

The provision of $8 million and $6 million recorded in the six months endedJune 30, 2016 and 2015, respectively, as well as the the charge-offs of $3 million recorded in the six months endedJune 30, 2016 were a result of exposure to senior secured loans to non-investment grade borrowers, purchased in connection with our participation in syndicated loans.

Loans and leases are reviewed on a regular basis, and any provisions for loan losses that are recorded reflect management's estimate of the amount necessary to maintain the allowance for loan and lease losses at a level considered appropriate to absorb estimated incurred losses in the loan-and-lease portfolio.

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The following table presents changes in the carrying amount of goodwill during the periods indicated:

	Six Months Ended June 30,
	2016								2015
(In millions)	Investment Servicing			Investment Management		Total			Investment Servicing			Investment Management			Total
Goodwill:
Beginning balance	$	5,641		$	30	$	5,671		$	5,793		$	33		$	5,826
Divestitures and other reductions	(11		)	—		(11		)	—			—			—
Foreign currency translation	11			—		11			(95		)	(2		)	(97		)
Ending balance	$	5,641		$	30	$	5,671		$	5,698		$	31		$	5,729

The following table presents changes in the net carrying amount of other intangible assets during the periods indicated:

	Six Months Ended June 30,
	2016									2015
(In millions)	Investment Servicing			Investment Management			Total			Investment Servicing			Investment Management			Total
Other intangible assets:
Beginning balance	$	1,753		$	15		$	1,768		$	1,998		$	27		$	2,025
Amortization	(94		)	(4		)	(98		)	(95		)	(4		)	(99		)
Foreign currency translation and other, net	12			—			12			(54		)	(1		)	(55		)
Ending balance	$	1,671		$	11		$	1,682		$	1,849		$	22		$	1,871

The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated:

	June 30, 2016							December 31, 2015
(In millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other intangible assets:
Client relationships	$	2,490	$	(1,268	)	$	1,222	$	2,486	$	(1,198	)	$	1,288
Core deposits	671		(265		)	406		667		(246		)	421
Other	151		(97		)	54		147		(88		)	59
Total	$	3,312	$	(1,630	)	$	1,682	$	3,300	$	(1,532	)	$	1,768

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Other Assets

6 Months Ended

Jun. 30, 2016

Other Assets [Abstract]

Other Assets

Other Assets

The following table presents the components of other assets as of the dates indicated:

(In millions)	June 30, 2016		December 31, 2015
Collateral deposits, net	$	20,971	$	21,465
Derivative instruments, net	8,784		4,777
Bank-owned life insurance	3,118		3,078
Investments in joint ventures and other unconsolidated entities	2,262		2,034
Accounts receivable	961		1,018
Receivable for securities settlement	622		311
Prepaid expenses	344		284
Deferred tax assets, net of valuation allowance	225		182
Income taxes receivable	141		154
Deposits with clearing organizations	139		127
Other	422		473
Total	$	37,989	$	33,903

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

We use derivative financial instruments to support our clients' needs and to manage our interest-rate and currency risk. In undertaking these activities, we assume positions in both the foreign exchange and interest-rate markets by buying and selling cash instruments and using derivative financial instruments, including foreign exchange forward contracts, foreign exchange and interest-rate options and interest-rate swaps, interest-rate forward contracts and interest-rate futures. For information on our derivative instruments, including the related accounting policies, refer to Note 10 to the consolidated financial statements on pages 162 to 168 in our 2015 Form 10-K.

Derivative financial instruments are also subject to credit and counterparty risk, which we manage by performing credit reviews, maintaining individual counterparty limits, entering into netting arrangements and requiring the receipt of collateral. Cash collateral received from and provided to counterparties in connection with derivative financial instruments is recorded in accrued expenses and other liabilities and other assets, respectively, in our consolidated statement of condition. As of June 30, 2016 and December 31, 2015, we had recorded approximately $3.00 billion and $1.40 billion, respectively, of cash collateral received from counterparties and approximately $3.27 billion and $1.65 billion, respectively, of cash collateral provided to counterparties in connection with derivative financial instruments in our consolidated statement of condition.

Certain of our derivative assets and liabilities as of June 30, 2016 and December 31, 2015 are subject to master netting agreements with our derivative counterparties. Certain of these agreements contain credit risk-related contingent features in which the counterparty has the right to declare us in default and accelerate cash settlement of our net derivative liabilities with the counterparty in the event that our credit rating falls below specified levels. The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a net liability position as of June 30, 2016 totaled approximately $2.70 billion, against which we provided $54 million of underlying collateral. If our credit rating were downgraded below levels specified in the agreements, the maximum additional amount of payments related to termination events that could have been required pursuant to these contingent features, assuming no change in fair value, as of June 30, 2016 was approximately $2.64 billion. Such accelerated settlement would be at fair value and therefore not affect our consolidated results of operations.

Derivatives Not Designated as Hedging Instruments:

In connection with our trading activities, we use derivative financial instruments in our role as a financial intermediary and as both a manager and servicer of financial assets, in order to accommodate our clients' investment and risk management needs. In addition, we use derivative financial instruments for risk management purposes as economic hedges, which are not formally designated as accounting hedges, in order to contribute to our overall corporate earnings and liquidity. These activities are designed to generate trading services revenue and to manage volatility in our net interest revenue. The level of market risk that we assume is a function of our overall objectives and liquidity needs, our clients' requirements and market volatility. For additional information on derivatives not designated as hedging instruments, refer to Note 10 to the consolidated financial statements on pages 163 to 164 in our 2015 Form 10-K.

Derivatives Designated as Hedging Instruments:

In connection with our asset-and-liability management activities, we use derivative financial instruments to manage our interest-rate risk and foreign currency risk. Interest-rate risk, defined as the sensitivity of income or financial condition to variations in interest rates, is a significant non-trading market risk to which our assets and liabilities are exposed. We manage our interest-rate risk by identifying, quantifying and hedging our exposures, using fixed-rate portfolio securities and a variety of derivative financial instruments, most frequently interest-rate swaps and options (for example, interest-rate caps and floors). Interest-rate swap agreements alter the interest-rate characteristics of specific balance sheet assets or liabilities. When appropriate, forward-rate agreements, options on swaps, and exchange-traded futures and options are also used. We use foreign exchange forward and swap contracts to hedge foreign exchange exposure to various foreign currencies with respect to certain assets and liabilities. Our hedging relationships are formally designated, and qualify for hedge accounting, as fair value, cash flow or net investment hedges. For additional information on derivatives designated as hedging instruments, refer to Note 10 to the consolidated financial statements on pages 164 to 168 in our 2015 Form 10-K.

 Fair Value Hedges

We have entered into interest-rate swap agreements to modify our interest revenue from certain available-for-sale investment securities from a fixed rate to a floating rate. The hedged AFS investment securities included hedged trusts that had a weighted-average life of approximately 5.1 years as of June 30, 2016, compared to 5.4 years as of December 31, 2015.

We have entered into interest-rate swap agreements to modify our interest expense on eight senior notes and two subordinated notes from fixed rates to floating rates. The senior and subordinated notes are hedged with interest-rate swap contracts with notional amounts, maturities and fixed-rate coupon terms that align with the hedged notes. The table below summarizes the maturities and the paid fixed interest rates for the hedged senior and subordinated notes:

June 30, 2016	Maturity	Paid Fixed Interest Rate
Senior Notes
	2018	1.35%
	2020	2.55%
	2021	1.95%
	2021	4.38%
	2023	3.70%
	2024	3.30%
	2025	3.55%
	2026	2.65%
Subordinated Notes
	2018	4.96%
	2023	3.10%

We have entered into foreign exchange swap contracts to hedge the change in fair value attributable to foreign exchange movements in our foreign currency denominated investment securities and deposits. These forward contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the fair value of the securities and deposits attributable to changes in foreign exchange rates.

Cash Flow Hedges 

We have entered into foreign exchange contracts to hedge the change in cash flows attributable to foreign exchange movements in foreign currency denominated investment securities. These foreign exchange contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the cash flows of the securities attributable to changes in foreign exchange rates.

Net Investment Hedges

Derivatives categorized as net investment hedges are utilized to offset the fluctuation of foreign exchange rates. Effectiveness of net investment hedges is based on the overall changes in the fair value of the forward contracts.

We have entered into foreign exchange contracts to protect the net investment in our foreign operations against adverse changes in exchange rates. These foreign exchange contracts have maturities of less than three months. These forward contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the fair value of our net investments in our foreign operations attributable to changes in foreign exchange rates.

The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments entered into in connection with our trading and asset-and-liability management activities as of the dates indicated:

(In millions)	June 30, 2016		December 31, 2015
Derivatives not designated as hedging instruments:
Interest-rate contracts:
Swap agreements and forwards	$	9	$	336
Futures	11,302		2,621
Foreign exchange contracts:
Forward, swap and spot	1,419,570		1,274,277
Options purchased	—		403
Options written	—		404
Futures	167		—
Credit derivative contracts:
Credit swap agreements(1)	37		141
Commodity and equity contracts:
Commodity(1)	151		113
Equity(1)	103		87
Other:
Stable value contracts	26,071		24,583
Deferred value awards(2)	506		320
Derivatives designated as hedging instruments:
Interest-rate contracts:
Swap agreements	10,364		9,398
Foreign exchange contracts:
Forward and swap	4,812		4,515

⁽¹⁾ Primarily composed of positions held by a consolidated sponsored investment fund, more fully described in Note 11.

⁽²⁾ Represents grants of deferred value awards to employees; refer to Note 12 in the 2015 Form 10-K , "Derivatives Not Designated as Hedging Instruments" for additional information.

In connection with our asset-and-liability management activities, we have entered into interest-rate contracts designated as fair value hedges to manage our interest-rate risk. The following tables present the aggregate notional amounts of these interest-rate contracts and the related assets or liabilities being hedged as of the dates indicated:

	June 30, 2016(1)
(In millions)	Fair Value Hedges
Investment securities available-for-sale	$	1,614
Long-term debt(2)	8,750
Total	$	10,364

	December 31, 2015(1)
(In millions)	Fair Value Hedges
Investment securities available-for-sale	$	1,698
Long-term debt(2)	7,700
Total	$	9,398

⁽¹⁾ As of June 30, 2016 and December 31, 2015, there were no interest-rate contracts designated as cash flow hedges.

⁽²⁾ As of June 30, 2016, these fair value hedges increased the carrying value of long-term debt presented in our consolidated statement of condition by $458 million. As of December 31, 2015, these fair value hedges increased the carrying value of long-term debt presented in our consolidated statement of condition by $105 million.

The following table presents the contractual and weighted-average interest rates for long-term debt, which include the effects of the fair value hedges presented in the table above, for the periods indicated:

	Three Months Ended June 30,
	2016				2015
	Contractual Rates		Rate  Including Impact of Hedges		Contractual Rates		Rate  Including Impact of Hedges
Long-term debt	3.43	%	2.24	%	3.70	%	2.67	%
	Six Months Ended June 30,
	2016				2015
	Contractual Rates		Rate  Including Impact of Hedges		Contractual Rates		Rate  Including Impact of Hedges
Long-term debt	3.43	%	2.22	%	3.61	%	2.60	%

The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is disclosed in Note 8.

Derivative Assets(1)
	Fair Value
(In millions)	June 30, 2016		December 31, 2015
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	20,472	$	10,799
Interest-rate contracts	1		2
Other derivative contracts	5		5
Total	$	20,478	$	10,806
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	396	$	517
Interest-rate contracts	506		133
Total	$	902	$	650

⁽¹⁾ Derivative assets are included within other assets in our consolidated statement of condition.

Derivative Liabilities(1)
	Fair Value
(In millions)	June 30, 2016		December 31, 2015
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	20,522	$	10,795
Other derivative contracts	161		103
Interest-rate contracts	1		2
Total	$	20,684	$	10,900
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	98	$	73
Interest-rate contracts	211		180
Total	$	309	$	253

⁽¹⁾ Derivative liabilities are included within other liabilities in our consolidated statement of condition.

The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
		Three Months Ended June 30,						Six Months Ended June 30,
(In millions)		2016			2015			2016			2015
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Trading services revenue	$	162		$	165		$	316		$	369
Interest-rate contracts	Processing fees and other revenue	—			—			1			—
Interest-rate contracts	Trading services revenue	(3		)	(1		)	(4		)	(1		)
Credit derivative contracts	Trading services revenue	—			—			(1		)	—
Other derivative contracts	Trading services revenue	(4		)	1			(4		)	3
Total		$	155		$	165		$	308		$	371

	Location of (Gain) Loss on Derivative in Consolidated Statement of Income	Amount of (Gain) Loss on Derivative Recognized in Consolidated Statement of Income
		Three Months Ended June 30,				Six Months Ended June 30,
(In millions)		2016		2015		2016		2015
Derivatives not designated as hedging instruments:
Other derivative contracts	Compensation and employee benefits	$	57	$	33	$	127	$	92
Total		$	57	$	33	$	127	$	92

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income						Hedged Item in Fair Value Hedging Relationship	Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income	Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income
		Three Months Ended June 30,								Three Months Ended June 30,
(In millions)		2016			2015					2016			2015
Derivatives designated as fair value hedges:
Foreign exchange contracts	Processing fees and other revenue	$	(25	)	$	12		Investment securities	Processing fees and other revenue	$	25		$	(12	)
Foreign exchange contracts	Processing fees and other revenue	(2		)	(13		)	FX deposit	Processing fees and other revenue	2			13
Interest-rate contracts	Processing fees and other revenue	(6		)	37			Available-for-sale securities	Processing fees and other revenue(1)	6			(38		)
Interest-rate contracts	Processing fees and other revenue	128			(85		)	Long-term debt	Processing fees and other revenue	(121		)	82
Total		$	95		$	(49	)			$	(88	)	$	45

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income						Hedged Item in Fair Value Hedging Relationship	Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income	Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income
		Six Months Ended June 30,								Six Months Ended June 30,
(In millions)		2016			2015					2016			2015
Derivatives designated as fair value hedges:
Foreign exchange contracts	Processing fees and other revenue	$	19		$	(52	)	Investment securities	Processing fees and other revenue	$	(19	)	$	52
Foreign exchange contracts	Processing fees and other revenue	246			(13		)	FX deposit	Processing fees and other revenue	(246		)	13
Interest-rate contracts	Processing fees and other revenue	(36		)	12			Available-for-sale securities	Processing fees and other revenue(2)	37			(12		)
Interest-rate contracts	Processing fees and other revenue	376			(17		)	Long-term debt	Processing fees and other revenue	(361		)	17
Total		$	605		$	(70	)			$	(589	)	$	70

⁽¹⁾ For the three months ended June 30, 2016 and 2015, $3 million and $22 million, respectively, of unrealized losses and unrealized gains, respectively, on AFS investment securities designated in fair value hedges was recognized in OCI.

⁽²⁾ For the six months ended June 30, 2016 and 2015, $22 million and $7 million, respectively, of unrealized losses and unrealized gains, respectively, on AFS investment securities designated in fair value hedges was recognized in OCI.

Differences between the gains (losses) on the derivative and the gains (losses) on the hedged item, excluding any amounts recorded in net interest revenue, represent hedge ineffectiveness.

	Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income					Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income	Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income					Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
	Three Months Ended June 30,						Three Months Ended June 30,						Three Months Ended June 30,
(In millions)	2016			2015			2016		2015				2016		2015
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	—		$	—	Net interest revenue	$	—	$	(1	)	Net interest revenue	$	—	$	—
Foreign exchange contracts	(114		)	21		Net interest revenue	—		—			Net interest revenue	6		2
Total	$	(114	)	$	21		$	—	$	(1	)		$	6	$	2
Derivatives designated as net investment hedges:
Foreign exchange contracts	$	51		$	—	Gains (Losses) related to investment securities, net	$	—	$	—		Gains (Losses) related to investment securities, net	$	—	$	—
Total	$	51		$	—		$	—	$	—			$	—	$	—

	Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income					Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income	Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income					Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
	Six Months Ended June 30,						Six Months Ended June 30,						Six Months Ended June 30,
(In millions)	2016			2015			2016		2015				2016		2015
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	—		$	—	Net interest revenue	$	—	$	(2	)	Net interest revenue	$	—	$	—
Foreign exchange contracts	(227		)	41		Net interest revenue	—		—			Net interest revenue	11		4
Total	$	(227	)	$	41		$	—	$	(2	)		$	11	$	4
Derivatives designated as net investment hedges:
Foreign exchange contracts	$	51		$	—	Gains (Losses) related to investment securities, net	$	—	$	—		Gains (Losses) related to investment securities, net	$	—	$	—
Total	$	51		$	—		$	—	$	—			$	—	$	—

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Offsetting Arrangements

6 Months Ended

Jun. 30, 2016

Offsetting [Abstract]

Offsetting Arrangements

Offsetting Arrangements

 We manage credit and counterparty risk by entering into enforceable netting agreements and other collateral arrangements with counterparties to derivative contracts and secured financing transactions, including resale and repurchase agreements, and principal securities borrowing and lending agreements. These netting agreements mitigate our counterparty credit risk by providing for a single net settlement with a counterparty of all financial transactions covered by the agreement in an event of default as defined under such agreement. In limited cases, a netting agreement may also provide for the periodic netting of settlement payments with respect to multiple different transaction types in the normal course of business. For additional information on offsetting arrangements, refer to Note 11 to the consolidated financial statements on pages 169 to 172 in our 2015 Form 10-K.

As of June 30, 2016 and December 31, 2015, the fair value of securities received as collateral where we are permitted to transfer or re-pledge the securities totaled $2.18 billion and $3.05 billion, respectively, and the fair value of the portion that had been transferred or re-pledged as of the same date was $51 million and $262 million, respectively.

The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated:

Assets:	June 30, 2016								December 31, 2015
(In millions)	Gross Amounts of Recognized Assets(1)(2)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Assets Presented in Statement of Condition			Gross Amounts of Recognized Assets(1)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Assets Presented in Statement of Condition
Derivatives:
Foreign exchange contracts	$	20,868	$	(10,615	)	$	10,253		$	11,316	$	(5,896	)	$	5,420
Interest-rate contracts	507		(10		)	497			135		(5		)	130
Other derivative contracts	5		(5		)	—			5		(2		)	3
Cash collateral netting	N/A		(1,966		)	(1,966		)	N/A		(776		)	(776		)
Total derivatives	$	21,380	$	(12,596	)	$	8,784		$	11,456	$	(6,679	)	$	4,777
Other financial instruments:
Resale agreements and securities borrowing(4)	$	60,336	$	(38,251	)	$	22,085		$	62,522	$	(38,997	)	$	23,525
Total derivatives and other financial instruments	$	81,716	$	(50,847	)	$	30,869		$	73,978	$	(45,676	)	$	28,302

⁽¹⁾ Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.

⁽²⁾ Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which are also carried at fair value. Refer to Note 1 to the consolidated financial statements on pages 129 to 132 in our 2015 Form 10-K for additional information on the measurement basis of these instruments.

⁽³⁾ Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.

⁽⁴⁾ Included in the $22,085 million as of June 30, 2016 were $2,010 million of resale agreements and $20,075 million of collateral provided related to securities borrowing. Included in the $23,525 million as of December 31, 2015 were $3,404 million of resale agreements and $20,121 million of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions.

	June 30, 2016										December 31, 2015
			Gross Amounts Not Offset in Statement of Condition										Gross Amounts Not Offset in Statement of Condition
(In millions)	Net Amount of Assets Presented in Statement of Condition		Counterparty Netting			Cash and Securities Received(1)			Net Amount(2)		Net Amount of Assets Presented in Statement of Condition		Counterparty Netting			Collateral Received(1)			Net Amount(2)
Derivatives	$	8,784	$	—		$	(445	)	$	8,339	$	4,777	$	—		$	(405	)	$	4,372
Resale agreements and securities borrowing	22,085		(108		)	(21,589		)	388		23,525		(63		)	(22,812		)	650
Total	$	30,869	$	(108	)	$	(22,034	)	$	8,727	$	28,302	$	(63	)	$	(23,217	)	$	5,022

⁽¹⁾ Includes securities in connection with our securities borrowing transactions.

⁽²⁾ Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.

The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated:

Liabilities:	June 30, 2016								December 31, 2015
(In millions)	Gross Amounts of Recognized Liabilities(1)(2)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Liabilities Presented in Statement of Condition			Gross Amounts of Recognized Liabilities(1)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Liabilities Presented in Statement of Condition
Derivatives:
Foreign exchange contracts	$	20,620	$	(10,615	)	$	10,005		$	10,868	$	(5,896	)	$	4,972
Interest-rate contracts	212		(9		)	203			182		(5		)	177
Other derivative contracts	161		(5		)	156			103		(2		)	101
Cash collateral netting	N/A		(2,661		)	(2,661		)	N/A		(1,118		)	(1,118		)
Total derivatives	$	20,993	$	(13,290	)	$	7,703		$	11,153	$	(7,021	)	$	4,132
Other financial instruments:
Repurchase agreements and securities lending(4)	$	47,234	$	(38,251	)	$	8,983		$	46,766	$	(38,997	)	$	7,769
Total derivatives and other financial instruments	$	68,227	$	(51,541	)	$	16,686		$	57,919	$	(46,018	)	$	11,901

⁽¹⁾ Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.

⁽²⁾ Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which are also carried at fair value. Refer to Note 1 to the consolidated financial statements on pages 129 to 132 in our 2015 Form 10-K for additional information on the measurement basis of these instruments.

⁽³⁾ Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.

⁽⁴⁾ Included in the $8,983 million as of June 30, 2016 were $4,350 million of repurchase agreements and $4,633 million of collateral received related to securities lending. Included in the $7,769 million as of December 31, 2015 were $4,499 million of repurchase agreements and $3,270 million of collateral received related to securities lending. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions.

	June 30, 2016										December 31, 2015
			Gross Amounts Not Offset in Statement of Condition										Gross Amounts Not Offset in Statement of Condition
(In millions)	Net Amount of Liabilities Presented in Statement of Condition		Counterparty Netting			Cash and Securities Provided(1)			Net Amount(2)		Net Amount of Liabilities Presented in Statement of Condition		Counterparty Netting			Collateral Provided(1)			Net Amount(2)
Derivatives	$	7,703	$	—		$	(136	)	$	7,567	$	4,132	$	—		$	(64	)	$	4,068
Repurchase agreements and securities lending	8,983		(108		)	(6,622		)	2,253		7,769		(63		)	(5,287		)	2,419
Total	$	16,686	$	(108	)	$	(6,758	)	$	9,820	$	11,901	$	(63	)	$	(5,351	)	$	6,487

⁽¹⁾ Includes securities provided in connection with our securities lending transactions.

⁽²⁾ Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.

The securities transferred under resale and repurchase agreements typically are U.S. Treasury, agency and agency mortgage-backed securities. In our principal securities borrowing and lending arrangements, the securities transferred in exchange for the collateral are predominantly equity securities and some corporate debt securities. The fair value of the securities transferred may increase in value to an amount greater than the amount received under our repurchase and securities lending arrangements, which exposes the Company with counterparty risk. We require the review of the price of the underlying securities in relation to the carrying value of the repurchase agreements and securities lending arrangements on a daily basis and when appropriate, adjust the cash or security to be obtained or returned to counterparties that is reflective of the required collateral levels.

The following tables summarize our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated:

	Remaining Contractual Maturity of the Agreements
	As of June 30, 2016
(In millions)	Overnight and Continuous		Up to 30 days		30 – 90 days		Total
Repurchase agreements:
U.S. Treasury and agency securities	$	36,692	$	16	$	—	$	36,708
Equity securities	—		—		—		—
Non-U.S. sovereign debt	—		58		—		58
Total	36,692		74		—		36,766
Securities lending transactions:
Corporate debt securities	32		—		—		32
Equity securities	9,339		—		750		10,089
Non-U.S. sovereign debt	347		—		—		347
Total	9,718		—		750		10,468
Gross amount of recognized liabilities for repurchase agreements and securities lending	$	46,410	$	74	$	750	$	47,234

	Remaining Contractual Maturity of the Agreements
	As of December 31, 2015
(In millions)	Overnight and Continuous		Up to 30 days		30 – 90 days		Total
Repurchase agreements:
U.S. Treasury and agency securities	$	37,157	$	5	$	—	$	37,162
Non-U.S. sovereign debt	—		97		—		97
Total	37,157		102		—		37,259
Securities lending transactions:
Corporate debt securities	1		—		—		1
Equity securities	8,502		—		1,002		9,504
Non-U.S. sovereign debt	2		—		—		2
Total	8,505		—		1,002		9,507
Gross amount of recognized liabilities for repurchase agreements and securities lending	$	45,662	$	102	$	1,002	$	46,766

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Commitments and Guarantees

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Guarantees

Commitments and Guarantees

For additional information regarding our commitments and guarantees, refer to Note 12 in the consolidated financial statements on pages 173 to 174 in our 2015 Form 10-K.

Commitments:

We had unfunded off-balance sheet commitments to extend credit generally through lines of credit and short-duration advance facilities totaling $22.60 billion and $22.58 billion as of June 30, 2016 and December 31, 2015, respectively. The maximum possible losses associated with these commitments, excluding the value of any collateral, equal the gross contractual amounts. As of June 30, 2016, approximately 77% of our unfunded commitments to extend credit expire within one year. Since many of these commitments are expected to expire or renew without being drawn upon, the gross contractual amounts do not necessarily represent our future cash requirements.

Guarantees:

Off-balance sheet guarantees comprise indemnified securities financing, stable value protection, asset purchase agreements, and standby letters of credit. The following table, which presents the aggregate gross contractual amounts of our off-balance sheet guarantees as of the dates indicated, does not consider the value of any collateral, which may mitigate any potential loss. Amounts presented do not reflect participations to independent third parties.

(In millions)	June 30, 2016		December 31, 2015
Indemnified securities financing	$	344,257	$	320,436
Stable value protection	26,071		24,583
Asset purchase agreements	4,405		3,990
Standby letters of credit	4,159		4,700

Indemnified Securities Financing

On behalf of our clients, we lend their securities, as agent, to brokers and other institutions. In most circumstances, we indemnify our clients for the fair market value of those securities against a failure of the borrower to return such securities.

The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated:

(In millions)	June 30, 2016		December 31, 2015
Fair value of indemnified securities financing	$	344,257	$	320,436
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing	356,490		335,420
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements	68,524		63,055
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements	72,613		67,016

In certain cases, we participate in securities finance transactions as a principal. As a principal, we borrow securities from the lending client and then lend such securities to the subsequent borrower, either a State Street client or a broker/dealer. Collateral provided and received in connection with such transactions is recorded in other assets and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. As of June 30, 2016 and December 31, 2015, we had approximately $20.08 billion and $20.12 billion, respectively, of collateral provided and approximately $4.63 billion and $3.27 billion, respectively, of collateral received from clients in connection with our participation in principal securities finance transactions.

Stable Value Protection

In the normal course of our business, we offer products that provide book-value protection, primarily to plan participants in stable value funds managed by non-affiliated investment managers of post-retirement defined contribution benefit plans, particularly 401(k) plans. The book-value protection is provided on portfolios of intermediate investment grade fixed-income securities, and is intended to provide safety and stable growth of principal invested. The protection is intended to cover any shortfall in the event that a significant number of plan participants withdraw funds when book value exceeds market value and the liquidation of the assets is not sufficient to redeem the participants. The investment parameters of the underlying portfolios, combined with structural protections, are designed to provide cushion and guard against payments even under extreme stress scenarios.

These contingencies are individually accounted for as derivative financial instruments. The notional amounts of the stable value contracts are presented as “derivatives not designated as hedging instruments” in the table of aggregate notional amounts of derivative financial instruments provided in Note 7. We have not made a payment under these contingencies that we consider material to our consolidated financial condition, and management believes that the probability of payment under these contingencies in the future, that we would consider material to our consolidated financial condition, is remote.

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Contingencies

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

Legal and Regulatory Matters:

In the ordinary course of business, we and our subsidiaries are involved in disputes, litigation, and governmental or regulatory inquiries and investigations, both pending and threatened. These matters, if resolved adversely against us or settled, may result in monetary damages, fines and penalties or require changes in our business practices. The resolution or settlement of these matters is inherently difficult to predict. Based on our assessment of these pending matters, we do not believe that the amount of any judgment, settlement or other action arising from any pending matter is likely to have a material adverse effect on our consolidated financial condition.  However, an adverse outcome in certain of the matters described below could have a material adverse effect on our consolidated results of operations for the period in which such matter is resolved, or an accrual is determined to be required, on our consolidated financial condition, or on our reputation.

We evaluate our needs for accruals of loss contingencies related to legal proceedings on a case-by-case basis. When we have a liability that we deem probable and that we deem can be reasonably estimated as of the date of our consolidated financial statements, we accrue for our estimate of the loss. We also consider a loss probable and establish an accrual when we make, or intend to make, an offer of settlement. Once established, an accrual is subject to subsequent adjustment as a result of additional information. The resolution of proceedings and the reasonably estimable loss (or range thereof) are inherently difficult to predict, especially in the early stages of proceedings. Even if a loss is probable, due to many complex factors, such as speed of discovery and the timing of court decisions or rulings, a loss or range of loss might not be reasonably estimated until the later stages of the proceeding.

As of June 30, 2016, our aggregate accruals for legal loss contingencies and regulatory matters totaled approximately $574 million (excluding the remaining accrual of $283 million in connection with errors in invoicing certain of our Investment Servicing clients). To the extent that we have established accruals in our consolidated statement of condition for probable loss contingencies, such accruals may not be sufficient to cover our ultimate financial exposure associated with any settlements or judgments. We may be subject to proceedings in the future that, if adversely resolved, would have a material adverse effect on our businesses or on our future consolidated financial statements. Except where otherwise noted below, we have not established accruals with respect to the claims discussed and do not believe that potential exposure is probable and can be reasonably estimated.

The following discussion provides information with respect to significant legal and regulatory matters.

Foreign Exchange

We offer our custody clients and their investment managers the option to route foreign exchange transactions to our foreign exchange desk through our asset servicing operation. We record as revenue an amount approximately equal to the difference between the rates we set for those trades and indicative interbank market rates at the time of settlement of the trade.

As discussed more fully below, claims have been asserted on behalf of certain current and former custody clients, and future claims may be asserted, alleging that our indirect foreign exchange rates (including the differences between those rates and indicative interbank market rates at the time we executed the trades) were not adequately disclosed or were otherwise improper, and seeking to recover, among other things, the full amount of the revenue we obtained from our indirect foreign exchange trading with them.

Attorneys general and other government authorities from a number of jurisdictions, as well as U.S. Attorney's offices, the U.S. Department of Labor and the SEC, have requested information or issued subpoenas in connection with inquiries into the pricing of our indirect foreign exchange trading.

