Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of fair value methodologies

The following table describes the valuation methodologies generally used by the Firm to measure its significant products/instruments at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

Product/instrument	Valuation methodology	Classifications in the valuation hierarchy
Securities financing agreements	Valuations are based on discounted cash flows, which consider:	Predominantly level 2
	• Derivative features: for further information refer to the discussion of derivatives below.
	• Market rates for the respective maturity
	• Collateral characteristics
Loans and lending-related commitments — wholesale
Loans carried at fair value (e.g., trading loans and non-trading loans) and associated lending-related commitments	Where observable market data is available, valuations are based on:	Level 2 or 3
	• Observed market prices (circumstances are infrequent)
	• Relevant broker quotes
	• Observed market prices for similar instruments
	Where observable market data is unavailable or limited, valuations are based on discounted cash flows, which consider the following:
	• Credit spreads derived from the cost of CDS; or benchmark credit curves developed by the Firm, by industry and credit rating
	• Prepayment speed
	• Collateral characteristics
Loans — consumer
Trading loans — conforming residential mortgage loans expected to be sold (CCB, CIB)	Fair value is based on observable prices for mortgage-backed securities with similar collateral and incorporates adjustments to these prices to account for differences between the securities and the value of the underlying loans, which include credit characteristics, portfolio composition, and liquidity.	Predominantly level 2
Investment and trading securities	Quoted market prices are used where available.	Level 1
	In the absence of quoted market prices, securities are valued based on:	Level 2 or 3
	• Observable market prices for similar securities
	•   Relevant broker quotes
	•   Discounted cash flows
	In addition, the following inputs to discounted cash flows are used for the following products:
	Mortgage- and asset-backed securities specific inputs:
	•   Collateral characteristics
	• Deal-specific payment and loss allocations
	• Current market assumptions related to yield, prepayment speed, conditional default rates and loss severity
	Collateralized loan obligations (“CLOs”) specific inputs:
	•   Collateral characteristics
	•   Deal-specific payment and loss allocations
	•   Expected prepayment speed, conditional default rates, loss severity
	•   Credit spreads
	• Credit rating data
Physical commodities	Valued using observable market prices or data.	Level 1 and 2

Product/instrument	Valuation methodology	Classifications in the valuation hierarchy
Derivatives	Exchange-traded derivatives that are actively traded and valued using the exchange price.	Level 1
	Derivatives that are valued using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs as well as considering the contractual terms. The key valuation inputs used will depend on the type of derivative and the nature of the underlying instruments and may include equity prices, commodity prices, interest rate yield curves, foreign exchange rates, volatilities, correlations, CDS spreads and recovery rates.  Additionally, the credit quality of the counterparty and of the Firm as well as market funding levels may also be considered.	Level 2 or 3
	In addition, specific inputs used for derivatives that are valued based on models with significant unobservable inputs are as follows:
	Structured credit derivatives specific inputs include:
	•   CDS spreads and recovery rates
	•   Credit correlation between the underlying debt instruments
	Equity option specific inputs include:
	•   Equity volatilities
	•   Equity correlation
	•   Equity-FX correlation
	•   Equity-IR correlation
	Interest rate and FX exotic options specific inputs include:
	•   Interest rate spread volatility
	•   Interest rate correlation
	•   Foreign exchange correlation
	•   Interest rate-FX correlation
	Commodity derivatives specific inputs include:
	•   Commodity volatility
	•   Forward commodity price
	Additionally, adjustments are made to reflect counterparty credit quality (CVA) and the impact of funding (FVA). Refer to page 175 of this Note.
Mortgage servicing rights	Refer to Mortgage servicing rights in Note 15.	Level 3
Private equity direct investments	Fair value is estimated using all available information; the range of potential inputs include:	Level 2 or 3
	• Transaction prices
	• Trading multiples of comparable public companies
	• Operating performance of the underlying portfolio company
	• Adjustments as required, since comparable public companies are not identical to the company being valued, and for company-specific issues and lack of liquidity.
	• Additional available inputs relevant to the investment.
Fund investments (e.g., mutual/collective investment funds, private equity funds, hedge funds, and real estate funds)	Net asset value
	• NAV is supported by the ability to redeem and purchase at the NAV level.	Level 1
	• Adjustments to the NAV as required, for restrictions on redemption (e.g., lock-up periods or withdrawal limitations) or where observable activity is limited.	Level 2 or 3(a)
Beneficial interests issued by consolidated VIEs	Valued using observable market information, where available.	Level 2 or 3
	In the absence of observable market information, valuations are based on the fair value of the underlying assets held by the VIE.

(a) Excludes certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient.

Product/instrument	Valuation methodology	Classification in the valuation hierarchy
Structured notes (included in deposits, short-term borrowings and long-term debt)	• Valuations are based on discounted cash flow analyses that consider the embedded derivative and the terms and payment structure of the note. • The embedded derivative features are considered using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs, depending on the embedded derivative. The specific inputs used vary according to the nature of the embedded derivative features, as described in the discussion above regarding derivatives valuation. Adjustments are then made to this base valuation to reflect the Firm’s own credit risk (DVA). Refer to page 175 of this Note.	Level 2 or 3

Assets and liabilities measured at fair value on a recurring basis

The following table presents the assets and liabilities reported at fair value as of December 31, 2018 and 2017, by major product category and fair value hierarchy.

