Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value of Assets and Liabilities Measured on Recurring Basis

Certain assets and liabilities are measured at fair value on a recurring basis in accordance with GAAP. The following tables present these assets and liabilities at March 31, 2014, December 31, 2013, and March 31, 2013.

March 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations		—	$	533		—	$	533
States and political subdivisions		—		46		—		46
Collateralized mortgage obligations		—		9		—		9
Other mortgage-backed securities		—		199		—		199
Other securities	$	4		47		—		51
Total trading account securities		4		834		—		838
Commercial loans		—		2		—		2
Total trading account assets		4		836		—		840
Securities available for sale:
States and political subdivisions		—		37		—		37
Collateralized mortgage obligations		—		10,469		—		10,469
Other mortgage-backed securities		—		1,832		—		1,832
Other securities		21		—		—		21
Total securities available for sale		21		12,338		—		12,359
Other investments:
Principal investments:
Direct		—		—	$	141		141
Indirect		—		—		403		403
Total principal investments		—		—		544		544
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		20		20
Total equity and mezzanine investments		—		—		20		20
Total other investments		—		—		564		564
Derivative assets:
Interest rate		—		943		22		965
Foreign exchange		51		9		—		60
Commodity		—		110		—		110
Credit		—		1		4		5
Derivative assets		51		1,063		26		1,140
Netting adjustments (a)		—		—		—		(713	)
Total derivative assets		51		1,063		26		427
Accrued income and other assets		—		—		—		—
Total assets on a recurring basis at fair value	$	76	$	14,237	$	590	$	14,190
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions	$	3	$	460		—	$	463
Derivative liabilities:
Interest rate		—		687		—		687
Foreign exchange		43		9		—		52
Commodity		—		105		—		105
Credit		—		11	$	1		12
Derivative liabilities		43		812		1		856
Netting adjustments (a)		—		—		—		(448	)
Total derivative liabilities		43		812		1		408
Accrued expense and other liabilities		—		—		—		—
Total liabilities on a recurring basis at fair value	$	46	$	1,272	$	1	$	871

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

December 31, 2013
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations		—	$	471		—	$	471
States and political subdivisions		—		23		—		23
Collateralized mortgage obligations		—		9		—		9
Other mortgage-backed securities		—		120		—		120
Other securities	$	4		108		—		112
Total trading account securities		4		731		—		735
Commercial loans		—		3		—		3
Total trading account assets		4		734		—		738
Securities available for sale:
States and political subdivisions		—		40		—		40
Collateralized mortgage obligations		—		11,000		—		11,000
Other mortgage-backed securities		—		1,286		—		1,286
Other securities		20		—		—		20
Total securities available for sale		20		12,326		—		12,346
Other investments:
Principal investments:
Direct		—		—	$	141		141
Indirect		—		—		413		413
Total principal investments		—		—		554		554
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		23		23
Total equity and mezzanine investments		—		—		23		23
Total other investments		—		—		577		577
Derivative assets:
Interest rate		—		1,014		25		1,039
Foreign exchange		56		7		—		63
Commodity		—		112		—		112
Credit		—		1		4		5
Derivative assets		56		1,134		29		1,219
Netting adjustments (a)		—		—		—		(812	)
Total derivative assets		56		1,134		29		407
Accrued income and other assets		—		1		—		1
Total assets on a recurring basis at fair value	$	80	$	14,195	$	606	$	14,069
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions	$	2	$	341		—	$	343
Derivative liabilities:
Interest rate		—		739		—		739
Foreign exchange		49		8		—		57
Commodity		—		106		—		106
Credit		—		11	$	1		12
Derivative liabilities		49		864		1		914
Netting adjustments (a)		—		—		—		(500	)
Total derivative liabilities		49		864		1		414
Accrued expense and other liabilities		—		1		—		1
Total liabilities on a recurring basis at fair value	$	51	$	1,206	$	1	$	758

