Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2011

Loans and Leases

Net Loans

(In millions)	June 30, 2011			December 31, 2010
Institutional:
Investment funds:
U.S.	$	6,449		$	5,316
Non-U.S.		1,802			1,478
Commercial and financial:
U.S.		654			540
Non-U.S.		355			190
Purchased receivables:
U.S.		719			728
Non-U.S.		966			1,471
Lease financing:
U.S.		408			417
Non-U.S.		916			1,053
Total institutional		12,269			11,193
Commercial real estate:
U.S.		663			764
Total loans and leases		12,932			11,957
Allowance for loan losses		(54	)		(100	)
Loans and leases, net of allowance for loan losses	$	12,878		$	11,857

Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator

	Institutional								Commercial Real Estate
June 30, 2011 (In millions)	Investment Funds		Commercial and Financial		Purchased Receivables		Lease Financing		Property Development		Other Acquired Credit- Impaired		Other		Total Loans and Leases
Investment grade	$	8,145	$	836	$	1,685	$	1,150	$	1	$	4	$	39	$	11,860
Speculative		106		173		—		174		375		47		108		983
Doubtful		—		—		—		—		76		13		—		89
Total	$	8,251	$	1,009	$	1,685	$	1,324	$	452	$	64	$	147	$	12,932

	Institutional								Commercial Real Estate
December 31, 2010 (In millions)	Investment Funds		Commercial and Financial		Purchased Receivables		Lease Financing		Property Development		Property Development Acquired- Credit Impaired		Other Acquired Credit- Impaired		Other		Total Loans and Leases
Investment grade	$	6,674	$	579	$	2,199	$	1,279	$	3			$	3	$	49	$	10,786
Speculative		120		101		—		191		362				47		108		929
Substandard		—		50		—		—		—				—		—		50
Doubtful		—		—		—		—		86	$	42		49		15		192
Total	$	6,794	$	730	$	2,199	$	1,470	$	451	$	42	$	99	$	172	$	11,957

Schedule of Allowance for Loan Losses

	Institutional				Commercial Real Estate				Total Loans and Leases
	June 30, 2011		December 31, 2010		June 30, 2011		December 31, 2010		June 30, 2011		December 31, 2010
(In millions)
Loans and leases:
Individually evaluated for impairment	$	90	$	112	$	599	$	623	$	689	$	735
Collectively evaluated for impairment		12,179		11,081		—		—		12,179		11,081
Loans acquired with deteriorated credit quality		—		—		64		141		64		141
Total	$	12,269	$	11,193	$	663	$	764	$	12,932	$	11,957
Allowance for loan losses:
Individually evaluated for impairment					$	24	$	24	$	24	$	24
Collectively evaluated for impairment	$	22	$	31		—		—		22		31
Loans acquired with deteriorated credit quality		—		—		8		45		8		45
Total	$	22	$	31	$	32	$	69	$	54	$	100

Impaired Loans

	As of June 30, 2011						Three Months Ended June 30, 2011				Six Months Ended June 30, 2011				As of December 31, 2010
(In millions)	Recorded Investment		Unpaid Principal Balance		Related Allowance(1)		Average Recorded Investment		Interest Revenue Recognized		Average Recorded Investment		Interest Revenue Recognized		Recorded Investment		Unpaid Principal Balance		Related Allowance(1)
With no related allowance recorded:
CRE—property development	$	201	$	231			$	201	$	4	$	203	$	8	$	209	$	240
CRE—property development—acquired credit-impaired		—		34				—		—		—		—		—		34
CRE—other—acquired credit-impaired		16		48				16		—		16		—		16		47
CRE—other		2		3				2		—		8		1		27		29
With an allowance recorded:
CRE—property development		74		114	$	24		79		—		79		—		79		113	$	24
CRE—property development—acquired credit-impaired		—		—		—		—		—		10		—		42		47		19
CRE—other—acquired credit - impaired		48		84		8		75		1		75		1		83		100		26
CRE—other		7		9		—		7		—		7		—		7		9		—
Total CRE	$	348	$	523	$	32	$	380	$	5	$	398	$	10	$	463	$	619	$	69

⁽¹⁾  As of June 30, 2011 and December 31, 2010, we maintained an additional allowance for loan losses of $22 million and $31 million respectively, associated with loans and leases that were not impaired.

Financing Receivables on Non-accrual Status

(In millions)	June 30, 2011		December 31, 2010
Commercial Real Estate:
Property development	$	74	$	79
Property development—acquired credit-impaired		—		42
Other—acquired credit-impaired		13		22
Other		—		15
Total	$	87	$	158

Schedule of Activity in the Allowance for Loan Losses

	Three Months Ended June 30,
(In millions)	2011									2010
	Institutional			Commercial Real Estate			Total Loans and Leases			Total Loans and Leases
Allowance for loan losses:
Beginning balance	$	31		$	49		$	80		$	91
Charge-offs		—			(28	)		(28	)		—
Provisions		(9	)		11			2			10
Other		—			—			—			1
Ending balance	$	22		$	32		$	54		$	102
	Six Months Ended June 30,
	2011									2010
(In millions)	Institutional			Commercial Real Estate			Total Loans and Leases			Total Loans and Leases
Allowance for loan losses:
Beginning balance	$	31		$	69		$	100		$	79
Charge-offs		—			(47	)		(47	)		(3	)
Provisions		(9	)		10			1			25
Other		—			—			—			1
Ending balance	$	22		$	32		$	54		$	102