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Off-balance sheet lending-related financial instruments, guarantees and other commitments (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 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)
 
September 30, 2015
Dec 31,
2014
 
Sep 30,
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
$
1,632

$
4,082

$
835

$
4,312

$
10,861

$
11,807

 
$
—

$
—

Home equity – junior lien
2,604

4,782

793

4,208

12,387

14,859

 
—

—

Prime mortgage(a)
13,959

—

—

—

13,959

8,579

 
—

—

Auto
8,380

1,416

165

25

9,986

10,462

 
2

2

Business banking
10,998

781

90

489

12,358

11,894

 
12

11

Student and other
8

4

—

442

454

552

 
—

—

Total consumer, excluding credit card
37,581

11,065

1,883

9,476

60,005

58,153

 
14

13

Credit card
526,433

—

—

—

526,433

525,963

 
—

—

Total consumer(b)
564,014

11,065

1,883

9,476

586,438

584,116

 
14

13

Wholesale:
 
 
 
 
 
 
 
 
 
Other unfunded commitments to extend credit(c)(d)
70,201

77,449

110,713

6,710

265,073

272,676

 
386

374

Standby letters of credit and other financial guarantees(c)(d)(e)
23,666

26,670

33,421

1,511

85,268

89,874

 
774

788

Other letters of credit(c)
3,362

586

59

—

4,007

4,331

 
1

1

Total wholesale(f)(g)
97,229

104,705

144,193

8,221

354,348

366,881

 
1,161

1,163

Total lending-related
$
661,243

$
115,770

$
146,076

$
17,697

$
940,786

$
950,997

 
$
1,175

$
1,176

Other guarantees and commitments
 
 
 
 
 
 
 
 
 
Securities lending indemnification agreements and guarantees(h)
$
184,227

$
—

$
—

$
—

$
184,227

$
171,059

 
$
—

$
—

Derivatives qualifying as guarantees
1,421

441

11,337

38,990

52,189

53,589

 
258

80

Unsettled reverse repurchase and securities borrowing agreements
56,525

—

—

—

56,525

40,993

 
—

—

Loan sale and securitization-related indemnifications:
 
 
 
 
 
 
 
 
 
Mortgage repurchase liability
NA

NA

NA

NA

NA

NA

 
184

275

Loans sold with recourse
NA

NA

NA

NA

4,685

6,063

 
89

102

Other guarantees and commitments(i)
1,429

1,556

2,206

1,619

6,810

5,720

 
(101
)
(121
)
(a)
Includes certain commitments to purchase loans from correspondents.
(b)
Predominantly all consumer lending-related commitments are in the U.S.
(c)
At September 30, 2015, and December 31, 2014, reflects the contractual amount net of risk participations totaling $321 million and $243 million, respectively, for other unfunded commitments to extend credit; $11.7 billion and $13.0 billion, respectively, for standby letters of credit and other financial guarantees; and $409 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 September 30, 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 $13.0 billion and $14.8 billion, respectively, within other unfunded commitments to extend credit; and $10.0 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 September 30, 2015, and December 31, 2014, included commitments that could be utilized for standby letters of credit commitments of $45.1 billion and $45.6 billion, respectively.
(f)
At September 30, 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 September 30, 2015, and December 31, 2014, collateral held by the Firm in support of securities lending indemnification agreements was $190.3 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 September 30, 2015, and December 31, 2014, included unfunded commitments of $57 million and $147 million, respectively, to third-party private equity funds; and $1.4 billion and $961 million, at September 30, 2015, and December 31, 2014, respectively, to other equity investments. These commitments included $53 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 September 30, 2015, and December 31, 2014, included letters of credit hedged by derivative transactions and managed on a market risk basis of $4.6 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 September 30, 2015, and December 31, 2014.
Standby letters of credit, other financial guarantees and other letters of credit
 
September 30, 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)
 
$
60,841

 
$
3,362

 
 
$
66,856

 
$
3,476

Noninvestment-grade(a)
 
24,427

 
645

 
 
23,018

 
855

Total contractual amount
 
$
85,268

 
$
4,007

 
 
$
89,874

 
$
4,331

Allowance for lending-related commitments
 
$
334

 
$
1

 
 
$
234

 
$
1

Commitments with collateral
 
36,148

 
1,126

 
 
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 September 30,
 
Nine months ended September 30,
(in millions)
2015
 
2014
 
2015
 
2014
Repurchase liability at beginning of period
$
231

 
$
436

 
$
275

 
$
681

Net realized gains/(losses)(a)
1

 
17

 
18

 
36

(Benefit)/provision for repurchase(b)
(48
)
 
(62
)
 
(109
)
 
(326
)
Repurchase liability at end of period
$
184

 
$
391

 
$
184

 
$
391

(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 and $5 million for the three months ended September 30, 2015 and 2014, respectively, and $6 million and $8 million for the nine months ended September 30, 2015 and 2014, respectively.
(b)
Included a provision related to new loan sales of $1 million for each of the three months ended September 30, 2015 and 2014, and $3 million for each of the nine months ended September 30, 2015 and 2014