FAIR VALUE (Tables)

12 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis

The following tables present assets and liabilities measured at fair value on a recurring basis. Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included on our Consolidated Statements of Financial Condition. See Note 6 for additional information.

$ in millions	Level 1		Level 2		Level 3		Netting adjustments		Balance as of September 30, 2023
Assets at fair value on a recurring basis:
Trading assets:
Municipal and provincial obligations	$	—	$	239	$	—	$	—	$	239
Corporate obligations	22		620		—		—		642
Government and agency obligations	24		117		—		—		141
Agency MBS, CMOs, and asset-backed securities (“ABS”)	—		35		—		—		35
Non-agency CMOs and ABS	—		68		—		—		68
Total debt securities	46		1,079		—		—		1,125
Equity securities	20		2		—		—		22
Brokered certificates of deposit	—		36		—		—		36
Other	—		—		4		—		4
Total trading assets	66		1,117		4		—		1,187
Available-for-sale securities (1)	1,240		7,941		—		—		9,181
Derivative assets:
Interest rate	14		503		—		(261)		256
Foreign exchange	—		9		—		—		9
Total derivative assets	14		512		—		(261)		265
All other investments:
Government and agency obligations (2)	71		—		—		—		71
Other	102		2		30		—		134
Total all other investments	173		2		30		—		205
Other assets - client-owned fractional shares	98		—		—		—		98
Subtotal	1,591		9,572		34		(261)		10,936
Other investments - private equity - measured at NAV									101
Total assets at fair value on a recurring basis	$	1,591	$	9,572	$	34	$	(261)	$	11,037
Liabilities at fair value on a recurring basis:
Trading liabilities:
Municipal and provincial obligations	$	10	$	—	$	—	$	—	$	10
Corporate obligations	—		514		—		—		514
Government and agency obligations	161		1		—		—		162
Total debt securities	171		515		—		—		686
Equity securities	30		—		—		—		30
Total trading liabilities	201		515		—		—		716
Derivative liabilities:
Interest rate	13		563		—		(88)		488
Foreign exchange	—		2		—		—		2
Total derivative liabilities	13		565		—		(88)		490
Other payables - repurchase liabilities related to client-owned fractional shares	98		—		—		—		98
Total liabilities at fair value on a recurring basis	$	312	$	1,080	$	—	$	(88)	$	1,304

$ in millions	Level 1		Level 2		Level 3		Netting adjustments		Balance as of September 30, 2022
Assets at fair value on a recurring basis:
Trading assets:
Municipal and provincial obligations	$	—	$	269	$	—	$	—	$	269
Corporate obligations	16		579		—		—		595
Government and agency obligations	86		85		—		—		171
Agency MBS, CMOs, and ABS	—		123		—		—		123
Non-agency CMOs and ABS	—		61		—		—		61
Total debt securities	102		1,117		—		—		1,219
Equity securities	20		—		—		—		20
Brokered certificates of deposit	—		30		—		—		30
Other	—		—		1		—		1
Total trading assets	122		1,147		1		—		1,270
Available-for-sale securities (1)	986		8,899		—		—		9,885
Derivative assets:
Interest rate	42		484		—		(348)		178
Foreign exchange	—		10		—		—		10
Total derivative assets	42		494		—		(348)		188
All other investments:
Government and agency obligations (2)	79		—		—		—		79
Other	92		2		29		—		123
Total all other investments	171		2		29		—		202
Other assets - client-owned fractional shares	78		—		—		—		78
Subtotal	1,399		10,542		30		(348)		11,623
Other investments - private equity - measured at NAV									90
Total assets at fair value on a recurring basis	$	1,399	$	10,542	$	30	$	(348)	$	11,713
Liabilities at fair value on a recurring basis:
Trading liabilities:
Municipal and provincial obligations	$	5	$	—	$	—	$	—	$	5
Corporate obligations	—		555		—		—		555
Government and agency obligations	249		—		—		—		249
Total debt securities	254		555		—		—		809
Equity securities	27		—		—		—		27
Total trading liabilities	281		555		—		—		836
Derivative liabilities:
Interest rate	40		547		—		(65)		522
Foreign exchange	—		5		—		—		5
Other	—		—		3		—		3
Total derivative liabilities	40		552		3		(65)		530
Other payables - repurchase liabilities related to client-owned fractional shares	78		—		—		—		78
Total liabilities at fair value on a recurring basis	$	399	$	1,107	$	3	$	(65)	$	1,444

(1)    Our available-for-sale securities primarily consist of agency MBS, agency CMOs and U.S. Treasuries. See Note 5 for additional information.

(2)    These assets are primarily comprised of U.S. Treasuries purchased to meet certain deposit requirements with clearing organizations.

