DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES (Tables)

9 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Assets at Fair Value

The following table presents the gross fair values and notional amounts of derivatives by product type, the amounts of counterparty and cash collateral netting on our Condensed Consolidated Statements of Financial Condition, as well as collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP.

	June 30, 2023						September 30, 2022
$ in millions	Derivative assets		Derivative liabilities		Notional amount		Derivative assets		Derivative liabilities		Notional amount
Derivatives not designated as hedging instruments
Interest rate - other (1)	$	414	$	469	$	17,811	$	462	$	535	$	14,647
Interest rate - matched book (2)	—		—		—		52		52		1,340
Foreign exchange	2		—		1,167		4		5		958
Other	—		4		661		—		3		531
Subtotal	416		473		19,639		518		595		17,476
Derivatives designated as hedging instruments
Interest rate - other (3)	9		—		1,250		12		—		1,050
Foreign exchange	3		—		1,188		6		—		1,092
Subtotal	12		—		2,438		18		—		2,142
Total gross fair value/notional amount	428		473		$	22,077	536		595		$	19,618
Offset on the Condensed Consolidated Statements of Financial Condition
Counterparty netting	(24)		(24)				(35)		(35)
Cash collateral netting	(175)		(56)				(313)		(30)
Total amounts offset	(199)		(80)				(348)		(65)
Net amounts presented on the Condensed Consolidated Statements of Financial Condition	$	229	$	393			$	188	$	530
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
Financial instruments (2)	(108)		—				(60)		(52)
Total	$	121	$	393			$	128	$	478

(1)    Relates to interest rate derivatives entered into as part of our fixed income business operations, including to-be-announced security contracts that are accounted for as derivatives, as well as our banking operations.

(2)    Although the matched book derivative arrangements did not meet the definition of a master netting arrangement as specified by GAAP, the agreement with the third-party intermediary included terms that were similar to a master netting agreement. As a result, we presented the matched book amounts as of September 30, 2022 net in the preceding table. As of June 30, 2023, we had exited such matched book derivative agreements.

(3)    During the nine months ended June 30, 2023, we entered into an interest rate swap to manage our risk of increases in interest rates associated with certain money market and savings accounts by converting the balances subject to variable interest rates to a fixed interest rate. Such interest rate swap has been designated and accounted for as a cash flow hedge. Refer to Note 13 of this Form 10-Q for information regarding these bank deposits.

Schedule of Derivative Liabilities at Fair Value

The following table presents the gross fair values and notional amounts of derivatives by product type, the amounts of counterparty and cash collateral netting on our Condensed Consolidated Statements of Financial Condition, as well as collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP.

	June 30, 2023						September 30, 2022
$ in millions	Derivative assets		Derivative liabilities		Notional amount		Derivative assets		Derivative liabilities		Notional amount
Derivatives not designated as hedging instruments
Interest rate - other (1)	$	414	$	469	$	17,811	$	462	$	535	$	14,647
Interest rate - matched book (2)	—		—		—		52		52		1,340
Foreign exchange	2		—		1,167		4		5		958
Other	—		4		661		—		3		531
Subtotal	416		473		19,639		518		595		17,476
Derivatives designated as hedging instruments
Interest rate - other (3)	9		—		1,250		12		—		1,050
Foreign exchange	3		—		1,188		6		—		1,092
Subtotal	12		—		2,438		18		—		2,142
Total gross fair value/notional amount	428		473		$	22,077	536		595		$	19,618
Offset on the Condensed Consolidated Statements of Financial Condition
Counterparty netting	(24)		(24)				(35)		(35)
Cash collateral netting	(175)		(56)				(313)		(30)
Total amounts offset	(199)		(80)				(348)		(65)
Net amounts presented on the Condensed Consolidated Statements of Financial Condition	$	229	$	393			$	188	$	530
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
Financial instruments (2)	(108)		—				(60)		(52)
Total	$	121	$	393			$	128	$	478

(1)    Relates to interest rate derivatives entered into as part of our fixed income business operations, including to-be-announced security contracts that are accounted for as derivatives, as well as our banking operations.

(2)    Although the matched book derivative arrangements did not meet the definition of a master netting arrangement as specified by GAAP, the agreement with the third-party intermediary included terms that were similar to a master netting agreement. As a result, we presented the matched book amounts as of September 30, 2022 net in the preceding table. As of June 30, 2023, we had exited such matched book derivative agreements.

(3)    During the nine months ended June 30, 2023, we entered into an interest rate swap to manage our risk of increases in interest rates associated with certain money market and savings accounts by converting the balances subject to variable interest rates to a fixed interest rate. Such interest rate swap has been designated and accounted for as a cash flow hedge. Refer to Note 13 of this Form 10-Q for information regarding these bank deposits.

Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)

The following table details the gains/(losses) included in accumulated other comprehensive income/(loss) (“AOCI”), net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) included any amounts reclassified from AOCI to net income during the period. See Note 17 for additional information.

	Three months ended June 30,				Nine months ended June 30,
$ in millions	2023		2022		2023		2022
Interest rate (cash flow hedges)	$	12	$	10	$	(1)	$	48
Foreign exchange (net investment hedges)	(16)		24		(33)		14
Total gains/(losses) included in AOCI, net of taxes	$	(4)	$	34	$	(34)	$	62

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table details the gains/(losses) included in accumulated other comprehensive income/(loss) (“AOCI”), net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) included any amounts reclassified from AOCI to net income during the period. See Note 17 for additional information.

	Three months ended June 30,				Nine months ended June 30,
$ in millions	2023		2022		2023		2022
Interest rate (cash flow hedges)	$	12	$	10	$	(1)	$	48
Foreign exchange (net investment hedges)	(16)		24		(33)		14
Total gains/(losses) included in AOCI, net of taxes	$	(4)	$	34	$	(34)	$	62

Amount of Gain (Loss) on Derivatives Recognized in Income

The following table details the gains/(losses) on derivatives not designated as hedging instruments recognized on the Condensed Consolidated Statements of Income and Comprehensive Income. These amounts do not include any offsetting gains/(losses) on the related hedged item.

$ in millions		Three months ended June 30,				Nine months ended June 30,
	Location of gain/(loss)	2023		2022		2023		2022
Interest rate	Principal transactions/other revenues	$	6	$	4	$	17	$	14
Foreign exchange	Other revenues	$	(20)	$	33	$	(56)	$	30
Other	Principal transactions	$	1	$	1	$	—	$	2