In February 2011, a putative class action was filed in federal court in Boston seeking unspecified damages, including treble damages, on behalf of all custodial clients that executed certain foreign exchange transactions with State Street from 1998 to 2009. The putative class action alleges, among other things, that the rates at which State Street executed foreign currency trades constituted an unfair and deceptive practice under Massachusetts law and a breach of the duty of loyalty.

Two other putative class actions are currently pending in federal court in Boston alleging various violations of ERISA on behalf of all ERISA plans custodied with us that executed indirect foreign exchange trades with State Street from 1998 onward. The complaints allege that State Street caused class members to pay unfair and unreasonable rates on indirect foreign exchange trades with State Street. The complaints seek unspecified damages, disgorgement of profits, and other equitable relief. Other claims may be asserted in the future, including in response to developments in the actions discussed above or governmental proceedings.

If these matters were to proceed to trial, we expect that plaintiffs would seek to recover their share of all or a portion of the revenue that we have recorded from indirect foreign exchange trades. We cannot predict whether a court, in the event of an adverse resolution, would consider our revenue to be the appropriate measure of damages.

The following table summarizes our estimated total revenue worldwide from indirect foreign exchange trading for the periods indicated:

(In millions)	Revenue from indirect foreign exchange trading
Twelve Months Ended December 31, 2008	$	462
Twelve Months Ended December 31, 2009	369
Twelve Months Ended December 31, 2010	336
Twelve Months Ended December 31, 2011	331
Twelve Months Ended December 31, 2012	248
Twelve Months Ended December 31, 2013	285
Twelve Months Ended December 31, 2014	246
Twelve Months Ended December 31, 2015	280
Six Months Ended June 30, 2016	136

We believe that the amount of our revenue from such trading has been of a similar or lesser order of magnitude for many years prior to 2008. Our revenue calculations related to indirect foreign exchange trading reflect a judgment concerning the relationship between the rates we charge for indirect foreign exchange execution and indicative interbank market rates near in time to execution. Our revenue from foreign exchange trading generally depends on the difference between the rates we set for those indirect trades and indicative interbank market rates at the time of settlement of the trade.

As of June 30, 2016, we have accrued a total of $565 million associated with our indirect foreign exchange business. On July 26, 2016, we announced that we have negotiated settlement agreements which we expect, subject to final approval, to resolve these matters. Settlements have been reached with the Department of Justice, the Department of Labor and the Massachusetts Attorney General and, subject to court approval, a class of State Street's U.S. custody customers. State Street has also reached an agreement in principle with the Securities and Exchange Commission. Each of these agreements depend upon certification, for settlement purposes, of a class of State Street's U.S. custody customers that executed indirect foreign exchange transactions with State Street between 1998 and 2009, and final approval by the United States District Court for the District of Massachusetts of the settlement agreement between State Street and the class. Although our current legal accrual is sufficient to satisfy our obligations under these settlements if they become final, there can be no assurance that the settlements will become final, that potential participants in the class action will not opt-out and pursue separate claims, or that other, potentially material, claims relating to our indirect foreign exchange business will not be asserted against us in the United States or elsewhere. These settlements or an adverse outcome with respect to one or more other currently unasserted claims, relating to our indirect foreign exchange business could have a material adverse effect on our reputation, and any additional claims not currently asserted could have a material adverse effect on our consolidated results of operations for the period in which the adverse outcome occurs (or an accrual is determined to be required), or on our consolidated financial condition.

Transition Management

In January 2014, we entered into a settlement with the U.K. FCA, pursuant to which we paid a fine of £22.9 million (approximately $37.8 million), as a result of our having charged six clients of our U.K. transition management business during 2010 and 2011 amounts in excess of the contractual terms. The SEC and the U.S. Attorney are conducting separate investigations into this matter. In April 2016, the U.S. Attorney’s office in Boston charged two former employees in our U.K. transition management business with criminal fraud in connection with their alleged role in this matter, and, in May 2016, the SEC commenced a parallel civil enforcement proceeding against one of these employees. We are in discussions with the SEC regarding a possible resolution of this matter with respect to State Street. We do not know at this time what actions the U.S. Attorney may take with respect to State Street. Any action by the SEC or U.S. Attorney with respect to State Street could include civil or criminal proceedings and could involve significant fines or other sanctions, any of which could have a material adverse effect on our reputation or on client demand for our products and services. As of June 30, 2016, we had remaining accruals of approximately $2.0 million for indemnification costs associated with this matter.

Federal Reserve/Massachusetts Division of Banks Written Agreement

On June 1, 2015, we entered into a written agreement with the Federal Reserve and the Massachusetts Division of Banks relating to deficiencies identified in its compliance programs with the requirements of the Bank Secrecy Act, AML regulations and U.S. economic sanctions regulations promulgated by OFAC. As part of this enforcement action, State Street is required to, among other things, implement improvements to our compliance programs and to retain an independent firm to conduct a review of account and transaction activity covering a prior three-month period to evaluate whether any suspicious activity not previously reported should have been identified and reported in accordance with applicable regulatory requirements. If deficiencies in our historical reporting are identified as a result of the transaction review or if we fail to comply with the terms of the written agreement, we may become subject to fines and other regulatory sanctions, which may have a material adverse effect on us.

Invoicing Matter

In December 2015, we announced a review of the manner in which we invoiced certain expenses to certain of our Investment Servicing clients, primarily in the United States, during an 18-year period going back to 1998 and our determination that we had incorrectly invoiced clients for certain expenses. We have informed our clients that we will pay to them the expenses we concluded were incorrectly invoiced to them, plus interest. As of June 30, 2016, we had identified approximately $283 million (excluding interest), of such expenses and we have begun to reimburse affected clients. In conjunction with that review, we are evaluating other aspects of invoicing relating to billing our Investment Servicing clients, including calculation of asset-based fees. We are in communication with certain governmental authorities about these matters, including the Department of Justice, the SEC, the Department of Labor and the Massachusetts Attorney General. In April 2016, the Massachusetts Secretary of State commenced an administrative enforcement proceeding against State Street Global Markets, LLC, alleging that our allegedly unethical behavior concerning expense invoices caused State Street Global Markets, LLC to violate state law governing the securities industry by virtue of our alleged control of State Street Global Markets, LLC. The complaint seeks to impose a censure, a fine and to provide for reimbursement or other relief. It is possible that we may be required to reimburse clients for additional amounts, clients or governmental authorities may assert other theories of liability, or we may become subject to other regulatory proceedings and litigation in connection with these matters, any of which could have a material adverse effect on our reputation or business, including on client demand for our products and services.

Income Taxes:

In determining our provision for income taxes, we make certain judgments and interpretations with respect to tax laws in jurisdictions in which we have business operations. Because of the complex nature of these laws, in the normal course of our business, we are subject to challenges from U.S. and non-U.S. income tax authorities regarding the amount of income taxes due. These challenges may result in adjustments to the timing or amount of taxable income or deductions or the allocation of taxable income among tax jurisdictions. We recognize a tax benefit when it is more likely than not that our position will result in a tax deduction or credit. Unrecognized tax benefits have increased from approximately $63 million as of December 31, 2015 to $66 million as of June 30, 2016.

We are presently under audit by a number of tax authorities and the Internal Revenue Service is currently reviewing our U.S. income tax returns for the tax years 2012 and 2013. The earliest tax year open to examination in jurisdictions where we have material operations is 2009. Management believes that we have sufficiently accrued liabilities as of June 30, 2016 for tax exposures.

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Variable Interest Entities

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

Variable Interest Entities

For additional information on our VIEs, refer to Note 14 to the consolidated financial statements on pages 176 to 177 in our 2015 Form 10-K.

Tax-Exempt Investment Program:

In the normal course of our business, we structure and sell certificated interests in pools of tax-exempt investment-grade assets, principally to our mutual fund clients. We structure these pools as partnership trusts, and the assets and liabilities of the trusts are recorded in our consolidated statement of condition as AFS investment securities and other short-term borrowings. As of June 30, 2016 and December 31, 2015, we carried AFS investment securities, composed of securities related to state and political subdivisions, with a fair value of $2.03 billion and $2.10 billion, respectively, and other short-term borrowings of $1.67 billion and $1.75 billion, respectively, in our consolidated statement of condition in connection with these trusts. The interest revenue and interest expense generated by the investments and certificated interests, respectively, are recorded as components of net interest revenue when earned or incurred.

The trusts had a weighted-average life of approximately 5.1 years as of June 30, 2016, compared to approximately 5.4 years as of December 31, 2015.

Under separate legal agreements, we provide standby bond-purchase agreements to these trusts and, with respect to certain securities, letters of credit. Our commitments to the trusts under these standby bond-purchase agreements and letters of credit totaled $1.68 billion and $546 million, respectively. As of June 30, 2016, none of the standby bond-purchase agreements were utilized.

Interests in Sponsored Investment Funds:

As of June 30, 2016, the aggregate assets and liabilities of our consolidated sponsored investment funds totaled $268 million and $183 million, respectively. As of December 31, 2015, the aggregate assets and liabilities of our consolidated sponsored investment funds totaled $321 million and $228 million, respectively.

As of June 30, 2016, our potential maximum total exposure associated with the consolidated sponsored investment funds totaled $54 million and represented the value of our economic ownership interest in the fund.

As of June 30, 2016 and December 31, 2015, we managed certain sponsored investment funds, considered VIEs, in which we held a variable interest but for which we were not deemed to be the primary beneficiary. Our potential maximum loss exposure related to these unconsolidated funds totaled $128 million and $75 million as of June 30, 2016 and December 31, 2015, respectively, and represented the carrying value of our seed capital investment, which is recorded in either AFS investment securities or other assets in our consolidated statement of condition. The amount of loss we may recognize during any period is limited to the carrying amount of our seed capital investment in the unconsolidated fund.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Stockholders' Equity

Shareholders' Equity

Preferred Stock:

In April 2016, we issued 20 milliondepositary shares, each representing1/4,000thownership interest in shares of State Street's fixed-to-floating rate non-cumulative perpetual preferred stock, Series G, without par value per share, with a liquidation preference of$100,000per share (equivalent to $25per depositary share), in a public offering.

The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of June 30, 2016:

	Issuance Date	Depositary Shares Issued	Ownership Interest per Depositary Share	Liquidation Preference Per Share		Liquidation Preference Per Depositary Share		Net Proceeds of Offering (in millions)		Redemption Date(1)
Preferred Stock:(2)
Series C	August 2012	20,000,000	1/4,000th	$	100,000	$	25	$	488	September 15, 2017
Series D	February 2014	30,000,000	1/4,000th	100,000		25		742		March 15, 2024
Series E	November 2014	30,000,000	1/4,000th	100,000		25		728		December 15, 2019
Series F	May 2015	750,000	1/100th	100,000		1,000		742		September 15, 2020
Series G	April 2016	20,000,000	1/4,000th	100,000		25		493		March 15, 2026

⁽¹⁾ On the redemption date, or any dividend declaration date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

⁽²⁾ The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

The following tables present the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated:

	Three Months Ended June 30,
	2016						2015
	Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)(1)		Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)
Preferred Stock:
Series C	$	1,313	$	0.33	$	6	$	1,313	$	0.33	$	7
Series D	1,475		0.37		11		1,475		0.37		11
Series E	1,500		0.38		11		1,500		0.38		11
Series F	—		—		—		—		—		—
Series G	951		0.24		5		—		—		—
Total					$	33					$	29
	Six Months Ended June 30,
	2016						2015
	Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)		Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)
Preferred Stock:
Series C	$	2,626	$	0.66	$	13	$	2,626	$	0.66	$	13
Series D	2,950		0.74		22		2,950		0.74		22
Series E	3,000		0.76		22		3,333		0.84		25
Series F	2,625		26.25		20		—		—		—
Series G	951		0.24		5		—		—		—
Total					$	82					$	60

⁽¹⁾ Dividends were paid in June 2016.

Common Stock:

In June 2016, our Board approved a common stock purchase program authorizing the purchase of up to $1.4 billionof our common stock through June 30, 2017. No shares were purchased by us under this program in thequarter ended June 30, 2016.

In March 2015, our Board approved a common stock purchase program authorizing the purchase of up to$1.8 billion of our common stock through June 30, 2016(the 2015 Program). The table below presents the activity under the 2015 Program during the periods indicated.

	Three Months Ended June 30, 2016					Six Months Ended June 30, 2016
	Shares Purchased (in millions)	Average Cost per Share		Total Purchased (in millions)		Shares Purchased (in millions)	Average Cost per Share		Total Purchased (in millions)
2015 Program	6.5	$	59.66	$	390	12.1	$	58.83	$	715

The table below presents the dividends declared on common stock for the periods indicated:

	Three Months Ended June 30,								Six Months Ended June 30,
	Dividends Declared per Share		Total (in millions)		Dividends Declared per Share		Total (in millions)		Dividends Declared per Share		Total (in millions)		Dividends Declared per Share		Total (in millions)
	2016				2015				2016				2015
Common Stock	$	0.34	$	133	$	0.34	$	139	$	0.68	$	268	$	0.64	$	262

Accumulated Other Comprehensive Income (Loss):

The following table presents the after-tax components of AOCI as of the dates indicated:

(In millions)	June 30, 2016			December 31, 2015
Net unrealized gains on cash flow hedges	$	119		$	293
Net unrealized gains (losses) on available-for-sale securities portfolio	550			9
Net unrealized gains (losses) related to reclassified available-for-sale securities	(23		)	(28		)
Net unrealized gains (losses) on available-for-sale securities	527			(19		)
Net unrealized losses on available-for-sale securities designated in fair value hedges	(131		)	(109		)
Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries	37			(14		)
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(13		)	(16		)
Net unrealized losses on retirement plans	(185		)	(183		)
Foreign currency translation	(1,351		)	(1,394		)
Total	$	(997	)	$	(1,442	)

The following tables present changes in AOCI by component, net of related taxes, for the periods indicated:

	Six Months Ended June 30, 2016
(In millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Available-for-Sale Securities			Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries			Other-Than-Temporary Impairment on Held-to-Maturity Securities			Net Unrealized Losses on Retirement Plans			Foreign Currency Translation			Total
Balance as of December 31, 2015	$	293		$	(128	)	$	(14	)	$	(16	)	$	(183	)	$	(1,394	)	$	(1,442	)
Other comprehensive income (loss) before reclassifications	(174		)	522			51			4			(4		)	43			442
Amounts reclassified into (out of) earnings	—			2			—			(1		)	2			—			3
Other comprehensive income (loss)	(174		)	524			51			3			(2		)	43			445
Balance as of June 30, 2016	$	119		$	396		$	37		$	(13	)	$	(185	)	$	(1,351	)	$	(997	)

	Six Months Ended June 30, 2015
(In millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available-for-Sale Securities			Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries			Other-Than-Temporary Impairment on Held-to-Maturity Securities			Net Unrealized Losses on Retirement Plans			Foreign Currency Translation			Total
Balance as of December 31, 2014	$	276	$	192		$	(14	)	$	(29	)	$	(272	)	$	(660	)	$	(507	)
Other comprehensive income (loss) before reclassifications	19		(134		)	—			8			—			(410		)	(517		)
Amounts reclassified into (out of) earnings	1		(2		)	—			(1		)	15			—			13
Other comprehensive income (loss)	20		(136		)	—			7			15			(410		)	(504		)
Balance as of June 30, 2015	$	296	$	56		$	(14	)	$	(22	)	$	(257	)	$	(1,070	)	$	(1,011	)

The following tables present after-tax reclassifications into (out of) earnings for the periods indicated:

	Three Months Ended June 30,
	2016			2015
(In millions)	Amounts Reclassified into (out of) Earnings						Affected Line Item in Consolidated Statement of Income
Available-for-sale securities:
Net realized gains from sales of available-for-sale securities, net of related taxes of $0 and ($1), respectively	$	(1	)	$	(2	)	Net gains (losses) from sales of available-for-sale securities
Held-to-maturity securities:
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(1		)	—			Losses reclassified (from) to other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of ($1) and $8, respectively	1			10			Compensation and employee benefits expenses
Total reclassifications in to (out of) AOCI	$	(1	)	$	8

	Six Months Ended June 30,
	2016			2015
(In millions)	Amounts Reclassified into (out of) Earnings						Affected Line Item in Consolidated Statement of Income
Cash flow hedges:
Interest-rate contracts, net of related taxes of $0 and ($1), respectively	$	—		$	1		Net interest revenue
Available-for-sale securities:
Net realized gains from sales of available-for-sale securities, net of related taxes of ($1) and ($1), respectively	2			(2		)	Net gains (losses) from sales of available-for-sale securities
Held-to-maturity securities:
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(1		)	(1		)	Losses reclassified (from) to other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of ($3) and $1, respectively	2			15			Compensation and employee benefits expenses
Total reclassifications into AOCI	$	3		$	13

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Regulatory Capital

6 Months Ended

Jun. 30, 2016

Banking and Thrift [Abstract]

Regulatory Capital

Regulatory Capital

We are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum regulatory capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial condition. Under current regulatory capital adequacy guidelines, we must meet specified capital requirements that involve quantitative measures of our consolidated assets, liabilities and off-balance sheet exposures calculated in conformity with regulatory accounting practices. Our capital components and their classifications are subject to qualitative judgments by regulators about components, risk weightings and other factors. For additional information on regulatory capital, and the requirements to which we are subject, refer to Note 16 to the consolidated financial statements on pages 180 and 181 in our 2015 Form 10-K.

As required by the Dodd-Frank Act, State Street and State Street Bank, as advanced approaches banking organizations, are subject to a permanent "capital floor" in the calculation and assessment of their regulatory capital adequacy by U.S. banking regulators. Beginning on January 1, 2015, we were required to calculate our risk-based capital ratios using both the advanced approaches and the standardized approach. As a result, from January 1, 2015 going forward, our risk-based capital ratios for regulatory assessment purposes are the lower of each ratio calculated under the standardized approach and the advanced approaches.

The methods for the calculation of our and State Street Bank's risk-based capital ratios will change as the provisions of the Basel III final rule related to the numerator (capital) and denominator (risk-weighted assets) are phased in, and as we begin calculating our risk-weighted assets using the advanced approaches. These ongoing methodological changes will result in differences in our reported capital ratios from one reporting period to the next that are independent of applicable changes to our capital base, our asset composition, our off-balance sheet exposures or our risk profile.

As of June 30, 2016, State Street and State Street Bank exceeded all regulatory capital adequacy requirements to which they were subject. As of June 30, 2016, State Street Bank was categorized as “well capitalized” under the applicable regulatory capital adequacy framework, and exceeded all “well capitalized” ratio guidelines to which it was subject. Management believes that no conditions or events have occurred since June 30, 2016 that have changed the capital categorization of State Street Bank.

The following table presents the regulatory capital structure, total risk-weighted assets, related regulatory capital ratios and the minimum required regulatory capital ratios for State Street and State Street Bank as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III final rule are phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table.

					State Street												State Street Bank
(Dollars in millions)					Basel III Advanced Approaches June 30, 2016(1)			Basel III Standardized Approach June 30, 2016(2)			Basel III Advanced Approaches December 31, 2015(1)			Basel III Standardized Approach December 31, 2015(2)			Basel III Advanced Approaches June 30, 2016(1)			Basel III Standardized Approach June 30, 2016(2)			Basel III Advanced Approaches December 31, 2015(1)			Basel III Standardized Approach December 31, 2015(2)
Common shareholders' equity:
Common stock and related surplus					$	10,271		$	10,271		$	10,250		$	10,250		$	10,941		$	10,941		$	10,938		$	10,938
Retained earnings					16,686			16,686			16,049			16,049			11,638			11,638			10,655			10,655
Accumulated other comprehensive income (loss)					(1,124		)	(1,124		)	(1,422		)	(1,422		)	(907		)	(907		)	(1,230		)	(1,230		)
Treasury stock, at cost					(7,083		)	(7,083		)	(6,457		)	(6,457		)	—			—			—			—
Total					18,750			18,750			18,420			18,420			21,672			21,672			20,363			20,363
Regulatory capital adjustments:
Goodwill and other intangible assets, net of associated deferred tax liabilities(3)					(6,144		)	(6,144		)	(5,927		)	(5,927		)	(5,844		)	(5,844		)	(5,631		)	(5,631		)
Other adjustments					(88		)	(88		)	(60		)	(60		)	(86		)	(86		)	(85		)	(85		)
Common equity tier 1 capital					12,518			12,518			12,433			12,433			15,742			15,742			14,647			14,647
Preferred stock					3,196			3,196			2,703			2,703			—			—			—			—
Trust preferred capital securities subject to phase-out from tier 1 capital					—			—			237			237			—			—			—			—
Other adjustments					(72		)	(72		)	(109		)	(109		)	—			—			—			—
Tier 1 capital					15,642			15,642			15,264			15,264			15,742			15,742			14,647			14,647
Qualifying subordinated long-term debt					1,259			1,259			1,358			1,358			1,270			1,270			1,371			1,371
Trust preferred capital securities phased out of tier 1 capital					890			890			713			713			—			—			—			—
ALLL and other					3			78			12			66			—			78			8			66
Other adjustments					—			—			2			2			—			—			—			—
Total capital					$	17,794		$	17,869		$	17,349		$	17,403		$	17,012		$	17,090		$	16,026		$	16,084
Risk-weighted assets:
Credit risk					$	55,748		$	102,932		$	51,733		$	93,515		$	51,328		$	98,387		$	47,677		$	89,164
Operational risk					44,436			NA			43,882			NA			43,899			NA			43,324			NA
Market risk(4)					3,828			1,560			3,937			2,378			3,831			1,560			3,939			2,378
Total risk-weighted assets					$	104,012		$	104,492		$	99,552		$	95,893		$	99,058		$	99,947		$	94,940		$	91,542
Adjusted quarterly average assets					$	222,666		$	222,666		$	221,880		$	221,880		$	218,363		$	218,363		$	217,358		$	217,358
Capital Ratios:	2016 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge(5)		2015 Minimum Requirements(6)
Common equity tier 1 capital	5.5	%	4.5	%	12.0		%	12.0		%	12.5		%	13.0		%	15.9		%	15.8		%	15.4		%	16.0		%
Tier 1 capital	7.0		6.0		15.0			15.0			15.3			15.9			15.9			15.8			15.4			16.0
Total capital	9.0		8.0		17.1			17.1			17.4			18.1			17.2			17.1			16.9			17.6
Tier 1 leverage	4.0		4.0		7.0			7.0			6.9			6.9			7.2			7.2			6.7			6.7

NA: Not applicable.

⁽¹⁾ Common equity tier 1 capital, tier 1 capital and total capital ratios as of June 30, 2016 and December 31, 2015 were calculated in conformity with the advanced approaches provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2016 and December 31, 2015 were calculated in conformity with the Basel III final rule.

⁽²⁾ Common equity tier 1 capital, tier 1 capital and total capital ratios as of June 30, 2016 and and December 31, 2015 were calculated in conformity with the standardized approach provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2016 and December 31, 2015 were calculated in conformity with the Basel III final rule.

⁽³⁾ Amounts for State Street and State Street Bank as of June 30, 2016 consisted of goodwill, net of associated deferred tax liabilities, and 60% of other intangible assets, net of associated deferred tax liabilities. Amounts for State Street and State Street Bank as of December 31, 2015 consisted of goodwill, net of deferred tax liabilities and 40% of other intangible assets, net of associated deferred tax liabilities. Intangible assets, net of associated deferred tax liabilities is phased in as a deduction from capital, in conformity with the Basel III final rule.

⁽⁴⁾ Market risk risk-weighted assets reported in conformity with the Basel III advanced approaches included a CVA which reflected the risk of potential fair-value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts.  The CVA was not provided for in the final market risk capital rule; however, it was required by the advanced approaches provisions of the Basel III final rule.  State Street used the simple CVA approach in conformity with the Basel III advanced approaches.

⁽⁵⁾ Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of June 30, 2016.

⁽⁶⁾ Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2015.

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Net Interest Revenue

6 Months Ended

Jun. 30, 2016

Banking and Thrift [Abstract]

Net Interest Revenue

Net Interest Revenue

The following table presents the components of interest revenue and interest expense, and related net interest revenue, for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2016		2015		2016		2015
Interest revenue:
Deposits with banks	$	30	$	54	$	73	$	108
Investment securities:
U.S. Treasury and federal agencies	209		176		420		359
State and political subdivisions	54		58		108		116
Other investments	189		247		371		506
Securities purchased under resale agreements	35		15		71		26
Loans and leases	93		77		184		151
Other interest-earning assets	10		2		22		5
Total interest revenue	620		629		1,249		1,271
Interest expense:
Deposits	16		14		54		40
Securities sold under resale agreements	—		—		1		—
Short-term borrowings	2		3		2		3
Long-term debt	62		61		122		123
Other interest-bearing liabilities	19		16		37		24
Total interest expense	99		94		216		190
Net interest revenue	$	521	$	535	$	1,033	$	1,081

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Expenses

6 Months Ended

Jun. 30, 2016

Other Expenses [Abstract]

Expenses

Expenses

The following table presents the components of other expenses for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2016		2015		2016		2015
Insurance	$	21	$	28	$	44	$	65
Regulatory fees and assessments	18		25		38		58
Securities processing	6		14		10		34
Litigation	—		253		—		403
Other	93		83		158		144
Total other expenses	$	138	$	403	$	250	$	704

Restructuring Charges

We expect to incur aggregate pre-tax restructuring charges of approximately $300 million to $400 million beginning in 2016 through December 31, 2020 to implement State Street Beacon, our previously announced multi-year transformation program to fully digitize our business to support the development of new solutions and capabilities for our clients and to create cost efficiencies. We estimate those charges will include approximately $250 million to $300 million in severance and benefits costs associated with targeted staff reductions (a substantial portion of which will result in future cash expenditures) and approximately $50 million to $100 million in information technology application rationalization and real estate actions.

In the second quarter and six months ended June 30, 2016, we recorded net restructuring charges of $13 million and $110 million, respectively, due to State Street Beacon.

The following table presents aggregate restructuring activity for the periods indicated.

(In millions)	Employee Related Costs			Real Estate Consolidation			Asset and Other Write-Offs			Total
Balance at December 31, 2015	$	9		$	11		$	3		$	23
Accruals for State Street Beacon	86			—			11			97
Payments and Other Adjustments	(4		)	(1		)	(7		)	(12		)
Balance at March 31, 2016	91			10			7			108
Accruals for State Street Beacon	(1		)	15			(1		)	13
Payments and Other Adjustments	(35		)	(3		)	(1		)	(39		)
Balance at June 30, 2016	$	55		$	22		$	5		$	82

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Earnings Per Common Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

Basic EPS is calculated pursuant to the “two-class” method, by dividing net income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted EPS is calculated pursuant to the two-class method, by dividing net income available to common shareholders by the total weighted-average number of common shares outstanding for the period plus the shares representing the dilutive effect of common stock options and other equity-based awards. The effect of common stock options and other equity-based awards is excluded from the calculation of diluted EPS in periods in which their effect would be anti-dilutive.

The two-class method requires the allocation of undistributed net income between common and participating shareholders. Net income available to common shareholders, presented separately in our consolidated statement of income, is the basis for the calculation of both basic and diluted EPS. Participating securities are composed of unvested restricted stock and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings.

The following table presents the computation of basic and diluted earnings per common share for the periods indicated:

	Three Months Ended June 30,
(Dollars in millions, except per share amounts)	2016			2015
Net income	$	619		$	418
Less:
Preferred stock dividends	(33		)	(29		)
Dividends and undistributed earnings allocated to participating securities(1)	(1		)	—
Net income available to common shareholders	$	585		$	389
Average common shares outstanding (in thousands):
Basic average common shares	394,160			410,674
Effect of dilutive securities: common stock options and common stock awards	4,687			6,038
Diluted average common shares	398,847			416,712
Anti-dilutive securities(2)	3,277			619
Earnings per Common Share:
Basic	$	1.48		$	0.95
Diluted(3)	1.47			0.93
	Six Months Ended June 30,
(Dollars in millions, except per share amounts)	2016			2015
Net income	$	987		$	823
Less:
Preferred stock dividends	(82		)	(60		)
Dividends and undistributed earnings allocated to participating securities(1)	(1		)	(1		)
Net income available to common shareholders	$	904		$	762
Average common shares outstanding (in thousands):
Basic average common shares	396,790			411,445
Effect of dilutive securities: common stock options and common stock awards	4,323			6,198
Diluted average common shares	401,113			417,643
Anti-dilutive securities(2)	3,426			704
Earnings per Common Share:
Basic	$	2.28		$	1.85
Diluted(3)	2.25			1.83

⁽¹⁾ Represents the portion of net income available to common equity allocated to participating securities, composed of fully vested deferred director stock and unvested restricted stock that contain non-forfeitable rights to dividends during the vesting period on a basis equivalent to dividends paid to common shareholders.

⁽²⁾ Represents common stock options and other equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive.

⁽³⁾ Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method.

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Line of Business Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Line of Business Information

Line of Business Information

Our operations are organized for management reporting purposes into two lines of business: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry. For information about our two lines of business, as well as revenues, expenses and capital allocation methodologies associated with them, refer to Note 24 to the consolidated financial statements on pages 188 to 189 in our 2015 Form 10-K.

The following is a summary of our line-of-business results for the periods indicated. The “Other” column represents costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies.

	Three Months Ended June 30,
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions, except where otherwise noted)	2016			2015			2016			2015			2016			2015			2016			2015
Servicing fees	$	1,239		$	1,319		$	—		$	—		$	—		$	—		$	1,239		$	1,319
Management fees	—			—			293			304			—			—			293			304
Trading services	255			271			12			10			—			—			267			281
Securities finance	156			155			—			—			—			—			156			155
Processing fees and other	102			22			(4		)	(5		)	—			—			98			17
Total fee revenue	1,752			1,767			301			309			—			—			2,053			2,076
Net interest revenue	520			534			1			1			—			—			521			535
Gains (losses) related to investment securities, net	(1		)	(3		)	—			—			—			—			(1		)	(3		)
Total revenue	2,271			2,298			302			310			—			—			2,573			2,608
Provision for loan losses	4			2			—			—			—			—			4			2
Total expenses	1,599			1,880			244			251			17			3			1,860			2,134
Income before income tax expense	$	668		$	416		$	58		$	59		$	(17	)	$	(3	)	$	709		$	472
Pre-tax margin	29		%	18		%	19		%	19		%							28		%	18		%
	Six Months Ended June 30,
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions, except where otherwise noted)	2016			2015			2016			2015			2016			2015			2016			2015
Servicing fees	$	2,481		$	2,587		$	—		$	—		$	—		$	—		$	2,481		$	2,587
Management fees	—			—			563			605			—			—			563			605
Trading services	517			586			22			19			—			—			539			605
Securities finance	290			256			—			—			—			—			290			256
Processing fees and other	147			81			3			(3		)	—			—			150			78
Total fee revenue	3,435			3,510			588			621			—			—			4,023			4,131
Net interest revenue	1,032			1,079			1			2			—			—			1,033			1,081
Gains (losses) related to investment securities, net	1			(4		)	—			—			—			—			1			(4		)
Total revenue	4,468			4,585			589			623			—			—			5,057			5,208
Provision for loan losses	8			6			—			—			—			—			8			6
Total expenses	3,286			3,716			500			507			124			8			3,910			4,231
Income before income tax expense	$	1,174		$	863		$	89		$	116		$	(124	)	$	(8	)	$	1,139		$	971
Pre-tax margin	26		%	19		%	15		%	19		%							23		%	19		%

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Non-U.S. Activities

6 Months Ended

Jun. 30, 2016

Segments, Geographical Areas [Abstract]

Non-U.S. Activities

Non-U.S. Activities

We define our non-U.S. activities as those revenue-producing business activities that arise from clients which are generally serviced or managed outside the U.S. Due to the integrated nature of our business, precise segregation of our U.S. and non-U.S. activities is not possible. Subjective estimates, assumptions and other judgments are applied to quantify the financial results and assets related to our non-U.S. activities, including our application of funds transfer pricing, our asset-and-liability management policies and our allocation of certain indirect corporate expenses. Management periodically reviews and updates its processes for quantifying the financial results and assets related to our non-U.S. activities.

