Loans and Leases (Tables)

12 Months Ended

Dec. 31, 2015

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)	December 31, 2015			December 31, 2014
Institutional:
Investment funds:
U.S.	$	11,136		$	11,388
Non-U.S.	1,678			2,333
Commercial and financial:
U.S.	4,671			3,061
Non-U.S.	278			256
Purchased receivables:
U.S.	93			124
Non-U.S.	—			6
Lease financing:
U.S.	337			335
Non-U.S.	578			668
Total institutional	18,771			18,171
Commercial real estate:
U.S.	28			28
Total loans and leases	18,799			18,199
Allowance for loan losses	(46		)	(38		)
Loans and leases, net of allowance for loan losses	$	18,753		$	18,161

Components of Leveraged Lease Investments

(In millions)	December 31, 2015			December 31, 2014
Institutional:
Investment funds:
U.S.	$	11,136		$	11,388
Non-U.S.	1,678			2,333
Commercial and financial:
U.S.	4,671			3,061
Non-U.S.	278			256
Purchased receivables:
U.S.	93			124
Non-U.S.	—			6
Lease financing:
U.S.	337			335
Non-U.S.	578			668
Total institutional	18,771			18,171
Commercial real estate:
U.S.	28			28
Total loans and leases	18,799			18,199
Allowance for loan losses	(46		)	(38		)
Loans and leases, net of allowance for loan losses	$	18,753		$	18,161

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)	2015			2014
Net rental income receivable	$	1,159		$	1,284
Estimated residual values	89			89
Unearned income	(333		)	(370		)
Investment in leveraged lease financing	915			1,003
Less: related deferred income tax liabilities	(334		)	(326		)
Net investment in leveraged lease financing	$	581		$	677

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
December 31, 2015	Investment Funds		Commercial and Financial		Purchased Receivables		Lease Financing		Commercial Real Estate		Total Loans and Leases
(In millions)
Investment grade(1)	$	12,415	$	1,780	$	93	$	888	$	28	$	15,204
Speculative(2)	399		3,138		—		27		—		3,564
Special mention(3)	—		31		—		—		—		31
Total	$	12,814	$	4,949	$	93	$	915	$	28	$	18,799

	Institutional
December 31, 2014	Investment Funds		Commercial and Financial		Purchased Receivables		Lease Financing		Commercial Real Estate		Total Loans and Leases
(In millions)
Investment grade(1)	$	13,304	$	1,011	$	130	$	976	$	—	$	15,421
Speculative(2)	417		2,306		—		27		28		2,778
Total	$	13,721	$	3,317	$	130	$	1,003	$	28	$	18,199

⁽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:

	December 31, 2015						December 31, 2014
(In millions)	Institutional		Commercial Real Estate		Total Loans and Leases		Institutional		Commercial Real Estate		Total Loans and Leases
Loans and leases:
Collectively evaluated for impairment(1)	$	18,771	$	28	$	18,799	$	18,171	$	28	$	18,199
Total	$	18,771	$	28	$	18,799	$	18,171	$	28	$	18,199

⁽¹⁾ For those portfolios where there are a small number of loans each with a large balance, we review each loan annually for indicators of impairment. For those loans where no such indicators are identified, the loans are collectively evaluated for impairment. As of December 31, 2015 and December 31, 2014, all of the allowance for loan losses of $46 million and $38 million, respectively, related to institutional loans collectively evaluated for impairment.    

Impaired Loans

The following table presents information related to our recorded investment in impaired loans and leases as of the dates indicated:

	December 31, 2015				December 31, 2014
(In millions)	Recorded Investment		Unpaid Principal Balance(1)		Recorded Investment		Unpaid Principal Balance(1)
With no related allowance recorded:
CRE—property development—acquired credit-impaired	$	—	$	34	$	—	$	34
CRE—other—acquired credit-impaired	—		22		—		22
Total CRE	$	—	$	56	$	—	$	56

⁽¹⁾ As of December 31, 2015 and December 31, 2014, all of the allowance for loan losses of $46 million and $38 million, respectively, related to institutional and CRE loans collectively evaluated for impairment.

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,
	2015			2014		2013
(In millions)	Total Loans and Leases			Total Loans and Leases		Total Loans and Leases
Allowance for loan losses(1)(2):
Beginning balance	$	38		$	28	$	22
Provision for loan losses	12			10		6
Charge-offs	(4		)	—		—
Ending balance	$	46		$	38	$	28

⁽¹⁾ As of December 31, 2015, approximately $35 million of our allowance for loan losses was related to senior secured bank loans included in the institutional segment; the remaining $11 million was related to other commercial-and-financial loans in the institutional segment.

⁽²⁾ There were no recoveries in any of the years ended December 31, 2015, 2014 or 2013.