Assets and liabilities measured at fair value on a recurring basis
	Fair value hierarchy
December 31, 2018 (in millions)	Level 1		Level 2		Level 3		Derivative netting adjustments			Total fair value
Federal funds sold and securities purchased under resale agreements	$	—	$	13,235	$	—	$	—		$	13,235
Securities borrowed	—		5,105		—		—			5,105
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. government agencies(a)	—		76,249		549		—			76,798
Residential – nonagency	—		1,798		64		—			1,862
Commercial – nonagency	—		1,501		11		—			1,512
Total mortgage-backed securities	—		79,548		624		—			80,172
U.S. Treasury and government agencies(a)	51,477		7,702		—		—			59,179
Obligations of U.S. states and municipalities	—		7,121		689		—			7,810
Certificates of deposit, bankers’ acceptances and commercial paper	—		1,214		—		—			1,214
Non-U.S. government debt securities	27,878		27,056		155		—			55,089
Corporate debt securities	—		18,655		334		—			18,989
Loans(b)	—		40,047		1,706		—			41,753
Asset-backed securities	—		2,756		127		—			2,883
Total debt instruments	79,355		184,099		3,635		—			267,089
Equity securities	71,119		482		232		—			71,833
Physical commodities(c)	5,182		1,855		—		—			7,037
Other	—		13,192		301		—			13,493
Total debt and equity instruments(d)	155,656		199,628		4,168		—			359,452
Derivative receivables:
Interest rate	682		266,380		1,642		(245,490		)	23,214
Credit	—		19,235		860		(19,483		)	612
Foreign exchange	771		166,238		676		(154,235		)	13,450
Equity	—		46,777		2,508		(39,339		)	9,946
Commodity	—		20,339		131		(13,479		)	6,991
Total derivative receivables(e)	1,453		518,969		5,817		(472,026		)	54,213
Total trading assets(f)	157,109		718,597		9,985		(472,026		)	413,665
Available-for-sale securities:
Mortgage-backed securities:
U.S. government agencies(a)	—		68,646		—		—			68,646
Residential – nonagency	—		8,519		1		—			8,520
Commercial – nonagency	—		6,654		—		—			6,654
Total mortgage-backed securities	—		83,819		1		—			83,820
U.S. Treasury and government agencies	56,059		—		—		—			56,059
Obligations of U.S. states and municipalities	—		37,723		—		—			37,723
Certificates of deposit	—		75		—		—			75
Non-U.S. government debt securities	15,313		8,789		—		—			24,102
Corporate debt securities	—		1,918		—		—			1,918
Asset-backed securities:
Collateralized loan obligations	—		19,437		—		—			19,437
Other	—		7,260		—		—			7,260
Total available-for-sale securities	71,372		159,021		1		—			230,394
Loans	—		3,029		122		—			3,151
Mortgage servicing rights	—		—		6,130		—			6,130
Other assets(f)(g)	7,810		195		927		—			8,932
Total assets measured at fair value on a recurring basis	$	236,291	$	899,182	$	17,165	$	(472,026	)	$	680,612
Deposits	$	—	$	19,048	$	4,169	$	—		$	23,217
Federal funds purchased and securities loaned or sold under repurchase agreements	—		935		—		—			935
Short-term borrowings	—		5,607		1,523		—			7,130
Trading liabilities:
Debt and equity instruments(d)	80,199		22,755		50		—			103,004
Derivative payables:
Interest rate	1,526		239,576		1,680		(234,998		)	7,784
Credit	—		19,309		967		(18,609		)	1,667
Foreign exchange	695		163,549		973		(152,432		)	12,785
Equity	—		46,462		4,733		(41,034		)	10,161
Commodity	—		21,158		1,260		(13,046		)	9,372
Total derivative payables(e)	2,221		490,054		9,613		(460,119		)	41,769
Total trading liabilities	82,420		512,809		9,663		(460,119		)	144,773
Accounts payable and other liabilities	3,063		196		10		—			3,269
Beneficial interests issued by consolidated VIEs	—		27		1		—			28
Long-term debt	—		35,468		19,418		—			54,886
Total liabilities measured at fair value on a recurring basis	$	85,483	$	574,090	$	34,784	$	(460,119	)	$	234,238

