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Fair Value Option (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Financial Assets and Financial Liabilities by Level
The table below presents, by level within the fair value hierarchy, other financial assets and liabilities at fair value, substantially all of which are accounted for at fair value under the fair value option.
 
                                 
$ in millions
   
Level 1
     
Level 2
     
Level 3
     
Total
 
As of December 2019
  
 
 
    
     
     
 
Assets
 
 
 
    
     
     
 
Resale agreements
 
 
$  –
 
  
 
$   85,691
 
  
 
$          –
 
  
 
$   85,691
 
Securities borrowed
 
 
–
 
  
 
26,279
 
  
 
–
 
  
 
26,279
 
Customer and other receivables
 
 
–
 
  
 
53
 
  
 
–
 
  
 
53
 
Total
 
 
$  –
 
  
 
$ 112,023
 
  
 
$          –
 
  
 
$ 112,023
 
Liabilities
 
 
 
  
 
 
  
 
 
  
 
 
Deposits
 
 
$  –
 
  
 
$  (13,742
)
 
 
$  (4,023
)
 
 
$  (17,765
)
Repurchase agreements
 
 
–
 
  
 
(117,726
)
 
 
(30
)
 
 
(117,756
)
Securities loaned
 
 
–
 
  
 
(714
)
 
 
–
 
  
 
(714
)
Other secured financings
 
 
–
 
  
 
(17,685
)
 
 
(386
)
 
 
(18,071
)
Unsecured borrowings:
 
 
 
  
 
 
  
 
 
  
 
 
Short-term
 
 
–
 
  
 
(20,300
)
 
 
(5,707
)
 
 
(26,007
)
Long-term
 
 
–
 
  
 
(32,920
)
 
 
(10,741
)
 
 
(43,661
)
Other liabilities
 
 
–
 
  
 
(1
)
 
 
(149
)
 
 
(150
)
Total
 
 
$  –
 
  
 
$(203,088
)
 
 
$(21,036
)
 
 
$(224,124
)
 
As of December 2018
  
 
 
    
     
     
 
Assets
 
 
 
    
     
     
 
Resale agreements
   
$  –
     
$
 
 139,220
      
$
  
         –
      
$ 
 
139,220
  
Securities borrowed
   
–
     
23,142
     
–
     
23,142
 
Customer and other receivables
   
–
     
154
     
6
     
160
 
Total
   
$  –
     
$
 
 162,516
      
$
 
 
         6
      
$
 
 162,522
  
Liabilities
   
     
     
     
 
Deposits
   
$  –
     
$
 
  (17,892
 )    
$
 
  (3,168
 )    
$
 
  (21,060
 )
Repurchase agreements
   
–
     
(78,694
 )    
(29
 )    
(78,723
 )
Securities loaned
   
–
     
(3,241
 )    
–
     
(3,241
 )
Other secured financings
   
–
     
(20,734
 )    
(170
 )    
(20,904
 )
Unsecured borrowings:
   
     
     
     
 
Short-term
   
–
     
(12,887
 )    
(4,076
 )    
(16,963
 )
Long-term
   
–
     
(34,761
 )    
(11,823
 )    
(46,584
 )
Other liabilities
   
–
     
(1
 )    
(131
 )    
(132
 )
Total
   
$  –
     
$
 
(168,210
 )    
$
 
(19,397
 )    
$
 
(187,607
 )
Level 3 Rollforward
The table below presents a summary of the changes in fair value for level 3 other financial assets and liabilities accounted for at fair value.
 
       
  
Year Ended December
 
                 
$ in millions
 
 
2019
 
    
2018
 
Total other financial assets
 
 
 
    
 
Beginning balance
 
 
$         
 
6
 
    
$          4
 
Net realized gains/(losses)
 
 
5
 
    
–
 
Net unrealized gains/(losses)
 
 
(6
)
   
2
 
Settlements
 
 
(5
)
   
–
 
Ending balance
 
 
$          
 
–
 
    
$          6
 
Total other financial liabilities
 
 
 
    
 
Beginning balance
 
 
$(19,397
)
   
$(15,462
 )
Net realized gains/(losses)
 
 
(337
)
   
(491
 )
Net unrealized gains/(losses)
 
 
(2,254
)
   
2,013
 
Issuances
 
 
(9,892
)
   
(11,935
 )
Settlements
 
 
11,104
 
    
7,010
 
Transfers into level 3
 
 
(877
)
   
(1,416
 )
Transfers out of level 3
 
 
617
 
    
884
 
Ending balance
 
 
$(21,036
)
   
$(19,397
 )
The table below presents information, by the consolidated balance sheet line items, for liabilities included in the summary table above.
 
