Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v2.4.0.8
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair value Assets and liabilities measured on Recurring basis

Assets and liabilities carried at fair value on a recurring basis at September 30, 2013 and December 31, 2012, including financial instruments which the Corporation accounts for under the fair value option, are summarized in the following tables.

 
September 30, 2013
 
Fair Value Measurements
 
 
 
 
(Dollars in millions)
Level 1 (1)
 
Level 2 (1)
 
Level 3
 
Netting
Adjustments (2)
 
Assets/Liabilities
at Fair Value
Assets
 
 
 
 
 
 
 
 
 
Federal funds sold and securities borrowed or purchased under agreements to resell
$
—

 
$
102,899

 
$
—

 
$
—

 
$
102,899

Trading account assets:
 
 
 
 
 
 
 
 
 
U.S. government and agency securities
46,478

 
12,772

 
—

 
—

 
59,250

Corporate securities, trading loans and other
974

 
29,513

 
3,780

 
—

 
34,267

Equity securities
31,911

 
16,051

 
338

 
—

 
48,300

Non-U.S. sovereign debt
32,134

 
11,603

 
388

 
—

 
44,125

Mortgage trading loans and ABS
—

 
10,744

 
4,520

 
—

 
15,264

Total trading account assets
111,497

 
80,683

 
9,026

 
—

 
201,206

Derivative assets (3)
4,329

 
977,921

 
7,527

 
(936,616
)
 
53,161

AFS debt securities:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and agency securities
514

 
2,457

 
—

 
—

 
2,971

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
Agency
—

 
169,025

 
—

 
—

 
169,025

Agency-collateralized mortgage obligations
—

 
27,335

 
—

 
—

 
27,335

Non-agency residential
—

 
6,929

 
—

 
—

 
6,929

Commercial
—

 
2,827

 
—

 
—

 
2,827

Non-U.S. securities
2,467

 
3,668

 
105

 
—

 
6,240

Corporate/Agency bonds
—

 
1,162

 
8

 
—

 
1,170

Other taxable securities
20

 
9,132

 
4,013

 
—

 
13,165

Tax-exempt securities
—

 
4,417

 
817

 
—

 
5,234

Total AFS debt securities
3,001

 
226,952

 
4,943

 
—

 
234,896

Other debt securities carried at fair value:
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
Agency
—

 
18,626

 
—

 
—

 
18,626

Agency-collateralized mortgage obligations
—

 
563

 
—

 
—

 
563

Commercial
—

 
758

 
—

 
—

 
758

Non-U.S. securities
9,740

 
1,766

 
—

 
—

 
11,506

Total other debt securities carried at fair value
9,740

 
21,713

 
—

 
—

 
31,453

Loans and leases
—

 
7,180

 
3,016

 
—

 
10,196

Mortgage servicing rights
—

 
—

 
5,058

 
—

 
5,058

Loans held-for-sale
—

 
7,304

 
913

 
—

 
8,217

Other assets
14,009

 
2,317

 
1,878

 
—

 
18,204

Total assets
$
142,576

 
$
1,426,969

 
$
32,361

 
$
(936,616
)
 
$
665,290

Liabilities
 
 
 
 
 
 
 
 
 
Interest-bearing deposits in U.S. offices
$
—

 
$
1,916

 
$
—

 
$
—

 
$
1,916

Federal funds purchased and securities loaned or sold under agreements to repurchase
—

 
61,917

 
—

 
—

 
61,917

Trading account liabilities:
 
 
 
 
 
 
 
 
 
U.S. government and agency securities
24,046

 
349

 
—

 
—

 
24,395

Equity securities
23,256

 
3,604

 
—

 
—

 
26,860

Non-U.S. sovereign debt
22,119

 
1,502

 
—

 
—

 
23,621

Corporate securities and other
529

 
7,259

 
49

 
—

 
7,837

Total trading account liabilities
69,950

 
12,714

 
49

 
—

 
82,713

Derivative liabilities (3)
5,167

 
962,675

 
6,759

 
(930,033
)
 