	Fair value hierarchy
December 31, 2017 (in millions)	Level 1		Level 2		Level 3		Derivative netting adjustments			Total fair value
Federal funds sold and securities purchased under resale agreements	$	—	$	14,732	$	—	$	—		$	14,732
Securities borrowed	—		3,049		—		—			3,049
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. government agencies(a)	—		41,515		307		—			41,822
Residential – nonagency	—		1,835		60		—			1,895
Commercial – nonagency	—		1,645		11		—			1,656
Total mortgage-backed securities	—		44,995		378		—			45,373
U.S. Treasury and government agencies(a)	30,758		6,475		1		—			37,234
Obligations of U.S. states and municipalities	—		9,067		744		—			9,811
Certificates of deposit, bankers’ acceptances and commercial paper	—		226		—		—			226
Non-U.S. government debt securities	28,887		28,831		78		—			57,796
Corporate debt securities	—		24,146		312		—			24,458
Loans(b)	—		35,242		2,719		—			37,961
Asset-backed securities	—		3,284		153		—			3,437
Total debt instruments	59,645		152,266		4,385		—			216,296
Equity securities	87,346		197		295		—			87,838
Physical commodities(c)	4,924		1,322		—		—			6,246
Other	—		14,197		690		—			14,887
Total debt and equity instruments(d)	151,915		167,982		5,370		—			325,267
Derivative receivables:
Interest rate	181		314,107		1,704		(291,319		)	24,673
Credit	—		21,995		1,209		(22,335		)	869
Foreign exchange	841		158,834		557		(144,081		)	16,151
Equity	—		37,722		2,318		(32,158		)	7,882
Commodity	—		19,875		210		(13,137		)	6,948
Total derivative receivables(e)	1,022		552,533		5,998		(503,030		)	56,523
Total trading assets(f)	152,937		720,515		11,368		(503,030		)	381,790
Available-for-sale securities:
Mortgage-backed securities:
U.S. government agencies(a)	—		70,280		—		—			70,280
Residential – nonagency	—		11,366		1		—			11,367
Commercial – nonagency	—		5,025		—		—			5,025
Total mortgage-backed securities	—		86,671		1		—			86,672
U.S. Treasury and government agencies	22,745		—		—		—			22,745
Obligations of U.S. states and municipalities	—		32,338		—		—			32,338
Certificates of deposit	—		59		—		—			59
Non-U.S. government debt securities	18,140		9,154		—		—			27,294
Corporate debt securities	—		2,757		—		—			2,757
Asset-backed securities:
Collateralized loan obligations	—		20,720		276		—			20,996
Other	—		8,817		—		—			8,817
Equity securities(g)	547		—		—		—			547
Total available-for-sale securities	41,432		160,516		277		—			202,225
Loans	—		2,232		276		—			2,508
Mortgage servicing rights	—		—		6,030		—			6,030
Other assets(f)(g)	13,795		343		1,265		—			15,403
Total assets measured at fair value on a recurring basis	$	208,164	$	901,387	$	19,216	$	(503,030	)	$	625,737
Deposits	$	—	$	17,179	$	4,142	$	—		$	21,321
Federal funds purchased and securities loaned or sold under repurchase agreements	—		697		—		—			697
Short-term borrowings	—		7,526		1,665		—			9,191
Trading liabilities:
Debt and equity instruments(d)	64,664		21,183		39		—			85,886
Derivative payables:
Interest rate	170		282,825		1,440		(277,306		)	7,129
Credit	—		22,009		1,244		(21,954		)	1,299
Foreign exchange	794		154,075		953		(143,349		)	12,473
Equity	—		39,668		5,727		(36,203		)	9,192
Commodity	—		21,017		884		(14,217		)	7,684
Total derivative payables(e)	964		519,594		10,248		(493,029		)	37,777
Total trading liabilities	65,628		540,777		10,287		(493,029		)	123,663
Accounts payable and other liabilities	9,074		121		13		—			9,208
Beneficial interests issued by consolidated VIEs	—		6		39		—			45
Long-term debt	—		31,394		16,125		—			47,519
Total liabilities measured at fair value on a recurring basis	$	74,702	$	597,700	$	32,271	$	(493,029	)	$	211,644

(a) At December 31, 2018 and 2017, included total U.S. government-sponsored enterprise obligations of $92.3 billion and $78.0 billion, respectively, which were predominantly mortgage-related.

(b) At December 31, 2018 and 2017, included within trading loans were $13.2 billion and $11.4 billion, respectively, of residential first-lien mortgages, and $2.3 billion and $4.2 billion, respectively, of commercial first-lien mortgages. Residential mortgage loans include conforming mortgage loans originated with the intent to sell to U.S. government agencies of $7.6 billion and $5.7 billion, respectively, and reverse mortgages of zero and $836 million, respectively.

(c) Physical commodities inventories are generally accounted for at the lower of cost or net realizable value. “Net realizable value” is a term defined in U.S. GAAP as not exceeding fair value less costs to sell (“transaction costs”). Transaction costs for the Firm’s physical commodities inventories are either not applicable or immaterial to the value of the inventory. Therefore, net realizable value approximates fair value for the Firm’s physical commodities inventories. When fair value hedging has been applied (or when net realizable value is below cost), the carrying value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in fair value. For a further discussion of the Firm’s hedge accounting relationships, refer to Note 5. To provide consistent fair value disclosure information, all physical commodities inventories have been included in each period presented.

(d) Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions).

(e) As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. For purposes of the tables above, the Firm does not reduce derivative receivables and derivative payables balances for this netting adjustment, either within or across the levels of the fair value hierarchy, as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset or liability. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral.

(f) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not required to be classified in the fair value hierarchy. At December 31, 2018 and 2017, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were $747 million and $779 million, respectively. Included in these balances at December 31, 2018 and 2017, were trading assets of $49 million and $54 million, respectively, and other assets of $698 million and $725 million, respectively.

(g)

Effective January 1, 2018, the Firm adopted the recognition and measurement guidance. Equity securities that were previously reported as AFS securities were reclassified to other assets upon adoption.

Fair value inputs, assets and liabilities, quantitative information

The following table presents the Firm’s primary level 3 financial instruments, the valuation techniques used to measure the fair value of those financial instruments, the significant unobservable inputs, the range of values for those inputs and, for certain instruments, the weighted averages of such inputs. While the determination to classify an instrument within level 3 is based on the significance of the unobservable inputs to the overall fair value measurement, level 3 financial instruments typically include observable components (that is, components that are actively quoted and can be validated to external sources) in addition to the unobservable components. The level 1 and/or level 2 inputs are not included in the table. In addition, the Firm manages the risk of the observable components of level 3 financial instruments using securities and derivative positions that are classified within levels 1 or 2 of the fair value hierarchy.

The range of values presented in the table is representative of the highest and lowest level input used to value the significant groups of instruments within a product/instrument classification. Where provided, the weighted averages of the input values presented in the table are calculated based on the fair value of the instruments that the input is being used to value.