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

March 31, 2013
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations		—	$	496		—	$	496
States and political subdivisions		—		46	$	3		49
Collateralized mortgage obligations		—		23		—		23
Other mortgage-backed securities		—		80		—		80
Other securities	$	5		41		—		46
Total trading account securities		5		686		3		694
Commercial loans		—		7		—		7
Total trading account assets		5		693		3		701
Securities available for sale:
States and political subdivisions		—		48		—		48
Collateralized mortgage obligations		—		12,918		—		12,918
Other mortgage-backed securities		—		487		—		487
Other securities		43		—		—		43
Total securities available for sale		43		13,453		—		13,496
Other investments:
Principal investments:
Direct		—		—		191		191
Indirect		—		—		435		435
Total principal investments		—		—		626		626
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		39		39
Total equity and mezzanine investments		—		—		39		39
Total other investments		—		—		665		665
Derivative assets:
Interest rate		—		1,499		27		1,526
Foreign exchange		57		14		—		71
Energy and commodity		—		115		5		120
Credit		—		2		5		7
Derivative assets		57		1,630		37		1,724
Netting adjustments (a)		—		—		—		(1,115	)
Total derivative assets		57		1,630		37		609
Accrued income and other assets		—		1		—		1
Total assets on a recurring basis at fair value	$	105	$	15,777	$	705	$	15,472
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions	$	3	$	373		—	$	376
Derivative liabilities:
Interest rate		—		1,027		—		1,027
Foreign exchange		54		14		—		68
Energy and commodity		—		113	$	1		114
Credit		—		10		1		11
Derivative liabilities		54		1,164		2		1,220
Netting adjustments (a)		—		—		—		(696	)
Total derivative liabilities		54		1,164		2		524
Accrued expense and other liabilities		—		1		—		1
Total liabilities on a recurring basis at fair value	$	57	$	1,538	$	2	$	901

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

Change in Fair Values of Level 3 Financial Instruments

Changes in Level 3 Fair Value Measurements

The following table shows the change in the fair values of our Level 3 financial instruments for the three months ended March 31, 2014, and 2013. We mitigate the credit risk, interest rate risk, and risk of loss related to many of these Level 3 instruments by using securities and derivative positions classified as Level 1 or Level 2. Level 1 and Level 2 instruments are not included in the following table. Therefore, the gains or losses shown do not include the impact of our risk management activities.

in millions	Beginning   of Period   Balance		Gains (Losses)   Included in   Earnings			Purchases		Sales			Settlements			Transfers into   Level 3 (e)			Transfers out of   Level 3 (e)			End of Period   Balance (g)		Unrealized Gains (Losses)   Included in   Earnings
March 31, 2014
Trading account assets
Other mortgage-backed securities		—		—			—		—			—			—			—			—		—
Other securities		—		—			—		—			—			—			—			—		—
State and political subdivisions		—		—			—		—			—			—			—			—		—
Other investments
Principal investments
Direct	$	141	$	4	(c)		—	$	(4	)		—			—			—		$	141	$	6	(c)
Indirect		413		20	(c)	$	1		(31	)		—			—			—			403		9	(c)
Equity and mezzanine investments
Direct		—		—			—		—			—			—			—			—		—
Indirect		23		(1	) (c)		—		—		$	(2	)		—			—			20		(1	) (c)
Derivative instruments (a)
Interest rate		25		1	(d)		2		(1	)		—		$	3	(f)	$	(8	) (f)		22		—
Commodity		—		—			—		—			—			—			—			—		—
Credit		3		(2	) (d)		—		—			2			—			—			3		—

in millions	Beginning   of Period   Balance		Gains (Losses)   Included in   Earnings			Purchases		Sales			Settlements			Transfers into   Level 3 (e)			Transfers out of   Level 3 (e)			End of Period   Balance (g)		Unrealized Gains (Losses)   Included in   Earnings
March 31, 2013
Trading account assets
Other mortgage-backed securities		—	$	4	(b)		—	$	(4	)		—			—			—			—		—
Other securities		—		1	(b)		—		—		$	(1	)		—			—			—	$	1	(b)
State and political subdivisions	$	3		—			—		—			—			—			—		$	3		—
Other investments
Principal investments
Direct		191		(4	) (c)	$	4		—			—			—			—			191		(4	) (c)
Indirect		436		12	(c)		6		(19	)		—			—			—			435		4	(c)
Equity and mezzanine investments
Direct		—		—			—		—			—			—			—			—		—
Indirect		41		—			—		—			(2	)		—			—			39		—
Derivative instruments (a)
Interest rate		19		(3	) (d)		—		(1	)		—		$	14	(f)	$	(2	) (f)		27		—
Commodity		1		3	(d)		—		—			—			—			—			4		—
Credit		4		(1	) (d)		—		—			1			—			—			4		—

(a) Amounts represent Level 3 derivative assets less Level 3 derivative liabilities.

