Off-Balance Sheet Lending-Related Financial Instruments, Guarantees and Other Commitments (Tables)

3 Months Ended

Mar. 31, 2015

Off-Balance Sheet Lending-Related Financial Instruments, Guarantees and Other Commitments [Abstract]

Off-balance sheet lending related financial instruments, and guarantees and other commitments

The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at March 31, 2015, and December 31, 2014. The amounts in the table below for credit card and home equity lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time. The Firm can reduce or cancel credit card lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. In addition, the Firm typically closes credit card lines when the borrower is 60 days or more past due. The Firm may reduce or close home equity lines of credit when there are significant decreases in the value of the underlying property, or when there has been a demonstrable decline in the creditworthiness of the borrower.

Off–balance sheet lending-related financial instruments, guarantees and other commitments
	Contractual amount												Carrying value(j)
	March 31, 2015										Dec 31, 2014		Mar 31, 2015			Dec 31, 2014
By remaining maturity (in millions)	Expires in 1 year or less		Expires after 1 year through 3 years		Expires after 3 years through 5 years		Expires after 5 years		Total		Total
Lending-related
Consumer, excluding credit card:
Home equity – senior lien	$	2,061	$	4,459	$	1,472	$	3,513	$	11,505	$	11,807	$	—		$	—
Home equity – junior lien	3,272		5,642		1,560		3,583		14,057		14,859		—			—
Prime mortgage(a)	11,813		—		—		—		11,813		8,579		—			—
Subprime mortgage	—		—		—		—		—		—		—			—
Auto	8,930		868		196		37		10,031		10,462		2			2
Business banking	10,782		918		94		426		12,220		11,894		12			11
Student and other	70		6		—		449		525		552		—			—
Total consumer, excluding credit card	36,928		11,893		3,322		8,008		60,151		58,153		14			13
Credit card	533,511		—		—		—		533,511		525,963		—			—
Total consumer(b)	570,439		11,893		3,322		8,008		593,662		584,116		14			13
Wholesale:
Other unfunded commitments to extend credit(c)(d)	60,210		85,404		110,408		8,171		264,193		272,676		348			374
Standby letters of credit and other financial guarantees(c)(d)(e)	21,505		29,698		33,401		2,457		87,061		89,874		769			788
Other letters of credit(c)	3,353		809		88		—		4,250		4,331		1			1
Total wholesale(f)(g)	85,068		115,911		143,897		10,628		355,504		366,881		1,118			1,163
Total lending-related	$	655,507	$	127,804	$	147,219	$	18,636	$	949,166	$	950,997	$	1,132		$	1,176
Other guarantees and commitments
Securities lending indemnification agreements and guarantees(h)	$	185,952	$	—	$	—	$	—	$	185,952	$	171,059	$	—		$	—
Derivatives qualifying as guarantees	2,221		177		11,922		38,308		52,628		53,589		45			80
Unsettled reverse repurchase and securities borrowing agreements	46,534		—		—		—		46,534		40,993		—			—
Loan sale and securitization-related indemnifications:
Mortgage repurchase liability	NA		NA		NA		NA		NA		NA		252			275
Loans sold with recourse	NA		NA		NA		NA		5,637		6,063		99			102
Other guarantees and commitments(i)	486		473		3,309		1,312		5,580		5,720		(116		)	(121		)

(a) Includes certain commitments to purchase loans from correspondents.

(b) Predominantly all consumer lending-related commitments are in the U.S.

(c) At March 31, 2015, and December 31, 2014, reflects the contractual amount net of risk participations totaling $284 million and $243 million, respectively, for other unfunded commitments to extend credit; $12.7 billion and $13.0 billion, respectively, for standby letters of credit and other financial guarantees; and $424 million and $469 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.

(d) At March 31, 2015, and December 31, 2014, included credit enhancements and bond and commercial paper liquidity commitments to U.S. states and municipalities, hospitals and other non-profit entities of $14.4 billion and $14.8 billion, respectively, within other unfunded commitments to extend credit; and $12.5 billion and $13.3 billion, respectively, within standby letters of credit and other financial guarantees. Other unfunded commitments to extend credit also include liquidity facilities to nonconsolidated municipal bond VIEs; for further information, see Note 15.

(e) At March 31, 2015, and December 31, 2014, included unissued standby letters of credit commitments of $44.8 billion and $45.6 billion, respectively.

(f) At March 31, 2015, and December 31, 2014, the U.S. portion of the contractual amount of total wholesale lending-related commitments was 77% and 73%, respectively.

(g) Effective January 1, 2015, the Firm no longer includes within its disclosure of wholesale lending-related commitments the unused amount of advised uncommitted lines of credit as it is within the Firm’s discretion whether or not to make a loan under these lines, and the Firm’s approval is generally required prior to funding. Prior period amounts have been revised to conform with the current period presentation.

(h) At March 31, 2015, and December 31, 2014, collateral held by the Firm in support of securities lending indemnification agreements was $192.6 billion and $177.1 billion, respectively. Securities lending collateral comprises primarily cash and securities issued by governments that are members of the Organisation for Economic Co-operation and Development (“OECD”) and U.S. government agencies.

(i) At March 31, 2015, and December 31, 2014, included unfunded commitments of $142 million and $147 million, respectively, to third-party private equity funds; and $861 million and $961 million, at March 31, 2015, and December 31, 2014, respectively, to other equity investments. These commitments included $162 million and $150 million, respectively, related to investments that are generally fair valued at net asset value as discussed in Note 3. In addition, at March 31, 2015, and December 31, 2014, included letters of credit hedged by derivative transactions and managed on a market risk basis of $4.4 billion and $4.5 billion, respectively.

(j) For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivative-related products, the carrying value represents the fair value.

Standby letters of credit, other financial guarantees and other letters of credit

The following table summarizes the types of facilities under which standby letters of credit and other letters of credit arrangements are outstanding by the ratings profiles of the Firm’s customers, as of March 31, 2015, and December 31, 2014.

Standby letters of credit, other financial guarantees and other letters of credit

	March 31, 2015					December 31, 2014
(in millions)	Standby letters of credit and other financial guarantees			Other letters of credit		Standby letters of credit and other financial guarantees			Other letters of credit
Investment-grade(a)		$	64,311	$	3,381		$	66,856	$	3,476
Noninvestment-grade(a)		22,750		869			23,018		855
Total contractual amount		$	87,061	$	4,250		$	89,874	$	4,331
Allowance for lending-related commitments		$	230	$	1		$	234	$	1
Commitments with collateral		38,290		1,274			39,726		1,509

(a) The ratings scale is based on the Firm’s internal ratings which generally correspond to ratings as defined by S&P and Moody’s.

Summary of changes in mortgage repurchase liability

The following table summarizes the change in the mortgage repurchase liability for each of the periods presented.

Summary of changes in mortgage repurchase liability
	Three months ended March 31,
(in millions)	2015			2014
Repurchase liability at beginning of period	$	275		$	681
Net realized gains/(losses)(a)	10			11
(Benefit)/provision for repurchase(b)	(33		)	(128		)
Repurchase liability at end of period	$	252		$	564

(a) Presented net of third-party recoveries and include principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants, and certain related expense. Make-whole settlements were $2 million for each of the three months ended March 31, 2015 and 2014.

(b) Included a provision related to new loan sales of $1 million for each of the three months ended March 31, 2015 and 2014.