44,568

Short-term borrowings
—

 
2,844

 
—

 
—

 
2,844

Accrued expenses and other liabilities
8,627

 
964

 
31

 
—

 
9,622

Long-term debt
—

 
45,338

 
2,063

 
—

 
47,401

Total liabilities
$
83,744

 
$
1,088,368

 
$
8,902

 
$
(930,033
)
 
$
250,981

(1) 
During the nine months ended September 30, 2013, $500 million of other assets were transferred from Level 1 to Level 2 primarily due to a restriction that became effective for a private equity investment.
(2) 
Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.
(3) 
For further disaggregation of derivative assets and liabilities, see Note 3 – Derivatives.
 
December 31, 2012
 
Fair Value Measurements
 
 
 
 
(Dollars in millions)
Level 1 (1)
 
Level 2 (1)
 
Level 3
 
Netting
Adjustments (2)
 
Assets/Liabilities
at Fair Value
Assets
 
 
 
 
 
 
 
 
 
Federal funds sold and securities borrowed or purchased under agreements to resell
$
—

 
$
98,670

 
$
—

 
$
—

 
$
98,670

Trading account assets:
 
 
 
 
 
 
 
 
 
U.S. government and agency securities
57,655

 
29,319

 
—

 
—

 
86,974

Corporate securities, trading loans and other
1,292

 
32,882

 
3,726

 
—

 
37,900

Equity securities
28,144

 
14,626

 
545

 
—

 
43,315

Non-U.S. sovereign debt
29,254

 
13,139

 
353

 
—

 
42,746

Mortgage trading loans and ABS
—

 
11,905

 
4,935

 
—

 
16,840

Total trading account assets
116,345

 
101,871

 
9,559

 
—

 
227,775

Derivative assets (3)
2,997

 
1,372,398

 
8,073

 
(1,329,971
)
 
53,497

AFS debt securities:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and agency securities
21,514

 
2,958

 
—

 
—

 
24,472

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
Agency
—

 
188,149

 
—

 
—

 
188,149

Agency-collateralized mortgage obligations
—

 
37,538

 
—

 
—

 
37,538

Non-agency residential
—

 
9,494

 
—

 
—

 
9,494

Non-agency commercial
—

 
3,914

 
10

 
—

 
3,924

Non-U.S. securities
2,637

 
2,981

 
—

 
—

 
5,618

Corporate/Agency bonds
—

 
1,358

 
92

 
—

 
1,450

Other taxable securities
20

 
8,180

 
3,928

 
—

 
12,128

Tax-exempt securities
—

 
3,072

 
1,061

 
—

 
4,133

Total AFS debt securities
24,171

 
257,644

 
5,091

 
—

 
286,906

Other debt securities carried at fair value:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and agency securities
491

 
—

 
—

 
—

 
491

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
Agency
—

 
13,073

 
—

 
—

 
13,073

Agency-collateralized mortgage obligations
—

 
929

 
—

 
—

 
929

Non-U.S. securities
9,151

 
300

 
—

 
—

 
9,451

Total other debt securities carried at fair value
9,642

 
14,302

 
—

 
—

 
23,944

Loans and leases
—

 
6,715

 
2,287

 
—

 
9,002

Mortgage servicing rights
—

 
—

 
5,716

 
—

 
5,716

Loans held-for-sale
—

 
8,926

 
2,733

 
—

 
11,659

Other assets
18,535

 
4,826

 
3,129

 
—

 
26,490

Total assets
$
171,690

 
$
1,865,352

 
$
36,588

 
$
(1,329,971
)
 
$
743,659

Liabilities
 
 
 
 
 
 
 
 
 
Interest-bearing deposits in U.S. offices
$
—

 
$
2,262

 
$
—

 
$
—

 
$
2,262

Federal funds purchased and securities loaned or sold under agreements to repurchase
—

 
42,639

 
—

 
—

 
42,639

Trading account liabilities:
 
 
 
 
 
 
 
 
 
