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Loans and Leases (Tables)
 9 Months Ended
Sep. 30, 2014
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 the dates indicated:
(In millions)
September 30, 2014
 
December 31, 2013
Institutional:
 
 
 
Investment funds:
 
 
 
U.S.
$
10,896

 
$
8,695

Non-U.S.
3,250

 
1,718

Commercial and financial:
 
 
 
U.S.
2,506

 
1,372

Non-U.S.
240

 
154

Purchased receivables:
 
 
 
U.S.
142

 
217

Non-U.S.
—

 
26

Lease financing:
 
 
 
U.S.
340

 
339

Non-U.S.
728

 
756

Total institutional
18,102

 
13,277

Commercial real estate:
 
 
 
U.S.
296

 
209

Total loans and leases
18,398

 
13,486

Allowance for loan losses
(34
)
 
(28
)
Loans and leases, net of allowance for loan losses
$
18,364

 
$
13,458
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
 
 
September 30, 2014
Investment
Funds
 
Commercial and Financial
 
Purchased
Receivables
 
Lease
Financing
 
Property Development
 
Other
 
Total
Loans and
Leases
(In millions)
 
 
 
 
Investment grade(1)
$
13,864

 
$
916

 
$
142

 
$
1,034

 
$
—

 
$
28

 
$
15,984

Speculative(2)
282

 
1,830

 
—

 
34

 
268

 
—

 
2,414

Total
$
14,146

 
$
2,746

 
$
142

 
$
1,068

 
$
268

 
$
28

 
$
18,398

 
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

 
 
 
 
(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 the dates indicated:
 
September 30, 2014
 
December 31, 2013
(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
$
—

 
$
130

 
$
130

 
$
26

 
$
180

 
$
206

Collectively evaluated for impairment(1)
18,102

 
166

 
18,268

 
13,251

 
29

 
13,280

Total
$
18,102

 
$
296

 
$
18,398

 
$
13,277

 
$
209

 
$
13,486


 
 
 
 
(1) As of September 30, 2014 and December 31, 2013, all of the allowance for loan losses of $34 million and $28 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 the dates, or for the periods, indicated:
 
September 30, 2014
 
December 31, 2013
(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

 
$
—

 
$
130

 
$
143

 
$
—

CRE—property development—acquired credit-impaired
—

 
34

 
—

 
—

 
34

 
—

CRE—other—acquired credit-impaired
—

 
22

 
—

 
—

 
21

 
—

Total CRE
$
130

 
$
199

 
$
—

 
$
130

 
$
198

 
$
—

 
 
 
 
(1) As of September 30, 2014 and December 31, 2013, all of the allowance for loan losses of $34 million and $28 million, respectively, related to loans that were not impaired.
 
Three Months Ended September 30,
 
Average Recorded Investment
 
Interest Revenue Recognized
 
2014
 
2013
 
2014
 
2013
(In millions)
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
CRE—property development
$
130

 
$
130

 
$
3

 
$
2

Total CRE
$
130

 
$
130

 
$
3

 
$
2


 
Nine Months Ended September 30,
 
Average Recorded Investment
 
Interest Revenue Recognized
 
2014
 
2013
 
2014
 
2013
(In millions)
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
CRE—property development
$
130

 
$
160

 
$
8

 
$
17

Total CRE
$
130

 
$
160

 
$
8

 
$
17

As of both September 30, 2014 and December 31, 2013, we held an aggregate of approximately $130 million of CRE loans, presented in the preceding impaired loans and leases table, which were modified in troubled debt restructurings.
Schedule of Activity in the Allowance for Loan Losses
The following tables present activity in the allowance for loan losses for the periods indicated:
 
Three Months Ended September 30,
 
2014
 
2013
(In millions)
Institutional
 
Commercial
Real Estate
 
Total Loans and Leases
 
Institutional
 
Commercial
Real Estate
 
Total Loans and Leases
Allowance for loan losses(1):
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
32

 
$
—

 
$
32

 
$
22

 
$
—

 
$
22

Charge-offs
—

 
—

 
—

 
—

 
—

 
—

Provisions
2

 
—

 
2

 
—

 
—

 
—

Recoveries
—

 
—

 
—

 
—

 
—

 
—

Ending balance
$
34

 
$
—

 
$
34

 
$
22

 
$
—

 
$
22

 
Nine Months Ended September 30,
 
2014
 
2013
(In millions)
Institutional
 
Commercial
Real Estate
 
Total Loans and Leases
 
Institutional
 
Commercial
Real Estate
 
Total Loans and Leases
Allowance for loan losses(1):
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
28

 
$
—

 
$
28

 
$
22

 
$
—

 
$
22

Charge-offs
—

 
—

 
—

 
—

 
—

 
—

Provisions
6

 
—

 
6

 
—

 
—

 
—

Recoveries
—

 
—

 
—

 
—

 
—

 
—

Ending balance
$
34

 
$
—

 
$
34

 
$
22

 
$
—

 
$
22


 
 
 
 
(1) As of September 30, 2014, approximately $22 million of our allowance for loan losses was related to senior secured bank loans included in the institutional segment; the remaining $12 million was related to other commercial-and-financial loans in the institutional segment.