Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2011

Goodwill and Other Intangible Assets (Tables) [Abstract]

Goodwill and other intangible assets

(in millions)	March 31, 2011		December 31, 2010
Goodwill	$	48,856	$	48,854
Mortgage servicing rights		13,093		13,649
Other intangible assets:
Purchased credit card relationships	$	820	$	897
Other credit card–related intangibles		582		593
Core deposit intangibles		806		879
Other intangibles		1,649		1,670
Total other intangible assets	$	3,857	$	4,039

Goodwill attributed to the business segments

(in millions)	March 31, 2011		December 31, 2010
Investment Bank	$	5,249	$	5,278
Retail Financial Services		16,490		16,496
Card Services & Auto		14,564		14,522
Commercial Banking		2,864		2,866
Treasury & Securities Services		1,669		1,680
Asset Management		7,643		7,635
Corporate/Private Equity		377		377
Total goodwill	$	48,856	$	48,854

Changes in the carrying amount of goodwill

	Three months ended March 31,
(in millions)	2011			2010
Balance at January 1,(a)	$	48,854		$	48,357
Changes during the period from:
Business combinations		(5	)		9
Dispositions		—			(19	)
Other(b)		7			12
Balance at March 31,(a)	$	48,856		$	48,359

(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

	Three months ended March 31,
(in millions, except where otherwise noted)	2011			2010
Fair value at January 1,	$	13,649		$	15,531
MSR activity
Originations of MSRs		757			689
Purchase of MSRs		1			14
Disposition of MSRs		—			—
Total net additions		758			703
Change in valuation due to inputs and assumptions(a)		(751	)		(96	)
Other changes in fair value(b)		(563	)		(607	)
Total change in fair value of MSRs(c)		(1,314	)		(703	)
Fair value at March 31(d)	$	13,093		$	15,531
Change in unrealized gains/(losses) included in income related to MSRs held at March 31	$	(751	)	$	(96	)
Contractual service fees, late fees and other ancillary fees included in income	$	1,025		$	1,132
Third-party mortgage loans serviced at March 31 (in billions)	$	963		$	1,084
Servicer advances, net at March 31 (in billions)(e)	$	10.8		$	9.0

(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.
(b)	Includes changes in MSR value due to modeled servicing portfolio runoff (i.e., amortization or time decay).
(c)	Includes changes related to commercial real estate of $(2) million for both the three months ended March 31, 2011 and 2010, respectively.
(d)	Includes $38 million and $39 million related to commercial real estate at March 31, 2011 and 2010, 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.

RFS mortgage fees and related income

	Three months ended March 31,
(in millions)	2011			2010
RFS mortgage fees and related income
Net production revenue:
Production revenue	$	679		$	433
Repurchase losses		(420	)		(432	)
Net production revenue		259			1
Net mortgage servicing revenue
Operating revenue:
Loan servicing revenue		1,052			1,107
Other changes in MSR asset fair value(a)		(563	)		(605	)
Total operating revenue		489			502
Risk management:
Changes in MSR asset fair value due to inputs or assumptions in model(b)		(751	)		(96	)
Derivative valuation adjustments and other		(486	)		248
Total risk management		(1,237	)		152
Total RFS net mortgage servicing revenue		(748	)		654
All other(c)		2			3
Mortgage fees and related income	$	(487	)	$	658

(a)	Includes changes in the MSR value due to modeled servicing portfolio runoff (i.e., amortization or time decay).
(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 MSR valuation model.
(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)

(in millions, except rates)	March 31, 2011			December 31, 2010
Weighted-average prepayment speed assumption (“CPR”)		10.15	%		11.29	%
Impact on fair value of 10% adverse change	$	(727	)	$	(809	)
Impact on fair value of 20% adverse change		(1,407	)		(1,568	)
Weighted-average option adjusted spread		3.94	%		3.94	%
Impact on fair value of 100 basis points adverse change	$	(592	)	$	(578	)
Impact on fair value of 200 basis points adverse change		(1,136	)		(1,109	)

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

	March 31, 2011						December 31, 2010
					Net						Net
	Gross		Accumulated		carrying		Gross		Accumulated		carrying
(in millions)	amount(a)		amortization(a)		value		amount		amortization		value
Purchased credit card relationships	$	3,829	$	3,009	$	820	$	5,789	$	4,892	$	897
Other credit card–related intangibles		858		276		582		907		314		593
Core deposit intangibles		4,132		3,326		806		4,280		3,401		879
Other intangibles		2,466		817		1,649		2,515		845		1,670

(a) The decrease in the gross amount and accumulated amortization from December 31, 2010 was due to the removal of fully amortized assets.

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

	Three months ended March 31,
(in millions)	2011		2010
Purchased credit card relationships	$	80	$	97
All other intangibles:
Other credit card–related intangibles		26		26
Core deposit intangibles		72		83
Other intangibles		39		37
Total amortization expense	$	217	$	243

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

			Other credit
	Purchased credit		card related		Core deposit		Other
For the year: (in millions)	card relationships		intangibles		intangibles		intangibles		Total
2011	$	294	$	106	$	284	$	142	$	826
2012		254		109		240		135		738
2013		213		106		195		128		642
2014		110		105		100		111		426
2015		24		97		25		94		240