In the Firm’s view, the input range and the weighted average value do not reflect the degree of input uncertainty or an assessment of the reasonableness of the Firm’s estimates and assumptions. Rather, they reflect the characteristics of the various instruments held by the Firm and the relative distribution of instruments within the range of characteristics. For example, two option contracts may have similar levels of market risk exposure and valuation uncertainty, but may have significantly different implied volatility levels because the option contracts have different underlyings, tenors, or strike prices. The input range and weighted average values will therefore vary from period-to-period and parameter-to-parameter based on the characteristics of the instruments held by the Firm at each balance sheet date.

For the Firm’s derivatives and structured notes positions classified within level 3 at December 31, 2018, interest rate correlation inputs used in estimating fair value were concentrated towards the upper end of the range; equity correlation, equity-FX and equity-IR correlation inputs were concentrated in the middle of the range; commodity correlation inputs were concentrated in the middle of the range; credit correlation inputs were concentrated towards the lower end of the range; and the interest rate-foreign exchange (“IR-FX”) correlation inputs were distributed across the range. In addition, the interest rate spread volatility inputs used in estimating fair value were distributed across the range; equity volatilities and commodity volatilities were concentrated in the middle of the range; and forward commodity prices used in estimating the fair value of commodity derivatives were concentrated towards the lower end of the range. Recovery rate inputs used in estimating the fair value of credit derivatives were distributed across the range; credit spreads and conditional default rates were concentrated towards the lower end of the range; loss severity and price inputs were concentrated towards the upper end of the range.

Level 3 inputs(a)
December 31, 2018
Product/Instrument	Fair value (in millions)			Principal valuation technique	Unobservable inputs(g)	Range of input values					Weighted average
Residential mortgage-backed securities and loans(b)	$	858		Discounted cash flows	Yield	0		%	–	19%	6%
					Prepayment speed	0		%	–	24%	9%
					Conditional default rate	0		%	–	9%	1%
					Loss severity	0		%	–	100%	6%
Commercial mortgage-backed securities and loans(c)	419			Market comparables	Price	$	0		–	$103	$90
Obligations of U.S. states and municipalities	689			Market comparables	Price	$	62		–	$100	$96
Corporate debt securities	334			Market comparables	Price	$	0		–	$107	$57
Loans(d)	234			Discounted cash flows	Yield	8%					8%
	942			Market comparables	Price	$	2		–	$101	$78
Asset-backed securities	127			Market comparables	Price	$	1		–	$102	$67
Net interest rate derivatives	(180		)	Option pricing	Interest rate spread volatility	16		bps	–	38bps
					Interest rate correlation	(45		)%	–	97%
					IR-FX correlation	45		%	–	60%
	142			Discounted cash flows	Prepayment speed	4		%	–	30%
Net credit derivatives	(163		)	Discounted cash flows	Credit correlation	25		%	–	55%
					Credit spread	10		bps	–	1,487bps
					Recovery rate	20		%	–	70%
					Conditional default rate	3		%	–	72%
					Loss severity	100%
	56			Market comparables	Price	$	1		–	$115
Net foreign exchange derivatives	(122		)	Option pricing	IR-FX correlation	(45		)%	–	60%
	(175		)	Discounted cash flows	Prepayment speed	8		%	–	9%
Net equity derivatives	(2,225		)	Option pricing	Equity volatility	14		%	–	57%
					Equity correlation	20		%	–	98%
					Equity-FX correlation	(75		)%	–	61%
					Equity-IR correlation	20		%	–	60%
Net commodity derivatives	(1,129		)	Option pricing	Forward commodity price	$	39		–	$56 per barrel
					Commodity volatility	5		%	–	68%
					Commodity correlation	(51		)%	–	95%
MSRs	6,130			Discounted cash flows	Refer to Note 15
Other assets	306			Discounted cash flows	Credit spread	55bps					55bps
					Yield	8%			–	10%	8%
	922			Market comparables	Price	$	20			$108	$40
					EBITDA multiple	2.9x			–	8.3x	7.5x
Long-term debt, short-term borrowings, and deposits(e)	25,110			Option pricing	Interest rate spread volatility	16		bps	–	38bps
					Interest rate correlation	(45		)%	–	97%
					IR-FX correlation	(45		)%	–	60%
					Equity correlation	20		%	–	98%
					Equity-FX correlation	(75		)%	–	61%
					Equity-IR correlation	20		%	–	60%
Other level 3 assets and liabilities, net(f)	326

(a) The categories presented in the table have been aggregated based upon the product type, which may differ from their classification on the Consolidated balance sheets. Furthermore, the inputs presented for each valuation technique in the table are, in some cases, not applicable to every instrument valued using the technique as the characteristics of the instruments can differ.

(b) Includes U.S. government agency securities of $541 million, nonagency securities of $65 million and trading loans of $252 million.

(c) Includes U.S. government agency securities of $8 million, nonagency securities of $11 million, trading loans of $278 million and non-trading loans of $122 million.

(d) Comprises trading loans.

(e) Long-term debt, short-term borrowings and deposits include structured notes issued by the Firm that are financial instruments that typically contain embedded derivatives. The estimation of the fair value of structured notes includes the derivative features embedded within the instrument. The significant unobservable inputs are broadly consistent with those presented for derivative receivables.

(f) Includes level 3 assets and liabilities that are insignificant both individually and in aggregate.

(g)

Price is a significant unobservable input for certain instruments. When quoted market prices are not readily available, reliance is generally placed on price-based internal valuation techniques. The price input is expressed assuming a par value of $100

Changes in level 3 recurring fair value measurements

The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the years ended December 31, 2018, 2017 and 2016. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable inputs to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. Also, the Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm’s risk management activities related to such level 3 instruments.