U.S. government and agency securities
22,351

 
1,079

 
—

 
—

 
23,430

Equity securities
19,852

 
2,640

 
—

 
—

 
22,492

Non-U.S. sovereign debt
18,875

 
1,369

 
—

 
—

 
20,244

Corporate securities and other
487

 
6,870

 
64

 
—

 
7,421

Total trading account liabilities
61,565

 
11,958

 
64

 
—

 
73,587

Derivative liabilities (3)
2,859

 
1,355,309

 
6,605

 
(1,318,757
)
 
46,016

Short-term borrowings
—

 
4,074

 
—

 
—

 
4,074

Accrued expenses and other liabilities
15,457

 
1,122

 
15

 
—

 
16,594

Long-term debt
—

 
46,860

 
2,301

 
—

 
49,161

Total liabilities
$
79,881

 
$
1,464,224

 
$
8,985

 
$
(1,318,757
)
 
$
234,333

(1) 
During 2012, $2.0 billion and $350 million of assets and liabilities were transferred from Level 1 to Level 2, and $785 million and $40 million of assets and liabilities were transferred from Level 2 to Level 1. Of the asset transfers from Level 1 to Level 2, $940 million was due to a restriction that became effective for a private equity investment during 2012, while $535 million of the transfers from Level 2 to Level 1 was due to the lapse of this restriction during 2012. The remaining transfers were the result of additional information associated with certain equities, derivative contracts and private equity investments.
(2) 
Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.
(3) 
For further disaggregation of derivative assets and liabilities, see Note 3 – Derivatives.
Level 3 Total Realized and Unrealized Gains (Losses) Included in Earnings
The following tables present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and nine months ended September 30, 2013 and 2012, including net realized and unrealized gains (losses) included in earnings and accumulated OCI.

Level 3 – Fair Value Measurements (1)
 
Three Months Ended September 30, 2013
 
 
 
 
Gross
 
 
 
(Dollars in millions)
Balance
July 1
2013
Gains
(Losses) in
Earnings
Gains
(Losses) in
OCI
Purchases
Sales
Issuances
Settlements
Gross
Transfers
into
Level 3
Gross
Transfers
out of
Level 3
Balance September 30
2013
Trading account assets:
 
 
 
 
 
 
 
 
 
 
Corporate securities, trading loans and other
$
2,763

$
133

$
—

$
2,002

$
(892
)
$
22

$
(205
)
$
187

$
(230
)
$
3,780

Equity securities
464

4

—

20

(16
)
—

(100
)
8

(42
)
338

Non-U.S. sovereign debt
401

11

—

3

(14
)
—

(10
)
—

(3
)
388

Mortgage trading loans and ABS
4,685

(7
)
—

350

(443
)
—

(74
)
13

(4
)
4,520

Total trading account assets
8,313

141

—

2,375

(1,365
)
22

(389
)
208

(279
)
9,026

Net derivative assets (2)
1,173

(499
)
—

126

(102
)
—

(147
)
116

101

768

AFS debt securities:
 
 
 
 
 
 
 
 
 