The following table presents our U.S. and non-U.S. financial results for the periods indicated:

	Three Months Ended June 30, 2016						Three Months Ended June 30, 2015
(In millions)	Non-U.S.		U.S.		Total		Non-U.S.		U.S.		Total
Total revenue	$	1,136	$	1,437	$	2,573	$	1,150	$	1,458	$	2,608
Income before income taxes	344		365		709		351		121		472
	Six Months Ended June 30, 2016						Six Months Ended June 30, 2015
(In millions)	Non-U.S.		U.S.		Total		Non-U.S.		U.S.		Total
Total revenue	$	2,161	$	2,896	$	5,057	$	2,297	$	2,911	$	5,208
Income before income taxes	521		618		1,139		693		278		971

Non-U.S. assets were $84.6 billion and $72.5 billion as of June 30, 2016 and 2015, respectively.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation:

The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the parent company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary is State Street Bank.

The accompanying Consolidated Financial Statements should be read in conjunction with the financial and risk factor information included in our 2015 Form 10-K, which we previously filed with the SEC.

Consolidation

The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC.

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue, and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. These accounting estimates reflect the best judgment of management, but actual results could differ.

Our consolidated statement of condition as of December 31, 2015 included in the accompanying consolidated financial statements was derived from the audited financial statements as of that date, but does not include all notes required by U.S. GAAP for a complete set of consolidated financial statements.

Recent Accounting Developments

Recent Accounting Developments:

Relevant standards that were recently issued but not yet adopted
Standard	Description	Date of Adoption	Effects on the financial statements or other significant matters
ASU 2014-09, Revenue from Contracts with Customers (Topic 606)	The standard, and its related amendments, will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements with customers. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date.	January 1, 2018	We are currently assessing the impact of the standard and its amendments on our consolidated financial statements and evaluating the alternative methods of adoption.
ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities	The standard makes limited amendments to the guidance on the classification and measurement of financial instruments. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting. In addition, the FASB clarified the guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. This standard must be applied on a retrospective basis.	January 1, 2018	We are currently assessing the impact of the standard on our consolidated financial statements.
ASU 2016-02, Leases (Topic 842)	The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities.	January 1, 2019	We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, as well as additional disclosure on our leases.
ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the Emerging Issues Task Force)	The standard clarifies that a change in the counterparty to a derivative instrument that is designated as a hedging instrument would result in dedesignation of the hedging relationship. This may be applied on a prospective or modified retrospective basis.	January 1, 2017	Our adoption of the standard will not have a material impact on our consolidated financial statements.
ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting	The standard simplifies the guidance related to stock compensation, including the accounting for income taxes by eliminating the windfall pool and requiring recognition of all excess tax benefits and deficiencies within the statement of income, as well as changes in the accounting for forfeitures, classification in the statement of cash flows and tax withholding requirements.	January 1, 2017	We anticipate increased income statement volatility due to the recognition of all excess tax benefits and deficiencies within the statement of income. We do not anticipate early adoption of this standard.
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	The standard requires all expected credit losses for financial assets held at the reporting date to be measured based on historical experience, current conditions, and reasonable supportable forecasts. The standard will utilize forward-looking information to determine credit loss estimates. It will require immediate recognition of the full amount of credit losses that are expected for certain financial assets.	January 1, 2020	We are currently assessing the impact of the standard on our consolidated financial statements.

Relevant standards that were adopted during the six months ended June 30, 2016:

We adopted ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, effective January 1, 2016. The implementation of the new standard did not result in any changes to our previous consolidation conclusions.

We adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, effective January 1, 2016 with retrospective application for all prior periods presented. The implementation of this standard resulted in debt issuance costs of $41 million and $37 million as of June 30, 2016 and December 31, 2015, respectively, being netted against long-term debt in our consolidated statement of condition.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Recent Accounting Developments

Relevant standards that were recently issued but not yet adopted
Standard	Description	Date of Adoption	Effects on the financial statements or other significant matters
ASU 2014-09, Revenue from Contracts with Customers (Topic 606)	The standard, and its related amendments, will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements with customers. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date.	January 1, 2018	We are currently assessing the impact of the standard and its amendments on our consolidated financial statements and evaluating the alternative methods of adoption.
ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities	The standard makes limited amendments to the guidance on the classification and measurement of financial instruments. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting. In addition, the FASB clarified the guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. This standard must be applied on a retrospective basis.	January 1, 2018	We are currently assessing the impact of the standard on our consolidated financial statements.
ASU 2016-02, Leases (Topic 842)	The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities.	January 1, 2019	We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, as well as additional disclosure on our leases.
ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the Emerging Issues Task Force)	The standard clarifies that a change in the counterparty to a derivative instrument that is designated as a hedging instrument would result in dedesignation of the hedging relationship. This may be applied on a prospective or modified retrospective basis.	January 1, 2017	Our adoption of the standard will not have a material impact on our consolidated financial statements.
ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting	The standard simplifies the guidance related to stock compensation, including the accounting for income taxes by eliminating the windfall pool and requiring recognition of all excess tax benefits and deficiencies within the statement of income, as well as changes in the accounting for forfeitures, classification in the statement of cash flows and tax withholding requirements.	January 1, 2017	We anticipate increased income statement volatility due to the recognition of all excess tax benefits and deficiencies within the statement of income. We do not anticipate early adoption of this standard.
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	The standard requires all expected credit losses for financial assets held at the reporting date to be measured based on historical experience, current conditions, and reasonable supportable forecasts. The standard will utilize forward-looking information to determine credit loss estimates. It will require immediate recognition of the full amount of credit losses that are expected for certain financial assets.	January 1, 2020	We are currently assessing the impact of the standard on our consolidated financial statements.

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Fair Value (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated. No transfers of financial assets or liabilities between levels 1 and 2 occurred in the six months ended June 30, 2016 or the year ended December 31, 2015.

	Fair-Value Measurements on a Recurring Basis
	as of June 30, 2016
(In millions)	Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)		Impact of Netting(1)			Total Net Carrying Value in Consolidated Statement of Condition
Assets:
Trading account assets:
U.S. government securities	$	44	$	—	$	—				$	44
Non-U.S. government securities	436		—		—					436
Other	17		393		—					410
Total trading account assets	497		393		—					890
AFS Investment securities:
U.S. Treasury and federal agencies:
Direct obligations	5,857		475		—					6,332
Mortgage-backed securities	—		19,050		25					19,075
Asset-backed securities:
Student loans	—		6,764		190					6,954
Credit cards	—		1,380		—					1,380
Sub-prime	—		369		—					369
Other(2)	—		—		1,710					1,710
Total asset-backed securities	—		8,513		1,900					10,413
Non-U.S. debt securities:
Mortgage-backed securities	—		7,268		—					7,268
Asset-backed securities	—		2,557		111					2,668
Government securities	—		5,405		—					5,405
Other(3)	—		5,113		261					5,374
Total non-U.S. debt securities	—		20,343		372					20,715
State and political subdivisions	—		10,570		33					10,603
Collateralized mortgage obligations	—		2,673		68					2,741
Other U.S. debt securities	—		2,390		—					2,390
U.S. equity securities	—		41		—					41
Non-U.S. equity securities	—		3		—					3
U.S. money-market mutual funds	—		405		—					405
Non-U.S. money-market mutual funds	—		17		—					17
Total investment securities available-for-sale	5,857		64,480		2,398					72,735
Other assets:
Derivative instruments:
Foreign exchange contracts	—		20,868		—		$	(12,130	)	8,738
Interest-rate contracts	—		507		—		(461		)	46
Other derivative contracts	—		5		—		(5		)	—
Total derivative instruments	—		21,380		—		(12,596		)	8,784
Other	347		—		—					347
Total assets carried at fair value	$	6,701	$	86,253	$	2,398	$	(12,596	)	$	82,756
Liabilities:
Accrued expenses and other liabilities:
Trading account liabilities:
U.S. government securities	$	16	$	—	$	—	$	—		$	16
Non-U.S. government securities	59		—		—		—			59
Other	5		6		—		—			11
Derivative instruments:
Foreign exchange contracts	—		20,620		—		(13,238		)	7,382
Interest-rate contracts	—		212		—		(47		)	165
Other derivative contracts	—		161		—		(5		)	156
Total derivative instruments	—		20,993		—		(13,290		)	7,703
Other	347		—		—		—			347
Total liabilities carried at fair value	$	427	$	20,999	$	—	$	(13,290	)	$	8,136

⁽¹⁾ Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $1.97 billion and $2.66 billion, respectively, for cash collateral received from and provided to derivative counterparties.

⁽²⁾ As of June 30, 2016, the fair value of other asset-backed securities was primarily composed of $1.71 billion of collateralized loan obligations.

⁽³⁾ As of June 30, 2016, the fair value of other non-U.S. debt securities was primarily composed of $3.40 billion of covered bonds and $970 million of corporate bonds.

	Fair-Value Measurements on a Recurring Basis
	as of December 31, 2015
(In millions)	Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)		Impact of Netting(1)			Total Net Carrying Value in Consolidated Statement of Condition
Assets:
Trading account assets:
U.S. government securities	$	32	$	—	$	—				$	32
Non-U.S. government securities	479		—		—					479
Other	10		328		—					338
Total trading account assets	521		328		—					849
AFS Investment securities:
U.S. Treasury and federal agencies:
Direct obligations	5,206		512		—					5,718
Mortgage-backed securities	—		18,165		—					18,165
Asset-backed securities:
Student loans	—		6,987		189					7,176
Credit cards	—		1,341		—					1,341
Sub-prime	—		419		—					419
Other(2)	—		—		1,764					1,764
Total asset-backed securities	—		8,747		1,953					10,700
Non-U.S. debt securities:
Mortgage-backed securities	—		7,071		—					7,071
Asset-backed securities	—		3,093		174					3,267
Government securities	—		4,355		—					4,355
Other(3)	—		4,579		255					4,834
Total non-U.S. debt securities	—		19,098		429					19,527
State and political subdivisions	—		9,713		33					9,746
Collateralized mortgage obligations	—		2,948		39					2,987
Other U.S. debt securities	—		2,614		10					2,624
U.S. equity securities	—		39		—					39
Non-U.S. equity securities	—		3		—					3
U.S. money-market mutual funds	—		542		—					542
Non-U.S. money-market mutual funds	—		19		—					19
Total investment securities available-for-sale	5,206		62,400		2,464					70,070
Other assets:
Derivatives instruments:
Foreign exchange contracts	—		11,311		5		$	(6,562	)	4,754
Interest-rate contracts	—		135		—		(115		)	20
Other derivative contracts	—		5		—		(2		)	3
Total derivative instruments	—		11,451		5		(6,679		)	4,777
Other	2		—		—		—			2
Total assets carried at fair value	$	5,729	$	74,179	$	2,469	$	(6,679	)	$	75,698
Liabilities:
Accrued expenses and other liabilities:
Trading account liabilities:
U.S. government securities	$	5	$	—	$	—	$	—		$	5
Non-U.S. government securities	76		—		—		—			76
Other	5		13		—		—			18
Derivative instruments:
Foreign exchange contracts	—		10,863		5		(6,995		)	3,873
Interest-rate contracts	—		182		—		(24		)	158
Other derivative contracts	—		103		—		(2		)	101
Total derivative instruments	—		11,148		5		(7,021		)	4,132
Other	2		—		—		—			2
Total liabilities carried at fair value	$	88	$	11,161	$	5	$	(7,021	)	$	4,233

⁽¹⁾ Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $776 million and $1.12 billion, respectively, for cash collateral received from and provided to derivative counterparties.

⁽²⁾ As of December 31, 2015, the fair value of other asset-backed securities was primarily composed of $1.76 billion of collateralized loan obligations.

⁽³⁾ As of December 31, 2015, the fair value of other non-U.S. debt securities was primarily composed of $3.18 billion of covered bonds and $613 million of corporate bonds.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

	Fair Value Measurements Using Significant Unobservable Inputs
	Three Months Ended June 30, 2015
	Fair Value as of March 31, 2015		Total Realized and Unrealized Gains (Losses)						Purchases		Sales			Settlements			Transfers into Level 3		Transfers out of Level 3			Fair Value  as of June 30, 2015		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2015
(In millions)			Recorded in Revenue			Recorded in Other Comprehensive Income
Assets:
AFS Investment securities:
Asset-backed securities:
Student loans	$	257	$	—		$	—		$	—	$	—		$	(1	)	$	—	$	(22	)	$	234
Other	3,633		13			(6		)	—		(420		)	(287		)	—		—			2,933
Total asset-backed securities	3,890		13			(6		)	—		(420		)	(288		)	—		(22		)	3,167
Non-U.S. debt securities:
Mortgage-backed securities	43		—			—			—		—			—			97		(43		)	97
Asset-backed securities	228		—			—			—		—			(18		)	—		(17		)	193
Other	442		—			—			—		—			9			—		(187		)	264
Total Non-U.S. debt securities	713		—			—			—		—			(9		)	97		(247		)	554
State and political subdivisions	37		—			—			—		—			(1		)	—		—			36
Collateralized mortgage obligations	522		—			(1		)	—		(88		)	(29		)	—		(189		)	215
Other U.S. debt securities	9		—			—			—		—			—			—		—			9
Total investment securities available-for-sale	5,171		13			(7		)	—		(508		)	(327		)	97		(458		)	3,981
Other assets:
Derivative instruments:
Foreign exchange contracts	185		(96		)	—			10		—			(39		)	—		—			60		$	(30	)
Total derivative instruments	185		(96		)	—			10		—			(39		)	—		—			60		(30		)
Total assets carried at fair value	$	5,356	$	(83	)	$	(7	)	$	10	$	(508	)	$	(366	)	$	97	$	(458	)	$	4,041	$	(30	)

The following tables present activity related to our level-3 financial assets and liabilities during the three and six months ended June 30, 2016 and 2015, respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the three and six months ended June 30, 2016 and 2015, transfers out of level 3 were mainly related to certain mortgage- and asset-backed securities, including non-U.S. debt securities, for which fair value was measured using prices for which observable market information became available.

	Fair Value Measurements Using Significant Unobservable Inputs
	Three Months Ended June 30, 2016
	Fair Value  as of March 31, 2016		Total Realized and Unrealized Gains (Losses)					Purchases		Settlements			Transfers out of Level 3			Fair Value  as of June 30, 2016(1)		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2016
(In millions)			Recorded in Revenue		Recorded in Other Comprehensive Income
Assets:
AFS Investment securities:
U.S. Treasury and federal agencies, mortgage-backed securities	$	300	$	—	$	—		$	—	$	—		$	(275	)	$	25
Asset-backed securities:
Student loans	186		1		3			—		—			—			190
Other	1,813		9		(2		)	19		(129		)	—			1,710
Total asset-backed securities	1,999		10		1			19		(129		)	—			1,900
Non-U.S. debt securities:
Asset-backed securities	127		—		—			53		(16		)	(53		)	111
Other	295		—		2			—		(7		)	(29		)	261
Total non-U.S. debt securities	422		—		2			53		(23		)	(82		)	372
State and political subdivisions	32		—		1			—		—			—			33
Collateralized mortgage obligations	82		—		—			—		(14		)	—			68
Total AFS investment securities	2,835		10		4			72		(166		)	(357		)	2,398
Total assets carried at fair value	$	2,835	$	10	$	4		$	72	$	(166	)	$	(357	)	$	2,398	$	—

	Fair-Value Measurements Using Significant Unobservable Inputs
	Six Months Ended June 30, 2015
	Fair Value  as of December 31, 2014		Total Realized and Unrealized Gains (Losses)					Purchases		Sales			Settlements			Transfers into Level 3		Transfers out of Level 3			Fair Value  as of June 30, 2015		Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2015
(In millions)			Recorded in Revenue		Recorded in Other Comprehensive Income
Assets:
Investment securities available-for-sale:
Asset-backed securities:
Student loans	$	259	$	—	$	1		$	—	$	—		$	(5	)	$	—	$	(21	)	$	234
Other	3,780		25		(18		)	—		(420		)	(434		)	—		—			2,933
Total asset-backed securities	4,039		25		(17		)	—		(420		)	(439		)	—		(21		)	3,167
Non-U.S. debt securities:
Mortgage-backed securities	—		—		—			43		—			—			97		(43		)	97
Asset-backed securities	295		1		—			—		—			(86		)	—		(17		)	193
Other	371		—		1			111		—			(32		)	—		(187		)	264
Total non-U.S. debt securities	666		1		1			154		—			(118		)	97		(247		)	554
State and political subdivisions	38		—		(1		)	—		—			(1		)	—		—			36
Collateralized mortgage obligations	614		—		(1		)	293		(88		)	(65		)	—		(538		)	215
Other U.S. debt securities	9		—		—			—		—			—			—		—			9
Total investment securities available-for-sale	5,366		26		(18		)	447		(508		)	(623		)	97		(806		)	3,981
Other assets:
Derivative instruments:
Derivative instruments, foreign exchange contracts	81		45		—			29		—			(95		)	—		—			60		$	12
Total derivative instruments	81		45		—			29		—			(95		)	—		—			60		12
Total assets carried at fair value	$	5,447	$	71	$	(18	)	$	476	$	(508	)	$	(718	)	$	97	$	(806	)	$	4,041	$	12

	Fair Value Measurements Using Significant Unobservable Inputs
	Six Months Ended June 30, 2016
	Fair Value  as of December 31, 2015		Total Realized and Unrealized Gains (Losses)					Purchases		Settlements			Transfers out of Level 3			Fair Value  as of June 30, 2016(1)		Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2016
(In millions)			Recorded in Revenue		Recorded in Other Comprehensive Income
Assets:
AFS Investment securities:
U.S. Treasury and federal agencies, mortgage-backed securities	$	—	$	—	$	—		$	300	$	—		$	(275	)	$	25
Asset-backed securities:
Student loans	189		1		—			—		—			—			190
Other	1,764		16		(13		)	132		(189		)	—			1,710
Total asset-backed securities	1,953		17		(13		)	132		(189		)	—			1,900
Non-U.S. debt securities:
Asset-backed securities	174		—		(1		)	107		(34		)	(135		)	111
Other	255		—		—			29		6			(29		)	261
Total Non-U.S. debt securities	429		—		(1		)	136		(28		)	(164		)	372
State and political subdivisions	33		—		1			—		(1		)	—			33
Collateralized mortgage obligations	39		—		—			50		(21		)	—			68
Other U.S. debt securities	10		—		—			—		(10		)	—			—
Total AFS investment securities	2,464		17		(13		)	618		(249		)	(439		)	2,398
Other assets:
Derivative instruments:
Foreign exchange contracts	5		3		—			—		(8		)	—			—		$	—
Total derivative instruments	5		3		—			—		(8		)	—			—		—
Total assets carried at fair value	$	2,469	$	20	$	(13	)	$	618	$	(257	)	$	(439	)	$	2,398	$	—

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

	Fair-Value Measurements Using Significant Unobservable Inputs
	Six Months Ended June 30, 2015
	Fair Value  as of December 31, 2014		Total Realized and Unrealized (Gains) Losses		Issuances		Settlements			Fair Value  as of June 30, 2015(1)		Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2015
(In millions)			Recorded in Revenue
Liabilities:
Accrued expenses and other liabilities:
Derivative instruments:
Foreign exchange contracts	$	74	$	19	$	33	$	(76	)	$	50	$	1
Other	9		—		—		(9		)	—		—
Total derivative instruments	83		19		33		(85		)	50		1
Total liabilities carried at fair value	$	83	$	19	$	33	$	(85	)	$	50	$	1

⁽¹⁾ There were no transfers of liabilities into or out of level 3 during the six months ended June 30, 2015.

	Fair-Value Measurements Using Significant Unobservable Inputs
	Three Months Ended June 30, 2015
	Fair Value as of March 31, 2015		Total Realized and Unrealized Gains  (Losses)			Issuances		Settlements			Fair Value  as of June 30, 2015(1)		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2015
(In millions)			Recorded in Revenue
Liabilities:
Accrued expenses and other liabilities:
Derivative instruments:
Foreign exchange contracts	$	172	$	(90	)	$	8	$	(40	)	$	50	$	(26	)
Other	9		—			—		(9		)	—		—
Total derivative instruments	181		(90		)	8		(49		)	50		(26		)
Total liabilities carried at fair value	$	181	$	(90	)	$	8	$	(49	)	$	50	$	(26	)

⁽¹⁾ There were no transfers of liabilities into or out of level 3 during the three months ended June 30, 2015.

	Fair-Value Measurements Using Significant Unobservable Inputs
	Six Months Ended June 30, 2016
	Fair Value  as of December 31, 2015		Total Realized and Unrealized (Gains) Losses		Settlements			Fair Value  as of June 30, 2016(2)		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of June 30, 2016
(In millions)			Recorded in Revenue
Liabilities:
Accrued expenses and other liabilities:
Derivative instruments:
Foreign exchange contracts	$	5	$	5	$	(10	)	$	—	$	—
Total derivative instruments	5		5		(10		)	—		—
Total liabilities carried at fair value	$	5	$	5	$	(10	)	$	—	$	—

⁽¹⁾ There were no transfers of assets into level 3 during the six months ended June 30, 2016.

⁽²⁾ There were no transfers of liabilities into or out of level 3 during the six months ended June 30, 2016.

Level 3 Total Realized And Unrealized Gains And Losses Recorded In Revenue

The following table presents total realized and unrealized gains and losses for our level-3 financial assets and liabilities and where they are presented in our consolidated statement of income for the periods indicated:

	Three Months Ended June 30,										Six Months Ended June 30,
	Total Realized and Unrealized Gains (Losses) Recorded in Revenue					Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30,					Total Realized and Unrealized Gains (Losses) Recorded in Revenue					Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30,
(In millions)	2016		2015			2016		2015			2016			2015		2016		2015
Fee revenue:
Trading services	$	—	$	(6	)	$	—	$	(4	)	$	(2	)	$	26	$	—	$	11
Total fee revenue	—		(6		)	—		(4		)	(2		)	26		—		11
Net interest revenue	10		13			—		—			17			26		—		—
Total revenue	$	10	$	7		$	—	$	(4	)	$	15		$	52	$	—	$	11

Fair Value Inputs, Assets, Quantitative Information

The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level-3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level-3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer.

	Quantitative Information about Level-3 Fair-Value Measurements
	Fair Value						Weighted-Average
(Dollars in millions)	As of June 30, 2016		As of December 31, 2015		Valuation Technique	Significant Unobservable Input(1)	As of June 30, 2016		As of December 31, 2015
Significant unobservable inputs readily available to State Street:
Assets:
Asset-backed securities, other	$	22	$	28	Discounted cash flows	Credit spread	0.3	%	(0.1	)%
State and political subdivisions	33		33		Discounted cash flows	Credit spread	2.1		2.2
Derivative instruments, foreign exchange contracts	—		5		Option model	Volatility			9.3
Total	$	55	$	66
Liabilities:
Derivative instruments, foreign exchange contracts	$	—	$	5	Option model	Volatility			9.2
Total	$	—	$	5

⁽¹⁾ Significant changes in these unobservable inputs would result in significant changes in fair value measure.

Fair Value Inputs, Liabilities, Quantitative Information

The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level-3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level-3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer.

	Quantitative Information about Level-3 Fair-Value Measurements
	Fair Value						Weighted-Average
(Dollars in millions)	As of June 30, 2016		As of December 31, 2015		Valuation Technique	Significant Unobservable Input(1)	As of June 30, 2016		As of December 31, 2015
Significant unobservable inputs readily available to State Street:
Assets:
Asset-backed securities, other	$	22	$	28	Discounted cash flows	Credit spread	0.3	%	(0.1	)%
State and political subdivisions	33		33		Discounted cash flows	Credit spread	2.1		2.2
Derivative instruments, foreign exchange contracts	—		5		Option model	Volatility			9.3
Total	$	55	$	66
Liabilities:
Derivative instruments, foreign exchange contracts	$	—	$	5	Option model	Volatility			9.2
Total	$	—	$	5

⁽¹⁾ Significant changes in these unobservable inputs would result in significant changes in fair value measure.

Schedule of Availability of Significant Unobservable Inputs by Balance Sheet Classification

⁽¹⁾ Significant changes in these unobservable inputs would result in significant changes in fair value measure.

The following tables present information with respect to the composition of our level-3 financial assets and liabilities, by availability of significant unobservable inputs, as of the dates indicated:

June 30, 2016	Significant Unobservable Inputs Readily Available to State Street(1)		Significant Unobservable Inputs Not Developed by State Street and Not Readily Available(2)		Total Assets and Liabilities with Significant Unobservable Inputs
(In millions)
Assets:
U.S. Treasury and federal agencies, mortgage-backed securities	$	—	$	25	$	25
Asset-backed securities, student loans	—		190		190
Asset-backed securities, other	22		1,688		1,710
Non-U.S. debt securities, asset-backed securities	—		111		111
Non-U.S. debt securities, other	—		261		261
State and political subdivisions	33		—		33
Collateralized mortgage obligations	—		68		68
Total	$	55	$	2,343	$	2,398

⁽¹⁾ Information with respect to these model-priced financial assets are provided in a separate table.

⁽²⁾ Fair value for these financial assets is measured using non-binding broker or dealer quotes.

December 31, 2015	Significant Unobservable Inputs Readily Available to State Street(1)		Significant Unobservable Inputs Not Developed by State Street and Not Readily Available(2)		Total Assets and Liabilities with Significant Unobservable Inputs
(In millions)
Assets:
Asset-backed securities, student loans	$	—	$	189	$	189
Asset-backed securities, other	28		1,736		1,764
Non-U.S. debt securities, asset-backed securities	—		174		174
Non-U.S. debt securities, other	—		255		255
State and political subdivisions	33		—		33
Collateralized mortgage obligations	—		39		39
Other U.S. debt securities	—		10		10
Derivative instruments, foreign exchange contracts	5		—		5
Total	$	66	$	2,403	$	2,469
Liabilities:
Derivative instruments, foreign exchange contracts	$	5	$	—	$	5
Total	$	5	$	—	$	5

⁽¹⁾ Information with respect to these model-priced financial assets and liabilities is provided in a separate table.

⁽²⁾ Fair value for these financial assets is measured using non-binding broker or dealer quotes.

Carrying Value and Estimated Fair Value of Financial Instruments by Fair Value Hierarchy

The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair-value hierarchy, as of the dates indicated.

					Fair-Value Hierarchy
June 30, 2016	Reported Amount		Estimated Fair Value		Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)
(In millions)
Financial Assets:
Cash and due from banks	$	4,673	$	4,673	$	4,673	$	—	$	—
Interest-bearing deposits with banks	75,169		75,169		—		75,169		—
Securities purchased under resale agreements	2,010		2,010		—		2,010		—
Investment securities held-to-maturity	30,386		30,895		17,928		12,830		137
Net loans (excluding leases)	18,962		18,940		—		18,836		104
Financial Liabilities:
Deposits:
Noninterest-bearing	$	57,268	$	57,268	$	—	$	57,268	$	—
Interest-bearing - U.S.	33,060		33,060		—		33,060		—
Interest-bearing - non-U.S.	102,802		102,802		—		102,802		—
Securities sold under repurchase agreements	4,350		4,350		—		4,350		—
Federal funds purchased	29		29		—		29		—
Other short-term borrowings	1,683		1,683		—		1,683		—
Long-term debt	11,924		12,033		—		11,660		373

					Fair-Value Hierarchy
December 31, 2015	Reported Amount		Estimated Fair Value		Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)
(In millions)
Financial Assets:
Cash and due from banks	$	1,207	$	1,207	$	1,207	$	—	$	—
Interest-bearing deposits with banks	75,338		75,338		—		75,338		—
Securities purchased under resale agreements	3,404		3,404		—		3,404		—
Investment securities held-to-maturity	29,952		29,798		—		29,798		—
Net loans (excluding leases)(1)	17,838		17,792		—		17,667		125
Financial Liabilities:
Deposits:
Noninterest-bearing	$	65,800	$	65,800	$	—	$	65,800	$	—
Interest-bearing - U.S.	29,958		29,958		—		29,958		—
Interest-bearing - non-U.S.	95,869		95,869		—		95,869		—
Securities sold under repurchase agreements	4,499		4,499		—		4,499		—
Federal funds purchased	6		6		—		6		—
Other short-term borrowings	1,748		1,748		—		1,748		—
Long-term debt	11,497		11,604		—		11,215		389

⁽¹⁾ Includes $14 million of loans classified as held-for-sale that were measured at fair value on a non-recurring basis as of December 31, 2015 .