	Fair value measurements using significant unobservable inputs
Year ended December 31, 2018 (in millions)	Fair value at January 1, 2018			Total realized/unrealized gains/(losses)															Transfers into level 3(h)			Transfers (out of) level 3(h)			Fair value at Dec. 31, 2018			Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2018
								Purchases(f)			Sales					Settlements(g)
Assets:(a)
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. government agencies	$	307		$	(23	)		$	478		$	(164	)			$	(73	)	$	94		$	(70	)	$	549		$	(21	)
Residential – nonagency	60			(2		)		78			(50		)			(7		)	59			(74		)	64			1
Commercial – nonagency	11			2				18			(18		)			(17		)	36			(21		)	11			(2		)
Total mortgage-backed securities	378			(23		)		574			(232		)			(97		)	189			(165		)	624			(22		)
U.S. Treasury and government agencies	1			—				—			—					—			—			(1		)	—			—
Obligations of U.S. states and municipalities	744			(17		)		112			(70		)			(80		)	—			—			689			(17		)
Non-U.S. government debt securities	78			(22		)		459			(277		)			(12		)	23			(94		)	155			(9		)
Corporate debt securities	312			(18		)		364			(309		)			(48		)	262			(229		)	334			(1		)
Loans	2,719			26				1,364			(1,793		)			(658		)	813			(765		)	1,706			(1		)
Asset-backed securities	153			28				98			(41		)			(55		)	45			(101		)	127			22
Total debt instruments	4,385			(26		)		2,971			(2,722		)			(950		)	1,332			(1,355		)	3,635			(28		)
Equity securities	295			(40		)		118			(120		)			(1		)	107			(127		)	232			9
Other	690			(285		)		55			(40		)			(118		)	3			(4		)	301			(301		)
Total trading assets – debt and equity instruments	5,370			(351		)	(c)	3,144			(2,882		)			(1,069		)	1,442			(1,486		)	4,168			(320		)	(c)
Net derivative receivables:(b)
Interest rate	264			150				107			(133		)			(430		)	(15		)	19			(38		)	187
Credit	(35		)	(40		)		5			(7		)			(57		)	4			23			(107		)	(28		)
Foreign exchange	(396		)	103				52			(20		)			30			(108		)	42			(297		)	(63		)
Equity	(3,409		)	198				1,676			(2,208		)			1,805			(617		)	330			(2,225		)	561
Commodity	(674		)	(73		)		1			(72		)			(301		)	7			(17		)	(1,129		)	146
Total net derivative receivables	(4,250		)	338			(c)	1,841			(2,440		)			1,047			(729		)	397			(3,796		)	803			(c)
Available-for-sale securities:
Mortgage-backed securities	1			—				—			—					—			—			—			1			—
Asset-backed securities	276			1				—			—					(277		)	—			—			—			—
Total available-for-sale securities	277			1			(d)	—			—					(277		)	—			—			1			—
Loans	276			(7		)	(c)	123			—					(196		)	—			(74		)	122			(7		)	(c)
Mortgage servicing rights	6,030			230			(e)	1,246			(636		)			(740		)	—			—			6,130			230			(e)
Other assets	1,265			(328		)	(c)	61			(37		)			(37		)	4			(1		)	927			(340		)	(c)
	Fair value measurements using significant unobservable inputs
Year ended December 31, 2018 (in millions)	Fair value at January 1, 2018			Total realized/unrealized (gains)/losses																		Transfers (out of) level 3(h)			Fair value at Dec. 31, 2018			Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2018
								Purchases			Sales			Issuances		Settlements(g)			Transfers into level 3(h)
Liabilities:(a)
Deposits	$	4,142		$	(136	)	(c)(i)	$	—		$	—		$	1,437	$	(736	)	$	2		$	(540	)	$	4,169		$	(204	)	(c)(i)
Federal funds purchased and securities loaned or sold under repurchase agreements	—			—				—			—			—		—			—			—			—			—
Short-term borrowings	1,665			(329		)	(c)(i)	—			—			3,455		(3,388		)	272			(152		)	1,523			(131		)	(c)(i)
Trading liabilities – debt and equity instruments	39			19			(c)	(99		)	114			—		(1		)	14			(36		)	50			16			(c)
Accounts payable and other liabilities	13			—				(12		)	5			—		—			4			—			10			—
Beneficial interests issued by consolidated VIEs	39			—				—			1			—		(39		)	—			—			1			—
Long-term debt	16,125			(1,169		)	(c)(i)	—			—			11,919		(7,769		)	1,143			(831		)	19,418			(1,385		)	(c)(i)

