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Fair Value Option (Tables)
 12 Months Ended
Dec. 31, 2018
Fair Value Option [Abstract]  
Changes in fair value under the fair value option election The following table presents the changes in fair value included in the Consolidated statements of income for the years ended December 31, 2018, 2017 and 2016, for items for which the fair value option was elected. The profit and loss information presented below only includes the financial instruments that were elected to be measured at fair value; related risk management instruments, which are required to be measured at fair value, are not included in the table.
 
2018
 
2017
 
2016
December 31, (in millions)
Principal transactions
All other income
Total changes in fair value recorded(e)
 
Principal transactions
All other income
Total changes in fair value recorded(e)
 
Principal transactions
All other income
Total changes in fair value recorded(e)
Federal funds sold and securities purchased under resale agreements
$
(35
)
$
—

 
$
(35
)
 
$
(97
)
$
—

 
$
(97
)
 
$
(76
)
$
—

 
$
(76
)
Securities borrowed
22

—

 
22

 
50

—

 
50

 
1

—

 
1

Trading assets:
 
 
 
 
 
 
 
 


 
 
 
 


Debt and equity instruments, excluding loans
(1,680
)
1

(c) 
(1,679
)
 
1,943

2

(c) 
1,945

 
120

(1
)
(c) 
119

Loans reported as trading
 assets:
 
 
 
 
 
 
 
 


 
 
 
 


Changes in instrument-specific credit risk
414

1

(c) 
415

 
330

14

(c) 
344

 
461

43

(c) 
504

Other changes in fair value
160

185

(c) 
345

 
217

747

(c) 
964

 
79

684

(c) 
763

Loans:
 
 
 
 
 
 
 
 


 
 
 
 


Changes in instrument-specific credit risk
(1
)
—

 
(1
)
 
(1
)
—

 
(1
)
 
13

—

 
13

Other changes in fair value
(1
)
—

 
(1
)
 
(12
)
3

(c) 
(9
)
 
(7
)
—

 
(7
)
Other assets
5

(45
)
(d) 
(40
)
 
11

(55
)
(d) 
(44
)
 
20

62

(d) 
82

Deposits(a)
181

—

 
181

 
(533
)
—

 
(533
)
 
(134
)
—

 
(134
)
Federal funds purchased and securities loaned or sold under repurchase agreements
11

—

 
11

 
11

—

 
11

 
19

—

 
19

Short-term borrowings(a) 
862

—

 
862

 
(747
)
—

 
(747
)
 
(236
)
—

 
(236
)
Trading liabilities
1

—

 
1

 
(1
)
—

 
(1
)
 
6

—

 
6

Beneficial interests issued by consolidated VIEs
—

—

 
—

 
—

—

 
—

 
23

—

 
23

Long-term debt(a)(b)
2,695

—

 
2,695

 
(2,022
)
—

 
(2,022
)
 
(773
)
—

 
(773
)
(a)
Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected is recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue were not material for the years ended December 31, 2018, 2017 and 2016.
(b)
Long-term debt measured at fair value predominantly relates to structured notes. Although the risk associated with the structured notes is actively managed, the gains/(losses) reported in this table do not include the income statement impact of the risk management instruments used to manage such risk.
(c)
Reported in mortgage fees and related income.
(d)
Reported in other income.
(e)
Changes in fair value exclude contractual interest, which is included in interest income and interest expense for all instruments other than hybrid financial instruments. For further information regarding interest income and interest expense, refer to Note 7.
Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of December 31, 2018 and 2017, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected.
 
2018
 
2017
December 31, (in millions)
Contractual principal outstanding
 
Fair value
Fair value over/(under) contractual principal outstanding
 
Contractual principal outstanding
 
Fair value
Fair value over/(under) contractual principal outstanding
Loans(a)
 
 
 
 
 
 
 
 
 
Nonaccrual loans
 
 
 
 
 
 
 
 
 
Loans reported as trading assets
$
4,240

 
$
1,350

$
(2,890
)
 
$
4,219

 
$
1,371

$
(2,848
)
Loans
39

 
—

(39
)
 
39

 
—

(39
)
Subtotal
4,279

 
1,350

(2,929
)
 
4,258

 
1,371

(2,887
)
All other performing loans
 
 
 
 
 
 
 
 
 
Loans reported as trading assets
42,215

 
40,403

(1,812
)
 
38,157

 
36,590

(1,567
)
Loans
3,186

 
3,151

(35
)
 
2,539

 
2,508

(31
)
Total loans
$
49,680

 
$
44,904

$
(4,776
)
 
$
44,954

 
$
40,469

$
(4,485
)
Long-term debt
 
 
 
 
 
 
 
 
 
Principal-protected debt
$
32,674

(c) 
$
28,718

$
(3,956
)
 
$
26,297

(c) 
$
23,848

$
(2,449
)
Nonprincipal-protected debt(b)
NA

 
26,168

NA

 
NA

 
23,671

NA

Total long-term debt
NA

 
$
54,886

NA

 
NA

 
$
47,519

NA

Long-term beneficial interests
 
 
 
 
 
 
 
 
 
Nonprincipal-protected debt(b)
NA

 
$
28

NA

 
NA

 
$
45

NA

Total long-term beneficial interests
NA


$
28

NA

 
NA

 
$
45

NA

(a)
There were no performing loans that were ninety days or more past due as of December 31, 2018 and 2017.
(b)
Remaining contractual principal is not applicable to nonprincipal-protected structured notes and long-term beneficial interests. Unlike principal-protected structured notes and long-term beneficial interests, for which the Firm is obligated to return a stated amount of principal at maturity, nonprincipal-protected structured notes and long-term beneficial interests do not obligate the Firm to return a stated amount of principal at maturity, but for structured notes to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal-protected notes.
(c)
Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflects the contractual principal payment at maturity or, if applicable, the contractual principal payment at the Firm’s next call date.
Fair value option, structured notes by balance sheet classification and primary embedded derivative risk The following table presents the fair value of structured notes, by balance sheet classification and the primary risk type.
 
December 31, 2018
 
December 31, 2017
(in millions)
Long-term debt
Short-term borrowings
Deposits
Total
 
Long-term debt
Short-term borrowings
Deposits
Total
Risk exposure
 
 
 
 
 
 
 
 
 
Interest rate
$
24,137

$
62

$
12,372

$
36,571

 
$
22,056

$
69

$
8,058

$
30,183

Credit
4,009

995

—

5,004

 
4,329

1,312

—

5,641

Foreign exchange
3,169

157

38

3,364

 
2,841

147

38

3,026

Equity
21,382

5,422

7,368

34,172

 
17,581

7,106

6,548

31,235

Commodity
372

34

1,207

1,613

 
230

15

4,468

4,713

Total structured notes
$
53,069

$
6,670

$
20,985

$
80,724

 
$
47,037

$
8,649

$
19,112

$
74,798