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Schedule of Marketable Securities

The following table presents the amortized cost and fair value, and associated unrealized gains and losses, of investment securities as of the dates indicated:

	June 30, 2016								December 31, 2015
	Amortized Cost		Gross Unrealized				Fair Value		Amortized Cost		Gross Unrealized				Fair Value
(In millions)			Gains		Losses						Gains		Losses
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	6,301	$	32	$	1	$	6,332	$	5,717	$	6	$	5	$	5,718
Mortgage-backed securities	18,788		298		11		19,075		18,168		131		134		18,165
Asset-backed securities:
Student loans(1)	7,162		8		216		6,954		7,358		16		198		7,176
Credit cards	1,392		15		27		1,380		1,378		—		37		1,341
Sub-prime	396		1		28		369		448		2		31		419
Other(2)	1,684		27		1		1,710		1,724		43		3		1,764
Total asset-backed securities	10,634		51		272		10,413		10,908		61		269		10,700
Non-U.S. debt securities:
Mortgage-backed securities	7,254		42		28		7,268		7,010		72		11		7,071
Asset-backed securities	2,675		2		9		2,668		3,272		2		7		3,267
Government securities	5,385		20		—		5,405		4,348		7		—		4,355
Other(3)	5,341		37		4		5,374		4,817		29		12		4,834
Total non-U.S. debt securities	20,655		101		41		20,715		19,447		110		30		19,527
State and political subdivisions	10,065		563		25		10,603		9,402		371		27		9,746
Collateralized mortgage obligations	2,681		66		6		2,741		2,993		16		22		2,987
Other U.S. debt securities	2,357		42		9		2,390		2,611		31		18		2,624
U.S. equity securities	34		10		3		41		33		9		3		39
Non-U.S. equity securities	3		—		—		3		3		—		—		3
U.S. money-market mutual funds	405		—		—		405		542		—		—		542
Non-U.S. money-market mutual funds	17		—		—		17		19		—		—		19
Total	$	71,940	$	1,163	$	368	$	72,735	$	69,843	$	735	$	508	$	70,070
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	21,577	$	446	$	1	$	22,022	$	20,878	$	2	$	217	$	20,663
Mortgage-backed securities	1,521		14		—		1,535		610		2		8		604
Asset-backed securities:
Student loans(1)	1,489		—		51		1,438		1,592		—		47		1,545
Credit cards	897		1		—		898		897		—		1		896
Other	138		1		—		139		366		2		1		367
Total asset-backed securities	2,524		2		51		2,475		2,855		2		49		2,808
Non-U.S. debt securities:
Mortgage-backed securities	1,900		96		31		1,965		2,202		109		26		2,285
Asset-backed securities	870		—		4		866		1,415		4		3		1,416
Government securities	309		3		—		312		239		—		1		238
Other	191		3		—		194		65		—		—		65
Total non-U.S. debt securities	3,270		102		35		3,337		3,921		113		30		4,004
State and political subdivisions	—		—		—		—		1		—		—		1
Collateralized mortgage obligations	1,494		51		19		1,526		1,687		60		29		1,718
Total	$	30,386	$	615	$	106	$	30,895	$	29,952	$	179	$	333	$	29,798

⁽¹⁾ Primarily composed of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans.

⁽²⁾ As of June 30, 2016 and December 31, 2015, the fair value of other ABS was primarily composed of $1.71 billion and $1.76 billion, respectively, of collateralized loan obligations.

⁽³⁾ As of June 30, 2016 and December 31, 2015, the fair value of other non-U.S. debt securities was primarily composed of $3.40 billion and $3.18 billion, respectively, of covered bonds and $970 million and $613 million, as of June 30, 2016 and December 31, 2015, respectively, of corporate bonds.

Schedule of Gross Pre-tax Unrealized Losses on Investment Securities

The following tables present the aggregate fair values of investment securities that have been in a continuous unrealized loss position for less than 12 months, and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated:

	Less than 12 months				12 months or longer				Total
June 30, 2016	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
(In millions)
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	84	$	—	$	129	$	1	$	213	$	1
Mortgage-backed securities	828		2		1,189		9		2,017		11
Asset-backed securities:
Student loans	2,210		39		4,049		177		6,259		216
Credit cards	—		—		558		27		558		27
Sub-prime	1		—		349		28		350		28
Other	399		1		25		—		424		1
Total asset-backed securities	2,610		40		4,981		232		7,591		272
Non-U.S. debt securities:
Mortgage-backed securities	2,825		17		757		11		3,582		28
Asset-backed securities	1,276		7		233		2		1,509		9
Government securities	486		—		—		—		486		—
Other	1,003		2		572		2		1,575		4
Total non-U.S. debt securities	5,590		26		1,562		15		7,152		41
State and political subdivisions	102		—		612		25		714		25
Collateralized mortgage obligations	128		1		282		5		410		6
Other U.S. debt securities	51		—		166		9		217		9
U.S. equity securities	—		—		5		3		5		3
Non-U.S. equity securities	1		—		—		—		1		—
Total	$	9,394	$	69	$	8,926	$	299	$	18,320	$	368
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	2	$	—	$	91	$	1	$	93	$	1
Asset-backed securities:
Student loans	809		27		631		24		1,440		51
Credit cards	218		—		—		—		218		—
Other	6		—		50		—		56		—
Total asset-backed securities	1,033		27		681		24		1,714		51
Non-U.S. mortgage-backed securities:
Mortgage-backed securities	189		7		515		24		704		31
Asset-backed securities	421		4		51		—		472		4
Government securities	197		—		—		—		197		—
Total non-U.S. debt securities	807		11		566		24		1,373		35
Collateralized mortgage obligations	728		10		200		9		928		19
Total	$	2,570	$	48	$	1,538	$	58	$	4,108	$	106

	Less than 12 months				12 months or longer				Total
December 31, 2015	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
(In millions)
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	3,123	$	4	$	121	$	1	$	3,244	$	5
Mortgage-backed securities	5,729		48		3,166		86		8,895		134
Asset-backed securities:
Student loans	2,841		54		3,217		144		6,058		198
Credit cards	838		7		490		30		1,328		37
Sub-prime	7		—		387		31		394		31
Other	720		3		43		—		763		3
Total asset-backed securities	4,406		64		4,137		205		8,543		269
Non-U.S. debt securities:
Mortgage-backed securities	1,457		7		437		4		1,894		11
Asset-backed securities	2,190		7		22		—		2,212		7
Government securities	1,691		—		—		—		1,691		—
Other	1,548		5		527		7		2,075		12
Total non-U.S. debt securities	6,886		19		986		11		7,872		30
State and political subdivisions	206		1		658		26		864		27
Collateralized mortgage obligations	1,511		14		217		8		1,728		22
Other U.S. debt securities	475		9		178		9		653		18
U.S. equity securities	—		—		5		3		5		3
Total	$	22,336	$	159	$	9,468	$	349	$	31,804	$	508
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	16,370	$	120	$	3,005	$	97	$	19,375	$	217
Mortgage-backed securities	560		8		—		—		560		8
Asset-backed securities:
Student loans	896		25		615		22		1,511		47
Credit cards	636		1		—		—		636		1
Other	102		—		31		1		133		1
Total asset-backed securities	1,634		26		646		23		2,280		49
Non-U.S. debt securities:
Mortgage-backed securities	338		2		524		24		862		26
Asset-backed securities	1,015		3		69		—		1,084		3
Government securities	128		1		—		—		128		1
Other	—		—		43		—		43		—
Total non-U.S. debt securities	1,481		6		636		24		2,117		30
Collateralized mortgage obligations	634		9		537		20		1,171		29
Total	$	20,679	$	169	$	4,824	$	164	$	25,503	$	333

Investments Classified by Contractual Maturity Date

The following table presents contractual maturities of debt investment securities by carrying amount as of June 30, 2016:

	Under 1 Year		1 to 5 Years		6 to 10 Years		Over 10 Years			Total
(In millions)
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	4,508	$	1,154	$	252	$	418		$	6,332
Mortgage-backed securities	103		2,145		4,288		12,539			19,075
Asset-backed securities:
Student loans	426		3,782		1,354		1,392			6,954
Credit cards	4		261		1,115		—			1,380
Sub-prime	3		2		2		362			369
Other	2		158		1,401		149			1,710
Total asset-backed securities	435		4,203		3,872		1,903			10,413
Non-U.S. debt securities:
Mortgage-backed securities	876		4,091		709		1,592			7,268
Asset-backed securities	125		2,196		218		129			2,668
Government securities	3,907		1,354		144		—			5,405
Other	1,794		3,064		517		(1		)	5,374
Total non-U.S. debt securities	6,702		10,705		1,588		1,720			20,715
State and political subdivisions	428		2,314		5,630		2,231			10,603
Collateralized mortgage obligations	108		46		515		2,072			2,741
Other U.S. debt securities	806		1,149		390		45			2,390
Total	$	13,090	$	21,716	$	16,535	$	20,928		$	72,269
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	—	$	12,728	$	8,771	$	78		$	21,577
Mortgage-backed securities	—		10		171		1,340			1,521
Asset-backed securities:
Student loans	91		99		229		1,070			1,489
Credit cards	39		823		35		—			897
Other	30		55		51		2			138
Total asset-backed securities	160		977		315		1,072			2,524
Non-U.S. debt securities:
Mortgage-backed securities	323		470		79		1,028			1,900
Asset-backed securities	197		673		—		—			870
Government securities	197		112		—		—			309
Other	74		117		—		—			191
Total non-U.S. debt securities	791		1,372		79		1,028			3,270
Collateralized mortgage obligations	72		66		300		1,056			1,494
Total	$	1,023	$	15,153	$	9,636	$	4,574		$	30,386

Schedule of Credit-Related Loss Activity Recognized in Earnings

The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated.

	Six Months Ended June 30,
(In millions)	2016			2015
Balance, beginning of period	$	92		$	115
Additions:
Losses for which OTTI was previously recognized	1			1
Deductions:
Previously recognized losses related to securities sold or matured	(2		)	(15		)
Balance, end of period	$	91		$	101

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Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2016

Loans and Leases Receivable Disclosure [Abstract]

Net Loans

The following table presents our recorded investment in loans and leases, by segment and class, as of the dates indicated:

(In millions)	June 30, 2016			December 31, 2015
Institutional:
Investment funds:
U.S.	$	11,893		$	11,136
Non-U.S.	2,540			1,678
Commercial and financial:
U.S.	3,916			4,671
Non-U.S.	505			278
Purchased receivables:
U.S.	79			93
Non-U.S.	—			—
Lease financing:
U.S.	335			337
Non-U.S.	544			578
Total institutional	19,812			18,771
Commercial real estate:
U.S.	27			28
Total loans and leases	19,839			18,799
Allowance for loan and lease losses	(51		)	(46		)
Loans and leases, net of allowance for loan and lease losses	$	19,788		$	18,753

Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator

The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated:

	Institutional
June 30, 2016	Investment Funds		Commercial and Financial		Purchased Receivables		Lease Financing		Commercial Real Estate		Total Loans and Leases
(In millions)
Investment grade(1)	$	14,116	$	1,075	$	79	$	851	$	27	$	16,148
Speculative(2)	315		3,331		—		28		—		3,674
Special mention(3)	2		—		—		—		—		2
Doubtful(4)	—		15		—		—		—		15
Total	$	14,433	$	4,421	$	79	$	879	$	27	$	19,839

	Institutional
December 31, 2015	Investment Funds		Commercial and Financial		Purchased Receivables		Lease Financing		Commercial Real Estate		Total Loans and Leases
(In millions)
Investment grade(1)	$	12,415	$	1,780	$	93	$	888	$	28	$	15,204
Speculative(2)	399		3,138		—		27		—		3,564
Special mention(3)	—		31		—		—		—		31
Total	$	12,814	$	4,949	$	93	$	915	$	28	$	18,799

⁽¹⁾ Investment-grade loans and leases consist of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment.

⁽²⁾ Speculative loans and leases consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met.

⁽³⁾ Special mention loans and leases consist of counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects.

⁽⁴⁾ Doubtful loans and leases meet the same definition of substandard loans and leases (i.e., well-defined weaknesses that jeopardize repayment with the possibility that we will sustain some loss) with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable.

Schedule of Loans and Leases Receivable by Impairment Methodology

The following table presents our recorded investment in loans and leases, disaggregated based on our impairment methodology, as of the dates indicated:

	June 30, 2016						December 31, 2015
(In millions)	Institutional		Commercial Real Estate		Total Loans and Leases		Institutional		Commercial Real Estate		Total Loans and Leases
Loans and leases(1):
Individually evaluated for impairment	$	15	$	—	$	15	$	—	$	—	$	—
Collectively evaluated for impairment	19,797		27		19,824		18,771		28		18,799
Total	$	19,812	$	27	$	19,839	$	18,771	$	28	$	18,799

⁽¹⁾ For those portfolios where there are a small number of loans each with a large balance, we review each loan annually for indicators of impairment. For those loans where no such indicators are identified, the loans are collectively evaluated for impairment. As of June 30, 2016 and December 31, 2015, $2 million and zero, respectively, of the allowance for loan and lease loss related to institutional loans individually evaluated for impairment. As of June 30, 2016 and December 31, 2015, $49 million and $46 million, respectively, of the allowance for loan and lease loss related to institutional loans collectively evaluated for impairment.

Impaired Loans

The following table presents information related to our recorded investment in impaired loans and leases for the dates or periods indicated:

	As of June 30, 2016						As of December 31, 2015
(In millions)	Recorded Investment		Unpaid Principal Balance		Related Allowance(1)		Recorded Investment		Unpaid Principal Balance		Related Allowance(1)
With no related allowance recorded:
CRE—property development—acquired credit-impaired	$	—	$	34	$	—	$	—	$	34	$	—
CRE—other—acquired credit-impaired	—		22		—		—		22		—
Total CRE	—		56		—		—		56		—
With an allowance recorded:
Institutional- commercial and financial lending(2)	15		15		2		—		—		—
Total Institutional	15		15		2		—		—		—
Total CRE and institutional	$	15	$	71	$	2	$	—	$	56	$	—

⁽¹⁾ As of June 30, 2016 and December 31, 2015, there was an additional allowance for loan and lease losses of $49 million and $46 million, respectively, related to loans that were not impaired.

⁽²⁾ We identified $15 million of commercial and financing loans as impaired. The average recorded investment and related interest revenue recognized is $15 million and zero, respectively, for the three and six month periods ended June 30, 2016.

Schedule of Activity in the Allowance for Loan Losses

The following table presents activity in the allowance for loan and lease losses for the periods indicated:

	Three Months Ended June 30,
	2016			2015
(In millions)	Total Loans and Leases			Total Loans and Leases
Allowance for loan and lease losses(1):
Beginning balance	$	47		$	41
Provision for loan losses	4			2
Charge-offs	—			—
Ending balance	$	51		$	43
	Six Months Ended June 30,
	2016			2015
(In millions)	Total Loans and Leases			Total Loans and Leases
Allowance for loan and lease losses(1):
Beginning balance	$	46		$	37
Provision for loan losses	8			6
Charge-offs	(3		)	—
Ending balance	$	51		$	43

⁽¹⁾ As of June 30, 2016, approximately $43 million of our allowance for loan and lease losses was related to senior secured loans included in the institutional segment; the remaining $8 million was related to other institutional segment loans.

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Changes In The Carrying Amount Of Goodwill

The following table presents changes in the carrying amount of goodwill during the periods indicated:

	Six Months Ended June 30,
	2016								2015
(In millions)	Investment Servicing			Investment Management		Total			Investment Servicing			Investment Management			Total
Goodwill:
Beginning balance	$	5,641		$	30	$	5,671		$	5,793		$	33		$	5,826
Divestitures and other reductions	(11		)	—		(11		)	—			—			—
Foreign currency translation	11			—		11			(95		)	(2		)	(97		)
Ending balance	$	5,641		$	30	$	5,671		$	5,698		$	31		$	5,729

Schedule of Finite-Lived Intangible Assets

The following table presents changes in the net carrying amount of other intangible assets during the periods indicated:

	Six Months Ended June 30,
	2016									2015
(In millions)	Investment Servicing			Investment Management			Total			Investment Servicing			Investment Management			Total
Other intangible assets:
Beginning balance	$	1,753		$	15		$	1,768		$	1,998		$	27		$	2,025
Amortization	(94		)	(4		)	(98		)	(95		)	(4		)	(99		)
Foreign currency translation and other, net	12			—			12			(54		)	(1		)	(55		)
Ending balance	$	1,671		$	11		$	1,682		$	1,849		$	22		$	1,871

The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated:

	June 30, 2016							December 31, 2015
(In millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other intangible assets:
Client relationships	$	2,490	$	(1,268	)	$	1,222	$	2,486	$	(1,198	)	$	1,288
Core deposits	671		(265		)	406		667		(246		)	421
Other	151		(97		)	54		147		(88		)	59
Total	$	3,312	$	(1,630	)	$	1,682	$	3,300	$	(1,532	)	$	1,768

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Other Assets (Tables)

6 Months Ended

Jun. 30, 2016

Other Assets [Abstract]

Components of Other Assets

The following table presents the components of other assets as of the dates indicated:

(In millions)	June 30, 2016		December 31, 2015
Collateral deposits, net	$	20,971	$	21,465
Derivative instruments, net	8,784		4,777
Bank-owned life insurance	3,118		3,078
Investments in joint ventures and other unconsolidated entities	2,262		2,034
Accounts receivable	961		1,018
Receivable for securities settlement	622		311
Prepaid expenses	344		284
Deferred tax assets, net of valuation allowance	225		182
Income taxes receivable	141		154
Deposits with clearing organizations	139		127
Other	422		473
Total	$	37,989	$	33,903

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Derivatives

The table below summarizes the maturities and the paid fixed interest rates for the hedged senior and subordinated notes:

June 30, 2016	Maturity	Paid Fixed Interest Rate
Senior Notes
	2018	1.35%
	2020	2.55%
	2021	1.95%
	2021	4.38%
	2023	3.70%
	2024	3.30%
	2025	3.55%
	2026	2.65%
Subordinated Notes
	2018	4.96%
	2023	3.10%

Schedule of Outstanding Hedges: (Notional Amount)

The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments entered into in connection with our trading and asset-and-liability management activities as of the dates indicated:

(In millions)	June 30, 2016		December 31, 2015
Derivatives not designated as hedging instruments:
Interest-rate contracts:
Swap agreements and forwards	$	9	$	336
Futures	11,302		2,621
Foreign exchange contracts:
Forward, swap and spot	1,419,570		1,274,277
Options purchased	—		403
Options written	—		404
Futures	167		—
Credit derivative contracts:
Credit swap agreements(1)	37		141
Commodity and equity contracts:
Commodity(1)	151		113
Equity(1)	103		87
Other:
Stable value contracts	26,071		24,583
Deferred value awards(2)	506		320
Derivatives designated as hedging instruments:
Interest-rate contracts:
Swap agreements	10,364		9,398
Foreign exchange contracts:
Forward and swap	4,812		4,515

⁽¹⁾ Primarily composed of positions held by a consolidated sponsored investment fund, more fully described in Note 11.

⁽²⁾ Represents grants of deferred value awards to employees; refer to Note 12 in the 2015 Form 10-K , "Derivatives Not Designated as Hedging Instruments" for additional information.

Notional Amount of Interest Rate Swap Agreements Designated as Fair Value and Cash Flow Hedges

The following tables present the aggregate notional amounts of these interest-rate contracts and the related assets or liabilities being hedged as of the dates indicated:

	June 30, 2016(1)
(In millions)	Fair Value Hedges
Investment securities available-for-sale	$	1,614
Long-term debt(2)	8,750
Total	$	10,364

	December 31, 2015(1)
(In millions)	Fair Value Hedges
Investment securities available-for-sale	$	1,698
Long-term debt(2)	7,700
Total	$	9,398

⁽¹⁾ As of June 30, 2016 and December 31, 2015, there were no interest-rate contracts designated as cash flow hedges.

⁽²⁾ As of June 30, 2016, these fair value hedges increased the carrying value of long-term debt presented in our consolidated statement of condition by $458 million. As of December 31, 2015, these fair value hedges increased the carrying value of long-term debt presented in our consolidated statement of condition by $105 million.

Contractual and Weighted-Average Interest Rates, Which Include the Effects of Hedges Related to Financial Instruments

The following table presents the contractual and weighted-average interest rates for long-term debt, which include the effects of the fair value hedges presented in the table above, for the periods indicated:

	Three Months Ended June 30,
	2016				2015
	Contractual Rates		Rate  Including Impact of Hedges		Contractual Rates		Rate  Including Impact of Hedges
Long-term debt	3.43	%	2.24	%	3.70	%	2.67	%
	Six Months Ended June 30,
	2016				2015
	Contractual Rates		Rate  Including Impact of Hedges		Contractual Rates		Rate  Including Impact of Hedges
Long-term debt	3.43	%	2.22	%	3.61	%	2.60	%

Schedule of the Fair Values of Derivative Financial Instruments

The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is disclosed in Note 8.

Derivative Assets(1)
	Fair Value
(In millions)	June 30, 2016		December 31, 2015
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	20,472	$	10,799
Interest-rate contracts	1		2
Other derivative contracts	5		5
Total	$	20,478	$	10,806
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	396	$	517
Interest-rate contracts	506		133
Total	$	902	$	650

⁽¹⁾ Derivative assets are included within other assets in our consolidated statement of condition.

Derivative Liabilities(1)
	Fair Value
(In millions)	June 30, 2016		December 31, 2015
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	20,522	$	10,795
Other derivative contracts	161		103
Interest-rate contracts	1		2
Total	$	20,684	$	10,900
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	98	$	73
Interest-rate contracts	211		180
Total	$	309	$	253

⁽¹⁾ Derivative liabilities are included within other liabilities in our consolidated statement of condition.

Impact of Derivatives on Consolidated Statement of Income

The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
		Three Months Ended June 30,						Six Months Ended June 30,
(In millions)		2016			2015			2016			2015
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Trading services revenue	$	162		$	165		$	316		$	369
Interest-rate contracts	Processing fees and other revenue	—			—			1			—
Interest-rate contracts	Trading services revenue	(3		)	(1		)	(4		)	(1		)
Credit derivative contracts	Trading services revenue	—			—			(1		)	—
Other derivative contracts	Trading services revenue	(4		)	1			(4		)	3
Total		$	155		$	165		$	308		$	371

	Location of (Gain) Loss on Derivative in Consolidated Statement of Income	Amount of (Gain) Loss on Derivative Recognized in Consolidated Statement of Income
		Three Months Ended June 30,				Six Months Ended June 30,
(In millions)		2016		2015		2016		2015
Derivatives not designated as hedging instruments:
Other derivative contracts	Compensation and employee benefits	$	57	$	33	$	127	$	92
Total		$	57	$	33	$	127	$	92

Schedule of Differences Between the Gains (Losses) on the Derivative and the Gains (Losses) on the Hedged Item

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income						Hedged Item in Fair Value Hedging Relationship	Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income	Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income
		Three Months Ended June 30,								Three Months Ended June 30,
(In millions)		2016			2015					2016			2015
Derivatives designated as fair value hedges:
Foreign exchange contracts	Processing fees and other revenue	$	(25	)	$	12		Investment securities	Processing fees and other revenue	$	25		$	(12	)
Foreign exchange contracts	Processing fees and other revenue	(2		)	(13		)	FX deposit	Processing fees and other revenue	2			13
Interest-rate contracts	Processing fees and other revenue	(6		)	37			Available-for-sale securities	Processing fees and other revenue(1)	6			(38		)
Interest-rate contracts	Processing fees and other revenue	128			(85		)	Long-term debt	Processing fees and other revenue	(121		)	82
Total		$	95		$	(49	)			$	(88	)	$	45

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income						Hedged Item in Fair Value Hedging Relationship	Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income	Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income
		Six Months Ended June 30,								Six Months Ended June 30,
(In millions)		2016			2015					2016			2015
Derivatives designated as fair value hedges:
Foreign exchange contracts	Processing fees and other revenue	$	19		$	(52	)	Investment securities	Processing fees and other revenue	$	(19	)	$	52
Foreign exchange contracts	Processing fees and other revenue	246			(13		)	FX deposit	Processing fees and other revenue	(246		)	13
Interest-rate contracts	Processing fees and other revenue	(36		)	12			Available-for-sale securities	Processing fees and other revenue(2)	37			(12		)
Interest-rate contracts	Processing fees and other revenue	376			(17		)	Long-term debt	Processing fees and other revenue	(361		)	17
Total		$	605		$	(70	)			$	(589	)	$	70

⁽¹⁾ For the three months ended June 30, 2016 and 2015, $3 million and $22 million, respectively, of unrealized losses and unrealized gains, respectively, on AFS investment securities designated in fair value hedges was recognized in OCI.

⁽²⁾ For the six months ended June 30, 2016 and 2015, $22 million and $7 million, respectively, of unrealized losses and unrealized gains, respectively, on AFS investment securities designated in fair value hedges was recognized in OCI.

Differences between the gains (losses) on the derivative and the gains (losses) on the hedged item, excluding any amounts recorded in net interest revenue, represent hedge ineffectiveness.

	Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income					Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income	Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income					Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
	Three Months Ended June 30,						Three Months Ended June 30,						Three Months Ended June 30,
(In millions)	2016			2015			2016		2015				2016		2015
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	—		$	—	Net interest revenue	$	—	$	(1	)	Net interest revenue	$	—	$	—
Foreign exchange contracts	(114		)	21		Net interest revenue	—		—			Net interest revenue	6		2
Total	$	(114	)	$	21		$	—	$	(1	)		$	6	$	2
Derivatives designated as net investment hedges:
Foreign exchange contracts	$	51		$	—	Gains (Losses) related to investment securities, net	$	—	$	—		Gains (Losses) related to investment securities, net	$	—	$	—
Total	$	51		$	—		$	—	$	—			$	—	$	—

	Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income					Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income	Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income					Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
	Six Months Ended June 30,						Six Months Ended June 30,						Six Months Ended June 30,
(In millions)	2016			2015			2016		2015				2016		2015
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	—		$	—	Net interest revenue	$	—	$	(2	)	Net interest revenue	$	—	$	—
Foreign exchange contracts	(227		)	41		Net interest revenue	—		—			Net interest revenue	11		4
Total	$	(227	)	$	41		$	—	$	(2	)		$	11	$	4
Derivatives designated as net investment hedges:
Foreign exchange contracts	$	51		$	—	Gains (Losses) related to investment securities, net	$	—	$	—		Gains (Losses) related to investment securities, net	$	—	$	—
Total	$	51		$	—		$	—	$	—			$	—	$	—

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Offsetting Arrangements (Tables)

6 Months Ended

Jun. 30, 2016

Offsetting [Abstract]

Offsetting Assets

The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated:

Assets:	June 30, 2016								December 31, 2015
(In millions)	Gross Amounts of Recognized Assets(1)(2)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Assets Presented in Statement of Condition			Gross Amounts of Recognized Assets(1)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Assets Presented in Statement of Condition
Derivatives:
Foreign exchange contracts	$	20,868	$	(10,615	)	$	10,253		$	11,316	$	(5,896	)	$	5,420
Interest-rate contracts	507		(10		)	497			135		(5		)	130
Other derivative contracts	5		(5		)	—			5		(2		)	3
Cash collateral netting	N/A		(1,966		)	(1,966		)	N/A		(776		)	(776		)
Total derivatives	$	21,380	$	(12,596	)	$	8,784		$	11,456	$	(6,679	)	$	4,777
Other financial instruments:
Resale agreements and securities borrowing(4)	$	60,336	$	(38,251	)	$	22,085		$	62,522	$	(38,997	)	$	23,525
Total derivatives and other financial instruments	$	81,716	$	(50,847	)	$	30,869		$	73,978	$	(45,676	)	$	28,302

⁽¹⁾ Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.

⁽²⁾ Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which are also carried at fair value. Refer to Note 1 to the consolidated financial statements on pages 129 to 132 in our 2015 Form 10-K for additional information on the measurement basis of these instruments.

⁽³⁾ Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.

⁽⁴⁾ Included in the $22,085 million as of June 30, 2016 were $2,010 million of resale agreements and $20,075 million of collateral provided related to securities borrowing. Included in the $23,525 million as of December 31, 2015 were $3,404 million of resale agreements and $20,121 million of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions.

	June 30, 2016										December 31, 2015
			Gross Amounts Not Offset in Statement of Condition										Gross Amounts Not Offset in Statement of Condition
(In millions)	Net Amount of Assets Presented in Statement of Condition		Counterparty Netting			Cash and Securities Received(1)			Net Amount(2)		Net Amount of Assets Presented in Statement of Condition		Counterparty Netting			Collateral Received(1)			Net Amount(2)
Derivatives	$	8,784	$	—		$	(445	)	$	8,339	$	4,777	$	—		$	(405	)	$	4,372
Resale agreements and securities borrowing	22,085		(108		)	(21,589		)	388		23,525		(63		)	(22,812		)	650
Total	$	30,869	$	(108	)	$	(22,034	)	$	8,727	$	28,302	$	(63	)	$	(23,217	)	$	5,022

⁽¹⁾ Includes securities in connection with our securities borrowing transactions.

⁽²⁾ Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.

Offsetting Liabilities

The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated:

Liabilities:	June 30, 2016								December 31, 2015
(In millions)	Gross Amounts of Recognized Liabilities(1)(2)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Liabilities Presented in Statement of Condition			Gross Amounts of Recognized Liabilities(1)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Liabilities Presented in Statement of Condition
Derivatives:
Foreign exchange contracts	$	20,620	$	(10,615	)	$	10,005		$	10,868	$	(5,896	)	$	4,972
Interest-rate contracts	212		(9		)	203			182		(5		)	177
Other derivative contracts	161		(5		)	156			103		(2		)	101
Cash collateral netting	N/A		(2,661		)	(2,661		)	N/A		(1,118		)	(1,118		)
Total derivatives	$	20,993	$	(13,290	)	$	7,703		$	11,153	$	(7,021	)	$	4,132
Other financial instruments:
Repurchase agreements and securities lending(4)	$	47,234	$	(38,251	)	$	8,983		$	46,766	$	(38,997	)	$	7,769
Total derivatives and other financial instruments	$	68,227	$	(51,541	)	$	16,686		$	57,919	$	(46,018	)	$	11,901

⁽¹⁾ Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.

⁽²⁾ Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which are also carried at fair value. Refer to Note 1 to the consolidated financial statements on pages 129 to 132 in our 2015 Form 10-K for additional information on the measurement basis of these instruments.

⁽³⁾ Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.

⁽⁴⁾ Included in the $8,983 million as of June 30, 2016 were $4,350 million of repurchase agreements and $4,633 million of collateral received related to securities lending. Included in the $7,769 million as of December 31, 2015 were $4,499 million of repurchase agreements and $3,270 million of collateral received related to securities lending. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions.

	June 30, 2016										December 31, 2015
			Gross Amounts Not Offset in Statement of Condition										Gross Amounts Not Offset in Statement of Condition
(In millions)	Net Amount of Liabilities Presented in Statement of Condition		Counterparty Netting			Cash and Securities Provided(1)			Net Amount(2)		Net Amount of Liabilities Presented in Statement of Condition		Counterparty Netting			Collateral Provided(1)			Net Amount(2)
Derivatives	$	7,703	$	—		$	(136	)	$	7,567	$	4,132	$	—		$	(64	)	$	4,068
Repurchase agreements and securities lending	8,983		(108		)	(6,622		)	2,253		7,769		(63		)	(5,287		)	2,419
Total	$	16,686	$	(108	)	$	(6,758	)	$	9,820	$	11,901	$	(63	)	$	(5,351	)	$	6,487

⁽¹⁾ Includes securities provided in connection with our securities lending transactions.

⁽²⁾ Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.

