Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2010

Goodwill and Other Intangible Assets (Tables) [Abstract]

Goodwill and other intangible assets

December 31, (in millions)	2010		2009		2008
Goodwill	$	48,854	$	48,357	$	48,027
Mortgage servicing rights		13,649		15,531		9,403
Other intangible assets
Purchased credit card relationships	$	897	$	1,246	$	1,649
Other credit card–related intangibles		593		691		743
Core deposit intangibles		879		1,207		1,597
Other intangibles		1,670		1,477		1,592
Total other intangible assets	$	4,039	$	4,621	$	5,581

Goodwill attributed to the business segments

December 31, (in millions)	2010		2009		2008
Investment Bank	$	5,278	$	4,959	$	4,765
Retail Financial Services		16,496		16,514		16,210
Card Services & Auto		14,522		14,451		14,607
Commercial Banking		2,866		2,868		2,870
Treasury & Securities Services		1,680		1,667		1,633
Asset Management		7,635		7,521		7,565
Corporate/Private Equity		377		377		377
Total goodwill	$	48,854	$	48,357	$	48,027

Changes in the carrying amount of goodwill

Year ended December 31, (in millions)	2010			2009		2008
Beginning balance at January 1,(a):	$	48,357		$	48,027	$	45,270
Changes from:
Business combinations		556			271		2,481
Dispositions		(19	)		—		(38	)
Other(b)		(40	)		59		314
Balance at December 31,(a)	$	48,854		$	48,357	$	48,027

(a)	Reflects gross goodwill balances as the Firm has not recognized any impairment losses to date.
(b)	Includes foreign currency translation adjustments and other tax-related adjustments.

Mortgage servicing rights activity

Year ended December 31,
(in millions, except where otherwise noted)	2010			2009			2008
Fair value at beginning of period	$	15,531		$	9,403		$	8,632
MSR activity
Originations of MSRs		3,153			3,615			3,061
Purchase of MSRs		26			2			6,755	(f)
Disposition of MSRs		(407	)		(10	)		–
Total net additions		2,772			3,607			9,816
Change in valuation due to inputs and assumptions(a)		(2,268	)		5,807			(6,933	)
Other changes in fair value(b)		(2,386	)		(3,286	)		(2,112	)
Total change in fair value of MSRs(c)		(4,654	)		2,521			(9,045	)
Fair value at December 31(d)	$	13,649		$	15,531		$	9,403
Change in unrealized gains/ (losses) included in income related to MSRs held at December 31	$	(2,268	)	$	5,807		$	(6,933	)
Contractual service fees, late fees and other ancillary fees included in income	$	4,484		$	4,818		$	3,353
Third-party mortgage loans serviced at December 31 (in billions)	$	976		$	1,091		$	1,185
Servicer advances, net at December 31 (in billions)(e)	$	9.9		$	7.7		$	5.2

(a)	Represents MSR asset fair value adjustments due to changes in inputs, such as interest rates and volatility, as well as updates to assumptions used in the valuation model. “Total realized/unrealized gains/(losses)” columns in the Changes in level 3 recurring fair value measurements tables in Note 3 on pages 170–187 of this Annual Report include these amounts.
(b)	Includes changes in MSR value due to modeled servicing portfolio runoff (or time decay). “Purchases, issuances, settlements, net” columns in the Changes in level 3 recurring fair value measurements tables in Note 3 on pages 170–187 of this Annual Report include these amounts.
(c)	Includes changes related to commercial real estate of $(1) million, $(4) million and $(4) million for the years ended December 31, 2010, 2009 and 2008, respectively.
(d)	Includes $40 million, $41 million and $55 million related to commercial real estate at December 31, 2010, 2009 and 2008, respectively.
(e)	Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest to a trust, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk associated with these advances is minimal because reimbursement of the advances is senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment if the collateral is insufficient to cover the advance.