	Fair value measurements using significant unobservable inputs
Year ended December 31, 2017 (in millions)	Fair value at January 1, 2017			Total realized/unrealized gains/(losses)																		Transfers (out of) level 3(h)			Fair value at Dec. 31, 2017			Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2017
								Purchases(f)			Sales					Settlements(g)			Transfers into level 3(h)
Assets:(a)
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. government agencies	$	392		$	(11	)		$	161		$	(171	)			$	(70	)	$	49		$	(43	)	$	307		$	(20	)
Residential – nonagency	83			19				53			(30		)			(64		)	132			(133		)	60			11
Commercial – nonagency	17			9				27			(44		)			(13		)	64			(49		)	11			1
Total mortgage-backed securities	492			17				241			(245		)			(147		)	245			(225		)	378			(8		)
U.S. Treasury and government agencies	—			—				—			—					—			1			—			1			—
Obligations of U.S. states and municipalities	649			18				152			(70		)			(5		)	—			—			744			15
Non-U.S. government debt securities	46			—				559			(518		)			—			62			(71		)	78			—
Corporate debt securities	576			11				872			(612		)			(497		)	157			(195		)	312			18
Loans	4,837			333				2,389			(2,832		)			(1,323		)	806			(1,491		)	2,719			43
Asset-backed securities	302			32				354			(356		)			(56		)	75			(198		)	153			—
Total debt instruments	6,902			411				4,567			(4,633		)			(2,028		)	1,346			(2,180		)	4,385			68
Equity securities	231			39				176			(148		)			(4		)	59			(58		)	295			21
Other	761			100				30			(46		)			(162		)	17			(10		)	690			39
Total trading assets – debt and equity instruments	7,894			550			(c)	4,773			(4,827		)			(2,194		)	1,422			(2,248		)	5,370			128			(c)
Net derivative receivables:(b)	—
Interest rate	1,263			72				60			(82		)			(1,040		)	(8		)	(1		)	264			(473		)
Credit	98			(164		)		1			(6		)			—			77			(41		)	(35		)	32
Foreign exchange	(1,384		)	43				13			(10		)			854			(61		)	149			(396		)	42
Equity	(2,252		)	(417		)		1,116			(551		)			(245		)	(1,482		)	422			(3,409		)	(161		)
Commodity	(85		)	(149		)		—			—					(433		)	(6		)	(1		)	(674		)	(718		)
Total net derivative receivables	(2,360		)	(615		)	(c)	1,190			(649		)			(864		)	(1,480		)	528			(4,250		)	(1,278		)	(c)
Available-for-sale securities:																									—
Mortgage-backed securities	1			—				—			—					—			—			—			1			—
Asset-backed securities	663			15				—			(50		)			(352		)	—			—			276			14
Total available-for-sale securities	664			15			(d)	—			(50		)			(352		)	—			—			277			14			(d)
Loans	570			35			(c)	—			(26		)			(303		)	—			—			276			3			(c)
Mortgage servicing rights	6,096			(232		)	(e)	1,103			(140		)			(797		)	—			—			6,030			(232		)	(e)
Other assets	2,223			244			(c)	66			(177		)			(870		)	—			(221		)	1,265			74			(c)
	Fair value measurements using significant unobservable inputs
Year ended December 31, 2017 (in millions)	Fair value at January 1, 2017			Total realized/unrealized (gains)/losses																		Transfers (out of) level 3(h)			Fair value at Dec. 31, 2017			Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2017
								Purchases			Sales			Issuances		Settlements(g)			Transfers into level 3(h)
Liabilities:(a)
Deposits	$	2,117		$	152		(c)(i)	$	—		$	—		$	3,027	$	(291	)	$	11		$	(874	)	$	4,142		$	198		(c)(i)
Federal funds purchased and securities loaned or sold under repurchase agreements	—			—				—			—			—		—			—			—			—			—
Short-term borrowings	1,134			42			(c)(i)	—			—			3,289		(2,748		)	150			(202		)	1,665			7			(c)(i)
Trading liabilities – debt and equity instruments	43			(3		)	(c)	(46		)	48			—		3			3			(9		)	39			—
Accounts payable and other liabilities	13			(2		)		(1		)	—			—		3			—			—			13			(2		)
Beneficial interests issued by consolidated VIEs	48			2			(c)	(122		)	39			—		(6		)	78			—			39			—
Long-term debt	12,850			1,067			(c)(i)	—			—			12,458		(10,985		)	1,660			(925		)	16,125			552			(c)(i)

	Fair value measurements using significant unobservable inputs
Year ended December 31, 2016 (in millions)	Fair value at January 1, 2016			Total realized/unrealized gains/(losses)																		Transfers (out of) level 3(h)			Fair value at Dec. 31, 2016			Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2016
								Purchases(f)			Sales					Settlements(g)			Transfers into level 3(h)
Assets:(a)
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. government agencies	$	715		$	(20	)		$	135		$	(295	)			$	(115	)	$	111		$	(139	)	$	392		$	(36	)
Residential – nonagency	194			4				252			(319		)			(20		)	67			(95		)	83			5
Commercial – nonagency	115			(11		)		69			(29		)			(3		)	173			(297		)	17			3
Total mortgage-backed securities	1,024			(27		)		456			(643		)			(138		)	351			(531		)	492			(28		)
Obligations of U.S. states and municipalities	651			19				149			(132		)			(38		)	—			—			649			—
Non-U.S. government debt securities	74			(4		)		91			(97		)			(7		)	19			(30		)	46			(7		)
Corporate debt securities	736			2				445			(359		)			(189		)	148			(207		)	576			(22		)
Loans	6,604			(343		)		2,228			(2,598		)			(1,311		)	1,044			(787		)	4,837			(169		)
Asset-backed securities	1,832			39				655			(712		)			(968		)	288			(832		)	302			19
Total debt instruments	10,921			(314		)		4,024			(4,541		)			(2,651		)	1,850			(2,387		)	6,902			(207		)
Equity securities	265			—				90			(108		)			(40		)	29			(5		)	231			7
Physical commodities	—			—				—			—					—			—			—			—			—
Other	744			79				649			(287		)			(360		)	26			(90		)	761			28
Total trading assets – debt and equity instruments	11,930			(235		)	(c)	4,763			(4,936		)			(3,051		)	1,905			(2,482		)	7,894			(172		)	(c)
Net derivative receivables:(b)
Interest rate	876			756				193			(57		)			(713		)	(14		)	222			1,263			(144		)
Credit	549			(742		)		10			(2		)			211			36			36			98			(622		)
Foreign exchange	(725		)	67				64			(124		)			(649		)	(48		)	31			(1,384		)	(350		)
Equity	(1,514		)	(145		)		277			(852		)			213			94			(325		)	(2,252		)	(86		)
Commodity	(935		)	194				1			10					645			8			(8		)	(85		)	(36		)
Total net derivative receivables	(1,749		)	130			(c)	545			(1,025		)			(293		)	76			(44		)	(2,360		)	(1,238		)	(c)
Available-for-sale securities:
Mortgage-backed securities	1			—				—			—					—			—			—			1			—
Asset-backed securities	823			1				—			—					(119		)	—			(42		)	663			1
Total available-for-sale securities	824			1			(d)	—			—					(119		)	—			(42		)	664			1			(d)
Loans	1,518			(49		)	(c)	259			(7		)			(838		)	—			(313		)	570			—
Mortgage servicing rights	6,608			(163		)	(e)	679			(109		)			(919		)	—			—			6,096			(163		)	(e)
Other assets	2,401			130			(c)	487			(496		)			(299		)	—			—			2,223			48			(c)
	Fair value measurements using significant unobservable inputs
Year ended December 31, 2016 (in millions)	Fair value at January 1, 2016			Total realized/unrealized (gains)/losses															Transfers into level 3(h)			Transfers (out of) level 3(h)			Fair value at Dec. 31, 2016			Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2016
								Purchases			Sales			Issuances		Settlements(g)
Liabilities:(a)
Deposits	$	2,950		$	(56	)	(c)	$	—		$	—		$	1,375	$	(1,283	)	$	—		$	(869	)	$	2,117		$	23		(c)
Federal funds purchased and securities loaned or sold under repurchase agreements	—			—				—			—			—		(2		)	6			(4		)	—			—
Short-term borrowings	639			(230		)	(c)	—			—			1,876		(1,210		)	114			(55		)	1,134			(70		)	(c)
Trading liabilities – debt and equity instruments	63			(12		)	(c)	(15		)	23			—		(22		)	13			(7		)	43			(18		)	(c)
Accounts payable and other liabilities	19			—				—			—			—		(6		)	—			—			13			—
Beneficial interests issued by consolidated VIEs	549			(31		)	(c)	—			—			143		(613		)	—			—			48			6			(c)
Long-term debt	11,447			147			(c)	—			—			8,140		(5,810		)	315			(1,389		)	12,850			639			(c)

