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Loans and Leases (Tables)
 12 Months Ended
Dec. 31, 2013
Loans and Leases Receivable Disclosure [Abstract]  
Net Loans
The following table presents our recorded investment in loans and leases, by segment and class, as of December 31: 

(In millions)
2013
 
2012
Institutional:
 
 
 
Investment funds:
 
 
 
U.S.
$
8,695

 
$
8,376

Non-U.S.
1,718

 
829

Commercial and financial:
 
 
 
U.S.
1,372

 
613

Non-U.S.
154

 
520

Purchased receivables:
 
 
 
U.S.
217

 
276

Non-U.S.
26

 
118

Lease financing:
 
 
 
U.S.
339

 
380

Non-U.S.
756

 
784

Total institutional
13,277

 
11,896

Commercial real estate:
 
 
 
U.S.
209

 
411

Total loans and leases
13,486

 
12,307

Allowance for loan losses
(28
)
 
(22
)
Loans and leases, net of allowance for loan losses
$
13,458

 
$
12,285
Schedule of Components of Leveraged Lease Investments
The components of our net investment in leveraged lease financing, included in the institutional segment in the preceding table, were as follows as of December 31:
(In millions)
2013
 
2012
Net rental income receivable
$
1,404

 
$
1,519

Estimated residual values
110

 
110

Unearned income
(419
)
 
(465
)
Investment in leveraged lease financing
1,095

 
1,164

Less related deferred income tax liabilities
(359
)
 
(370
)
Net investment in leveraged lease financing
$
736

 
$
794
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator
The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated:
 
Institutional
 
Commercial Real Estate
 
 
December 31, 2013
Investment
Funds
 
Commercial and Financial
 
Purchased
Receivables
 
Lease
Financing
 
Property Development
 
Other
 
Total
Loans and
Leases
(In millions)
 
 
 
 
 
Investment grade(1)
$
10,282

 
$
740

 
$
243

 
$
1,068

 
$
—

 
$
29

 
$
12,362

Speculative(2)
131

 
770

 
—

 
27

 
180

 
—

 
1,108

Special mention(3)
—

 
16

 
—

 
—

 
—

 
—

 
16

Total
$
10,413

 
$
1,526

 
$
243

 
$
1,095

 
$
180

 
$
29

 
$
13,486

 
Institutional
 
Commercial Real Estate
 
 
December 31, 2012
Investment
Funds
 
Commercial and Financial
 
Purchased
Receivables
 
Lease
Financing
 
Property Development
 
Other
 
Total
Loans and
Leases
(In millions)
 
 
 
 
 
Investment grade(1)
$
8,937

 
$
1,041

 
$
394

 
$
1,137

 
$
—

 
$
29

 
$
11,538

Speculative(2)
268

 
92

 
—

 
27

 
377

 
5

 
769

Total
$
9,205

 
$
1,133

 
$
394

 
$
1,164

 
$
377

 
$
34

 
$
12,307

 
 
 
 
 
(1) Investment-grade loans and leases consist of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment.
(2) Speculative loans and leases consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met.
(3) Special mention loans and leases consist of counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects.
Schedule of Loans and Leases Receivable by Impairment Methodology
The following table presents our recorded investment in loans and leases, disaggregated based on our impairment methodology, as of December 31:
 
2013
 
2012
(In millions)
Institutional
 
Commercial Real Estate
 
Total Loans and Leases
 
Institutional
 
Commercial Real Estate
 
Total Loans and Leases
Loans and leases:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
26

 
$
180

 
$
206

 
$
11

 
$
411

 
$
422

Collectively evaluated for impairment(1)
13,251

 
29

 
13,280

 
11,885

 
—

 
11,885

Total
$
13,277

 
$
209

 
$
13,486

 
$
11,896

 
$
411

 
$
12,307


 
 
 
 
(1) As of December 31, 2013 and 2012, all of the allowance for loan losses of $28 million and $22 million, respectively, related to institutional loans collectively evaluated for impairment.
Impaired Loans
The following tables present information related to our recorded investment in impaired loans and leases as of and for the years ended December 31:
 
2013
 
2012
(In millions)
Recorded Investment
 
Unpaid
Principal
Balance
 
Related Allowance(1)
 
Recorded Investment
 
Unpaid
Principal
Balance
 
Related Allowance(1)
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
CRE—property development
$
130

 
$
143

 
$
—

 
$
197

 
$
224

 
$
—

CRE—property development—acquired credit-impaired
—

 
34

 
—

 
—

 
34

 
—

CRE—other—acquired credit-impaired
—

 
21

 
—

 
—

 
64

 
—

Total CRE
$
130

 
$
198

 
$
—

 
$
197

 
$
322

 
$
—

 
 
 
 
(1) As of December 31, 2013 and 2012, all of the allowance for loan losses of $28 million and $22 million, respectively, related to loans that were not impaired.
 
Average Recorded Investment
 
Interest Revenue Recognized
Years Ended December 31,
2013
 
2012
 
2013
 
2012
(In millions)
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
CRE—property development
$
148

 
$
198

 
$
19

 
$
16

CRE—other—acquired credit-impaired
—

 
13

 
—

 
—

Total CRE
$
148

 
$
211

 
$
19

 
$
16
Schedule of Activity in the Allowance for Loan Losses
The following table presents activity in the allowance for loan losses for the periods indicated:
 
Years Ended December 31,
 
2013
 
2012
 
2011
(In millions)
Institutional
 
Commercial
Real Estate
 
Total Loans and Leases
 
Total Loans
and Leases
 
Total Loans
and Leases
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
22

 
$
—

 
$
22

 
$
22

 
$
100

Charge-offs
—

 
—

 
—

 
—

 
(78
)
Provisions
6

 
—

 
6

 
(3
)
 
—

Recoveries
—

 
—

 
—

 
3

 
—

Ending balance
$
28

 
$
—

 
$
28

 
$
22

 
$
22