(b) Realized and unrealized gains and losses on trading account assets are reported in “other income” on the income statement.

(c) Realized and unrealized gains and losses on principal investments are reported in “net gains (losses) from principal investing” on the income statement. Realized and unrealized losses on private equity and mezzanine investments are reported in “other income” on the income statement.

(d) Realized and unrealized gains and losses on derivative instruments are reported in “corporate services income” and “other income” on the income statement.

(e) Our policy is to recognize transfers into and transfers out of Level 3 as of the end of the reporting period.

(f) Certain derivatives previously classified as Level 2 were transferred to Level 3 because Level 3 unobservable inputs became significant. Certain derivatives previously classified as Level 3 were transferred to Level 2 because Level 3 unobservable inputs became less significant.

(g) There were no issuances for the three-month periods ended March 31, 2014, and 2013.

Assets Measured at Fair Value on Nonrecurring Basis

Assets Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis in accordance with GAAP. The adjustments to fair value generally result from the application of accounting guidance that requires assets and liabilities to be recorded at the lower of cost or fair value, or assessed for impairment. The following table presents our assets measured at fair value on a nonrecurring basis at March 31, 2014, December 31, 2013, and March 31, 2013:

	March 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	1	$	1
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		13		13
Total assets on a nonrecurring basis at fair value		—		—	$	14	$	14

	December 31, 2013
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	16	$	16
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		14		14
Total assets on a nonrecurring basis at fair value		—		—	$	30	$	30

	March 31, 2013
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	18	$	18
Loans held for sale (a)		—		—		12		12
Accrued income and other assets		—	$	2		14		16
Total assets on a nonrecurring basis at fair value		—	$	2	$	44	$	46

(a) During the first quarter of 2014, we transferred $2 million of commercial and consumer loans and leases at their current fair value from held-for-sale status to the held-to-maturity portfolio, compared to $9 million during 2013 and $1 million during the first quarter of 2013.

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information about Level 3 Fair Value Measurements

The range and weighted-average of the significant unobservable inputs used to fair value our material Level 3 recurring and nonrecurring assets at March 31, 2014, December 31, 2013, and March 31, 2013, along with the valuation techniques used, are shown in the following table:

March 31, 2014 dollars in millions	Fair Value of     Level 3     Assets		Valuation Technique	Significant     Unobservable Input	Range     (Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	141	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple	5.40 - 6.00 (5.90)
Equity instruments of private companies				EBITDA multiple (where applicable)	4.90 - 10.00 (5.90)
				Revenue multiple (where applicable)	0.80 - 4.50 (4.10)
Nonrecurring
Impaired loans		1	Fair value of underlying collateral	Discount	0.00 - 80.00% (25.00%)
Goodwill		979	Discounted cash flow and market data	Earnings multiple of peers	10.10 - 14.40 (11.59)
				Equity multiple of peers	1.17 - 1.29(1.24)
				Control premium	N/A (35.00%)
				Weighted-average cost of capital	N/A (13.00%)

December 31, 2013 dollars in millions	Fair Value of     Level 3     Assets		Valuation Technique	Significant     Unobservable Input	Range     (Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	141	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple	6.00 - 7.00 (6.10)
Equity instruments of private companies				EBITDA multiple (where applicable)	4.80 - 10.40 (6.20)
				Revenue multiple (where applicable)	1.10 - 4.70 (4.00)
Nonrecurring
Impaired loans		16	Fair value of underlying collateral	Discount	10.00 - 100.00% (36.00%)
Goodwill		979	Discounted cash flow and market data	Earnings multiple of peers	10.10 - 14.40 (11.59)
				Equity multiple of peers	1.17 - 1.29 (1.24)
				Control premium	N/A (35.00%)
				Weighted-average cost of capital	N/A (13.00%)

March 31, 2013 dollars in millions	Fair Value of     Level 3     Assets		Valuation Technique	Significant     Unobservable Input	Range     (Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	191	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple	5.50 - 6.00 (5.90)
Equity instruments of private companies				EBITDA multiple (where applicable)	5.00 - 6.00 (5.80)
				Revenue multiple (where applicable)	0.30 - 5.30 (4.05)
Nonrecurring
Impaired loans		18	Fair value of underlying collateral	Discount	0.00 - 100.00% (38.00%)
Goodwill		979	Discounted cash flow and market data	Earnings multiple of peers	9.70 - 14.20 (11.25)
				Equity multiple of peers	.95 - 1.17 (1.09)
				Control premium	N/A (30.00%)
				Weighted-average cost of capital	N/A (13.00%)

Fair Value Disclosures of Financial Instruments

Fair Value Disclosures of Financial Instruments

The levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at March 31, 2014, December 31, 2013, and March 31, 2013, are shown in the following table.