(a) Level 3 assets as a percentage of total Firm assets accounted for at fair value (including assets measured at fair value on a nonrecurring basis) were 3%, 3% and 4% at December 31, 2018, 2017 and 2016 respectively. Level 3 liabilities as a percentage of total Firm liabilities accounted for at fair value (including liabilities measured at fair value on a nonrecurring basis) were 15%, 15% and 12% at December 31, 2018, 2017 and 2016, respectively.

(b) All level 3 derivatives are presented on a net basis, irrespective of underlying counterparty.

(c) Predominantly reported in principal transactions revenue, except for changes in fair value for CCB mortgage loans, and lending-related commitments originated with the intent to sell, and mortgage loan purchase commitments, which are reported in mortgage fees and related income.

(d) Realized gains/(losses) on AFS securities, as well as other-than-temporary impairment (“OTTI”) losses that are recorded in earnings, are reported in investment securities gains/(losses). Unrealized gains/(losses) are reported in OCI. Realized gains/(losses) and foreign exchange hedge accounting adjustments recorded in income on AFS securities were $1 million, zero and zero for the years ended December 31, 2018, 2017 and 2016, respectively. Unrealized gains/(losses) recorded on AFS securities in OCI were zero, $15 million and $1 million for the years ended December 31, 2018, 2017 and 2016, respectively.

(e) Changes in fair value for MSRs are reported in mortgage fees and related income.

(f) Loan originations are included in purchases.

(g) Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications, deconsolidations associated with beneficial interests in VIEs and other items.

(h) All transfers into and/or out of level 3 are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur.

(i)

Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue, and they were not material for the years ended December 31, 2018 and 2017, respectively. Unrealized (gains)/losses are reported in OCI, and they were $(277) million and $(48) million for the years ended December 31, 2018 and 2017, respectively.

Impact of credit adjustments on earnings

The following table provides the impact of credit and funding adjustments on principal transactions revenue in the respective periods, excluding the effect of any associated hedging activities. The FVA presented below includes the impact of the Firm’s own credit quality on the inception value of liabilities as well as the impact of changes in the Firm’s own credit quality over time.

Year ended December 31, (in millions)	2018			2017			2016
Credit and funding adjustments:
Derivatives CVA	$	193		$	802		$	(84	)
Derivatives FVA	(74		)	(295		)	7

Assets and liabilities measured at fair value on a nonrecurring basis

The following tables present the assets held as of December 31, 2018 and 2017, respectively, for which a nonrecurring fair value adjustment was recorded during the years ended December 31, 2018 and 2017, respectively, by major product category and fair value hierarchy.

	Fair value hierarchy							Total fair value
December 31, 2018 (in millions)	Level 1		Level 2		Level 3
Loans	$	—	$	273	$	264	(b)	$	537
Other assets(a)	—		8		815			823
Total assets measured at fair value on a nonrecurring basis	$	—	$	281	$	1,079		$	1,360

	Fair value hierarchy						Total fair value
December 31, 2017 (in millions)	Level 1		Level 2		Level 3
Loans	$	—	$	238	$	596	$	834
Other assets	—		283		183		466
Total assets measured at fair value on a nonrecurring basis	$	—	$	521	$	779	$	1,300

(a) Primarily includes equity securities without readily determinable fair values that were adjusted based on observable price changes in orderly transactions from an identical or similar investment of the same issuer (measurement alternative) as a result of the adoption of the recognition and measurement guidance. Of the $815 million in level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2018, $667 million related to such equity securities. These equity securities are classified as level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.