       
  
Year Ended December
 
                 
$ in millions
 
 
2019
 
    
2018
 
Deposits
 
 
 
    
 
Beginning balance
 
 
$  (3,168
)
   
$  (2,968
 )
Net realized gains/(losses)
 
 
(3
)
   
(25
 )
Net unrealized gains/(losses)
 
 
(473
)
   
272
 
Issuances
 
 
(932
)
   
(796
 )
Settlements
 
 
452
 
    
298
 
Transfers into level 3
 
 
(28
)
   
(8
 )
Transfers out of level 3
 
 
129
 
    
59
 
Ending balance
 
 
$  (4,023
)
   
$  (3,168
 )
Repurchase agreements
 
Beginning balance
 
 
$      
 
(29
)
   
$       (37
 )
Net unrealized gains/(losses)
 
 
(4
)
   
2
 
Settlements
 
 
3
 
    
6
 
Ending balance
 
 
$      
 
(30
)
   
$       (29
 )
Other secured financings
 
 
 
    
 
Beginning balance
 
 
$    
 
(170
)
   
$     (389
 )
Net realized gains/(losses)
 
 
36
 
    
(15
 )
Net unrealized gains/(losses)
 
 
(52
)
   
11
 
Issuances
 
 
(28
)
   
(8
 )
Settlements
 
 
19
 
    
157
 
Transfers into level 3
 
 
(191
)
   
(10
 )
Transfers out of level 3
 
 
–
 
    
84
 
Ending balance
 
 
$    
 
(386
)
   
$     (170
 )
Unsecured short-term borrowings
 
 
 
    
 
Beginning balance
 
 
$  (4,076
)
   
$  (4,594
 )
Net realized gains/(losses)
 
 
(120
)
   
(125
 )
Net unrealized gains/(losses)
 
 
(484
)
   
558
 
Issuances
 
 
(5,410
)
   
(4,564
 )
Settlements
 
 
4,333
 
    
4,481
 
Transfers into level 3
 
 
(173
)
   
(72
 )
Transfers out of level 3
 
 
223
 
    
240
 
Ending balance
 
 
$  (5,707
)
   
$  (4,076
 )
Unsecured long-term borrowings
 
 
 
    
 
Beginning balance
 
 
$(11,823
)
   
$  (7,434
 )
Net realized gains/(losses)
 
 
(278
)
   
(349
 )
Net unrealized gains/(losses)
 
 
(1,223
)
   
1,262
 
Issuances
 
 
(3,494
)
   
(6,545
 )
Settlements
 
 
6,297
 
    
2,068
 
Transfers into level 3
 
 
(485
)
   
(1,326
 )
Transfers out of level 3
 
 
265
 
    
501
 
Ending balance
 
 
$(10,741
)
   
$(11,823
 )
Other liabilities
 
 
 
    
 
Beginning balance
 
 
$    
 
(131
)
   
$       (40
 )
Net realized gains/(losses)
 
 
28
 
    
23
 
Net unrealized gains/(losses)
 
 
(18
)
   
(92
 )
Issuances
 
 
(28
)
   
(22
 )
Ending balance
 
 
$    
 
(149
)
   
$     (131
 )
Gains and Losses on Other Financial Assets and Financial Liabilities at Fair Value
The table below presents the gains and losses recognized in earnings as a result of the election to apply the fair value option to certain financial assets and liabilities.
 
                         
       
 
Year Ended December
 
                         
$ in millions
 
 
2019
 
    
2018
     
2017
 
Unsecured short-term borrowings
 
 
$(3,365
)
   
$1,443
     
$(2,585
 )
Unsecured long-term borrowings
 
 
(5,251
)
   
926
     
(1,357
 )
Other
 
 
(883
)
   
308
     
(272
 )
Total
 
 
$(9,499
)
   
$2,677
     
$(4,214
 )
 
Summary of DVA Losses on Financial Liabilities
The table below presents information about the net debt valuation adjustment (DVA) gains/(losses) on financial liabilities for which the fair value option was elected.
 
                         
       
 
Year Ended December
 
                         
$ in millions
 
 
2019
 
    
2018
     
2017
 
DVA
(pre-tax)
 
 
$(2,763
)
   
$3,389
     
$(1,232
 )
DVA (net of tax)
 
 
$(2,079
)
   
$2,553
     
$   (807
 )
 
In the table above:
 
•
 DVA (net of tax) is included in debt valuation adjustment in the consolidated statements of comprehensive income.
 
 
•
 The gains/(losses) reclassified to earnings from accumulated other comprehensive income/(loss) upon extinguishment of such financial liabilities were not material for 2019, 2018 or 2017.
 
Loans and Lending Commitments
The table below presents the difference between the aggregate fair value and the aggregate contractual principal amount for loans (included in trading assets and loans on the consolidated balance sheets) for which the fair value option was elected.
 
                 
       
 
As of December
 
                 
$ in millions
 
 
2019
 
    
2018
 
Performing loans
 
 
 
    
 
Aggregate contractual principal in excess of fair value
 
 
$  
 
809
 
    
$1,830
 
Loans on nonaccrual status and/or more than 90 days past due
 
Aggregate contractual principal in excess of fair value
 
 
$6,703
 
    
$5,260
 
Aggregate fair value
 
 
$2,776
 
    
$2,010