	March 31, 2014
			Fair Value
in millions	Carrying     Amount		Level 1		Level 2		Level 3		Netting     Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	3,331	$	3,331		—		—		—		$	3,331
Trading account assets (b)		840		4	$	836		—		—			840
Securities available for sale (b)		12,359		21		12,338		—		—			12,359
Held-to-maturity securities (c)		4,826		—		4,733		—		—			4,733
Other investments (b)		899		—		335	$	564		—			899
Loans, net of allowance (d)		54,611		—		—		53,211		—			53,211
Loans held for sale (b)		401		—		—		401		—			401
Mortgage servicing assets (e)		320		—		—		373		—			373
Derivative assets (b)		427		51		1,063		26	$	(713	) (f)		427
LIABILITIES
Deposits with no stated maturity (a)	$	60,130		—	$	60,130		—		—		$	60,130
Time deposits (e)		7,136		617		6,599		—		—			7,216
Short-term borrowings (a)		1,181	$	3		1,178		—		—			1,181
Long-term debt (e)		7,712		7,610		459		—		—			8,069
Derivative liabilities (b)		408		43		812	$	1	$	(448	) (f)		408

	December 31, 2013
			Fair Value
in millions	Carrying     Amount		Level 1		Level 2		Level 3		Netting     Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	6,207	$	6,207		—		—		—		$	6,207
Trading account assets (b)		738		4	$	734		—		—			738
Securities available for sale (b)		12,346		20		12,326		—		—			12,346
Held-to-maturity securities (c)		4,756		—		4,617		—		—			4,617
Other investments (b)		969		—		392	$	577		—			969
Loans, net of allowance (d)		53,609		—		—		52,102		—			52,102
Loans held for sale (b)		611		—		—		611		—			611
Mortgage servicing assets (e)		332		—		—		386		—			386
Derivative assets (b)		407		56		1,134		29	$	(812	) (f)		407
LIABILITIES
Deposits with no stated maturity (a)	$	62,425		—	$	62,425		—		—		$	62,425
Time deposits (e)		6,837	$	558		6,368		—		—			6,926
Short-term borrowings (a)		1,877		2		1,875		—		—			1,877
Long-term debt (e)		7,650		7,611		397		—		—			8,008
Derivative liabilities (b)		414		49		864	$	1	$	(500	) (f)		414

	March 31, 2013
			Fair Value
in millions	Carrying     Amount		Level 1		Level 2		Level 3		Netting     Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	3,702	$	3,702		—		—		—		$	3,702
Trading account assets (b)		701		5	$	693	$	3		—			701
Securities available for sale (b)		13,496		43		13,453		—		—			13,496
Held-to-maturity securities (c)		3,721		—		3,779		—		—			3,779
Other investments (b)		1,059		—		394		665		—			1,059
Loans, net of allowance (d)		51,681		—		—		50,926		—			50,926
Loans held for sale (b)		434		—		—		434		—			434
Mortgage servicing assets (e)		201		—		—		244		—			244
Derivative assets (b)		609		57		1,630		37	$	(1,115	) (f)		609
LIABILITIES
Deposits with no stated maturity (a)	$	56,810		—	$	56,810		—		—		$	56,810
Time deposits (e)		7,844	$	522		7,460		—		—			7,982
Short-term borrowings (a)		2,328		3		2,325		—		—			2,328
Long-term debt (e)		7,785		2,781		5,482		—		—			8,263
Derivative liabilities (b)		524		54		1,164	$	2	$	(696	) (f)		524

Valuation Methods and Assumptions

(a) Fair value equals or approximates carrying amount. The fair value of deposits with no stated maturity does not take into consideration the value ascribed to core deposit intangibles.

(b) Information pertaining to our methodology for measuring the fair values of these assets and liabilities is included in the sections entitled “Qualitative Disclosures of Valuation Techniques” and “Assets Measured at Fair Value on a Nonrecurring Basis” in this note.