(b) Of the $264 million in level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2018, $225 million related to residential real estate loans carried at the net realizable value of the underlying collateral (e.g., collateral-dependent loans and other loans charged off in accordance with regulatory guidance). These amounts are classified as level 3 as they are valued using information from broker’s price opinions, appraisals and automated valuation models and discounted based upon the Firm’s experience with actual liquidation values. These discounts ranged from 13% to 54% with a weighted average of 25%.

There were no material liabilities measured at fair value on a nonrecurring basis at December 31, 2018 and 2017.

Nonrecurring fair value changes

The following table presents the total change in value of assets and liabilities for which a fair value adjustment has been recognized for the years ended December 31, 2018, 2017 and 2016, related to financial instruments held at those dates.

December 31, (in millions)	2018				2017			2016
Loans	$	(68	)		$	(159	)	$	(209	)
Other assets	132			(a)	(148		)	37
Accounts payable and other liabilities	—				(1		)	—
Total nonrecurring fair value gains/(losses)	$	64			$	(308	)	$	(172	)

(a) Included $149 million for the year ended 2018 of net gains as a result of the measurement alternative.

Carrying value of equity securities without readily determinable fair values

The following table presents the carrying value of equity securities without readily determinable fair values held as of December 31, 2018, that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable.

	As of or for the
(in millions)	Year ended  December 31, 2018
Other assets
Carrying value	$	1,510
Upward carrying value changes	309
Downward carrying value changes/impairment	(160		)

Carrying value and estimated fair value of financial assets and liabilities

The following table presents by fair value hierarchy classification the carrying values and estimated fair values at December 31, 2018 and 2017, of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and their classification within the fair value hierarchy.

	December 31, 2018										December 31, 2017
			Estimated fair value hierarchy										Estimated fair value hierarchy
(in billions)	Carrying value		Level 1		Level 2		Level 3		Total estimated fair value		Carrying value		Level 1		Level 2		Level 3		Total estimated fair value
Financial assets
Cash and due from banks	$	22.3	$	22.3	$	—	$	—	$	22.3	$	25.9	$	25.9	$	—	$	—	$	25.9
Deposits with banks	256.5		256.5		—		—		256.5		405.4		401.8		3.6		—		405.4
Accrued interest and accounts receivable	72.0		—		71.9		0.1		72.0		67.0		—		67.0		—		67.0
Federal funds sold and securities purchased under resale agreements	308.4		—		308.4		—		308.4		183.7		—		183.7		—		183.7
Securities borrowed	106.9		—		106.9		—		106.9		102.1		—		102.1		—		102.1
Investment securities, held-to-maturity	31.4		—		31.5		—		31.5		47.7		—		48.7		—		48.7
Loans, net of allowance for loan losses(a)	968.0		—		241.5		728.5		970.0		914.6		—		213.2		707.1		920.3
Other(b)	60.5		—		59.6		1.0		60.6		53.9		—		52.1		9.2		61.3
Financial liabilities
Deposits	$	1,447.4	$	—	$	1,447.5	$	—	$	1,447.5	$	1,422.7	$	—	$	1,422.7	$	—	$	1,422.7
Federal funds purchased and securities loaned or sold under repurchase agreements	181.4		—		181.4		—		181.4		158.2		—		158.2		—		158.2
Short-term borrowings	62.1		—		62.1		—		62.1		42.6		—		42.4		0.2		42.6
Accounts payable and other liabilities	160.6		0.2		157.0		3.0		160.2		152.0		—		148.9		2.9		151.8
Beneficial interests issued by consolidated VIEs	20.2		—		20.2		—		20.2		26.0		—		26.0		—		26.0
Long-term debt and junior subordinated deferrable interest debentures	227.1		—		224.6		3.3		227.9		236.6		—		240.3		3.2		243.5

Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. For additional information, refer to Note 1.

(a) Fair value is typically estimated using a discounted cash flow model that incorporates the characteristics of the underlying loans (including principal, contractual interest rate and contractual fees) and other key inputs, including expected lifetime credit losses, interest rates, prepayment rates, and primary origination or secondary market spreads. For certain loans, the fair value is measured based on the value of the underlying collateral. The difference between the estimated fair value and carrying value of a financial asset or liability is the result of the different methodologies used to determine fair value as compared with carrying value. For example, credit losses are estimated for a financial asset’s remaining life in a fair value calculation but are estimated for a loss emergence period in the allowance for loan loss calculation; future loan income (interest and fees) is incorporated in a fair value calculation but is generally not considered in the allowance for loan losses.

(b)

The prior period amounts have been revised to conform with the current period presentation.

The carrying value and estimated fair value of wholesale lending- related commitments

The majority of the Firm’s lending-related commitments are not carried at fair value on a recurring basis on the Consolidated balance sheets. The carrying value of the wholesale allowance for lending-related commitments and the estimated fair value of these wholesale lending-related commitments were as follows for the periods indicated.

	December 31, 2018										December 31, 2017
			Estimated fair value hierarchy										Estimated fair value hierarchy
(in billions)	Carrying value(a)		Level 1		Level 2		Level 3		Total estimated fair value		Carrying value(a)		Level 1		Level 2		Level 3		Total estimated fair value
Wholesale lending-related commitments	$	1.0	$	—	$	—	$	2.1	$	2.1	$	1.1	$	—	$	—	$	1.6	$	1.6

(a)

Excludes the current carrying values of the guarantee liability and the offsetting asset, each of which is recognized at fair value at the inception of the guarantees.