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Fair Value Option (Tables)
 9 Months Ended
Sep. 30, 2020
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 September 2020
        
Assets
        
Resale agreements
  
 
$    –
 
  
 
$ 101,277
 
  
 
$
  
        –
 
  
 
$ 101,277
 
Securities borrowed
  
 
–
 
  
 
31,680
 
  
 
–
 
  
 
31,680
 
Customer and other receivables
  
 
–
 
  
 
60
 
  
 
–
 
  
 
60
 
Total
  
 
$    –
 
  
 
$ 133,017
 
  
 
$
  
        –
 
  
 
$ 133,017
 
 
Liabilities
        
Deposits
  
 
$    –
 
  
 
$  (14,251
) 
  
 
$  (4,150
) 
  
 
$  (18,401
) 
Repurchase agreements
  
 
–
 
  
 
(101,277
) 
  
 
(2
) 
  
 
(101,279
) 
Securities loaned
  
 
–
 
  
 
(1,060
) 
  
 
–
 
  
 
(1,060
) 
Other secured financings
  
 
–
 
  
 
(20,502
) 
  
 
(3,063
) 
  
 
(23,565
) 
Unsecured borrowings:
        
Short-term
  
 
–
 
  
 
(18,356
) 
  
 
(7,574
) 
  
 
(25,930
) 
Long-term
  
 
–
 
  
 
(27,548
) 
  
 
(12,780
) 
  
 
(40,328
) 
Other liabilities
  
 
–
 
  
 
(1
) 
  
 
(335
) 
  
 
(336
) 
Total
  
 
$    –
 
  
 
$(182,995
) 
  
 
$(27,904
) 
  
 
$(210,899
) 
 
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		 ) 
Level 3 Rollforward
The table below presents a summary of the changes in fair value for level 3 other financial liabilities accounted for at fair value.
 
    Three Months
Ended September		            Nine Months
Ended September		  
$ in millions
  
 
2020
 
     2019    
 
  
 
2020
 
     2019  
Beginning balance
  
 
$(25,963
) 
     $(20,819 )     
 
$(21,036
) 
     $(19,397 ) 
Net realized gains/(losses)
  
 
(112
) 
     (135 )     
 
(244
) 
     (307 ) 
Net unrealized gains/(losses)
  
 
(354
) 
     (185 )     
 
347
 
     (1,839 ) 
Issuances
  
 
(6,974
) 
     (3,964 )     
 
(18,633
) 
     (8,693 ) 
Settlements
  
 
6,911
 
     3,910      
 
14,348
 
     9,509  
Transfers into level 3
  
 
(1,756
) 
     (570 )     
 
(2,857
) 
     (1,112 ) 
Transfers out of level 3
  
 
344
 
     670    
 
  
 
171
 
     746  
Ending balance
  
 
$(27,904
) 
     $(21,093 )   
 
  
 
$(27,904
) 
     $(21,093 ) 
The table below presents information, by the consolidated balance sheet line items, for liabilities included in the summary table above.
 
    Three Months
Ended September		    
    
   Nine Months
Ended September		  
$ in millions
  
 
2020
 
     2019    
 
  
 
2020
 
     2019  
Deposits
          
Beginning balance
  
 
$  (4,217
) 
     $  (3,622 )     
 
$  (4,023
) 
     $  (3,168 ) 
Net realized gains/(losses)
  
 
(4
) 
     –      
 
–
 
     (3 ) 
Net unrealized gains/(losses)
  
 
(68
) 
     (129 )     
 
(142
) 
     (398 ) 
Issuances
  
 
(124
) 
     (267 )     
 
(4,054
) 
     (661 ) 
Settlements
  
 
235
 
     150      
 
4,083
 
     272  
Transfers into level 3
  
 
(38
) 
     (136 )     
 
(69
) 
     (59 ) 
Transfers out of level 3
  
 
66
 
     58    
 
  
 
55
 
     71  
Ending balance
  
 
$  (4,150
) 
     $  (3,946 )   
 
  
 
$  (4,150
) 
     $  (3,946 ) 
 
Repurchase agreements
          
Beginning balance
  
 
$
  
     (10
) 
     $       (28 )     
 
$
  
     (30
) 
     $       (29 ) 
Net unrealized gains/(losses)
  
 
–
 
     1      
 
(2
) 
     (2 ) 
Settlements
  
 
8
 
     2    
 
  
 
30
 
     6  
Ending balance
  
 
$
  
       (2
) 
     $       (25 )   
 
  
 
$
  
       (2
) 
     $       (25 ) 
 
Other secured financings
          
Beginning balance
  
 
$  (1,773
) 
     $     (202 )     
 
$
  
   (386
) 
     $     (170 ) 
Net realized gains/(losses)
  