Securities Sold and Securities Loaned Under Repurchase Agreements

The following tables summarize our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated:

	Remaining Contractual Maturity of the Agreements
	As of June 30, 2016
(In millions)	Overnight and Continuous		Up to 30 days		30 – 90 days		Total
Repurchase agreements:
U.S. Treasury and agency securities	$	36,692	$	16	$	—	$	36,708
Equity securities	—		—		—		—
Non-U.S. sovereign debt	—		58		—		58
Total	36,692		74		—		36,766
Securities lending transactions:
Corporate debt securities	32		—		—		32
Equity securities	9,339		—		750		10,089
Non-U.S. sovereign debt	347		—		—		347
Total	9,718		—		750		10,468
Gross amount of recognized liabilities for repurchase agreements and securities lending	$	46,410	$	74	$	750	$	47,234

	Remaining Contractual Maturity of the Agreements
	As of December 31, 2015
(In millions)	Overnight and Continuous		Up to 30 days		30 – 90 days		Total
Repurchase agreements:
U.S. Treasury and agency securities	$	37,157	$	5	$	—	$	37,162
Non-U.S. sovereign debt	—		97		—		97
Total	37,157		102		—		37,259
Securities lending transactions:
Corporate debt securities	1		—		—		1
Equity securities	8,502		—		1,002		9,504
Non-U.S. sovereign debt	2		—		—		2
Total	8,505		—		1,002		9,507
Gross amount of recognized liabilities for repurchase agreements and securities lending	$	45,662	$	102	$	1,002	$	46,766

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Commitments and Guarantees (Tables)

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Guarantor Obligations

The following table, which presents the aggregate gross contractual amounts of our off-balance sheet guarantees as of the dates indicated, does not consider the value of any collateral, which may mitigate any potential loss. Amounts presented do not reflect participations to independent third parties.

(In millions)	June 30, 2016		December 31, 2015
Indemnified securities financing	$	344,257	$	320,436
Stable value protection	26,071		24,583
Asset purchase agreements	4,405		3,990
Standby letters of credit	4,159		4,700

Schedule of Repurchase Agreements

The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated:

(In millions)	June 30, 2016		December 31, 2015
Fair value of indemnified securities financing	$	344,257	$	320,436
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing	356,490		335,420
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements	68,524		63,055
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements	72,613		67,016

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Contingencies (Tables)

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Total Worldwide Revenue from Foreign Exchanges

The following table summarizes our estimated total revenue worldwide from indirect foreign exchange trading for the periods indicated:

(In millions)	Revenue from indirect foreign exchange trading
Twelve Months Ended December 31, 2008	$	462
Twelve Months Ended December 31, 2009	369
Twelve Months Ended December 31, 2010	336
Twelve Months Ended December 31, 2011	331
Twelve Months Ended December 31, 2012	248
Twelve Months Ended December 31, 2013	285
Twelve Months Ended December 31, 2014	246
Twelve Months Ended December 31, 2015	280
Six Months Ended June 30, 2016	136

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Schedule of Preferred Shares

The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of June 30, 2016:

	Issuance Date	Depositary Shares Issued	Ownership Interest per Depositary Share	Liquidation Preference Per Share		Liquidation Preference Per Depositary Share		Net Proceeds of Offering (in millions)		Redemption Date(1)
Preferred Stock:(2)
Series C	August 2012	20,000,000	1/4,000th	$	100,000	$	25	$	488	September 15, 2017
Series D	February 2014	30,000,000	1/4,000th	100,000		25		742		March 15, 2024
Series E	November 2014	30,000,000	1/4,000th	100,000		25		728		December 15, 2019
Series F	May 2015	750,000	1/100th	100,000		1,000		742		September 15, 2020
Series G	April 2016	20,000,000	1/4,000th	100,000		25		493		March 15, 2026

⁽¹⁾ On the redemption date, or any dividend declaration date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

⁽²⁾ The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

Dividends Declared

The table below presents the dividends declared on common stock for the periods indicated:

	Three Months Ended June 30,								Six Months Ended June 30,
	Dividends Declared per Share		Total (in millions)		Dividends Declared per Share		Total (in millions)		Dividends Declared per Share		Total (in millions)		Dividends Declared per Share		Total (in millions)
	2016				2015				2016				2015
Common Stock	$	0.34	$	133	$	0.34	$	139	$	0.68	$	268	$	0.64	$	262

The following tables present the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated:

	Three Months Ended June 30,
	2016						2015
	Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)(1)		Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)
Preferred Stock:
Series C	$	1,313	$	0.33	$	6	$	1,313	$	0.33	$	7
Series D	1,475		0.37		11		1,475		0.37		11
Series E	1,500		0.38		11		1,500		0.38		11
Series F	—		—		—		—		—		—
Series G	951		0.24		5		—		—		—
Total					$	33					$	29
	Six Months Ended June 30,
	2016						2015
	Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)		Dividends Declared per Share		Dividends Declared per Depositary Share		Total (in millions)
Preferred Stock:
Series C	$	2,626	$	0.66	$	13	$	2,626	$	0.66	$	13
Series D	2,950		0.74		22		2,950		0.74		22
Series E	3,000		0.76		22		3,333		0.84		25
Series F	2,625		26.25		20		—		—		—
Series G	951		0.24		5		—		—		—
Total					$	82					$	60

⁽¹⁾ Dividends were paid in June 2016.

Stock Repurchase Program

The table below presents the activity under the 2015 Program during the periods indicated.

	Three Months Ended June 30, 2016					Six Months Ended June 30, 2016
	Shares Purchased (in millions)	Average Cost per Share		Total Purchased (in millions)		Shares Purchased (in millions)	Average Cost per Share		Total Purchased (in millions)
2015 Program	6.5	$	59.66	$	390	12.1	$	58.83	$	715

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents the after-tax components of AOCI as of the dates indicated:

(In millions)	June 30, 2016			December 31, 2015
Net unrealized gains on cash flow hedges	$	119		$	293
Net unrealized gains (losses) on available-for-sale securities portfolio	550			9
Net unrealized gains (losses) related to reclassified available-for-sale securities	(23		)	(28		)
Net unrealized gains (losses) on available-for-sale securities	527			(19		)
Net unrealized losses on available-for-sale securities designated in fair value hedges	(131		)	(109		)
Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries	37			(14		)
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(13		)	(16		)
Net unrealized losses on retirement plans	(185		)	(183		)
Foreign currency translation	(1,351		)	(1,394		)
Total	$	(997	)	$	(1,442	)

The following tables present changes in AOCI by component, net of related taxes, for the periods indicated:

	Six Months Ended June 30, 2016
(In millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges			Net Unrealized Gains (Losses) on Available-for-Sale Securities			Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries			Other-Than-Temporary Impairment on Held-to-Maturity Securities			Net Unrealized Losses on Retirement Plans			Foreign Currency Translation			Total
Balance as of December 31, 2015	$	293		$	(128	)	$	(14	)	$	(16	)	$	(183	)	$	(1,394	)	$	(1,442	)
Other comprehensive income (loss) before reclassifications	(174		)	522			51			4			(4		)	43			442
Amounts reclassified into (out of) earnings	—			2			—			(1		)	2			—			3
Other comprehensive income (loss)	(174		)	524			51			3			(2		)	43			445
Balance as of June 30, 2016	$	119		$	396		$	37		$	(13	)	$	(185	)	$	(1,351	)	$	(997	)

	Six Months Ended June 30, 2015
(In millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available-for-Sale Securities			Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries			Other-Than-Temporary Impairment on Held-to-Maturity Securities			Net Unrealized Losses on Retirement Plans			Foreign Currency Translation			Total
Balance as of December 31, 2014	$	276	$	192		$	(14	)	$	(29	)	$	(272	)	$	(660	)	$	(507	)
Other comprehensive income (loss) before reclassifications	19		(134		)	—			8			—			(410		)	(517		)
Amounts reclassified into (out of) earnings	1		(2		)	—			(1		)	15			—			13
Other comprehensive income (loss)	20		(136		)	—			7			15			(410		)	(504		)
Balance as of June 30, 2015	$	296	$	56		$	(14	)	$	(22	)	$	(257	)	$	(1,070	)	$	(1,011	)

Schedule of Reclassifications Out of AOCI

The following tables present after-tax reclassifications into (out of) earnings for the periods indicated:

	Three Months Ended June 30,
	2016			2015
(In millions)	Amounts Reclassified into (out of) Earnings						Affected Line Item in Consolidated Statement of Income
Available-for-sale securities:
Net realized gains from sales of available-for-sale securities, net of related taxes of $0 and ($1), respectively	$	(1	)	$	(2	)	Net gains (losses) from sales of available-for-sale securities
Held-to-maturity securities:
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(1		)	—			Losses reclassified (from) to other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of ($1) and $8, respectively	1			10			Compensation and employee benefits expenses
Total reclassifications in to (out of) AOCI	$	(1	)	$	8

	Six Months Ended June 30,
	2016			2015
(In millions)	Amounts Reclassified into (out of) Earnings						Affected Line Item in Consolidated Statement of Income
Cash flow hedges:
Interest-rate contracts, net of related taxes of $0 and ($1), respectively	$	—		$	1		Net interest revenue
Available-for-sale securities:
Net realized gains from sales of available-for-sale securities, net of related taxes of ($1) and ($1), respectively	2			(2		)	Net gains (losses) from sales of available-for-sale securities
Held-to-maturity securities:
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(1		)	(1		)	Losses reclassified (from) to other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of ($3) and $1, respectively	2			15			Compensation and employee benefits expenses
Total reclassifications into AOCI	$	3		$	13

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Regulatory Capital (Tables)

6 Months Ended

Jun. 30, 2016

Banking and Thrift [Abstract]

Schedule of Regulatory Capital

The following table presents the regulatory capital structure, total risk-weighted assets, related regulatory capital ratios and the minimum required regulatory capital ratios for State Street and State Street Bank as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III final rule are phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table.

					State Street												State Street Bank
(Dollars in millions)					Basel III Advanced Approaches June 30, 2016(1)			Basel III Standardized Approach June 30, 2016(2)			Basel III Advanced Approaches December 31, 2015(1)			Basel III Standardized Approach December 31, 2015(2)			Basel III Advanced Approaches June 30, 2016(1)			Basel III Standardized Approach June 30, 2016(2)			Basel III Advanced Approaches December 31, 2015(1)			Basel III Standardized Approach December 31, 2015(2)
Common shareholders' equity:
Common stock and related surplus					$	10,271		$	10,271		$	10,250		$	10,250		$	10,941		$	10,941		$	10,938		$	10,938
Retained earnings					16,686			16,686			16,049			16,049			11,638			11,638			10,655			10,655
Accumulated other comprehensive income (loss)					(1,124		)	(1,124		)	(1,422		)	(1,422		)	(907		)	(907		)	(1,230		)	(1,230		)
Treasury stock, at cost					(7,083		)	(7,083		)	(6,457		)	(6,457		)	—			—			—			—
Total					18,750			18,750			18,420			18,420			21,672			21,672			20,363			20,363
Regulatory capital adjustments:
Goodwill and other intangible assets, net of associated deferred tax liabilities(3)					(6,144		)	(6,144		)	(5,927		)	(5,927		)	(5,844		)	(5,844		)	(5,631		)	(5,631		)
Other adjustments					(88		)	(88		)	(60		)	(60		)	(86		)	(86		)	(85		)	(85		)
Common equity tier 1 capital					12,518			12,518			12,433			12,433			15,742			15,742			14,647			14,647
Preferred stock					3,196			3,196			2,703			2,703			—			—			—			—
Trust preferred capital securities subject to phase-out from tier 1 capital					—			—			237			237			—			—			—			—
Other adjustments					(72		)	(72		)	(109		)	(109		)	—			—			—			—
Tier 1 capital					15,642			15,642			15,264			15,264			15,742			15,742			14,647			14,647
Qualifying subordinated long-term debt					1,259			1,259			1,358			1,358			1,270			1,270			1,371			1,371
Trust preferred capital securities phased out of tier 1 capital					890			890			713			713			—			—			—			—
ALLL and other					3			78			12			66			—			78			8			66
Other adjustments					—			—			2			2			—			—			—			—
Total capital					$	17,794		$	17,869		$	17,349		$	17,403		$	17,012		$	17,090		$	16,026		$	16,084
Risk-weighted assets:
Credit risk					$	55,748		$	102,932		$	51,733		$	93,515		$	51,328		$	98,387		$	47,677		$	89,164
Operational risk					44,436			NA			43,882			NA			43,899			NA			43,324			NA
Market risk(4)					3,828			1,560			3,937			2,378			3,831			1,560			3,939			2,378
Total risk-weighted assets					$	104,012		$	104,492		$	99,552		$	95,893		$	99,058		$	99,947		$	94,940		$	91,542
Adjusted quarterly average assets					$	222,666		$	222,666		$	221,880		$	221,880		$	218,363		$	218,363		$	217,358		$	217,358
Capital Ratios:	2016 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge(5)		2015 Minimum Requirements(6)
Common equity tier 1 capital	5.5	%	4.5	%	12.0		%	12.0		%	12.5		%	13.0		%	15.9		%	15.8		%	15.4		%	16.0		%
Tier 1 capital	7.0		6.0		15.0			15.0			15.3			15.9			15.9			15.8			15.4			16.0
Total capital	9.0		8.0		17.1			17.1			17.4			18.1			17.2			17.1			16.9			17.6
Tier 1 leverage	4.0		4.0		7.0			7.0			6.9			6.9			7.2			7.2			6.7			6.7

NA: Not applicable.

⁽¹⁾ Common equity tier 1 capital, tier 1 capital and total capital ratios as of June 30, 2016 and December 31, 2015 were calculated in conformity with the advanced approaches provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2016 and December 31, 2015 were calculated in conformity with the Basel III final rule.

⁽²⁾ Common equity tier 1 capital, tier 1 capital and total capital ratios as of June 30, 2016 and and December 31, 2015 were calculated in conformity with the standardized approach provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2016 and December 31, 2015 were calculated in conformity with the Basel III final rule.

⁽³⁾ Amounts for State Street and State Street Bank as of June 30, 2016 consisted of goodwill, net of associated deferred tax liabilities, and 60% of other intangible assets, net of associated deferred tax liabilities. Amounts for State Street and State Street Bank as of December 31, 2015 consisted of goodwill, net of deferred tax liabilities and 40% of other intangible assets, net of associated deferred tax liabilities. Intangible assets, net of associated deferred tax liabilities is phased in as a deduction from capital, in conformity with the Basel III final rule.

⁽⁴⁾ Market risk risk-weighted assets reported in conformity with the Basel III advanced approaches included a CVA which reflected the risk of potential fair-value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts.  The CVA was not provided for in the final market risk capital rule; however, it was required by the advanced approaches provisions of the Basel III final rule.  State Street used the simple CVA approach in conformity with the Basel III advanced approaches.

⁽⁵⁾ Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of June 30, 2016.

⁽⁶⁾ Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2015.

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Net Interest Revenue (Tables)

6 Months Ended

Jun. 30, 2016

Banking and Thrift [Abstract]

Components of Interest Revenue and Interest Expense

The following table presents the components of interest revenue and interest expense, and related net interest revenue, for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2016		2015		2016		2015
Interest revenue:
Deposits with banks	$	30	$	54	$	73	$	108
Investment securities:
U.S. Treasury and federal agencies	209		176		420		359
State and political subdivisions	54		58		108		116
Other investments	189		247		371		506
Securities purchased under resale agreements	35		15		71		26
Loans and leases	93		77		184		151
Other interest-earning assets	10		2		22		5
Total interest revenue	620		629		1,249		1,271
Interest expense:
Deposits	16		14		54		40
Securities sold under resale agreements	—		—		1		—
Short-term borrowings	2		3		2		3
Long-term debt	62		61		122		123
Other interest-bearing liabilities	19		16		37		24
Total interest expense	99		94		216		190
Net interest revenue	$	521	$	535	$	1,033	$	1,081

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Expenses (Tables)

6 Months Ended

Jun. 30, 2016

Other Expenses [Abstract]

Schedule of Expenses

The following table presents the components of other expenses for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2016		2015		2016		2015
Insurance	$	21	$	28	$	44	$	65
Regulatory fees and assessments	18		25		38		58
Securities processing	6		14		10		34
Litigation	—		253		—		403
Other	93		83		158		144
Total other expenses	$	138	$	403	$	250	$	704

Restructuring and Related Costs [Table Text Block]

The following table presents aggregate restructuring activity for the periods indicated.

(In millions)	Employee Related Costs			Real Estate Consolidation			Asset and Other Write-Offs			Total
Balance at December 31, 2015	$	9		$	11		$	3		$	23
Accruals for State Street Beacon	86			—			11			97
Payments and Other Adjustments	(4		)	(1		)	(7		)	(12		)
Balance at March 31, 2016	91			10			7			108
Accruals for State Street Beacon	(1		)	15			(1		)	13
Payments and Other Adjustments	(35		)	(3		)	(1		)	(39		)
Balance at June 30, 2016	$	55		$	22		$	5		$	82

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Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table presents the computation of basic and diluted earnings per common share for the periods indicated:

	Three Months Ended June 30,
(Dollars in millions, except per share amounts)	2016			2015
Net income	$	619		$	418
Less:
Preferred stock dividends	(33		)	(29		)
Dividends and undistributed earnings allocated to participating securities(1)	(1		)	—
Net income available to common shareholders	$	585		$	389
Average common shares outstanding (in thousands):
Basic average common shares	394,160			410,674
Effect of dilutive securities: common stock options and common stock awards	4,687			6,038
Diluted average common shares	398,847			416,712
Anti-dilutive securities(2)	3,277			619
Earnings per Common Share:
Basic	$	1.48		$	0.95
Diluted(3)	1.47			0.93
	Six Months Ended June 30,
(Dollars in millions, except per share amounts)	2016			2015
Net income	$	987		$	823
Less:
Preferred stock dividends	(82		)	(60		)
Dividends and undistributed earnings allocated to participating securities(1)	(1		)	(1		)
Net income available to common shareholders	$	904		$	762
Average common shares outstanding (in thousands):
Basic average common shares	396,790			411,445
Effect of dilutive securities: common stock options and common stock awards	4,323			6,198
Diluted average common shares	401,113			417,643
Anti-dilutive securities(2)	3,426			704
Earnings per Common Share:
Basic	$	2.28		$	1.85
Diluted(3)	2.25			1.83

⁽¹⁾ Represents the portion of net income available to common equity allocated to participating securities, composed of fully vested deferred director stock and unvested restricted stock that contain non-forfeitable rights to dividends during the vesting period on a basis equivalent to dividends paid to common shareholders.

⁽²⁾ Represents common stock options and other equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive.

⁽³⁾ Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method.

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Line of Business Information (Tables)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Summary of Line of Business Results

The following is a summary of our line-of-business results for the periods indicated. The “Other” column represents costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies.

	Three Months Ended June 30,
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions, except where otherwise noted)	2016			2015			2016			2015			2016			2015			2016			2015
Servicing fees	$	1,239		$	1,319		$	—		$	—		$	—		$	—		$	1,239		$	1,319
Management fees	—			—			293			304			—			—			293			304
Trading services	255			271			12			10			—			—			267			281
Securities finance	156			155			—			—			—			—			156			155
Processing fees and other	102			22			(4		)	(5		)	—			—			98			17
Total fee revenue	1,752			1,767			301			309			—			—			2,053			2,076
Net interest revenue	520			534			1			1			—			—			521			535
Gains (losses) related to investment securities, net	(1		)	(3		)	—			—			—			—			(1		)	(3		)
Total revenue	2,271			2,298			302			310			—			—			2,573			2,608
Provision for loan losses	4			2			—			—			—			—			4			2
Total expenses	1,599			1,880			244			251			17			3			1,860			2,134
Income before income tax expense	$	668		$	416		$	58		$	59		$	(17	)	$	(3	)	$	709		$	472
Pre-tax margin	29		%	18		%	19		%	19		%							28		%	18		%
	Six Months Ended June 30,
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions, except where otherwise noted)	2016			2015			2016			2015			2016			2015			2016			2015
Servicing fees	$	2,481		$	2,587		$	—		$	—		$	—		$	—		$	2,481		$	2,587
Management fees	—			—			563			605			—			—			563			605
Trading services	517			586			22			19			—			—			539			605
Securities finance	290			256			—			—			—			—			290			256
Processing fees and other	147			81			3			(3		)	—			—			150			78
Total fee revenue	3,435			3,510			588			621			—			—			4,023			4,131
Net interest revenue	1,032			1,079			1			2			—			—			1,033			1,081
Gains (losses) related to investment securities, net	1			(4		)	—			—			—			—			1			(4		)
Total revenue	4,468			4,585			589			623			—			—			5,057			5,208
Provision for loan losses	8			6			—			—			—			—			8			6
Total expenses	3,286			3,716			500			507			124			8			3,910			4,231
Income before income tax expense	$	1,174		$	863		$	89		$	116		$	(124	)	$	(8	)	$	1,139		$	971
Pre-tax margin	26		%	19		%	15		%	19		%							23		%	19		%

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Non-U.S. Activities (Tables)

6 Months Ended

Jun. 30, 2016

Segments, Geographical Areas [Abstract]

Schedule of Results from Non-U.S. Operations

The following table presents our U.S. and non-U.S. financial results for the periods indicated:

	Three Months Ended June 30, 2016						Three Months Ended June 30, 2015
(In millions)	Non-U.S.		U.S.		Total		Non-U.S.		U.S.		Total
Total revenue	$	1,136	$	1,437	$	2,573	$	1,150	$	1,458	$	2,608
Income before income taxes	344		365		709		351		121		472
	Six Months Ended June 30, 2016						Six Months Ended June 30, 2015
(In millions)	Non-U.S.		U.S.		Total		Non-U.S.		U.S.		Total
Total revenue	$	2,161	$	2,896	$	5,057	$	2,297	$	2,911	$	5,208
Income before income taxes	521		618		1,139		693		278		971

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Summary of Significant Accounting Policies - Basis of Presentation (Details) - Subsequent Event - GE Asset Management $ in Millions	1 Months Ended
	Jul. 31, 2016 USD ($)
Business Acquisition [Line Items]
Purchase price	$ 435
Maximum additional consideration tied to incremental opportunities	$ 50

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Summary of Significant Accounting Policies - New Accounting Pronouncement (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Accounting Standards Update 2015-03 | Long-term debt
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	$ 41	$ 37

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Fair Value - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Assets, level 1 to level 2 transfers	$ 0		$ 0		$ 0
Assets, level 2 to level 1 transfers	0		0		0
Liabilities, level 1 to level 2 transfers	0		0		0
Liabilities, level 2 to level 1 transfers	0		0		$ 0
Liabilities transferred into level 3	0	$ 0	0	$ 0
Liabilities transferred out of level 3	$ 0	$ 0	$ 0	$ 0

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Fair Value - Schedule of Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	$ 890	$ 849
Investment securities available-for-sale	72,735	70,070
Derivative, collateral, cash offset	(1,966)	(776)
Derivative collateral, cash offset	(2,661)	(1,118)
Collateralized loan obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	1,710	1,760
Non-US debt securities, covered bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	3,400	3,180
Non-U.S. debt securities, other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	970	613
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	890	849
Investment securities available-for-sale	72,735	70,070
Derivative asset, gross liability and obligation to return cash, offset	(12,596)	(6,679)
Derivative assets	8,784	4,777
Other assets	347	2
Assets, fair value disclosure	82,756	75,698
Derivative liability, gross asset and obligation to return cash, offset	(13,290)	(7,021)
Derivative liabilities	7,703	4,132
Other liabilities	347	2
Total liabilities carried at fair value	8,136	4,233
Recurring | U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading liabilities	16	5
Recurring | Other U.S. debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading liabilities	11	18
Recurring | Non-U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading liabilities	59	76
Recurring | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, gross liability and obligation to return cash, offset	(12,130)	(6,562)
Derivative assets	8,738	4,754
Derivative liability, gross asset and obligation to return cash, offset	(13,238)	(6,995)
Derivative liabilities	7,382	3,873
Recurring | Interest-rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, gross liability and obligation to return cash, offset	(461)	(115)
Derivative assets	46	20
Derivative liability, gross asset and obligation to return cash, offset	(47)	(24)
Derivative liabilities	165	158
Recurring | Other derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, gross liability and obligation to return cash, offset	(5)	(2)
Derivative assets	0	3
Derivative liability, gross asset and obligation to return cash, offset	(5)	(2)
Derivative liabilities	156	101
Recurring | U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	44	32
Recurring | Non-U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	436	479
Recurring | Other U.S. debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	410	338
Investment securities available-for-sale	2,390	2,624
Recurring | US Treasury and federal agencies, direct obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	6,332	5,718
Recurring | US Treasury and federal agencies, mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	19,075	18,165
Recurring | Asset-backed securities, student loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	6,954	7,176
Recurring | Asset-backed securities, credit cards
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	1,380	1,341
Recurring | Asset-backed securities, sub-prime
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	369	419
Recurring | Asset-backed securities, other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	1,710	1,764
Recurring | Total asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	10,413	10,700
Recurring | Non-U.S. debt securities, mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	7,268	7,071
Recurring | Non-U.S. debt securities, asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	2,668	3,267
Recurring | Non-U.S. debt securities, Government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	5,405	4,355
Recurring | Non-U.S. debt securities, other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	5,374	4,834
Recurring | Total non-U.S. debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	20,715	19,527
Recurring | State and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	10,603	9,746
Recurring | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	2,741	2,987
Recurring | U.S. equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	41	39
Recurring | Non-U.S. equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	3	3
Recurring | U.S. money-market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	405	542
Recurring | Non-U.S. money-market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	17	19
Quoted Market Prices in Active Markets (Level 1) | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	497	521
Investment securities available-for-sale	5,857	5,206
Derivative asset	0	0
Other assets	347	2
Assets, fair value disclosure	6,701	5,729
Derivative liability	0	0
Other liabilities	347	2
Total liabilities carried at fair value	427	88
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading liabilities	16	5
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other U.S. debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading liabilities	5	5
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading liabilities	59	76
Quoted Market Prices in Active Markets (Level 1) | Recurring | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liability	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Interest-rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liability	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liability	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	44	32
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	436	479
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other U.S. debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	17	10
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | US Treasury and federal agencies, direct obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	5,857	5,206
Quoted Market Prices in Active Markets (Level 1) | Recurring | US Treasury and federal agencies, mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, student loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, credit cards
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, sub-prime
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, Government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total non-U.S. debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | State and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. money-market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. money-market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	393	328
Investment securities available-for-sale	64,480	62,400
Derivative asset	21,380	11,451
Other assets	0	0
Assets, fair value disclosure	86,253	74,179
Derivative liability	20,993	11,148
Other liabilities	0	0
Total liabilities carried at fair value	20,999	11,161
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading liabilities	0	0
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other U.S. debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading liabilities	6	13
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading liabilities	0	0
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	20,868	11,311
Derivative liability	20,620	10,863
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Interest-rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	507	135
Derivative liability	212	182
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	5	5
Derivative liability	161	103
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	0	0
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	0	0
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other U.S. debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	393	328
Investment securities available-for-sale	2,390	2,614
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | US Treasury and federal agencies, direct obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	475	512
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | US Treasury and federal agencies, mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	19,050	18,165
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, student loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	6,764	6,987
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, credit cards
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	1,380	1,341
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, sub-prime
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	369	419
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	8,513	8,747
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	7,268	7,071
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	2,557	3,093
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, Government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	5,405	4,355
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	5,113	4,579
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total non-U.S. debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	20,343	19,098
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | State and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	10,570	9,713
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	2,673	2,948
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	41	39
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	3	3
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. money-market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	405	542
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. money-market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	17	19
Pricing Methods with Significant Unobservable Market Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	2,398	2,469
Total liabilities carried at fair value		5
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	0	0
Investment securities available-for-sale	2,398	2,464
Derivative asset	0	5
Other assets	0	0
Assets, fair value disclosure	2,398	2,469
Derivative liability	0	5
Other liabilities	0	0
Total liabilities carried at fair value	0	5
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading liabilities	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other U.S. debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading liabilities	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading liabilities	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	5
Derivative liability	0	5
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Interest-rate contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liability	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liability	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other U.S. debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	0	0
Investment securities available-for-sale	0	10
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | US Treasury and federal agencies, direct obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | US Treasury and federal agencies, mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	25	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, student loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	190	189
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, credit cards
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, sub-prime
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	1,710	1,764
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	1,900	1,953
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	111	174
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, Government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	261	255
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total non-U.S. debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	372	429
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | State and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	33	33
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	68	39
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. money-market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. money-market mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	$ 0	$ 0