 
Non-U.S. securities
—

5

—

—

—

—

—

100

—

105

Corporate/Agency bonds
8

—

—

—

—

—

—

—

—

8

Other taxable securities
4,157

2

(2
)
215

—

—

(359
)
—

—

4,013

Tax-exempt securities
877

2

1

—

—

—

(63
)
—

—

817

Total AFS debt securities
5,042

9

(1
)
215

—

—

(422
)
100

—

4,943

Loans and leases (3, 4)
1,901

(20
)
—

—

—

1,247

(119
)
12

(5
)
3,016

Mortgage servicing rights (4)
5,827

71

—

—

(729
)
129

(240
)
—

—

5,058

Loans held-for-sale (3)
2,153

40

—

—

—

3

(1,283
)
—

—

913

Other assets (5)
1,700

3

—

1

(35
)
—

(30
)
239

—

1,878

Trading account liabilities – Corporate securities and other
(55
)
1

—

6

(9
)
—

—

—

8

(49
)
Accrued expenses and other liabilities (3)
(230
)
8

—

—

—

—

189

—

2

(31
)
Long-term debt (3)
(1,890
)
(62
)
—

47

—

(47
)
46

(485
)
328

(2,063
)
(1) 
Assets (liabilities). For assets, increase / (decrease) to Level 3 and for liabilities, (increase) / decrease to Level 3.
(2) 
Net derivatives include derivative assets of $7.5 billion and derivative liabilities of $6.8 billion.
(3) 
Amounts represent instruments that are accounted for under the fair value option.
(4) 
Issuances represent loan originations and mortgage servicing rights retained following securitizations or whole loan sales.
(5) 
Other assets is primarily comprised of private equity investments.
Level 3 – Fair Value Measurements (1)
 
Nine Months Ended September 30, 2013
 
 
 
 
Gross
 
 
 
(Dollars in millions)
Balance
January 1
2013
Gains
(Losses) in
Earnings
Gains
(Losses) in
OCI
Purchases
Sales
Issuances
Settlements
Gross
Transfers
into
Level 3
Gross
Transfers
out of
Level 3
Balance September 30
2013
Trading account assets:
 
 
 
 
 
 
 
 
 
 
Corporate securities, trading loans and other
$
3,726

$
256

$
—

$
3,519

$
(2,817
)
$
22

$
(444
)
$
629

$
(1,111
)
$
3,780

Equity securities
545

54

—

77

(160
)
—

(100
)
45

(123
)
338

Non-U.S. sovereign debt
353

56

—

29

(15
)
—

(32
)
1

(4
)
388

Mortgage trading loans and ABS
4,935

165

—

1,981

(1,777
)
—

(775
)
18

(27
)
4,520

Total trading account assets
9,559

531

—

5,606

(4,769
)
22

(1,351
)
693

(1,265
)
9,026

Net derivative assets (2)
1,468

186

—

509

(762
)
—

(1,190
)
(46
)
603

768

AFS debt securities:
 
 
 
 
 
 
 
 
 
 
Commercial MBS
10

—

—

—

—

—

(10
)
—

—

—

Non-U.S. securities
—

5

—

1

(1
)
—

—

100

—

105

Corporate/Agency bonds
92

—

4

—

—

—

—

—

(88
)
8

Other taxable securities
3,928

5

10

825

—

—

(750
)
—

(5
)
4,013

Tax-exempt securities
1,061

3

15

—

—

—

(94
)
—

(168
)
817

Total AFS debt securities
5,091

13

29

826

(1
)
—

(854
)
100

(261
)
4,943

Loans and leases (3, 4)
2,287

80

—

71

—

1,252

(665
)
12

(21
)
3,016

Mortgage servicing rights (4)
5,716

1,531

—

—

(1,774
)
399

(814
)
—

—

5,058

Loans held-for-sale (3)
2,733

20

—

8

(390
)
3

(1,492
)
34

(3
)
913

Other assets (5)
3,129

(324
)
—

43

(218
)
—

(936
)
239

(55
)
1,878

Trading account liabilities – Corporate securities and other
(64
)
7

—

24

(40
)
(5
)
—

(9
)
38

(49
)
Accrued expenses and other liabilities (3)
(15
)
30

—

—

—

(751
)
703

(1
)
3

(31
)
Long-term debt (3)
(2,301
)
41

—

306

(4
)
(149
)
172

(1,017
)
889

(2,063
)
(1) 
Assets (liabilities). For assets, increase / (decrease) to Level 3 and for liabilities, (increase) / decrease to Level 3.
(2) 
Net derivatives include derivative assets of $7.5 billion and derivative liabilities of $6.8 billion.
(3) 
Amounts represent instruments that are accounted for under the fair value option.
(4) 
Issuances represent loan originations and mortgage servicing rights retained following securitizations or whole loan sales.
(5) 
Other assets is primarily comprised of private equity investments.
Level 3 – Fair Value Measurements (1)
 
Three Months Ended September 30, 2012
 
 
 
 
Gross
 
 
 
(Dollars in millions)
Balance
July 1
2012
Gains
(Losses) in
Earnings
Gains
(Losses) in
OCI
Purchases
Sales
Issuances
Settlements
Gross
Transfers
into
Level 3
Gross
Transfers
out of
Level 3
Balance September 30
2012
Trading account assets:
 