 
7
 
     4      
 
13
 
     19  
Net unrealized gains/(losses)
  
 
(67
) 
     (5 )     
 
(12
) 
     (24 ) 
Issuances
  
 
(10
) 
     (1 )     
 
(847
) 
     (20 ) 
Settlements
  
 
79
 
     3      
 
332
 
     14  
Transfers into level 3
  
 
(1,299
) 
     (133 )   
 
  
 
(2,163
) 
     (153 ) 
Ending balance
  
 
$  (3,063
) 
     $     (334 )   
 
  
 
$  (3,063
) 
     $     (334 ) 
Unsecured short-term borrowings
 
        
Beginning balance
  
 
$  (6,806
) 
     $  (5,026 )     
 
$  (5,707
) 
     $  (4,076 ) 
Net realized gains/(losses)
  
 
(58
) 
     (50 )     
 
(109
) 
     (99 ) 
Net unrealized gains/(losses)
  
 
(42
) 
     34      
 
458
 
     (238 ) 
Issuances
  
 
(4,879
) 
     (2,147 )     
 
(7,605
) 
     (4,085 ) 
Settlements
  
 
4,295
 
     1,982      
 
5,571
 
     3,270  
Transfers into level 3
  
 
(280
) 
     (159 )     
 
(234
) 
     (217 ) 
Transfers out of level 3
  
 
196
 
     383    
 
  
 
52
 
     462  
Ending balance
  
 
$  (7,574
) 
     $  (4,983 )   
 
  
 
$  (7,574
) 
     $  (4,983 ) 
Unsecured long-term borrowings
 
        
Beginning balance
  
 
$(12,837
) 
     $(11,769 )     
 
$(10,741
) 
     $(11,823 ) 
Net realized gains/(losses)
  
 
(64
) 
     (96 )     
 
(171
) 
     (244 ) 
Net unrealized gains/(losses)
  
 
(167
) 
     (60 )     
 
225
 
     (1,110 ) 
Issuances
  
 
(1,949
) 
     (1,542 )     
 
(6,099
) 
     (3,907 ) 
Settlements
  
 
2,294
 
     1,773      
 
4,332
 
     5,947  
Transfers into level 3
  
 
(139
) 
     (142 )     
 
(390
) 
     (683 ) 
Transfers out of level 3
  
 
82
 
     229    
 
  
 
64
 
     213  
Ending balance
  
 
$(12,780
) 
     $(11,607 )   
 
  
 
$(12,780
) 
     $(11,607 ) 
 
Other liabilities
          
Beginning balance
  
 
$
  
   (320
) 
     $     (172 )     
 
$
  
   (149
) 
     $     (131 ) 
Net realized gains/(losses)
  
 
7
 
     7      
 
23
 
     20  
Net unrealized gains/(losses)
  
 
(10
) 
     (26 )     
 
(180
) 
     (67 ) 
Issuances
  
 
(12
) 
     (7 )     
 
(28
) 
     (20 ) 
Transfers into level 3
  
 
–
 
     –    
 
  
 
(1
) 
     –  
Ending balance
  
 
$
  
   (335
) 
     $     (198 )   
 
  
 
$
  
   (335
) 
     $     (198 ) 
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.
 
    Three Months
Ended September		            Nine Months
Ended September		  
$ in millions
  
 
2020
 
     2019    
 
  
 
2020
 
     2019  
Unsecured short-term borrowings
  
 
$
  
 (406
) 
     $   (293 )     
 
$ 1,723
 
     $(2,378 ) 
Unsecured long-term borrowings
  
 
(143
) 
     (929 )     
 
(1,166
) 
     (5,078 ) 
Other
  
 
(152
) 
     (152 )   
 
  
 
(246
) 
     (912 ) 
Total
  
 
$   (701
) 
     $(1,374 )   
 
  
 
$    
311
 
     $(8,368 ) 
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.
 
    Three Months
Ended September		                Nine Months
Ended September		  
$ in millions
  
 
2020
 
        2019    
 
  
 
2020
 
      2019  
DVA
(pre-tax)
  
 
$(357
) 
        $372      
 
$576
 
      $(1,930 ) 
DVA (net of tax)
  
 
$(268
) 
        $278    
 
  
 
$428
 
      $(1,450 ) 
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 each of the three and nine months ended September 2020 and September 2019.
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  
$ in millions
  
 
September
2020
 
 
     December
2019		  
 
Performing loans
    
Aggregate contractual principal in excess of fair value
  
 
$  1,096
 
     $   809  
 
Loans on nonaccrual status and/or more than 90 days past due
 
Aggregate contractual principal in excess of fair value
  
 
$10,296
 
     $6,703  
Aggregate fair value
  
 
$  3,103
 
     $2,776