XML

Fair Value - Schedule of Fair Value Measurements, Assets, Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	$ 2,835	$ 5,356	$ 2,469	$ 5,447
Total realized and unrealized gain (losses) recorded in revenue	10	(83)	20	71
Total realized and unrealized gain (losses) recorded in other comprehensive income	4	(7)	(13)	(18)
Purchases	72	10	618	476
Sales		(508)		(508)
Settlements	(166)	(366)	(257)	(718)
Transfers into Level 3		97		97
Transfers out of Level 3	(357)	(458)	(439)	(806)
Fair value, end of period	2,398	4,041	2,398	4,041
Change in unrealized gains (losses) related to financial instruments held	0	(30)	0	12
Derivative instruments, assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period		185	5	81
Total realized and unrealized gain (losses) recorded in revenue		(96)	3	45
Total realized and unrealized gain (losses) recorded in other comprehensive income		0	0	0
Purchases		10	0	29
Sales		0		0
Settlements		(39)	(8)	(95)
Transfers into Level 3		0		0
Transfers out of Level 3		0	0	0
Fair value, end of period	0	60	0	60
Change in unrealized gains (losses) related to financial instruments held		(30)	0	12
Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period		185	5	81
Total realized and unrealized gain (losses) recorded in revenue		(96)	3	45
Total realized and unrealized gain (losses) recorded in other comprehensive income		0	0	0
Purchases		10	0	29
Sales		0		0
Settlements		(39)	(8)	(95)
Transfers into Level 3		0		0
Transfers out of Level 3		0	0	0
Fair value, end of period	0	60	0	60
Change in unrealized gains (losses) related to financial instruments held		(30)	0	12
Investment securities available for sale
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	2,835	5,171	2,464	5,366
Total realized and unrealized gain (losses) recorded in revenue	10	13	17	26
Total realized and unrealized gain (losses) recorded in other comprehensive income	4	(7)	(13)	(18)
Purchases	72	0	618	447
Sales		(508)		(508)
Settlements	(166)	(327)	(249)	(623)
Transfers into Level 3		97		97
Transfers out of Level 3	(357)	(458)	(439)	(806)
Fair value, end of period	2,398	3,981	2,398	3,981
US Treasury and federal agencies, mortgage-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	300		0
Total realized and unrealized gain (losses) recorded in revenue	0		0
Total realized and unrealized gain (losses) recorded in other comprehensive income	0		0
Purchases	0		300
Settlements	0		0
Transfers out of Level 3	(275)		(275)
Fair value, end of period	25		25
Asset-backed securities, student loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	186	257	189	259
Total realized and unrealized gain (losses) recorded in revenue	1	0	1	0
Total realized and unrealized gain (losses) recorded in other comprehensive income	3	0	0	1
Purchases	0	0	0	0
Sales		0		0
Settlements	0	(1)	0	(5)
Transfers into Level 3		0		0
Transfers out of Level 3	0	(22)	0	(21)
Fair value, end of period	190	234	190	234
Asset-backed securities, other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	1,813	3,633	1,764	3,780
Total realized and unrealized gain (losses) recorded in revenue	9	13	16	25
Total realized and unrealized gain (losses) recorded in other comprehensive income	(2)	(6)	(13)	(18)
Purchases	19	0	132	0
Sales		(420)		(420)
Settlements	(129)	(287)	(189)	(434)
Transfers into Level 3		0		0
Transfers out of Level 3	0	0	0	0
Fair value, end of period	1,710	2,933	1,710	2,933
Total asset-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	1,999	3,890	1,953	4,039
Total realized and unrealized gain (losses) recorded in revenue	10	13	17	25
Total realized and unrealized gain (losses) recorded in other comprehensive income	1	(6)	(13)	(17)
Purchases	19	0	132	0
Sales		(420)		(420)
Settlements	(129)	(288)	(189)	(439)
Transfers into Level 3		0		0
Transfers out of Level 3	0	(22)	0	(21)
Fair value, end of period	1,900	3,167	1,900	3,167
Non-U.S. debt securities, mortgage-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period		43		0
Total realized and unrealized gain (losses) recorded in revenue		0		0
Total realized and unrealized gain (losses) recorded in other comprehensive income		0		0
Purchases		0		43
Sales		0		0
Settlements		0		0
Transfers into Level 3		97		97
Transfers out of Level 3		(43)		(43)
Fair value, end of period		97		97
Non-U.S. debt securities, asset-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	127	228	174	295
Total realized and unrealized gain (losses) recorded in revenue	0	0	0	1
Total realized and unrealized gain (losses) recorded in other comprehensive income	0	0	(1)	0
Purchases	53	0	107	0
Sales		0		0
Settlements	(16)	(18)	(34)	(86)
Transfers into Level 3		0		0
Transfers out of Level 3	(53)	(17)	(135)	(17)
Fair value, end of period	111	193	111	193
Non-U.S. debt securities, other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	295	442	255	371
Total realized and unrealized gain (losses) recorded in revenue	0	0	0	0
Total realized and unrealized gain (losses) recorded in other comprehensive income	2	0	0	1
Purchases	0	0	29	111
Sales		0		0
Settlements	(7)	9	6	(32)
Transfers into Level 3		0		0
Transfers out of Level 3	(29)	(187)	(29)	(187)
Fair value, end of period	261	264	261	264
Total non-U.S. debt securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	422	713	429	666
Total realized and unrealized gain (losses) recorded in revenue	0	0	0	1
Total realized and unrealized gain (losses) recorded in other comprehensive income	2	0	(1)	1
Purchases	53	0	136	154
Sales		0		0
Settlements	(23)	(9)	(28)	(118)
Transfers into Level 3		97		97
Transfers out of Level 3	(82)	(247)	(164)	(247)
Fair value, end of period	372	554	372	554
State and political subdivisions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	32	37	33	38
Total realized and unrealized gain (losses) recorded in revenue	0	0	0	0
Total realized and unrealized gain (losses) recorded in other comprehensive income	1	0	1	(1)
Purchases	0	0	0	0
Sales		0		0
Settlements	0	(1)	(1)	(1)
Transfers into Level 3		0		0
Transfers out of Level 3	0	0	0	0
Fair value, end of period	33	36	33	36
Collateralized mortgage obligations
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	82	522	39	614
Total realized and unrealized gain (losses) recorded in revenue	0	0	0	0
Total realized and unrealized gain (losses) recorded in other comprehensive income	0	(1)	0	(1)
Purchases	0	0	50	293
Sales		(88)		(88)
Settlements	(14)	(29)	(21)	(65)
Transfers into Level 3		0		0
Transfers out of Level 3	0	(189)	0	(538)
Fair value, end of period	68	215	68	215
Other U.S. debt securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period		9	10	9
Total realized and unrealized gain (losses) recorded in revenue		0	0	0
Total realized and unrealized gain (losses) recorded in other comprehensive income		0	0	0
Purchases		0	0	0
Sales		0		0
Settlements		0	(10)	0
Transfers into Level 3		0		0
Transfers out of Level 3		0	0	0
Fair value, end of period	$ 0	$ 9	$ 0	$ 9

XML

Fair Value - Schedule of Fair Value Measurements, Liabilities, Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	$ 0	$ 181,000	$ 5,000	$ 83,000
Total realized and unrealized (gains) losses recorded in revenue	0	(90,000)	5,000	19,000
Issuances	0	8,000		33,000
Settlements	0	(49,000)	(10,000)	(85,000)
Fair value, end of period	0	50,000	0	50,000
Change in unrealized (gains) losses related to financial instruments held	0	26,000	0	(1,000)
Derivative instruments, liabilities | Accrued expenses and other liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	0	181,000	5,000	83,000
Total realized and unrealized (gains) losses recorded in revenue	0	(90,000)	5,000	19,000
Issuances	0	8,000		33,000
Settlements	0	(49,000)	(10,000)	(85,000)
Fair value, end of period	0	50,000	0	50,000
Change in unrealized (gains) losses related to financial instruments held	0	26,000	0	(1,000)
Foreign exchange contracts | Accrued expenses and other liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period	0	172,000	5,000	74,000
Total realized and unrealized (gains) losses recorded in revenue	0	(90,000)	5,000	19,000
Issuances	0	8,000		33,000
Settlements	0	(40,000)	(10,000)	(76,000)
Fair value, end of period	0	50,000	0	50,000
Change in unrealized (gains) losses related to financial instruments held	$ 0	26,000	$ 0	(1,000)
Other | Accrued expenses and other liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning of period		9,000		9,000
Total realized and unrealized (gains) losses recorded in revenue		0		0
Issuances		0		0
Settlements		(9,000)		(9,000)
Fair value, end of period		0		0
Change in unrealized (gains) losses related to financial instruments held		$ 0		$ 0

XML

Fair Value - Level 3 Total Realized And Unrealized Gains And Losses Recorded In Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Total revenue
Realized and Unrealized Gains and Losses [Line Items]
Total realized and unrealized gains (losses) recorded in revenue	$ 10	$ 7	$ 15	$ 52
Change in unrealized gains (losses) related to financial instruments held	0	(4)	0	11
Trading services
Realized and Unrealized Gains and Losses [Line Items]
Total realized and unrealized gains (losses) recorded in revenue	0	(6)	(2)	26
Change in unrealized gains (losses) related to financial instruments held	0	(4)	0	11
Total fee revenue
Realized and Unrealized Gains and Losses [Line Items]
Total realized and unrealized gains (losses) recorded in revenue	0	(6)	(2)	26
Change in unrealized gains (losses) related to financial instruments held	0	(4)	0	11
Net interest revenue
Realized and Unrealized Gains and Losses [Line Items]
Total realized and unrealized gains (losses) recorded in revenue	10	13	17	26
Change in unrealized gains (losses) related to financial instruments held	$ 0	$ 0	$ 0	$ 0

XML

Fair Value - Fair Value Inputs, Assets and Liabilities, Quantitative Information (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Investment securities available-for-sale	$ 72,735	$ 70,070
Asset-backed securities, other
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Investment securities available-for-sale	1,710	1,764
State and political subdivisions
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Investment securities available-for-sale	10,603	9,746
Pricing Methods with Significant Unobservable Market Inputs (Level 3)
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Total	2,398	2,469
Total		5
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, liabilities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Derivative instruments, foreign exchange contracts		5
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, assets
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Derivative instruments, foreign exchange contracts		5
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Asset-backed securities, other
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Investment securities available-for-sale	1,710	1,764
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | State and political subdivisions
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Investment securities available-for-sale	$ 33	$ 33
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Discounted cash flows | Asset-backed securities, other | Weighted average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Credit spread	0.30%	(0.10%)
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Discounted cash flows | State and political subdivisions | Weighted average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Credit spread	2.10%	2.20%
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Option model | Derivative instruments, liabilities | Weighted average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Volatility		9.20%
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Option model | Derivative instruments, assets | Weighted average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Volatility		9.30%
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3)
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Total	$ 55	$ 66
Total	0	5
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, liabilities
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Derivative instruments, foreign exchange contracts	0	5
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, assets
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Derivative instruments, foreign exchange contracts	0	5
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Asset-backed securities, other
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Investment securities available-for-sale	22	28
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | State and political subdivisions
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Investment securities available-for-sale	$ 33	$ 33

XML

Fair Value - Schedule of Availability of Significant Unobservable Inputs by Balance Sheet Classification (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Assets:
Investment securities available-for-sale	$ 72,735	$ 70,070
Asset-backed securities, student loans
Assets:
Investment securities available-for-sale	6,954	7,176
Asset-backed securities, other
Assets:
Investment securities available-for-sale	1,710	1,764
Non-U.S. debt securities, asset-backed securities
Assets:
Investment securities available-for-sale	2,668	3,267
Non-U.S. debt securities, other
Assets:
Investment securities available-for-sale	5,374	4,834
State and political subdivisions
Assets:
Investment securities available-for-sale	10,603	9,746
Collateralized mortgage obligations
Assets:
Investment securities available-for-sale	2,741	2,987
Other U.S. debt securities
Assets:
Investment securities available-for-sale	2,390	2,624
Pricing Methods with Significant Unobservable Market Inputs (Level 3)
Assets:
Total	2,398	2,469
Liabilities:
Total		5
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, liabilities
Liabilities:
Derivative instruments, foreign exchange contracts		5
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, assets
Assets:
Derivative instruments, foreign exchange contracts		5
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Collateralized Mortgage Backed Securities
Assets:
Investment securities available-for-sale	25
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Asset-backed securities, student loans
Assets:
Investment securities available-for-sale	190	189
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Asset-backed securities, other
Assets:
Investment securities available-for-sale	1,710	1,764
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Non-U.S. debt securities, asset-backed securities
Assets:
Investment securities available-for-sale	111	174
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Non-U.S. debt securities, other
Assets:
Investment securities available-for-sale	261	255
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | State and political subdivisions
Assets:
Investment securities available-for-sale	33	33
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Collateralized mortgage obligations
Assets:
Investment securities available-for-sale	68	39
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Other U.S. debt securities
Assets:
Investment securities available-for-sale		10
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3)
Assets:
Total	55	66
Liabilities:
Total	0	5
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, liabilities
Liabilities:
Derivative instruments, foreign exchange contracts	0	5
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, assets
Assets:
Derivative instruments, foreign exchange contracts	0	5
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Collateralized Mortgage Backed Securities
Assets:
Investment securities available-for-sale	0
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Asset-backed securities, student loans
Assets:
Investment securities available-for-sale	0	0
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Asset-backed securities, other
Assets:
Investment securities available-for-sale	22	28
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Non-U.S. debt securities, asset-backed securities
Assets:
Investment securities available-for-sale	0	0
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Non-U.S. debt securities, other
Assets:
Investment securities available-for-sale	0	0
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | State and political subdivisions
Assets:
Investment securities available-for-sale	33	33
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Collateralized mortgage obligations
Assets:
Investment securities available-for-sale	0	0
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Other U.S. debt securities
Assets:
Investment securities available-for-sale		0
Significant Unobservable Inputs Not Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3)
Assets:
Total	2,343	2,403
Liabilities:
Total		0
Significant Unobservable Inputs Not Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, liabilities
Liabilities:
Derivative instruments, foreign exchange contracts		0
Significant Unobservable Inputs Not Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, assets
Assets:
Derivative instruments, foreign exchange contracts		0
Significant Unobservable Inputs Not Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Collateralized Mortgage Backed Securities
Assets:
Investment securities available-for-sale	25
Significant Unobservable Inputs Not Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Asset-backed securities, student loans
Assets:
Investment securities available-for-sale	190	189
Significant Unobservable Inputs Not Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Asset-backed securities, other
Assets:
Investment securities available-for-sale	1,688	1,736
Significant Unobservable Inputs Not Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Non-U.S. debt securities, asset-backed securities
Assets:
Investment securities available-for-sale	111	174
Significant Unobservable Inputs Not Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Non-U.S. debt securities, other
Assets:
Investment securities available-for-sale	261	255
Significant Unobservable Inputs Not Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | State and political subdivisions
Assets:
Investment securities available-for-sale	0	0
Significant Unobservable Inputs Not Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Collateralized mortgage obligations
Assets:
Investment securities available-for-sale	$ 68	39
Significant Unobservable Inputs Not Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Other U.S. debt securities
Assets:
Investment securities available-for-sale		$ 10

XML

Fair Value - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Financial Assets:
Cash and due from banks	$ 4,673	$ 1,207	$ 3,084	$ 1,855
Interest-bearing deposits with banks	75,169	75,338
Securities purchased under resale agreements	2,010	3,404
Held to maturity, fair value	30,895	29,798
Financial Liabilities:
Noninterest-bearing	57,268	65,800
Interest-bearing—U.S.	33,060	29,958
Interest-bearing—non-U.S.	102,802	95,869
Securities sold under repurchase agreements	4,350	4,499
Federal funds purchased	29	6
Other short-term borrowings	1,683	1,748
Reported Value Measurement
Financial Assets:
Cash and due from banks	4,673	1,207
Interest-bearing deposits with banks	75,169	75,338
Securities purchased under resale agreements	2,010	3,404
Held to maturity, fair value	30,386	29,952
Net loans (excluding leases)	18,962	17,838
Financial Liabilities:
Noninterest-bearing	57,268	65,800
Interest-bearing—U.S.	33,060	29,958
Interest-bearing—non-U.S.	102,802	95,869
Securities sold under repurchase agreements	4,350	4,499
Federal funds purchased	29	6
Other short-term borrowings	1,683	1,748
Long-term debt	11,924	11,497
Estimate of Fair Value Measurement
Financial Assets:
Cash and due from banks	4,673	1,207
Interest-bearing deposits with banks	75,169	75,338
Securities purchased under resale agreements	2,010	3,404
Held to maturity, fair value	30,895	29,798
Net loans (excluding leases)	18,940	17,792
Financial Liabilities:
Noninterest-bearing	57,268	65,800
Interest-bearing—U.S.	33,060	29,958
Interest-bearing—non-U.S.	102,802	95,869
Securities sold under repurchase agreements	4,350	4,499
Federal funds purchased	29	6
Other short-term borrowings	1,683	1,748
Long-term debt	12,033	11,604
Estimate of Fair Value Measurement | Fair Value, Measurements, Nonrecurring
Financial Assets:
Net loans (excluding leases)		14
Estimate of Fair Value Measurement | Quoted Market Prices in Active Markets (Level 1)
Financial Assets:
Cash and due from banks	4,673	1,207
Interest-bearing deposits with banks	0	0
Securities purchased under resale agreements	0	0
Held to maturity, fair value	17,928	0
Net loans (excluding leases)	0	0
Financial Liabilities:
Noninterest-bearing	0	0
Interest-bearing—U.S.	0	0
Interest-bearing—non-U.S.	0	0
Securities sold under repurchase agreements	0	0
Federal funds purchased	0	0
Other short-term borrowings	0	0
Long-term debt	0	0
Estimate of Fair Value Measurement | Pricing Methods with Significant Observable Market Inputs (Level 2)
Financial Assets:
Cash and due from banks	0	0
Interest-bearing deposits with banks	75,169	75,338
Securities purchased under resale agreements	2,010	3,404
Held to maturity, fair value	12,830	29,798
Net loans (excluding leases)	18,836	17,667
Financial Liabilities:
Noninterest-bearing	57,268	65,800
Interest-bearing—U.S.	33,060	29,958
Interest-bearing—non-U.S.	102,802	95,869
Securities sold under repurchase agreements	4,350	4,499
Federal funds purchased	29	6
Other short-term borrowings	1,683	1,748
Long-term debt	11,660	11,215
Estimate of Fair Value Measurement | Pricing Methods with Significant Unobservable Market Inputs (Level 3)
Financial Assets:
Cash and due from banks	0	0
Interest-bearing deposits with banks	0	0
Securities purchased under resale agreements	0	0
Held to maturity, fair value	137	0
Net loans (excluding leases)	104	125
Financial Liabilities:
Noninterest-bearing	0	0
Interest-bearing—U.S.	0	0
Interest-bearing—non-U.S.	0	0
Securities sold under repurchase agreements	0	0
Federal funds purchased	0	0
Other short-term borrowings	0	0
Long-term debt	$ 373	$ 389

XML

Investment Securities - Narrative (Details)	6 Months Ended
	Jun. 30, 2016 USD ($) security	Jun. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Investments, Debt and Equity Securities [Abstract]
Pledged securities not separately reported	$ 34,100,000,000		$ 34,180,000,000
OTTI on investments	1,000,000	$ 1,000,000
Unrealized gain (loss), excluding OTTI	$ (474,000,000)
Number of securities in loss position | security	917

XML

Investment Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	$ 71,940	$ 69,843
Available for sale, gross unrealized gains	1,163	735
Available for sale, gross unrealized losses	368	508
Investment securities available for sale	72,735	70,070
Held to maturity, amortized cost	30,386	29,952
Held to maturity, gross unrealized gains	615	179
Held to maturity, gross unrealized losses	106	333
Held to maturity, fair value	30,895	29,798
US Treasury and federal agencies, direct obligations
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	6,301	5,717
Available for sale, gross unrealized gains	32	6
Available for sale, gross unrealized losses	1	5
Investment securities available for sale	6,332	5,718
Held to maturity, amortized cost	21,577	20,878
Held to maturity, gross unrealized gains	446	2
Held to maturity, gross unrealized losses	1	217
Held to maturity, fair value	22,022	20,663
US Treasury and federal agencies, mortgage-backed securities
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	18,788	18,168
Available for sale, gross unrealized gains	298	131
Available for sale, gross unrealized losses	11	134
Investment securities available for sale	19,075	18,165
Held to maturity, amortized cost	1,521	610
Held to maturity, gross unrealized gains	14	2
Held to maturity, gross unrealized losses	0	8
Held to maturity, fair value	1,535	604
Asset-backed securities, student loans
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	7,162	7,358
Available for sale, gross unrealized gains	8	16
Available for sale, gross unrealized losses	216	198
Investment securities available for sale	6,954	7,176
Held to maturity, amortized cost	1,489	1,592
Held to maturity, gross unrealized gains	0	0
Held to maturity, gross unrealized losses	51	47
Held to maturity, fair value	1,438	1,545
Asset-backed securities, credit cards
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	1,392	1,378
Available for sale, gross unrealized gains	15	0
Available for sale, gross unrealized losses	27	37
Investment securities available for sale	1,380	1,341
Held to maturity, amortized cost	897	897
Held to maturity, gross unrealized gains	1	0
Held to maturity, gross unrealized losses	0	1
Held to maturity, fair value	898	896
Asset-backed securities, sub-prime
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	396	448
Available for sale, gross unrealized gains	1	2
Available for sale, gross unrealized losses	28	31
Investment securities available for sale	369	419
Asset-backed securities, other
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	1,684	1,724
Available for sale, gross unrealized gains	27	43
Available for sale, gross unrealized losses	1	3
Investment securities available for sale	1,710	1,764
Held to maturity, amortized cost	138	366
Held to maturity, gross unrealized gains	1	2
Held to maturity, gross unrealized losses	0	1
Held to maturity, fair value	139	367
Total asset-backed securities
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	10,634	10,908
Available for sale, gross unrealized gains	51	61
Available for sale, gross unrealized losses	272	269
Investment securities available for sale	10,413	10,700
Held to maturity, amortized cost	2,524	2,855
Held to maturity, gross unrealized gains	2	2
Held to maturity, gross unrealized losses	51	49
Held to maturity, fair value	2,475	2,808
Non-U.S. debt securities, mortgage-backed securities
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	7,254	7,010
Available for sale, gross unrealized gains	42	72
Available for sale, gross unrealized losses	28	11
Investment securities available for sale	7,268	7,071
Held to maturity, amortized cost	1,900	2,202
Held to maturity, gross unrealized gains	96	109
Held to maturity, gross unrealized losses	31	26
Held to maturity, fair value	1,965	2,285
Non-U.S. debt securities, asset-backed securities
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	2,675	3,272
Available for sale, gross unrealized gains	2	2
Available for sale, gross unrealized losses	9	7
Investment securities available for sale	2,668	3,267
Held to maturity, amortized cost	870	1,415
Held to maturity, gross unrealized gains	0	4
Held to maturity, gross unrealized losses	4	3
Held to maturity, fair value	866	1,416
Non-U.S. debt securities, Government securities
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	5,385	4,348
Available for sale, gross unrealized gains	20	7
Available for sale, gross unrealized losses	0	0
Investment securities available for sale	5,405	4,355
Held to maturity, amortized cost	309	239
Held to maturity, gross unrealized gains	3	0
Held to maturity, gross unrealized losses	0	1
Held to maturity, fair value	312	238
Non-U.S. debt securities, other
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	5,341	4,817
Available for sale, gross unrealized gains	37	29
Available for sale, gross unrealized losses	4	12
Investment securities available for sale	5,374	4,834
Held to maturity, amortized cost	191	65
Held to maturity, gross unrealized gains	3	0
Held to maturity, gross unrealized losses	0	0
Held to maturity, fair value	194	65
Total non-U.S. debt securities
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	20,655	19,447
Available for sale, gross unrealized gains	101	110
Available for sale, gross unrealized losses	41	30
Investment securities available for sale	20,715	19,527
Held to maturity, amortized cost	3,270	3,921
Held to maturity, gross unrealized gains	102	113
Held to maturity, gross unrealized losses	35	30
Held to maturity, fair value	3,337	4,004
State and political subdivisions
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	10,065	9,402
Available for sale, gross unrealized gains	563	371
Available for sale, gross unrealized losses	25	27
Investment securities available for sale	10,603	9,746
Held to maturity, amortized cost	0	1
Held to maturity, gross unrealized gains	0	0
Held to maturity, gross unrealized losses	0	0
Held to maturity, fair value	0	1
Collateralized mortgage obligations
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	2,681	2,993
Available for sale, gross unrealized gains	66	16
Available for sale, gross unrealized losses	6	22
Investment securities available for sale	2,741	2,987
Held to maturity, amortized cost	1,494	1,687
Held to maturity, gross unrealized gains	51	60
Held to maturity, gross unrealized losses	19	29
Held to maturity, fair value	1,526	1,718
Other U.S. debt securities
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	2,357	2,611
Available for sale, gross unrealized gains	42	31
Available for sale, gross unrealized losses	9	18
Investment securities available for sale	2,390	2,624
U.S. equity securities
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	34	33
Available for sale, gross unrealized gains	10	9
Available for sale, gross unrealized losses	3	3
Investment securities available for sale	41	39
Non-U.S. equity securities
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	3	3
Available for sale, gross unrealized gains	0	0
Available for sale, gross unrealized losses	0	0
Investment securities available for sale	3	3
U.S. money-market mutual funds
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	405	542
Available for sale, gross unrealized gains	0	0
Available for sale, gross unrealized losses	0	0
Investment securities available for sale	405	542
Non-U.S. money-market mutual funds
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Available for sale, amortized cost	17	19
Available for sale, gross unrealized gains	0	0
Available for sale, gross unrealized losses	0	0
Investment securities available for sale	$ 17	19
Federal family education loan program
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Federal government credit support guarantee, percentage minimum	97.00%
Collateralized loan obligations
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Investment securities available for sale	$ 1,710	1,760
Non-US debt securities, covered bonds
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Investment securities available for sale	3,400	3,180
Non-U.S. debt securities, other
Available-For-Sale and Held-To-Maturity-Securities [Line Items]
Investment securities available for sale	$ 970	$ 613

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Investment Securities - Schedule of Gross Pre-Tax Unrealized Losses on Investment Securities (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	$ 9,394	$ 22,336
Available for sale, gross unrealized losses less than 12 months	69	159
Available for sale, fair value 12 months or longer	8,926	9,468
Available for sale, gross unrealized losses 12 months or longer	299	349
Available for sale, fair value total	18,320	31,804
Available for sale, gross unrealized losses total	368	508
Held to maturity, fair value less than 12 months	2,570	20,679
Held-to-maturity, gross, less than 12 months	48	169
Held to maturity, fair value 12 months or longer	1,538	4,824
Held to maturity, gross unrealized losses 12 months or longer	58	164
Held to maturity, fair value total	4,108	25,503
Held to maturity, gross unrealized losses total	106	333
US Treasury and federal agencies, direct obligations
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	84	3,123
Available for sale, gross unrealized losses less than 12 months	0	4
Available for sale, fair value 12 months or longer	129	121
Available for sale, gross unrealized losses 12 months or longer	1	1
Available for sale, fair value total	213	3,244
Available for sale, gross unrealized losses total	1	5
Held to maturity, fair value less than 12 months	2	16,370
Held-to-maturity, gross, less than 12 months	0	120
Held to maturity, fair value 12 months or longer	91	3,005
Held to maturity, gross unrealized losses 12 months or longer	1	97
Held to maturity, fair value total	93	19,375
Held to maturity, gross unrealized losses total	1	217
US Treasury and federal agencies, mortgage-backed securities
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	828	5,729
Available for sale, gross unrealized losses less than 12 months	2	48
Available for sale, fair value 12 months or longer	1,189	3,166
Available for sale, gross unrealized losses 12 months or longer	9	86
Available for sale, fair value total	2,017	8,895
Available for sale, gross unrealized losses total	11	134
Held to maturity, fair value less than 12 months		560
Held-to-maturity, gross, less than 12 months		8
Held to maturity, fair value 12 months or longer		0
Held to maturity, gross unrealized losses 12 months or longer		0
Held to maturity, fair value total		560
Held to maturity, gross unrealized losses total		8
Asset-backed securities, student loans
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	2,210	2,841
Available for sale, gross unrealized losses less than 12 months	39	54
Available for sale, fair value 12 months or longer	4,049	3,217
Available for sale, gross unrealized losses 12 months or longer	177	144
Available for sale, fair value total	6,259	6,058
Available for sale, gross unrealized losses total	216	198
Held to maturity, fair value less than 12 months	809	896
Held-to-maturity, gross, less than 12 months	27	25
Held to maturity, fair value 12 months or longer	631	615
Held to maturity, gross unrealized losses 12 months or longer	24	22
Held to maturity, fair value total	1,440	1,511
Held to maturity, gross unrealized losses total	51	47
Asset-backed securities, credit cards
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	0	838
Available for sale, gross unrealized losses less than 12 months	0	7
Available for sale, fair value 12 months or longer	558	490
Available for sale, gross unrealized losses 12 months or longer	27	30
Available for sale, fair value total	558	1,328
Available for sale, gross unrealized losses total	27	37
Held to maturity, fair value less than 12 months	218	636
Held-to-maturity, gross, less than 12 months	0	1
Held to maturity, fair value 12 months or longer	0	0
Held to maturity, gross unrealized losses 12 months or longer	0	0
Held to maturity, fair value total	218	636
Held to maturity, gross unrealized losses total	0	1
Asset-backed securities, sub-prime
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	1	7
Available for sale, gross unrealized losses less than 12 months	0	0
Available for sale, fair value 12 months or longer	349	387
Available for sale, gross unrealized losses 12 months or longer	28	31
Available for sale, fair value total	350	394
Available for sale, gross unrealized losses total	28	31
Asset-backed securities, other
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	399	720
Available for sale, gross unrealized losses less than 12 months	1	3
Available for sale, fair value 12 months or longer	25	43
Available for sale, gross unrealized losses 12 months or longer	0	0
Available for sale, fair value total	424	763
Available for sale, gross unrealized losses total	1	3
Held to maturity, fair value less than 12 months	6	102
Held-to-maturity, gross, less than 12 months	0	0
Held to maturity, fair value 12 months or longer	50	31
Held to maturity, gross unrealized losses 12 months or longer	0	1
Held to maturity, fair value total	56	133
Held to maturity, gross unrealized losses total	0	1
Asset-backed securities
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	2,610	4,406
Available for sale, gross unrealized losses less than 12 months	40	64
Available for sale, fair value 12 months or longer	4,981	4,137
Available for sale, gross unrealized losses 12 months or longer	232	205
Available for sale, fair value total	7,591	8,543
Available for sale, gross unrealized losses total	272	269
Held to maturity, fair value less than 12 months	1,033	1,634
Held-to-maturity, gross, less than 12 months	27	26
Held to maturity, fair value 12 months or longer	681	646
Held to maturity, gross unrealized losses 12 months or longer	24	23
Held to maturity, fair value total	1,714	2,280
Held to maturity, gross unrealized losses total	51	49
Non-U.S. debt securities, mortgage-backed securities
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	2,825	1,457
Available for sale, gross unrealized losses less than 12 months	17	7
Available for sale, fair value 12 months or longer	757	437
Available for sale, gross unrealized losses 12 months or longer	11	4
Available for sale, fair value total	3,582	1,894
Available for sale, gross unrealized losses total	28	11
Held to maturity, fair value less than 12 months	189	338
Held-to-maturity, gross, less than 12 months	7	2
Held to maturity, fair value 12 months or longer	515	524
Held to maturity, gross unrealized losses 12 months or longer	24	24
Held to maturity, fair value total	704	862
Held to maturity, gross unrealized losses total	31	26
Non-U.S. debt securities, asset-backed securities
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	1,276	2,190
Available for sale, gross unrealized losses less than 12 months	7	7
Available for sale, fair value 12 months or longer	233	22
Available for sale, gross unrealized losses 12 months or longer	2	0
Available for sale, fair value total	1,509	2,212
Available for sale, gross unrealized losses total	9	7
Held to maturity, fair value less than 12 months	421	1,015
Held-to-maturity, gross, less than 12 months	4	3
Held to maturity, fair value 12 months or longer	51	69
Held to maturity, gross unrealized losses 12 months or longer	0	0
Held to maturity, fair value total	472	1,084
Held to maturity, gross unrealized losses total	4	3
Government securities
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	486	1,691
Available for sale, gross unrealized losses less than 12 months	0	0
Available for sale, fair value 12 months or longer	0	0
Available for sale, gross unrealized losses 12 months or longer	0	0
Available for sale, fair value total	486	1,691
Available for sale, gross unrealized losses total	0	0
Held to maturity, fair value less than 12 months	197	128
Held-to-maturity, gross, less than 12 months	0	1
Held to maturity, fair value 12 months or longer	0	0
Held to maturity, gross unrealized losses 12 months or longer	0	0
Held to maturity, fair value total	197	128
Held to maturity, gross unrealized losses total	0	1
Non-U.S. debt securities, other
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	1,003	1,548
Available for sale, gross unrealized losses less than 12 months	2	5
Available for sale, fair value 12 months or longer	572	527
Available for sale, gross unrealized losses 12 months or longer	2	7
Available for sale, fair value total	1,575	2,075
Available for sale, gross unrealized losses total	4	12
Held to maturity, fair value less than 12 months		0
Held-to-maturity, gross, less than 12 months		0
Held to maturity, fair value 12 months or longer		43
Held to maturity, gross unrealized losses 12 months or longer		0
Held to maturity, fair value total		43
Held to maturity, gross unrealized losses total		0
Total non-U.S. debt securities
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	5,590	6,886
Available for sale, gross unrealized losses less than 12 months	26	19
Available for sale, fair value 12 months or longer	1,562	986
Available for sale, gross unrealized losses 12 months or longer	15	11
Available for sale, fair value total	7,152	7,872
Available for sale, gross unrealized losses total	41	30
Held to maturity, fair value less than 12 months	807	1,481
Held-to-maturity, gross, less than 12 months	11	6
Held to maturity, fair value 12 months or longer	566	636
Held to maturity, gross unrealized losses 12 months or longer	24	24
Held to maturity, fair value total	1,373	2,117
Held to maturity, gross unrealized losses total	35	30
State and political subdivisions
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	102	206
Available for sale, gross unrealized losses less than 12 months	0	1
Available for sale, fair value 12 months or longer	612	658
Available for sale, gross unrealized losses 12 months or longer	25	26
Available for sale, fair value total	714	864
Available for sale, gross unrealized losses total	25	27
Collateralized mortgage obligations
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	128	1,511
Available for sale, gross unrealized losses less than 12 months	1	14
Available for sale, fair value 12 months or longer	282	217
Available for sale, gross unrealized losses 12 months or longer	5	8
Available for sale, fair value total	410	1,728
Available for sale, gross unrealized losses total	6	22
Held to maturity, fair value less than 12 months	728	634
Held-to-maturity, gross, less than 12 months	10	9
Held to maturity, fair value 12 months or longer	200	537
Held to maturity, gross unrealized losses 12 months or longer	9	20
Held to maturity, fair value total	928	1,171
Held to maturity, gross unrealized losses total	19	29
Other U.S. debt securities
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	51	475
Available for sale, gross unrealized losses less than 12 months	0	9
Available for sale, fair value 12 months or longer	166	178
Available for sale, gross unrealized losses 12 months or longer	9	9
Available for sale, fair value total	217	653
Available for sale, gross unrealized losses total	9	18
U.S. equity securities
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	0	0
Available for sale, gross unrealized losses less than 12 months	0	0
Available for sale, fair value 12 months or longer	5	5
Available for sale, gross unrealized losses 12 months or longer	3	3
Available for sale, fair value total	5	5
Available for sale, gross unrealized losses total	3	$ 3
Non-U.S. equity securities
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items]
Available for sale, fair value less than 12 months	1
Available for sale, gross unrealized losses less than 12 months	0
Available for sale, fair value 12 months or longer	0
Available for sale, gross unrealized losses 12 months or longer	0
Available for sale, fair value total	1
Available for sale, gross unrealized losses total	$ 0

