Commitments, Contingencies and Guarantees (Tables)

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

The table below presents commitments by type.


	As of
	September		December
$ in millions	2023		2022
Commitment Type
Commercial lending:
Investment-grade	$	103,435	$	100,438
Non-investment-grade	55,873		53,486
Warehouse financing	9,312		9,116
Consumer	71,077		64,098
Total lending	239,697		227,138
Risk participations	8,651		9,173
Collateralized agreement	107,459		105,301
Collateralized financing	44,667		22,532
Investment	20,745		7,705
Other	7,831		9,690
Total commitments	$	429,050	$	381,539

The table below presents commitments by expiration.


	As of September 2023
	Remainder		2024 -		2026 -		2028 -
$ in millions	of 2023		2025		2027		Thereafter
Commitment Type
Commercial lending:
Investment-grade	$	3,906	$	26,191	$	50,308	$	23,030
Non-investment-grade	1,227		14,158		26,034		14,454
Warehouse financing	220		5,863		2,973		256
Consumer	69,115		1,962		–		–
Total lending	74,468		48,174		79,315		37,740
Risk participations	1,056		2,842		3,731		1,022
Collateralized agreement	99,463		7,230		–		766
Collateralized financing	40,027		4,586		–		54
Investment	15,246		1,474		1,015		3,010
Other	6,720		887		–		224
Total commitments	$	236,980	$	65,193	$	84,061	$	42,816

In the tables above, beginning in the first quarter of 2023, the firm made certain changes to its methodology for determining internal credit ratings. See Note 9 for further information about these changes. Prior period amounts have been conformed to reflect the current methodology. The impact to December 2022 was an increase in commercial lending commitments classified as investment-grade and a decrease in commercial lending commitments classified as non-investment-grade of $2.78 billion.

The table below presents information about lending commitments.


	As of
	September		December
$ in millions	2023		2022
Held for investment	$	232,949	$	222,689
Held for sale	5,955		3,355
At fair value	793		1,094
Total	$	239,697	$	227,138

In the table above:

•Held for investment lending commitments are accounted for at amortized cost. The carrying value of lending commitments was a liability of $877 million (including allowance for credit losses of $670 million) as of September 2023 and $1.01 billion (including allowance for credit losses of $774 million) as of December 2022. The estimated fair value of such lending commitments was a liability of $5.33 billion as of September 2023 and $5.95 billion as of December 2022. Had these lending commitments been carried at fair value and included in the fair value hierarchy, $2.77 billion as of September 2023 and $3.11 billion as of December 2022 would have been classified in level 2, and $2.56 billion as of September 2023 and $2.84 billion as of December 2022 would have been classified in level 3.

•Held for sale lending commitments are accounted for at the lower of cost or fair value. The carrying value of lending commitments held for sale was a liability of $58 million as of September 2023 and $88 million as of December 2022. The estimated fair value of such lending commitments approximates the carrying value. Had these lending commitments been included in the fair value hierarchy, they would have been primarily classified in level 3 as of both September 2023 and December 2022.

•Gains or losses related to lending commitments at fair value, if any, are generally recorded net of any fees in other principal transactions.

Guarantees

The table below presents derivatives that meet the definition of a guarantee, securities lending and clearing guarantees and certain other financial guarantees.


$ in millions	Derivatives		Securities lending and clearing		Other financial guarantees
As of September 2023
Carrying Value of Net Liability	$	6,894	$	–	$	405
Maximum Payout/Notional Amount by Period of Expiration
Remainder of 2023	$	46,927	$	28,159	$	478
2024 - 2025	216,351		–		3,539
2026 - 2027	29,640		–		2,516
2028 - thereafter	33,683		–		878
Total	$	326,601	$	28,159	$	7,411
As of December 2022
Carrying Value of Net Liability	$	7,485	$	–	$	395
Maximum Payout/Notional Amount by Period of Expiration
2023	$	110,599	$	20,970	$	1,634
2024 - 2025	133,090		–		3,308
2026 - 2027	20,252		–		1,837
2028 - thereafter	27,518		–		93
Total	$	291,459	$	20,970	$	6,872

In the table above:

•The maximum payout is based on the notional amount of the contract and does not represent anticipated losses.

•Amounts exclude certain commitments to issue standby letters of credit that are included in lending commitments. See the tables in “Commitments” above for a summary of the firm’s commitments.

•The carrying value for derivatives included derivative assets of $363 million as of September 2023 and $578 million as of December 2022, and derivative liabilities of $7.26 billion as of September 2023 and $8.06 billion as of December 2022.