Level 3 Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis, Roll Forward Table of Change in Balances

The following tables present the changes in fair value for Level 3 assets and liabilities measured at fair value on a recurring basis. The realized and unrealized gains and losses in the tables may include changes in fair value that were attributable to both observable and unobservable inputs. In the following tables, gains/(losses) on trading and derivative instruments are reported in “Principal transactions” and gains/(losses) on other investments are reported in “Other” revenues on our Consolidated Statements of Income and Comprehensive Income.

Year ended September 30, 2023 Level 3 instruments at fair value
	Financial assets				Financial  liabilities
	Trading assets		Other investments		Derivative liabilities
$ in millions	Other		All other		Other
Fair value beginning of year	$	1	$	29	$	(3)
Total gains/(losses) included in earnings	(1)		1		2
Purchases and contributions	70		—		—
Sales and distributions	(66)		—		1
Transfers:
Into Level 3	—		—		—
Out of Level 3	—		—		—
Fair value end of year	$	4	$	30	$	—
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year	$	—	$	—	$	—

Year ended September 30, 2022 Level 3 instruments at fair value
	Financial assets				Financial liabilities
	Trading assets		Other investments		Derivative liabilities
$ in millions	Other		All other		Other
Fair value beginning of year	$	14	$	98	$	(1)
Total gains/(losses) included in earnings	1		9		(2)
Purchases and contributions	108		7		—
Sales and distributions	(122)		(73)		—
Transfers:
Into Level 3	—		—		—
Out of Level 3	—		(12)		—
Fair value end of year	$	1	$	29	$	(3)
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year	$	—	$	2	$	(2)

Net Asset Value and Unfunded Commitments

The following table presents the recorded value and unfunded commitments related to our private equity investments portfolio.

$ in millions	Recorded value		Unfunded commitment
September 30, 2023
Private equity investments measured at NAV	$	101	$	29
Private equity investments not measured at NAV	7
Total private equity investments	$	108
September 30, 2022
Private equity investments measured at NAV	$	90	$	39
Private equity investments not measured at NAV	5
Total private equity investments	$	95

Fair Value Measurements, Nonrecurring

The following table presents assets measured at fair value on a nonrecurring basis along with the valuation techniques and significant unobservable inputs used in the valuation of the assets classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Weighted averages are calculated by weighting each input by the relative fair value of the related financial instrument.

$ in millions	Level 2		Level 3		Total fair value		Valuation technique(s)	Unobservable input	Range (weighted-average)
September 30, 2023
Bank loans:
Residential mortgage loans	$	2	$	8	$	10	Collateral or discounted cash flow (1)	Prepayment rate	7 yrs. - 12 yrs. (10.3 yrs.)
Corporate loans	$	—	$	84	$	84	Collateral or discounted cash flow (1)	Recovery rate	22% - 65% (53%)
Loans held for sale	$	2	$	—	$	2	N/A	N/A	N/A
September 30, 2022
Bank loans:
Residential mortgage loans	$	2	$	10	$	12	Collateral or discounted cash flow (1)	Prepayment rate	7 yrs. - 12 yrs. (10.4 yrs.)
Corporate loans	$	—	$	57	$	57	Collateral or discounted cash flow (1)	Recovery rate	24% - 66% (47%)
Loans held for sale	$	3	$	—	$	3	N/A	N/A	N/A

(1)    The valuation techniques used to estimate the fair values are based on collateral value less selling costs for the collateral-dependent loans and discounted cash flows for loans that are not collateral-dependent. Unobservable inputs used in the collateral valuation technique are not meaningful and unobservable inputs used in the discounted cash flow valuation technique are presented in the table.

Carrying Amounts and Estimated Fair Values of Financial Instruments Not Recorded at Fair Value

The following table presents the estimated fair value and fair value hierarchy of financial assets and liabilities that are not recorded at fair value on the Consolidated Statements of Financial Condition at September 30, 2023 and 2022. This table excludes financial instruments that are carried at amounts which approximate fair value.

$ in millions	Level 2		Level 3		Total estimated fair value		Carrying amount
September 30, 2023
Financial assets:
Bank loans, net	$	142	$	42,622	$	42,764	$	43,679
Financial liabilities:
Bank deposits - certificates of deposit	$	2,817	$	—	$	2,817	$	2,831
Other borrowings - subordinated notes payable	$	94	$	—	$	94	$	100
Senior notes payable	$	1,640	$	—	$	1,640	$	2,039
September 30, 2022
Financial assets:
Bank loans, net	$	134	$	42,336	$	42,470	$	43,167
Financial liabilities:
Bank deposits - certificates of deposit	$	400	$	579	$	979	$	999
Other borrowings - subordinated notes payable	$	95	$	—	$	95	$	100
Senior notes payable	$	1,706	$	—	$	1,706	$	2,038