XML

Investment Securities - Schedule of Contractual Maturities of Debt Securities (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	$ 13,090
Available for sale, 1 to 5 Years	21,716
Available for sale, 6 to 10 Years	16,535
Available for sale, over 10 Years	20,928
Available-for-sale, fair value	72,269
Held to maturity, under 1 Year	1,023
Held to maturity, 1 to 5 Years	15,153
Held to maturity, 6 to 10 Years	9,636
Held to maturity, over 10 Years	4,574
Held to maturity, amortized cost	30,386	$ 29,952
US Treasury and federal agencies, direct obligations
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	4,508
Available for sale, 1 to 5 Years	1,154
Available for sale, 6 to 10 Years	252
Available for sale, over 10 Years	418
Available-for-sale, fair value	6,332
Held to maturity, under 1 Year	0
Held to maturity, 1 to 5 Years	12,728
Held to maturity, 6 to 10 Years	8,771
Held to maturity, over 10 Years	78
Held to maturity, amortized cost	21,577	20,878
US Treasury and federal agencies, mortgage-backed securities
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	103
Available for sale, 1 to 5 Years	2,145
Available for sale, 6 to 10 Years	4,288
Available for sale, over 10 Years	12,539
Available-for-sale, fair value	19,075
Held to maturity, under 1 Year	0
Held to maturity, 1 to 5 Years	10
Held to maturity, 6 to 10 Years	171
Held to maturity, over 10 Years	1,340
Held to maturity, amortized cost	1,521	610
Asset-backed securities, student loans
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	426
Available for sale, 1 to 5 Years	3,782
Available for sale, 6 to 10 Years	1,354
Available for sale, over 10 Years	1,392
Available-for-sale, fair value	6,954
Held to maturity, under 1 Year	91
Held to maturity, 1 to 5 Years	99
Held to maturity, 6 to 10 Years	229
Held to maturity, over 10 Years	1,070
Held to maturity, amortized cost	1,489	1,592
Asset-backed securities, credit cards
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	4
Available for sale, 1 to 5 Years	261
Available for sale, 6 to 10 Years	1,115
Available for sale, over 10 Years	0
Available-for-sale, fair value	1,380
Held to maturity, under 1 Year	39
Held to maturity, 1 to 5 Years	823
Held to maturity, 6 to 10 Years	35
Held to maturity, over 10 Years	0
Held to maturity, amortized cost	897	897
Asset-backed securities, sub-prime
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	3
Available for sale, 1 to 5 Years	2
Available for sale, 6 to 10 Years	2
Available for sale, over 10 Years	362
Available-for-sale, fair value	369
Asset-backed securities, other
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	2
Available for sale, 1 to 5 Years	158
Available for sale, 6 to 10 Years	1,401
Available for sale, over 10 Years	149
Available-for-sale, fair value	1,710
Held to maturity, under 1 Year	30
Held to maturity, 1 to 5 Years	55
Held to maturity, 6 to 10 Years	51
Held to maturity, over 10 Years	2
Held to maturity, amortized cost	138	366
Total asset-backed securities
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	435
Available for sale, 1 to 5 Years	4,203
Available for sale, 6 to 10 Years	3,872
Available for sale, over 10 Years	1,903
Available-for-sale, fair value	10,413
Held to maturity, under 1 Year	160
Held to maturity, 1 to 5 Years	977
Held to maturity, 6 to 10 Years	315
Held to maturity, over 10 Years	1,072
Held to maturity, amortized cost	2,524	2,855
Non-U.S. debt securities, mortgage-backed securities
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	876
Available for sale, 1 to 5 Years	4,091
Available for sale, 6 to 10 Years	709
Available for sale, over 10 Years	1,592
Available-for-sale, fair value	7,268
Held to maturity, under 1 Year	323
Held to maturity, 1 to 5 Years	470
Held to maturity, 6 to 10 Years	79
Held to maturity, over 10 Years	1,028
Held to maturity, amortized cost	1,900	2,202
Non-U.S. debt securities, asset-backed securities
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	125
Available for sale, 1 to 5 Years	2,196
Available for sale, 6 to 10 Years	218
Available for sale, over 10 Years	129
Available-for-sale, fair value	2,668
Held to maturity, under 1 Year	197
Held to maturity, 1 to 5 Years	673
Held to maturity, 6 to 10 Years	0
Held to maturity, over 10 Years	0
Held to maturity, amortized cost	870	1,415
Government securities
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	3,907
Available for sale, 1 to 5 Years	1,354
Available for sale, 6 to 10 Years	144
Available for sale, over 10 Years	0
Available-for-sale, fair value	5,405
Held to maturity, under 1 Year	197
Held to maturity, 1 to 5 Years	112
Held to maturity, 6 to 10 Years	0
Held to maturity, over 10 Years	0
Held to maturity, amortized cost	309	239
Non-U.S. debt securities, other
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	1,794
Available for sale, 1 to 5 Years	3,064
Available for sale, 6 to 10 Years	517
Available for sale, over 10 Years	(1)
Available-for-sale, fair value	5,374
Held to maturity, under 1 Year	74
Held to maturity, 1 to 5 Years	117
Held to maturity, 6 to 10 Years	0
Held to maturity, over 10 Years	0
Held to maturity, amortized cost	191	65
Total non-U.S. debt securities
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	6,702
Available for sale, 1 to 5 Years	10,705
Available for sale, 6 to 10 Years	1,588
Available for sale, over 10 Years	1,720
Available-for-sale, fair value	20,715
Held to maturity, under 1 Year	791
Held to maturity, 1 to 5 Years	1,372
Held to maturity, 6 to 10 Years	79
Held to maturity, over 10 Years	1,028
Held to maturity, amortized cost	3,270	3,921
State and political subdivisions
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	428
Available for sale, 1 to 5 Years	2,314
Available for sale, 6 to 10 Years	5,630
Available for sale, over 10 Years	2,231
Available-for-sale, fair value	10,603
Held to maturity, amortized cost	0	1
Collateralized mortgage obligations
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	108
Available for sale, 1 to 5 Years	46
Available for sale, 6 to 10 Years	515
Available for sale, over 10 Years	2,072
Available-for-sale, fair value	2,741
Held to maturity, under 1 Year	72
Held to maturity, 1 to 5 Years	66
Held to maturity, 6 to 10 Years	300
Held to maturity, over 10 Years	1,056
Held to maturity, amortized cost	1,494	$ 1,687
Other U.S. debt securities
Contractual Maturities Of Debt Investment Securities [Line Items]
Available for sale, under 1 Year	806
Available for sale, 1 to 5 Years	1,149
Available for sale, 6 to 10 Years	390
Available for sale, over 10 Years	45
Available-for-sale, fair value	$ 2,390

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Investment Securities - Schedule of Credit-Related Loss Activity Recognized In Earnings (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance, beginning of period	$ 92	$ 115
Losses for which OTTI was previously recognized	1	1
Previously recognized losses related to securities sold or matured	(2)	(15)
Balance, end of period	$ 91	$ 101

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Loans and Leases - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) loan_segment loan	Jun. 30, 2015 USD ($) loan	Dec. 31, 2015 USD ($) loan
Financing Receivable, Recorded Investment [Line Items]
Number of Loan Segments | loan_segment			2
Aggregate short-duration advances	$ 4,320		$ 4,320		$ 2,620
Loans and leases, allowance for losses	51		$ 51		46
Loans modified in troubled debt restructurings | loan			0	0
Charge-offs	0	$ 0	$ (3)	$ 0
Provision for loan losses	4	$ 2	8	$ 6
Commercial and Financial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, allowance for losses	8		8
Commercial and Financial | Senior Secured Bank Loans
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, allowance for losses	43		$ 43		$ 35
Total Institutional
Financing Receivable, Recorded Investment [Line Items]
Loans more than 90 days past due | loan			0		0
Total Institutional | Senior Secured Bank Loans
Financing Receivable, Recorded Investment [Line Items]
Commercial and financial	$ 3,300		$ 3,300		$ 3,140
Total CRE
Financing Receivable, Recorded Investment [Line Items]
Loans more than 90 days past due | loan			0		0

XML

Loans and Leases - Net Loans (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 19,839	$ 18,799
Allowance for loan and lease losses	(51)	(46)
Loans and leases, net of allowance for loan and lease losses	19,788	18,753
Total Institutional
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	19,812	18,771
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	27	28
U.S. | Total Institutional
Accounts, Notes, Loans and Financing Receivable [Line Items]
Investment funds	11,893	11,136
Commercial and financial	3,916	4,671
Purchased receivables	79	93
Lease financing	335	337
U.S. | Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial real estate	27	28
Non-U.S. | Total Institutional
Accounts, Notes, Loans and Financing Receivable [Line Items]
Investment funds	2,540	1,678
Commercial and financial	505	278
Purchased receivables	0	0
Lease financing	$ 544	$ 578

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Loans and Leases - Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 19,839	$ 18,799
Investment Funds
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	14,433	12,814
Commercial and Financial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	4,421	4,949
Purchased Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	79	93
Lease Financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	879	915
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	27	28
Investment grade
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	16,148	15,204
Investment grade | Investment Funds
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	14,116	12,415
Investment grade | Commercial and Financial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	1,075	1,780
Investment grade | Purchased Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	79	93
Investment grade | Lease Financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	851	888
Investment grade | Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	27	28
Speculative
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	3,674	3,564
Speculative | Investment Funds
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	315	399
Speculative | Commercial and Financial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	3,331	3,138
Speculative | Purchased Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	0	0
Speculative | Lease Financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	28	27
Speculative | Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	0	0
Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	2	31
Special Mention | Investment Funds
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	2	0
Special Mention | Commercial and Financial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	0	31
Special Mention | Purchased Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	0	0
Special Mention | Lease Financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	0	0
Special Mention | Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	0	$ 0
Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	15
Doubtful | Investment Funds
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	0
Doubtful | Commercial and Financial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	15
Doubtful | Purchased Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	0
Doubtful | Lease Financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	0
Doubtful | Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 0

XML

Loans and Leases - Schedule of Allowance for Loan Losses (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 19,839,000,000	$ 18,799,000,000
Institutional
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	19,812,000,000	18,771,000,000
Amount of loan losses related to institutional loans individually evaluated for impairment	2,000,000	0
Amount of loan losses related to institutional loans collectively evaluated for impairment	49,000,000	46,000,000
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	27,000,000	28,000,000
Individually Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	15,000,000	0
Individually Evaluated for Impairment | Institutional
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	15,000,000	0
Individually Evaluated for Impairment | Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	0	0
Collectively Evaluated for Impairment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	19,824,000,000	18,799,000,000
Collectively Evaluated for Impairment | Institutional
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	19,797,000,000	18,771,000,000
Collectively Evaluated for Impairment | Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 27,000,000	$ 28,000,000

XML

Loans and Leases - Impaired Loans (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
CRE—property development—acquired credit-impaired
Financing Receivable, Impaired [Line Items]
Recorded investment with no related allowance	$ 0	$ 0	$ 0
Unpaid principal balance with no related allowance recorded	34,000,000	34,000,000	34,000,000
CRE—other—acquired credit-impaired
Financing Receivable, Impaired [Line Items]
Recorded investment with no related allowance	0	0	0
Unpaid principal balance with no related allowance recorded	22,000,000	22,000,000	22,000,000
Total CRE
Financing Receivable, Impaired [Line Items]
Recorded investment with no related allowance	0	0	0
Unpaid principal balance with no related allowance recorded	56,000,000	56,000,000	56,000,000
Institutional - commercial and financial lending
Financing Receivable, Impaired [Line Items]
Recorded investment with related allowance	15,000,000	15,000,000	0
Unpaid principal balance with related allowance recorded	15,000,000	15,000,000	0
Related allowance	2,000,000	2,000,000	0
Average recorded investment of impaired financing receivable	15,000,000	15,000,000
Impaired financing receivable interest revenue	0	0
Total Institutional
Financing Receivable, Impaired [Line Items]
Recorded investment with related allowance	15,000,000	15,000,000	0
Unpaid principal balance with related allowance recorded	15,000,000	15,000,000	0
Related allowance	2,000,000	2,000,000	0
Amount of loan losses related to institutional loans collectively evaluated for impairment	49,000,000	49,000,000	46,000,000
Total CRE and institutional
Financing Receivable, Impaired [Line Items]
Related allowance	2,000,000	2,000,000	0
Total recorded investment	15,000,000	15,000,000	0
Total unpaid principal balance	$ 71,000,000	$ 71,000,000	$ 56,000,000

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Loans and Leases - Schedule of Activity In The Allowance For Loan Losses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 47	$ 41	$ 46	$ 37
Provision for loan losses	4	2	8	6
Charge-offs	0	0	(3)	0
Ending balance	51	$ 43	51	$ 43
Loans and leases, allowance for losses	51		51		$ 46
Commercial and Financial
Allowance for Loan and Lease Losses [Roll Forward]
Loans and leases, allowance for losses	8		8
Commercial and Financial | Senior Secured Bank Loans
Allowance for Loan and Lease Losses [Roll Forward]
Loans and leases, allowance for losses	$ 43		$ 43		$ 35

XML

Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Goodwill (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Goodwill [Roll Forward]
Beginning balance	$ 5,671	$ 5,826
Divestitures and other reductions	(11)	0
Foreign currency translation	11	(97)
Ending balance	5,671	5,729
Investment Servicing
Goodwill [Roll Forward]
Beginning balance	5,641	5,793
Divestitures and other reductions	(11)	0
Foreign currency translation	11	(95)
Ending balance	5,641	5,698
Investment Management
Goodwill [Roll Forward]
Beginning balance	30	33
Divestitures and other reductions	0	0
Foreign currency translation	0	(2)
Ending balance	$ 30	$ 31

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Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			$ 1,768	$ 2,025
Amortization	$ (49)	$ (49)	(98)	(99)
Foreign currency translation and other, net			12	(55)
Ending balance	1,682	1,871	1,682	1,871
Investment Servicing
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			1,753	1,998
Amortization			(94)	(95)
Foreign currency translation and other, net			12	(54)
Ending balance	1,671	1,849	1,671	1,849
Investment Management
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			15	27
Amortization			(4)	(4)
Foreign currency translation and other, net			0	(1)
Ending balance	$ 11	$ 22	$ 11	$ 22

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Goodwill and Other Intangible Assets - Gross Carrying Amount, Accumulated Amortization And Net Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 3,312	$ 3,300
Accumulated Amortization	(1,630)	(1,532)
Net Carrying Amount	1,682	1,768	$ 1,871	$ 2,025
Client relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,490	2,486
Accumulated Amortization	(1,268)	(1,198)
Net Carrying Amount	1,222	1,288
Core deposits
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	671	667
Accumulated Amortization	(265)	(246)
Net Carrying Amount	406	421
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	151	147
Accumulated Amortization	(97)	(88)
Net Carrying Amount	$ 54	$ 59

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Other Assets - Components of Other Assets (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Other Assets [Abstract]
Collateral deposits, net	$ 20,971	$ 21,465
Derivative instruments, net	8,784	4,777
Bank-owned life insurance	3,118	3,078
Investments in joint ventures and other unconsolidated entities	2,262	2,034
Accounts receivable	961	1,018
Receivable for securities settlement	622	311
Prepaid expenses	344	284
Deferred tax assets, net of valuation allowance	225	182
Income taxes receivable	141	154
Deposits with clearing organizations	139	127
Other	422	473
Total	$ 37,989	$ 33,903

XML

Derivative Financial Instruments - Narrative (Details) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2016 USD ($) security	Dec. 31, 2015 USD ($)
Derivative [Line Items]
Cash collateral received for derivative instruments	$ 3,000	$ 1,400
Cash collateral provided for derivative instruments	3,270	1,650
Fair value of derivative liabilities	$ 20,993	$ 11,153
Securities weighted average life	5 years 1 month 10 days	5 years 5 months 10 days
Credit swap agreements
Derivative [Line Items]
Fair value of derivative liabilities	$ 2,700
Fair value of collateral posted	54
Maximum additional amount of payments related to termination events	$ 2,640
Interest rate swap | Fair Value Hedges | Senior notes
Derivative [Line Items]
Number of securities | security	8
Interest rate swap | Fair Value Hedges | Subordinated note
Derivative [Line Items]
Number of securities | security	2

XML

Derivative Financial Instruments - Schedule of Interest Rate Derivatives (Details) - Interest rate swap - Fair Value Hedges	Jun. 30, 2016
Senior notes | 1.35% notes due 2018
Derivative [Line Items]
Fixed interest rate	1.35%
Senior notes | 2.55% notes due 2020
Derivative [Line Items]
Fixed interest rate	2.55%
Senior notes | 1.95% Notes Due 2021
Derivative [Line Items]
Fixed interest rate	1.95%
Senior notes | 4.38% note due 2021
Derivative [Line Items]
Fixed interest rate	4.38%
Senior notes | 3.70% notes due in 2023
Derivative [Line Items]
Fixed interest rate	3.70%
Senior notes | 3.30% notes due 2024
Derivative [Line Items]
Fixed interest rate	3.30%
Senior notes | 3.55% notes due 2025
Derivative [Line Items]
Fixed interest rate	3.55%
Senior notes | 2.65% notes due 2026
Derivative [Line Items]
Fixed interest rate	2.65%
Subordinated note | 4.96% subordinated note due 2018
Derivative [Line Items]
Fixed interest rate	4.96%
Subordinated note | 3.10% subordinated note due 2023
Derivative [Line Items]
Fixed interest rate	3.10%

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Derivative Financial Instruments - Schedule of Outstanding Hedges: (Notional Amount) (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Derivatives not designated as hedging instruments | Interest-rate contracts | Swap agreements and forwards
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivatives	$ (9)	$ (336)
Derivatives not designated as hedging instruments | Interest-rate contracts | Futures
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivatives	(11,302)	(2,621)
Derivatives not designated as hedging instruments | Foreign exchange contracts | Futures
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivatives	(167)	0
Derivatives not designated as hedging instruments | Foreign exchange contracts | Forward, swap and spot
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivatives	(1,419,570)	(1,274,277)
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options purchased
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivatives	0	(403)
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options written
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivatives	0	(404)
Derivatives not designated as hedging instruments | Credit derivative contracts | Credit swap agreements
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivatives	(37)	(141)
Derivatives not designated as hedging instruments | Futures Contracts | Commodity
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivatives	(151)	(113)
Derivatives not designated as hedging instruments | Futures Contracts | Equity
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivatives	(103)	(87)
Derivatives not designated as hedging instruments | Other contracts | Stable value contracts
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivatives	(26,071)	(24,583)
Derivatives not designated as hedging instruments | Other contracts | Deferred value awards
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivatives	(506)	(320)
Derivatives designated as hedging instruments | Interest-rate contracts | Swap agreements
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivatives	(10,364)	(9,398)
Derivatives designated as hedging instruments | Foreign exchange contracts | Forward and swap
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivatives	$ (4,812)	$ (4,515)

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Derivative Financial Instruments - Notional Amount of Interest Rate Swap Agreements Designated as Fair Value and Cash Flow Hedges (Details) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2016 USD ($) contract	Dec. 31, 2015 USD ($) contract
Fair Value Hedges
Derivative [Line Items]
Total	$ 10,364	$ 9,398
Increase (decrease) in carrying value of long-term debt	458	(105)
Fair Value Hedges | Investment securities available for sale
Derivative [Line Items]
Investment securities available-for-sale	1,614	1,698
Fair Value Hedges | Long-term debt
Derivative [Line Items]
Long-term debt	$ 8,750	$ 7,700
Interest-rate contracts | Cash Flow Hedges
Derivative [Line Items]
Number of instruments held | contract	0	0

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Derivative Financial Instruments - Contractual and Weighted-Average Interest Rates, Which Include the Effects of Hedges Related to Financial Instruments (Details) - Long-term debt	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Derivative [Line Items]
Contractual rates	3.43%	3.70%	3.43%	3.61%
Rate including impact of hedges	2.24%	2.67%	2.22%	2.60%

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Derivative Financial Instruments - Schedule of The Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	$ 21,380	$ 11,456
Fair value of derivative liabilities	20,993	11,153
Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	20,868	11,316
Fair value of derivative liabilities	20,620	10,868
Interest-rate contracts
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	507	135
Fair value of derivative liabilities	212	182
Derivatives not designated as hedging instruments | Other Assets
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	20,478	10,806
Derivatives not designated as hedging instruments | Other liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	20,684	10,900
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Assets
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	20,472	10,799
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	20,522	10,795
Derivatives not designated as hedging instruments | Interest-rate contracts | Other Assets
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	1	2
Derivatives not designated as hedging instruments | Interest-rate contracts | Other liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	1	2
Derivatives not designated as hedging instruments | Other derivative contracts | Other Assets
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	5	5
Derivatives not designated as hedging instruments | Other derivative contracts | Other liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	161	103
Derivatives designated as hedging instruments | Other Assets
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	902	650
Derivatives designated as hedging instruments | Other liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	309	253
Derivatives designated as hedging instruments | Foreign exchange contracts | Other Assets
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	396	517
Derivatives designated as hedging instruments | Foreign exchange contracts | Other liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	98	73
Derivatives designated as hedging instruments | Interest-rate contracts | Other Assets
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	506	133
Derivatives designated as hedging instruments | Interest-rate contracts | Other liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	$ 211	$ 180

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Derivative Financial Instruments - Impact of Derivatives on Consolidated Statement of Income (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	$ (155)	$ (165)	$ (308)	$ (371)
Foreign exchange contracts | Trading services
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	(162)	(165)	(316)	(369)
Interest-rate contracts | Trading services
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	3	1	4	1
Interest-rate contracts | Processing fees and other revenue
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	0	0	(1)	0
Credit derivative contracts | Trading services
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	0	0	1	0
Other derivative contracts | Trading services
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	4	(1)	4	(3)
Other derivative contracts | Compensation and employee benefits
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	$ 57	$ 33	$ 127	$ 92

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Derivative Financial Instruments - Schedule of Differences Between the Gains (Losses) on the Derivative and The Gains (Losses) on the Hedged Item (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Derivative [Line Items]
Net unrealized loss on available-for-sale securities designated in fair value hedges, net of related taxes	$ (3)	$ 22	$ (22)	$ 7
Derivatives designated as hedging instruments | Fair Value Hedges
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	95	(49)	605	(70)
Gain (loss) on fair value hedges recognized in earnings	(88)	45	(589)	70
Derivatives designated as hedging instruments | Fair Value Hedges | Investment securities available for sale | Foreign exchange contracts | Processing fees and other revenue
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	(25)	12	19	(52)
Gain (loss) on fair value hedges recognized in earnings	25	(12)	(19)	52
Derivatives designated as hedging instruments | Fair Value Hedges | Investment securities available for sale | Interest-rate contracts | Processing fees and other revenue
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	(6)	37	(36)	12
Gain (loss) on fair value hedges recognized in earnings	6	(38)	37	(12)
Derivatives designated as hedging instruments | Fair Value Hedges | Deposits | Foreign exchange contracts | Processing fees and other revenue
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	(2)	(13)	246	(13)
Gain (loss) on fair value hedges recognized in earnings	2	13	(246)	13
Derivatives designated as hedging instruments | Fair Value Hedges | Long-term debt | Interest-rate contracts | Processing fees and other revenue
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	128	(85)	376	(17)
Gain (loss) on fair value hedges recognized in earnings	(121)	82	(361)	17
Derivatives designated as hedging instruments | Cash Flow Hedges
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	6	2	11	4
Gain (loss) on derivative recognized in OCI	(114)	21	(227)	41
Gain (loss) on hedges reclassified to income	0	(1)	0	(2)
Derivatives designated as hedging instruments | Cash Flow Hedges | Foreign exchange contracts
Derivative [Line Items]
Gain (loss) on derivative recognized in OCI	(114)	21	(227)	41
Derivatives designated as hedging instruments | Cash Flow Hedges | Foreign exchange contracts | Net interest revenue
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	6	2	11	4
Gain (loss) on hedges reclassified to income	0	0	0	0
Derivatives designated as hedging instruments | Cash Flow Hedges | Interest-rate contracts
Derivative [Line Items]
Gain (loss) on derivative recognized in OCI	0	0	0	0
Derivatives designated as hedging instruments | Cash Flow Hedges | Interest-rate contracts | Net interest revenue
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	0	0	0	0
Gain (loss) on hedges reclassified to income	0	(1)	0	(2)
Derivatives designated as hedging instruments | Investment Hedges
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	0	0	0	0
Gain (loss) on derivative recognized in OCI	51	0	51	0
Gain (loss) on hedges reclassified to income	0	0	0	0
Derivatives designated as hedging instruments | Investment Hedges | Foreign exchange contracts
Derivative [Line Items]
Gain (loss) on derivative recognized in OCI	51	0	51	0
Derivatives designated as hedging instruments | Investment Hedges | Foreign exchange contracts | Gains (Losses) related to investment securities, net
Derivative [Line Items]
Amount of gain (loss) on derivative recognized in income	0	0	0	0
Gain (loss) on hedges reclassified to income	$ 0	$ 0	$ 0	$ 0

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Offsetting Arrangements - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Offsetting [Abstract]
Fair Value of securities received as collateral that can be resold or repledged	$ 2,180	$ 3,050
Fair Value of securities received as collateral that have been resold or repledged	$ 51	$ 262

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Offsetting Arrangements - Assets With Offsetting Arrangements (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Offsetting Assets [Line Items]
Derivatives, gross amounts of recognized assets	$ 21,380	$ 11,456
Derivatives, gross amounts offset in statement of condition	(12,596)	(6,679)
Net Amounts of Assets Presented in Statement of Condition	8,784	4,777
Derivative, collateral, cash offset	(1,966)	(776)
Resale agreements and securities borrowing, gross amounts of recognized assets	60,336	62,522
Resale agreements and securities borrowing, gross amounts offset in statement of condition	(38,251)	(38,997)
Net Amounts of Assets Presented in Statement of Condition	22,085	23,525
Total, gross amounts of recognized assets	81,716	73,978
Total, gross amounts offset in statement of condition	(50,847)	(45,676)
Total, net amounts of assets presented in statement of condition	30,869	28,302
Securities purchased under resale agreements	2,010	3,404
Securities borrowed subject to master netting arrangements	20,075	20,121
Foreign exchange contracts
Offsetting Assets [Line Items]
Derivatives, gross amounts of recognized assets	20,868	11,316
Derivatives, gross amounts offset in statement of condition	(10,615)	(5,896)
Net Amounts of Assets Presented in Statement of Condition	10,253	5,420
Interest-rate contracts
Offsetting Assets [Line Items]
Derivatives, gross amounts of recognized assets	507	135
Derivatives, gross amounts offset in statement of condition	(10)	(5)
Net Amounts of Assets Presented in Statement of Condition	497	130
Other derivative contracts
Offsetting Assets [Line Items]
Derivatives, gross amounts of recognized assets	5	5
Derivatives, gross amounts offset in statement of condition	(5)	(2)
Net Amounts of Assets Presented in Statement of Condition	$ 0	$ 3

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Offsetting Arrangements - Assets With Enforceable Netting Arrangements (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Offsetting [Abstract]
Derivative, net amount of assets presented in statement of condition	$ 8,784	$ 4,777
Derivatives, counterparty netting	0	0
Derivatives, collateral received	(445)	(405)
Derivatives, net amount	8,339	4,372
Resale agreements and securities borrowing, resale agreements and securities borrowing, net amount of assets presented in statement of condition	22,085	23,525
Resale agreements and securities borrowing, counterparty netting	(108)	(63)
Resale agreements and securities borrowing, collateral received	(21,589)	(22,812)
Resale agreements and securities borrowing, net amount	388	650
Total, net amounts of assets presented in statement of condition	30,869	28,302
Total, counterparty netting	(108)	(63)
Total, collateral received	(22,034)	(23,217)
Total, net amount	$ 8,727	$ 5,022