(f) Includes MSRs acquired as a result of the Washington Mutual transaction (of which $59 million related to commercial real estate) and the Bear Stearns merger. For further discussion, see Note 2 on pages 166–170 of this Annual Report.

RFS mortgage fees and related income

Year ended December 31,
(in millions)	2010			2009			2008
RFS mortgage fees and related income
Net production revenue:
Production revenue	$	3,440		$	2,115		$	1,150
Repurchase losses		(2,912	)		(1,612	)		(252	)
Net production revenue	$	528		$	503		$	898
Net mortgage servicing revenue
Operating revenue:
Loan servicing revenue		4,575			4,942			3,258
Other changes in MSR asset fair value(a)		(2,384	)		(3,279	)		(2,052	)
Total operating revenue		2,191			1,663			1,206
Risk management:
Changes in MSR asset fair value due to inputs or assumptions in model(b)		(2,268	)		5,804			(6,849	)
Derivative valuation adjust- ments and other		3,404			(4,176	)		8,366
Total risk management		1,136			1,628			1,517
Total RFS net mortgage servicing revenue		3,327			3,291			2,723
All other(c)		15			(116	)		(154	)
Mortgage fees and related income	$	3,870		$	3,678		$	3,467

(a) Includes changes in the MSR value due to modeled servicing portfolio runoff (or time decay). “Purchases, issuances, settlements, net” columns in the Changes in level 3 recurring fair value measurements tables in Note 3 on pages 170–187 of this Annual Report include these amounts.

(b)	Represents MSR asset fair value adjustments due to changes in inputs, such as interest rates and volatility, as well as updates to assumptions used in the valuation model. “Total realized/unrealized gains/(losses)” columns in the Changes in level 3 recurring fair value measurements tables in Note 3 on pages 170–187 of this Annual Report include these amounts.
(c)	Primarily represents risk management activities performed by the Chief Investment Office (“CIO”) in the Corporate sector.

Key economic assumptions used to determine the fair value of the Firm's Mortgage Servicing Rights (MSRs)

Year ended December 31,
(in millions, except rates)	2010			2009
Weighted-average prepayment speed assumption (CPR)		11.29	%		11.37	%
Impact on fair value of 10% adverse change	$	(809	)	$	(896	)
Impact on fair value of 20% adverse change		(1,568	)		(1,731	)
Weighted-average option adjusted spread		3.94	%		4.63	%
Impact on fair value of 100 basis points adverse change	$	(578	)	$	(641	)
Impact on fair value of 200 basis points adverse change		(1,109	)		(1,232	)

Intangible assets components of credit card relationships, core deposits and other intangible assets

	2010						2009
					Net						Net
	Gross		Accumulated		carrying		Gross		Accumulated		carrying
December 31, (in millions)	amount		amortization		value		amount		amortization		value
Purchased credit card relationships	$	5,789	$	4,892	$	897	$	5,783	$	4,537	$	1,246
Other credit card–related intangibles		907		314		593		894		203		691
Core deposit intangibles		4,280		3,401		879		4,280		3,073		1,207
Other intangibles		2,515		845		1,670		2,200		723		1,477

Amortization expense related to credit card relationships, core deposits and other intangible assets

Year ended December 31, (in millions)	2010		2009		2008
Purchased credit card relationships	$	355	$	421	$	625
All other intangibles:
Other credit card–related intangibles		111		94		33
Core deposit intangibles		328		390		469
Other intangibles		142		145		136
Total amortization expense	$	936	$	1,050	$	1,263

Estimated future amortization expense related to credit card relationships, core deposits and other intangible assets

			Other credit
	Purchased credit		card-related		Core deposit		All other
Year ended December 31, (in millions)	card relationships		intangibles		intangibles		intangible assets		Total
2011	$	294	$	103	$	284	$	116	$	797
2012		254		106		240		111		711
2013		213		103		195		108		619
2014		109		102		100		94		405
2015		23		95		25		76		219