(c) Fair values of held-to-maturity securities are determined by using models that are based on security-specific details, as well as relevant industry and economic factors. The most significant of these inputs are quoted market prices, interest rate spreads on relevant benchmark securities, and certain prepayment assumptions. We review the valuations derived from the models to ensure they are reasonable and consistent with the values placed on similar securities traded in the secondary markets.

(d) The fair value of loans is based on the present value of the expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and use of a discount rate based on the relative risk of the cash flows, taking into account the loan type, maturity of the loan, liquidity risk, servicing costs, and a required return on debt and capital. In addition, an incremental liquidity discount is applied to certain loans, using historical sales of loans during periods of similar economic conditions as a benchmark. The fair value of loans includes lease financing receivables at their aggregate carrying amount, which is equivalent to their fair value.

(e) Fair values of mortgage servicing assets, time deposits, and long-term debt are based on discounted cash flows utilizing relevant market inputs.

(f) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

Private Equity and Mezzanine Investments [Member]

Fair Value of Direct and Indirect Investments, Related Unfunded Commitments and Financial Support Provided

The following table presents the fair value of our indirect investments and related unfunded commitments at March 31, 2014. We did not provide any financial support to investees related to our direct and indirect investments for the three months ended March 31, 2014, and March 31, 2013.

	March 31, 2014
in millions	Fair Value		Unfunded Commitments
INVESTMENT TYPE
Indirect investments
Passive funds (a)	$	10	$	1
Co-managed funds (b)		10		—
Total	$	20	$	1

(a) We invest in passive funds, which are multi-investor private equity funds. These investments can never be redeemed. Instead, distributions are received through the liquidation of the underlying investments in the funds. Some funds have no restrictions on sale, while others require investors to remain in the fund until maturity. The funds will be liquidated over a period of one to five years. The purpose of KREEC’s funding is to allow funds to make additional investments and keep a certain market value threshold in the funds. KREEC is obligated to provide financial support, as all investors are required, to fund based on their ownership percentage, as noted in the Limited Partnership Agreements.

(b) We are a manager or co-manager of these funds. These investments can never be redeemed. Instead, distributions are received through the liquidation of the underlying investments in the funds. In addition, we receive management fees. We can sell or transfer our interest in any of these funds with the written consent of a majority of the fund’s investors. In one instance, the other co-manager of the fund must consent to the sale or transfer of our interest in the fund. The funds will mature over a period of one to four years. The purpose of KREEC’s funding is to allow funds to make additional investments and keep a certain market value threshold in the funds. KREEC is obligated to provide financial support, as all investors are required, to fund based on their ownership percentage, as noted in the Limited Partnership Agreement.

Principal Investments [Member]

Fair Value of Direct and Indirect Investments, Related Unfunded Commitments and Financial Support Provided

The following table presents the fair value of our direct and indirect principal investments and related unfunded commitments at March 31, 2014, as well as financial support provided for the three months ended March 31, 2014, and March 31, 2013:

					Financial support provided
					Three months ended March 31,
	March 31, 2014				2014				2013
in millions	Fair Value		Unfunded Commitments		Funded Commitments		Funded Other		Funded Commitments		Funded Other
INVESTMENT TYPE
Direct investments (a)	$	141		—		—	$	1		—	$	4
Indirect investments (b)		403	$	73	$	2		—	$	6		—
Total	$	544	$	73	$	2	$	1	$	6	$	4

(a) Our direct investments consist of equity, mezzanine, and debt investments directly in independent business enterprises. Operations of the business enterprises are handled by management of the portfolio company. The purpose of funding these enterprises is to provide financial support for business development and acquisition strategies. We infuse equity capital based on an initial contractual cash contribution and later from additional requests on behalf of the companies’ management.

(b) Our indirect investments consist of buyout funds, venture capital funds, and fund of funds. These investments are generally not redeemable. Instead, distributions are received through the liquidation of the underlying investments of the fund. An investment in any one of these funds typically can be sold only with the approval of the fund’s general partners. We estimate that the underlying investments of the funds will be liquidated over a period of one to nine years. The purpose of funding our capital commitments to these investments is to allow the funds to make additional follow-on investments and pay fund expenses until the fund dissolves. We, and all other investors in the fund, are obligated to fund the full amount of our respective capital commitments to the fund based on our and their respective ownership percentages, as noted in the Limited Partnership Agreement.