Equity Securities (Tables)

6 Months Ended

Jun. 30, 2019

Table 8.1 provides a summary of our equity securities by business purpose and accounting method, including equity securities with readily determinable fair values (marketable) and those without readily determinable fair values (nonmarketable).

Table 8.1: Equity Securities



	Jun 30,		Dec 31,
(in millions)	2019		2018
Held for trading at fair value:
Marketable equity securities	$	23,327	19,449
Not held for trading:
Fair value:
Marketable equity securities (1)	5,379		4,513
Nonmarketable equity securities	7,244		5,594
Total equity securities at fair value	12,623		10,107
Equity method:
Low-income housing tax credit investments	11,162		10,999
Private equity	3,352		3,832
Tax-advantaged renewable energy	3,051		3,073
New market tax credit and other	294		311
Total equity method	17,859		18,215
Other:
Federal Reserve Bank stock and other at cost (2)	5,622		5,643
Private equity (3)	2,106		1,734
Total equity securities not held for trading	38,210		35,699
Total equity securities	$	61,537	55,148


(1)	Includes $3.5 billion and $3.2 billion at June 30, 2019, and December 31, 2018, respectively, related to securities held as economic hedges of our deferred compensation plan obligations.


(2)	Includes $5.6 billion and $5.6 billion at June 30, 2019 and December 31, 2018, respectively, related to investments in Federal Reserve Bank and Federal Home Loan Bank stock.


(3)	Represents nonmarketable equity securities accounted for under the measurement alternative.

Net Gains (Losses) from Equity Securities Not Held for Trading

Table 8.2 provides a summary of the net gains and losses from equity securities not held for trading. Gains and losses for securities held for trading are reported in net gains from trading activities.

Table 8.2: Net Gains (Losses) from Equity Securities Not Held for Trading



	Quarter ended June 30,					Six months ended June 30,
(in millions)	2019			2018		2019		2018
Net gains (losses) from equity securities carried at fair value:
Marketable equity securities	$	264		28		641		36
Nonmarketable equity securities	732			594		1,668		703
Total equity securities carried at fair value	996			622		2,309		739
Net gains (losses) from nonmarketable equity securities not carried at fair value:
Impairment write-downs	(31		)	(237	)	(67	)	(257	)
Net unrealized gains related to measurement alternative observable transactions	146			35		331		263
Net realized gains on sale	169			399		406		897
All other	—			16		—		34
Total nonmarketable equity securities not carried at fair value	284			213		670		937
Net losses from economic hedge derivatives (1)	(658		)	(540	)	(1,543	)	(598	)
Total net gains from equity securities	$	622		295		1,436		1,078


(1)	Includes net gains (losses) on derivatives not designated as hedging instruments.

Gains (Losses) from Measurement Alternative Equity Securities

Table 8.3 provides additional information about the impairment write-downs and observable price adjustments related to

nonmarketable equity securities accounted for under the measurement alternative. Gains and losses related to these adjustments are also included in Table 8.2.

Table 8.3: Net Gains (Losses) from Measurement Alternative Equity Securities



	Quarter ended June 30,					Six months ended June 30,
(in millions)	2019			2018		2019		2018
Net gains (losses) recognized in earnings during the period:
Gross unrealized gains due to observable price changes	$	157		43		342		271
Gross unrealized losses due to observable price changes	(11		)	(8	)	(11	)	(8	)
Impairment write-downs	(11		)	(5	)	(33	)	(12	)
Realized net gains from sale	102			16		125		91
Total net gains recognized during the period	$	237		46		423		342

Table 8.4 presents cumulative carrying value adjustments to nonmarketable equity securities accounted for under the measurement alternative that were still held as of the balance sheet date.

Table 8.4: Measurement Alternative Cumulative Gains (Losses)



	Jun 30,			Dec 31,
(in millions)	2019			2018
Cumulative gains (losses):
Gross unrealized gains due to observable price changes	$	733		415
Gross unrealized losses due to observable price changes	(36		)	(25	)
Impairment write-downs	(52		)	(33	)