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Accumulated Other Comprehensive Income/(Loss) (Tables)
 12 Months Ended
Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated other comprehensive income/(loss)
AOCI includes the after-tax change in unrealized gains and losses on AFS securities, foreign currency translation adjustments (including the impact of related derivatives), cash flow hedging activities, and net loss and prior service costs/(credit) related to the Firm’s defined benefit pension and OPEB plans.
Year ended December 31,
Unrealized gains/(losses) on AFS securities(b)
 
Translation adjustments, net of hedges
 
Cash flow hedges
 
Defined benefit pension and OPEB plans
 
Accumulated other comprehensive income/(loss)
 
(in millions)
Balance at December 31, 2009
 
$
2,032

 
 
 
$
(16
)
 
 
 
$
181

 
 
 
$
(2,288
)
 
 
 
$
(91
)
 
 
Cumulative effect of changes in accounting principles(a)
 
(144
)
 
 
 
—

 
 
 
—

 
 
 
—

 
 
 
(144
)
 
 
Net change
 
610

(c) 
 
 
269

 
 
 
25

 
 
 
332

 
 
 
1,236

 
 
Balance at December 31, 2010
 
$
2,498

(d) 
 
 
$
253

 
 
 
$
206

 
 
 
$
(1,956
)
 
 
 
$
1,001

 
 
Net change
 
1,067

(e) 
 
 
(279
)
 
 
 
(155
)
 
 
 
(690
)
 
 
 
(57
)
 
 
Balance at December 31, 2011
 
$
3,565

(d) 
 
 
$
(26
)
 
 
 
$
51

 
 
 
$
(2,646
)
 
 
 
$
944

 
 
Net change
 
3,303

(f) 
 
 
(69
)
 
 
 
69

 
 
 
(145
)
 
 
 
3,158

 
 
Balance at December 31, 2012
 
$
6,868

(d) 
 
 
$
(95
)
 
 
 
$
120

 
 
 
$
(2,791
)
 
 
 
$
4,102

 
 
(a)
Reflects the effect of the adoption of accounting guidance related to the consolidation of VIEs and to embedded credit derivatives in beneficial interests in securitized financial assets. AOCI decreased by $129 million due to the adoption of the accounting guidance related to VIEs, as a result of the reversal of the fair value adjustments taken on retained AFS securities that were eliminated in consolidation; for further discussion see Note 16 on pages 280–291 of this Annual Report. AOCI decreased by $15 million due to the adoption of guidance related to credit derivatives embedded in certain of the Firm’s AFS securities; for further discussion see Note 6 on pages 218–227 of this Annual Report.
(b)
Represents the after-tax difference between the fair value and amortized cost of securities accounted for as AFS.
(c)
The net change during 2010 was due primarily to the narrowing of spreads on commercial and non-agency MBS as well as on collateralized loan obligations; also reflects increased market value on pass-through MBS due to narrowing of spreads and other market factors.
(d)
Included after-tax unrealized losses not related to credit on debt securities for which credit losses have been recognized in income of $(56) million and $(81) million at December 31, 2011 and 2010, respectively. There were no such losses at December 31, 2012.
(e)
The net change for 2011 was due primarily to increased market value on agency MBS and municipal securities, partially offset by the widening of spreads on non-U.S. corporate debt and the realization of gains due to portfolio repositioning.
(f)
The net change for 2012 was predominantly driven by increased market value on non-U.S. residential MBS, corporate debt securities and obligations of U.S. states and municipalities, partially offset by realized gains.
Changes of the components of accumulated other comprehensive income (loss)
The following table presents the before- and after-tax changes in the components of other comprehensive income/(loss).
 
2012
 
2011
 
2010
Year ended December 31, (in millions)
Pretax
 
Tax effect
 
After-tax
 
Pretax
 
Tax effect
 
After-tax
 
Pretax
 
Tax effect
 
After-tax
Unrealized gains/(losses) on AFS securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
$
7,521

 
$
(2,930
)
 
$
4,591

 
$
3,361

 
$
(1,322
)
 
$
2,039

 
$
3,982

 
$
(1,540
)
 
$
2,442

Reclassification adjustment for realized (gains)/losses included in net income
(2,110
)
 
822

 
(1,288
)
 
(1,593
)
 
621

 
(972
)
 
(2,982
)
 
1,150

 
(1,832
)
Net change
5,411

 
(2,108
)
 
3,303

 
1,768

 
(701
)
 
1,067

 
1,000

 
(390
)
 
610

Translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Translation
(26
)
 
8

 
(18
)
 
(672
)
 
255

 
(417
)
 
402

 
(139
)
 
263

Hedges
(82
)
 
31

 
(51
)
 
226

 
(88
)
 
138

 
11

 
(5
)
 
6

Net change
(108
)
 
39

 
(69
)
 
(446
)
 
167

 
(279
)
 
413

 
(144
)
 
269

Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
141

 
(55
)
 
86

 
50

 
(19
)
 
31

 
247

 
(96
)
 
151

Reclassification adjustment for realized (gains)/losses included in net income
(28
)
 
11

 
(17
)
 
(301
)
 
115

 
(186
)
 
(206
)
 
80

 
(126
)
Net change
113

 
(44
)
 
69

 
(251
)
 
96

 
(155
)
 
41

 
(16
)
 
25

Defined benefit pension and OPEB plans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service credits arising during the period
6

 
(2
)
 
4

 
—

 
—

 
—

 
10

 
(4
)
 
6

Net gains/(losses) arising during the period
(537
)
 
228

 
(309
)
 
(1,290
)
 
502

 
(788
)
 
262

 
(84
)
 
178

Reclassification adjustments included in net income:


 


 


 


 


 


 


 


 
—

Amortization of net loss
324

 
(126
)
 
198

 
214

 
(83
)
 
131

 
280

 
(112
)
 
168

Prior service costs/(credits)
(41
)
 
16

 
(25
)
 
(52
)
 
20

 
(32
)
 
(57
)
 
22

 
(35
)
Settlement gain/(loss)
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
1

Foreign exchange and other
(21
)
 
8

 
(13
)
 
(1
)
 
—

 
(1
)
 
22

 
(8
)
 
14

Net change
(269
)
 
124

 
(145
)
 
(1,129
)
 
439

 
(690
)
 
518

 
(186
)
 
332

Total other comprehensive income/(loss)
$
5,147

 
$
(1,989
)
 
$
3,158

 
$
(58
)
 
$
1

 
$
(57
)
 
$
1,972

 
$
(736
)
 
$
1,236