Quarterly report pursuant to Section 13 or 15(d)

Fair Value Option (Tables)

v3.24.2
Fair Value Option (Tables)
6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Option Elections The following tables provide information about the fair value carrying amount and the
contractual principal outstanding of assets and liabilities accounted for under the fair value option at June 30, 2024 and December 31, 2023, and information about where changes in the fair value of assets and liabilities accounted for under the fair value option are included in the Consolidated Statement of Income for the three and six months ended June 30, 2024 and 2023.
Fair Value Option Elections
June 30, 2024 December 31, 2023
(Dollars in millions)
Fair Value
 Carrying
 Amount
Contractual
 Principal
 Outstanding
Fair Value
Carrying
Amount Less
 Unpaid Principal
Fair Value
Carrying
Amount
Contractual
 Principal
 Outstanding
Fair Value
Carrying
  Amount Less
 Unpaid Principal
Federal funds sold and securities borrowed or purchased under agreements to resell
$ 167,835  $ 167,788  $ 47  $ 133,053  $ 133,001  $ 52 
Loans reported as trading account assets (1)
9,448  16,828  (7,380) 8,377  15,580  (7,203)
Trading inventory – other 17,572  n/a n/a 25,282  n/a n/a
Consumer and commercial loans 3,197  3,238  (41) 3,569  3,618  (49)
Loans held-for-sale (1)
1,572  2,201  (629) 2,059  2,873  (814)
Other assets 2,957  n/a n/a 1,986  n/a n/a
Long-term deposits 370  441  (71) 284  267  17 
Federal funds purchased and securities loaned or sold under agreements to repurchase
214,719  214,761  (42) 178,609  178,634  (25)
Short-term borrowings 7,200  7,206  (6) 4,690  4,694  (4)
Unfunded loan commitments 73  n/a n/a 67  n/a n/a
Accrued expenses and other liabilities 2,219  2,175  44  1,341  1,347  (6)
Long-term debt 46,875  49,332  (2,457) 42,809  46,707  (3,898)
(1)A significant portion of the loans reported as trading account assets and LHFS are distressed loans that were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding.
n/a = not applicable
Gains (Losses) Related to Assets and Liabilities Accounted for Under the Fair Value Option
Three Months Ended June 30
2024 2023
(Dollars in millions)
Market making
 and similar
 activities
Other
Income
Total Market making
 and similar
 activities
Other
Income
Total
Federal funds sold and securities borrowed or purchased under agreements to resell $ 78  $ (1) $ 77  $ (52) $ (6) $ (58)
Trading inventory – other (1)
(1,130)   (1,130) 1,237  —  1,237 
Consumer and commercial loans 36  14  50  (16) 11  (5)
Loans held-for-sale (2)
  (7) (7) —  (4) (4)
Short-term borrowings 75    75  — 
Unfunded loan commitments   (6) (6) —  44  44 
Accrued expenses and other liabilities 237    237  61  —  61 
Long-term debt (3)
58  (7) 51  416  (7) 409 
Other (4)
(56) (3) (59) 139  143 
Total $ (702) $ (10) $ (712) $ 1,791  $ 42  $ 1,833 
Six Months Ended June 30
2024 2023
Federal funds sold and securities borrowed or purchased under agreements to resell $ 108  $ (4) $ 104  $ (18) $ (8) $ (26)
Trading inventory – other (1)
781    781  2,965  —  2,965 
Consumer and commercial loans 56  19  75  (139) 41  (98)
Loans held-for-sale (2)
  (17) (17) —  16  16 
Short-term borrowings 73    73  11  —  11 
Unfunded loan commitments   (20) (20) —  20  20 
Accrued expenses and other liabilities 398    398  49  —  49 
Long-term debt (3)
267  (20) 247  (502) (23) (525)
Other (4)
(79) (7) (86) 203  (3) 200 
Total $ 1,604  $ (49) $ 1,555  $ 2,569  $ 43  $ 2,612 
(1)    The gains (losses) in market making and similar activities are primarily offset by (losses) gains on trading liabilities that hedge these assets.
(2)    Includes the value of IRLCs on funded loans, including those sold during the period.
(3)    The net gains (losses) in market making and similar activities relate to the embedded derivatives in structured liabilities and are typically offset by (losses) gains on derivatives and securities that hedge these liabilities. For the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in accumulated OCI, see Note 12 – Accumulated Other Comprehensive Income (Loss). For more information on how the Corporation’s own credit spread is determined, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K.
(4)    Includes gains (losses) on loans reported as trading account assets, other assets, long-term deposits, federal funds purchased and securities loaned or sold under agreements to repurchase, and asset-backed secured financings.
Gains (Losses) Related to Borrower-specific Credit Risk for Assets and Liabilities Accounted for Under the Fair Value Option
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2024 2023 2024 2023
Loans reported as trading account assets $ (32) $ (4) $ (64) $ 36 
Consumer and commercial loans 13  12  16  36 
Loans held-for-sale (2) (2) (1) — 
Unfunded loan commitments (6) 44  (20) 20 
Long-term debt   —  (3) —