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Offsetting Arrangements - Liabilities With Offsetting Arrangements (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Offsetting Liabilities [Line Items]
Gross amounts of recognized liabilities	$ 20,993	$ 11,153
Gross amounts offset in statement of condition	(13,290)	(7,021)
Net Amounts of Liabilities Presented in Statement of Condition	7,703	4,132
Derivative collateral, cash offset	(2,661)	(1,118)
Gross amounts of recognized liabilities	47,234	46,766
Gross amounts offset in statement of condition	(38,251)	(38,997)
Net Amounts of Liabilities Presented in Statement of Condition	8,983	7,769
Gross amounts of recognized liabilities	68,227	57,919
Gross amounts offset in statement of condition	(51,541)	(46,018)
Total, net amount of liabilities presented in statement of condition	16,686	11,901
Securities sold under repurchase agreements	4,350	4,499
Securities lending, fair value, amount not offset against collateral	4,633	3,270
Foreign exchange contracts
Offsetting Liabilities [Line Items]
Gross amounts of recognized liabilities	20,620	10,868
Gross amounts offset in statement of condition	(10,615)	(5,896)
Net Amounts of Liabilities Presented in Statement of Condition	10,005	4,972
Interest-rate contracts
Offsetting Liabilities [Line Items]
Gross amounts of recognized liabilities	212	182
Gross amounts offset in statement of condition	(9)	(5)
Net Amounts of Liabilities Presented in Statement of Condition	203	177
Other derivative contracts
Offsetting Liabilities [Line Items]
Gross amounts of recognized liabilities	161	103
Gross amounts offset in statement of condition	(5)	(2)
Net Amounts of Liabilities Presented in Statement of Condition	$ 156	$ 101

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Offsetting Arrangements - Liabilities With Enforceable Netting Arrangements (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Offsetting [Abstract]
Derivative, net amount of liabilities presented in statement of condition	$ 7,703	$ 4,132
Derivative, counterparty netting	0	0
Derivative, collateral provided	(136)	(64)
Derivative, net amount	7,567	4,068
Repurchase agreements and securities lending, net amount of liabilities presented in statement of condition	8,983	7,769
Repurchase agreements and securities lending, counterparty netting	(108)	(63)
Repurchase agreements and securities lending, collateral provided	(6,622)	(5,287)
Repurchase agreements and securities lending, net amount	2,253	2,419
Total, net amount of liabilities presented in statement of condition	16,686	11,901
Total, counterparty netting	(108)	(63)
Total, collateral provided	(6,758)	(5,351)
Total, net amount	$ 9,820	$ 6,487

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Offsetting Arrangements - Repo, Sec Lending Transactions Maturity By Category (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	$ 36,766	$ 37,259
Securities loaned, gross	10,468	9,507
Securities sold and securities loaned under agreements to repurchase, gross	47,234	46,766
Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	36,692	37,157
Securities loaned, gross	9,718	8,505
Securities sold and securities loaned under agreements to repurchase, gross	46,410	45,662
Up to 30 days
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	74	102
Securities loaned, gross	0	0
Securities sold and securities loaned under agreements to repurchase, gross	74	102
30 – 90 days
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	0	0
Securities loaned, gross	750	1,002
Securities sold and securities loaned under agreements to repurchase, gross	750	1,002
U.S. Treasury and agency securities
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	36,708	37,162
U.S. Treasury and agency securities | Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	36,692	37,157
U.S. Treasury and agency securities | Up to 30 days
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	16	5
U.S. Treasury and agency securities | 30 – 90 days
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	0	0
Corporate debt securities
Assets Sold under Agreements to Repurchase [Line Items]
Securities loaned, gross	32	1
Corporate debt securities | Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Securities loaned, gross	32	1
Corporate debt securities | Up to 30 days
Assets Sold under Agreements to Repurchase [Line Items]
Securities loaned, gross	0	0
Corporate debt securities | 30 – 90 days
Assets Sold under Agreements to Repurchase [Line Items]
Securities loaned, gross	0	0
Equity securities
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	0
Securities loaned, gross	10,089	9,504
Equity securities | Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	0
Securities loaned, gross	9,339	8,502
Equity securities | Up to 30 days
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	0
Securities loaned, gross	0	0
Equity securities | 30 – 90 days
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	0
Securities loaned, gross	750	1,002
Non-U.S. sovereign debt
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	58	97
Securities loaned, gross	347	2
Non-U.S. sovereign debt | Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	0	0
Securities loaned, gross	347	2
Non-U.S. sovereign debt | Up to 30 days
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	58	97
Securities loaned, gross	0	0
Non-U.S. sovereign debt | 30 – 90 days
Assets Sold under Agreements to Repurchase [Line Items]
Securities sold under agreements to repurchase, gross	0	0
Securities loaned, gross	$ 0	$ 0

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Commitments and Guarantees - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Loss Contingencies [Line Items]
Unfunded commitments to extend credit	$ 22,600	$ 22,580
Unfunded commitments to extend credit, short term	77.00%
Term of unfunded commitment	1 year
Cash collateral provided for securities lending	$ 20,080	20,120
Accrued expenses and other liabilities
Loss Contingencies [Line Items]
Cash collateral received in connection to securities finance activities	$ 4,630	$ 3,270

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Commitments and Guarantees - Contractual Amounts of Credit-Related Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Indemnified securities financing	$ 344,257	$ 320,436
Stable value protection	26,071	24,583
Asset purchase agreements	4,405	3,990
Standby letters of credit	$ 4,159	$ 4,700

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Commitments and Guarantees - Schedule Of Repurchase Agreements (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Fair value of indemnified securities financing	$ 344,257	$ 320,436
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing	356,490	335,420
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements	68,524	63,055
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements	$ 72,613	$ 67,016

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Contingencies - Narrative (Details) £ in Millions, $ in Millions	1 Months Ended		12 Months Ended
	Jan. 31, 2014 USD ($) claim	Jan. 31, 2014 GBP (£) claim	Dec. 31, 2015 USD ($)	Jun. 30, 2016 USD ($) claim
Loss Contingencies [Line Items]
Unrecognized tax benefits			$ 63.0	$ 66.0
Transition Management
Loss Contingencies [Line Items]
Claims settled | claim	6	6
Litigation reserve				$ 2.0
Putative Class Action
Loss Contingencies [Line Items]
Number of pending claims | claim				2
Foreign Exchange
Loss Contingencies [Line Items]
Estimate of possible loss				$ 565.0
Legal Reserve | Transition Management
Loss Contingencies [Line Items]
Legal reserves				574.0
Regulatory Matter | Transition Management
Loss Contingencies [Line Items]
Settlement, amount	$ 37.8	£ 22.9
Cumulative Adjustment for Incorrect Revenue Recognition
Loss Contingencies [Line Items]
Cumulative adjustment to revenue				$ 283.0
Revenue recognition period			18 years

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Contingencies - Schedule of Estimated Indirect Foreign Exchange Revenue (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Commitments and Contingencies Disclosure [Abstract]
Estimated indirect foreign exchange revenue	$ 136	$ 280	$ 246	$ 285	$ 248	$ 331	$ 336	$ 369	$ 462

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Variable Interest Entities - Narrative (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Investment securities related to state and political subdivisions	$ 2,030,000,000	$ 2,100,000,000
Variable interest entity, other short-term borrowings	$ 1,670,000,000	$ 1,750,000,000
Weighted average life of trusts	5 years 1 month 10 days	5 years 5 months 10 days
Total standby bond-purchase agreement committed to trusts	$ 1,680,000,000
Total letters of credit committed to trusts	546,000,000
Standby purchase agreements and letters of credit commitments utilized	0
VIE - primary beneficiary
Variable Interest Entity [Line Items]
Assets	268,000,000	$ 321,000,000
Liabilities	183,000,000	228,000,000
Potential maximum loss exposure of unconsolidated funds	54,000,000
VIE - not primary beneficiary
Variable Interest Entity [Line Items]
Potential maximum loss exposure of unconsolidated funds	$ 128,000,000	$ 75,000,000

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Stockholders' Equity - Schedule of Preferred Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Class of Stock [Line Items]
Proceeds from issuance of preferred stock, net	$ 493	$ 742
Series C Preferred Stock, Depository Share
Class of Stock [Line Items]
Depositary shares issued (shares)	20,000,000
Liquidation preference per share (USD per share)	$ 25
Series C Preferred Stock
Class of Stock [Line Items]
Ownership Interest per Depositary Share	0.025%
Liquidation preference per share (USD per share)	$ 100,000
Proceeds from issuance of preferred stock, net	$ 488
Series D Preferred Stock, Depository Share
Class of Stock [Line Items]
Depositary shares issued (shares)	30,000,000
Liquidation preference per share (USD per share)	$ 25
Series D Preferred Stock
Class of Stock [Line Items]
Ownership Interest per Depositary Share	0.025%
Liquidation preference per share (USD per share)	$ 100,000
Proceeds from issuance of preferred stock, net	$ 742
Series E Preferred Stock, Depository Share
Class of Stock [Line Items]
Depositary shares issued (shares)	30,000,000
Liquidation preference per share (USD per share)	$ 25
Series E Preferred Stock
Class of Stock [Line Items]
Ownership Interest per Depositary Share	0.025%
Liquidation preference per share (USD per share)	$ 100,000
Proceeds from issuance of preferred stock, net	$ 728
Series F Preferred Stock, Depository Share
Class of Stock [Line Items]
Depositary shares issued (shares)	750,000
Liquidation preference per share (USD per share)	$ 1,000
Series F Preferred Stock
Class of Stock [Line Items]
Ownership Interest per Depositary Share	1.00%
Liquidation preference per share (USD per share)	$ 100,000
Proceeds from issuance of preferred stock, net	$ 742
Series G Preferred Stock, Depository Share
Class of Stock [Line Items]
Depositary shares issued (shares)	20,000,000
Liquidation preference per share (USD per share)	$ 25
Series G Preferred Stock
Class of Stock [Line Items]
Ownership Interest per Depositary Share	0.025%
Liquidation preference per share (USD per share)	$ 100,000
Proceeds from issuance of preferred stock, net	$ 493

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Stockholders' Equity - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Dividends Payable [Line Items]
Preferred stock cash dividend	$ 33	$ 29	$ 82	$ 60
Cash dividends declared (in USD per share)	$ 0.34	$ 0.34	$ 0.68	$ 0.64
Common stock dividends	$ 133	$ 139	$ 268	$ 262
Series C Preferred Stock
Dividends Payable [Line Items]
Preferred dividends declared (USD per share)	$ 1,313	$ 1,313	$ 2,626	$ 2,626
Preferred stock cash dividend	$ 6	$ 7	$ 13	$ 13
Series C Preferred Stock, Depository Share
Dividends Payable [Line Items]
Preferred dividends declared (USD per share)	$ 0.33	$ 0.33	$ 0.66	$ 0.66
Series D Preferred Stock
Dividends Payable [Line Items]
Preferred dividends declared (USD per share)	$ 1,475	$ 1,475	$ 2,950	$ 2,950
Preferred stock cash dividend	$ 11	$ 11	$ 22	$ 22
Series D Preferred Stock, Depository Share
Dividends Payable [Line Items]
Preferred dividends declared (USD per share)	$ 0.37	$ 0.37	$ 0.74	$ 0.74
Series E Preferred Stock
Dividends Payable [Line Items]
Preferred dividends declared (USD per share)	$ 1,500	$ 1,500	$ 3,000	$ 3,333
Preferred stock cash dividend	$ 11	$ 11	$ 22	$ 25
Series E Preferred Stock, Depository Share
Dividends Payable [Line Items]
Preferred dividends declared (USD per share)	$ 0.38	$ 0.38	$ 0.76	$ 0.84
Series F Preferred Stock
Dividends Payable [Line Items]
Preferred dividends declared (USD per share)	$ 0	$ 0	$ 2,625	$ 0
Preferred stock cash dividend	$ 0	$ 0	$ 20	$ 0
Series F Preferred Stock, Depository Share
Dividends Payable [Line Items]
Preferred dividends declared (USD per share)	$ 0	$ 0	$ 26.25	$ 0
Series G Preferred Stock
Dividends Payable [Line Items]
Preferred dividends declared (USD per share)	$ 951	$ 0	$ 951	$ 0
Preferred stock cash dividend	$ 5	$ 0	$ 5	$ 0
Series G Preferred Stock, Depository Share
Dividends Payable [Line Items]
Preferred dividends declared (USD per share)	$ 0.24	$ 0	$ 0.24	$ 0

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Stockholders' Equity - Schedule of Shares Repurchase Plans (Details) - USD ($) $ / shares in Units, shares in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Mar. 31, 2015
2016 Program
Equity, Class of Treasury Stock [Line Items]
Amount of common stock authorized for repurchase	$ 1,400,000,000.0	$ 1,400,000,000.0
2015 Program
Equity, Class of Treasury Stock [Line Items]
Amount of common stock authorized for repurchase			$ 1,800,000,000.00
Stock repurchased during period (shares)	6.5	12.1
Average cost of share acquired (USD per share)	$ 59.66	$ 58.83
Shares repurchased during period	$ 390,000,000	$ 715,000,000

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Stockholders' Equity - Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Equity [Abstract]
Net unrealized gains on cash flow hedges	$ 119	$ 293
Net unrealized gains (losses) on available-for-sale securities portfolio	550	9
Net unrealized gains (losses) related to reclassified available-for-sale securities	(23)	(28)
Net unrealized gains (losses) on available-for-sale securities	527	(19)
Net unrealized losses on available-for-sale securities designated in fair value hedges	(131)	(109)
Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries	37	(14)
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(13)	(16)
Net unrealized losses on retirement plans	(185)	(183)
Foreign currency translation	(1,351)	(1,394)
Total	$ (997)	$ (1,442)

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Stockholders' Equity - Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 21,103	$ 21,328
Other comprehensive income (loss) before reclassifications	442	(517)
Amounts reclassified into (out of) earnings	3	13
Other comprehensive income (loss)	445	(504)
Ending balance	22,073	21,347
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,442)	(507)
Other comprehensive income (loss)	445	(504)
Ending balance	(997)	(1,011)
Net Unrealized Gains (Losses) on Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	293	276
Other comprehensive income (loss) before reclassifications	(174)	19
Amounts reclassified into (out of) earnings	0	1
Other comprehensive income (loss)	(174)	20
Ending balance	119	296
Net Unrealized Gains (Losses) on Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(128)	192
Other comprehensive income (loss) before reclassifications	522	(134)
Amounts reclassified into (out of) earnings	2	(2)
Other comprehensive income (loss)	524	(136)
Ending balance	396	56
Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(14)	(14)
Other comprehensive income (loss) before reclassifications	51	0
Amounts reclassified into (out of) earnings	0	0
Other comprehensive income (loss)	51	0
Ending balance	37	(14)
Other-Than-Temporary Impairment on Held-to-Maturity Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(16)	(29)
Other comprehensive income (loss) before reclassifications	4	8
Amounts reclassified into (out of) earnings	(1)	(1)
Other comprehensive income (loss)	3	7
Ending balance	(13)	(22)
Net Unrealized Losses on Retirement Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(183)	(272)
Other comprehensive income (loss) before reclassifications	(4)	0
Amounts reclassified into (out of) earnings	2	15
Other comprehensive income (loss)	(2)	15
Ending balance	(185)	(257)
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,394)	(660)
Other comprehensive income (loss) before reclassifications	43	(410)
Amounts reclassified into (out of) earnings	0	0
Other comprehensive income (loss)	43	(410)
Ending balance	$ (1,351)	$ (1,070)

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Stockholders' Equity - Adjustments to Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Class of Stock [Line Items]
Interest-rate contracts, net of related taxes of $0 and ($1), respectively	$ 521	$ 535	$ 1,033	$ 1,081
Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Total reclassifications in to (out of) AOCI	(1)	8	3	13
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges
Class of Stock [Line Items]
Tax on derivatives qualifying as hedges			0	(1)
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | Interest-rate contracts
Class of Stock [Line Items]
Interest-rate contracts, net of related taxes of $0 and ($1), respectively			0	1
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Available-for-Sale Securities
Class of Stock [Line Items]
Net realized gains from sales of available-for-sale securities, net of related taxes of $0, ($1), ($1), and ($1), respectively			2	(2)
Tax on investments, excluding OTTI	0	1	(1)	(1)
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Available-for-Sale Securities | Securities available for sale
Class of Stock [Line Items]
Net realized gains from sales of available-for-sale securities, net of related taxes of $0, ($1), ($1), and ($1), respectively	(1)	(2)
Reclassification out of Accumulated Other Comprehensive Income | Other-Than-Temporary Impairment on Securities
Class of Stock [Line Items]
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit			(1)	(1)
Reclassification out of Accumulated Other Comprehensive Income | Other-Than-Temporary Impairment on Securities | Securities held-to-maturity
Class of Stock [Line Items]
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(1)	0
Reclassification out of Accumulated Other Comprehensive Income | Retirement Plans
Class of Stock [Line Items]
Amortization of actuarial losses, net of related taxes of ($1), $8, ($3), and $1, respectively	1	10	2	15
Tax on reclassification adjustment for pension and other postretirement	$ (1)	$ 8	$ (3)	$ 1

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Stockholders' Equity - Narrative (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Mar. 31, 2015
Equity, Class of Treasury Stock [Line Items]
Preferred stock, no par value (in USD per share)	$ 0	$ 0
2015 Program
Equity, Class of Treasury Stock [Line Items]
Amount of common stock authorized for repurchase			$ 1,800,000,000.00
Series G Preferred Stock
Equity, Class of Treasury Stock [Line Items]
Liquidation preference per share (USD per share)	$ 100,000
Ownership Interest per Depositary Share	0.025%
Series G Preferred Stock, Depository Share
Equity, Class of Treasury Stock [Line Items]
Depositary shares issued (shares)	20,000,000
Liquidation preference per share (USD per share)	$ 25

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Regulatory Capital (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Retained earnings	$ 16,686	$ 16,049
Capital ratio: required common equity tier 1 capital	5.50%	4.50%
Capital ratio: required tier 1 capital	7.00%	6.00%
Capital ratio: required total capital	9.00%	8.00%
Capital ratio: required tier 1 leverage	4.00%	4.00%
Percentage of goodwill and other intangible assets net of associated deferred tax liabilities allocated to other intangible assets	60.00%	40.00%
Basel III Advanced Approaches
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common stock and related surplus	$ 10,271	$ 10,250
Retained earnings	16,686	16,049
Accumulated other comprehensive income (loss)	(1,124)	(1,422)
Treasury stock, at cost	(7,083)	(6,457)
Total	18,750	18,420
Goodwill and other intangible assets, net of associated deferred tax liabilities	(6,144)	(5,927)
Other adjustments	(88)	(60)
Common equity tier 1 capital	12,518	12,433
Preferred stock	3,196	2,703
Trust preferred capital securities subject to phase-out from tier 1 capital	0	237
Other adjustments	(72)	(109)
Tier 1 capital	15,642	15,264
Qualifying subordinated long-term debt	1,259	1,358
Trust preferred capital securities phased out of tier 1 capital	890	713
ALLL and other	3	12
Other adjustments	0	2
Total capital	17,794	17,349
Credit risk	55,748	51,733
Operational risk	44,436	43,882
Market risk	3,828	3,937
Total risk-weighted assets	104,012	99,552
Adjusted quarterly average assets	$ 222,666	$ 221,880
Common equity tier 1 capital	12.00%	12.50%
Tier 1 capital	15.00%	15.30%
Total capital	17.10%	17.40%
Tier 1 leveraged	7.00%	6.90%
Basel III Standardized Approach
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common stock and related surplus	$ 10,271	$ 10,250
Retained earnings	16,686	16,049
Accumulated other comprehensive income (loss)	(1,124)	(1,422)
Treasury stock, at cost	(7,083)	(6,457)
Total	18,750	18,420
Goodwill and other intangible assets, net of associated deferred tax liabilities	(6,144)	(5,927)
Other adjustments	(88)	(60)
Common equity tier 1 capital	12,518	12,433
Preferred stock	3,196	2,703
Trust preferred capital securities subject to phase-out from tier 1 capital	0	237
Other adjustments	(72)	(109)
Tier 1 capital	15,642	15,264
Qualifying subordinated long-term debt	1,259	1,358
Trust preferred capital securities phased out of tier 1 capital	890	713
ALLL and other	78	66
Other adjustments	0	2
Total capital	17,869	17,403
Credit risk	102,932	93,515
Market risk	1,560	2,378
Total risk-weighted assets	104,492	95,893
Adjusted quarterly average assets	$ 222,666	$ 221,880
Common equity tier 1 capital	12.00%	13.00%
Tier 1 capital	15.00%	15.90%
Total capital	17.10%	18.10%
Tier 1 leveraged	7.00%	6.90%
State Street Bank | Basel III Advanced Approaches
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common stock and related surplus	$ 10,941	$ 10,938
Retained earnings	11,638	10,655
Accumulated other comprehensive income (loss)	(907)	(1,230)
Treasury stock, at cost	0	0
Total	21,672	20,363
Goodwill and other intangible assets, net of associated deferred tax liabilities	(5,844)	(5,631)
Other adjustments	(86)	(85)
Common equity tier 1 capital	15,742	14,647
Preferred stock	0	0
Trust preferred capital securities subject to phase-out from tier 1 capital	0	0
Other adjustments	0	0
Tier 1 capital	15,742	14,647
Qualifying subordinated long-term debt	1,270	1,371
Trust preferred capital securities phased out of tier 1 capital	0	0
ALLL and other	0	8
Other adjustments	0	0
Total capital	17,012	16,026
Credit risk	51,328	47,677
Operational risk	43,899	43,324
Market risk	3,831	3,939
Total risk-weighted assets	99,058	94,940
Adjusted quarterly average assets	$ 218,363	$ 217,358
Common equity tier 1 capital	15.90%	15.40%
Tier 1 capital	15.90%	15.40%
Total capital	17.20%	16.90%
Tier 1 leveraged	7.20%	6.70%
State Street Bank | Basel III Standardized Approach
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common stock and related surplus	$ 10,941	$ 10,938
Retained earnings	11,638	10,655
Accumulated other comprehensive income (loss)	(907)	(1,230)
Treasury stock, at cost	0	0
Total	21,672	20,363
Goodwill and other intangible assets, net of associated deferred tax liabilities	(5,844)	(5,631)
Other adjustments	(86)	(85)
Common equity tier 1 capital	15,742	14,647
Preferred stock	0	0
Trust preferred capital securities subject to phase-out from tier 1 capital	0	0
Other adjustments	0	0
Tier 1 capital	15,742	14,647
Qualifying subordinated long-term debt	1,270	1,371
Trust preferred capital securities phased out of tier 1 capital	0	0
ALLL and other	78	66
Other adjustments	0	0
Total capital	17,090	16,084
Credit risk	98,387	89,164
Market risk	1,560	2,378
Total risk-weighted assets	99,947	91,542
Adjusted quarterly average assets	$ 218,363	$ 217,358
Common equity tier 1 capital	15.80%	16.00%
Tier 1 capital	15.80%	16.00%
Total capital	17.10%	17.60%
Tier 1 leveraged	7.20%	6.70%

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Net Interest Revenue - Components of Interest Revenue and Interest Expenses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Banking and Thrift [Abstract]
Deposits with banks	$ 30	$ 54	$ 73	$ 108
U.S. Treasury and federal agencies	209	176	420	359
State and political subdivisions	54	58	108	116
Other investments	189	247	371	506
Securities purchased under resale agreements	35	15	71	26
Loans and leases	93	77	184	151
Other interest-earning assets	10	2	22	5
Total interest revenue	620	629	1,249	1,271
Deposits	16	14	54	40
Interest Expense, Securities Sold under Agreements to Repurchase	0	0	1	0
Short-term borrowings	2	3	2	3
Long-term debt	62	61	122	123
Other interest-bearing liabilities	19	16	37	24
Total interest expense	99	94	216	190
Net interest revenue	$ 521	$ 535	$ 1,033	$ 1,081

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Expenses - Schedule of Expenses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Other Expenses [Abstract]
Insurance	$ 21	$ 28	$ 44	$ 65
Regulatory fees and assessments	18	25	38	58
Securities processing	6	14	10	34
Litigation	0	253	0	403
Other	93	83	158	144
Total other expenses	$ 138	$ 403	$ 250	$ 704

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Expenses - Narrative (Details) - State Street Beacon - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2016
Restructuring Cost and Reserve [Line Items]
Accruals for State Street Beacon	$ 13	$ 97	$ 110
Employee Related Costs
Restructuring Cost and Reserve [Line Items]
Accruals for State Street Beacon	(1)	$ 86
Minimum
Restructuring Cost and Reserve [Line Items]
Expected restructuring cost	300		300
Minimum | Employee Related Costs
Restructuring Cost and Reserve [Line Items]
Expected restructuring cost	250		250
Minimum | Information Technology and Real Estate
Restructuring Cost and Reserve [Line Items]
Expected restructuring cost	50		50
Maximum
Restructuring Cost and Reserve [Line Items]
Expected restructuring cost	400		400
Maximum | Employee Related Costs
Restructuring Cost and Reserve [Line Items]
Expected restructuring cost	300		300
Maximum | Information Technology and Real Estate
Restructuring Cost and Reserve [Line Items]
Expected restructuring cost	$ 100		$ 100

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Expenses - Restructuring Reserve (Details) - State Street Beacon - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2016
Restructuring Reserve [Roll Forward]
Beginning balance	$ 108	$ 23	$ 23
Accruals for State Street Beacon	13	97	110
Payments and Other Adjustments	(39)	(12)
Ending balance	82	108	82
Employee Related Costs
Restructuring Reserve [Roll Forward]
Beginning balance	91	9	9
Accruals for State Street Beacon	(1)	86
Payments and Other Adjustments	(35)	(4)
Ending balance	55	91	55
Real Estate Consolidation
Restructuring Reserve [Roll Forward]
Beginning balance	10	11	11
Accruals for State Street Beacon	15	0
Payments and Other Adjustments	(3)	(1)
Ending balance	22	10	22
Asset and Other Write-Offs
Restructuring Reserve [Roll Forward]
Beginning balance	7	3	3
Accruals for State Street Beacon	(1)	11
Payments and Other Adjustments	(1)	(7)
Ending balance	$ 5	$ 7	$ 5

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Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net income	$ 619	$ 418	$ 987	$ 823
Preferred stock dividends	(33)	(29)	(82)	(60)
Dividends and undistributed earnings allocated to participating securities	(1)	0	(1)	(1)
Net income available to common shareholders	$ 585	$ 389	$ 904	$ 762
Basic average common shares	394,160	410,674	396,790	411,445
Effect of dilutive securities: common stock options and common stock awards (in shares)	4,687	6,038	4,323	6,198
Diluted average common shares	398,847	416,712	401,113	417,643
Anti-dilutive securities (in shares)	3,277	619	3,426	704
Earnings per Common Share:
Basic (in USD per share)	$ 1.48	$ 0.95	$ 2.28	$ 1.85
Diluted (in USD per share)	$ 1.47	$ 0.93	$ 2.25	$ 1.83

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Line of Business Information - Narrative (Details)	6 Months Ended
	Jun. 30, 2016 line_of_business
Segment Reporting [Abstract]
Number of lines of business	2

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Line of Business Information - Summary of Line of Business (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Servicing fees	$ 1,239	$ 1,319	$ 2,481	$ 2,587
Management fees	293	304	563	605
Trading services	267	281	539	605
Securities finance	156	155	290	256
Processing fees and other	98	17	150	78
Total fee revenue	2,053	2,076	4,023	4,131
Net interest revenue	521	535	1,033	1,081
Gains (losses) related to investment securities, net	(1)	(3)	1	(4)
Total revenue	2,573	2,608	5,057	5,208
Provision for loan losses	4	2	8	6
Total expenses	1,860	2,134	3,910	4,231
Income before income tax expense	$ 709	$ 472	$ 1,139	$ 971
Pre-tax margin	28.00%	18.00%	23.00%	19.00%
Operating Segments | Investment Servicing
Segment Reporting Information [Line Items]
Servicing fees	$ 1,239	$ 1,319	$ 2,481	$ 2,587
Management fees	0	0	0	0
Trading services	255	271	517	586
Securities finance	156	155	290	256
Processing fees and other	102	22	147	81
Total fee revenue	1,752	1,767	3,435	3,510
Net interest revenue	520	534	1,032	1,079
Gains (losses) related to investment securities, net	(1)	(3)	1	(4)
Total revenue	2,271	2,298	4,468	4,585
Provision for loan losses	4	2	8	6
Total expenses	1,599	1,880	3,286	3,716
Income before income tax expense	$ 668	$ 416	$ 1,174	$ 863
Pre-tax margin	29.00%	18.00%	26.00%	19.00%
Operating Segments | Investment Management
Segment Reporting Information [Line Items]
Servicing fees	$ 0	$ 0	$ 0	$ 0
Management fees	293	304	563	605
Trading services	12	10	22	19
Securities finance	0	0	0	0
Processing fees and other	(4)	(5)	3	(3)
Total fee revenue	301	309	588	621
Net interest revenue	1	1	1	2
Gains (losses) related to investment securities, net	0	0	0	0
Total revenue	302	310	589	623
Provision for loan losses	0	0	0	0
Total expenses	244	251	500	507
Income before income tax expense	$ 58	$ 59	$ 89	$ 116
Pre-tax margin	19.00%	19.00%	15.00%	19.00%
Other
Segment Reporting Information [Line Items]
Servicing fees	$ 0	$ 0	$ 0	$ 0
Management fees	0	0	0	0
Trading services	0	0	0	0
Securities finance	0	0	0	0
Processing fees and other	0	0	0	0
Total fee revenue	0	0	0	0
Net interest revenue	0	0	0	0
Gains (losses) related to investment securities, net	0	0	0	0
Total revenue	0	0	0	0
Provision for loan losses	0	0	0	0
Total expenses	17	3	124	8
Income before income tax expense	$ (17)	$ (3)	$ (124)	$ (8)

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Non-U.S. Activities - Schedule Of Results From Non-U.S. Operations (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Total revenue	$ 2,573	$ 2,608	$ 5,057	$ 5,208
Income before income taxes	709	472	1,139	971
Non-U.S.
Segment Reporting Information [Line Items]
Total revenue	1,136	1,150	2,161	2,297
Income before income taxes	344	351	521	693
U.S.
Segment Reporting Information [Line Items]
Total revenue	1,437	1,458	2,896	2,911
Income before income taxes	$ 365	$ 121	$ 618	$ 278

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Non-U.S. Activities - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Segment Reporting Information [Line Items]
Assets	$ 255,386	$ 245,155
Non-U.S.
Segment Reporting Information [Line Items]
Assets	$ 84,600		$ 72,500