 
 
 
 
 
 
 
 
 
Corporate securities, trading loans and other
$
4,459

$
69

$
—

$
750

$
(848
)
$
—

$
(101
)
$
158

$
(314
)
$
4,173

Equity securities
597

15

—

43

(12
)
—

(9
)
5

(66
)
573

Non-U.S. sovereign debt
389

7

—

30

(112
)
—

(4
)
—

(7
)
303

Mortgage trading loans and ABS
4,818

111

—

380

(279
)
—

(124
)
3

(3
)
4,906

Total trading account assets
10,263

202

—

1,203

(1,251
)
—

(238
)
166

(390
)
9,955

Net derivative assets (2)
4,601

(256
)
—

78

(211
)
—

(918
)
(350
)
16

2,960

AFS debt securities:
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
Non-agency residential
1

—

—

—

—

—

—

—

—

1

Non-agency commercial
24

—

—

—

—

—

(1
)
—

—

23

Corporate/Agency bonds
93

—

—

—

—

—

—

—

—

93

Other taxable securities
4,558

—

28

600

—

—

(65
)
—

—

5,121

Tax-exempt securities
1,140

7

(7
)
—

(63
)
—

(16
)
—

—

1,061

Total AFS debt securities
5,816

7

21

600

(63
)
—

(82
)
—

—

6,299

Loans and leases (3, 4)
1,635

69

—

317

(150
)
—

(65
)
450

(3
)
2,253

Mortgage servicing rights (4)
5,708

(360
)
—

—

(15
)
100

(346
)
—

—

5,087

Loans held-for-sale (3)
2,741

86

—

596

(19
)
—

(104
)
13

—

3,313

Other assets (5)
3,136

24

—

40

(183
)
—

(39
)
—

—

2,978

Trading account liabilities – Corporate securities and other
(143
)
4

—

17

(45
)
—

—

—

2

(165
)
Short-term borrowings (3)
—

—

—

—

—

(232
)
—

—

—

(232
)
Accrued expenses and other liabilities (3)
(2
)
—

—

—

—

(7
)
—

—

—

(9
)
Long-term debt (3)
(2,388
)
(91
)
—

70

—

(115
)
391

(531
)
374

(2,290
)
(1) 
Assets (liabilities). For assets, increase / (decrease) to Level 3 and for liabilities, (increase) / decrease to Level 3.
(2) 
Net derivatives include derivative assets of $10.0 billion and derivative liabilities of $7.0 billion.
(3) 
Amounts represent instruments that are accounted for under the fair value option.
(4) 
Issuances represent loan originations and mortgage servicing rights retained following securitizations or whole loan sales.
(5) 
Other assets is primarily comprised of net monoline exposure to a single counterparty and private equity investments.
Level 3 – Fair Value Measurements (1)
 
Nine Months Ended September 30, 2012
 
 
 
 
Gross
 
 
 
(Dollars in millions)
Balance
January 1
2012
Gains
(Losses) in
Earnings
Gains
(Losses) in
OCI
Purchases
Sales
Issuances
Settlements
Gross
Transfers
into
Level 3
Gross
Transfers
out of
Level 3
Balance September 30
2012
Trading account assets:
 
 
 
 
 
 
 
 
 
 
Corporate securities, trading loans and other (2)
$
6,880

$
192

$
—

$
1,995

$
(3,498
)
$
—

$
(846
)
$
315

$
(865
)
$
4,173

Equity securities
544

24

—

167

(159
)
—

27

38

(68
)
573

Non-U.S. sovereign debt
342

5

—

338

(359
)
—

(4
)
—

(19
)
303

Mortgage trading loans and ABS (2)
3,689

194

—

1,747

(915
)
—

(386
)
745

(168
)
4,906

Total trading account assets
11,455

415

—

4,247

(4,931
)
—

(1,209
)
1,098

(1,120
)
9,955

Net derivative assets (3)
5,866

17

—

791

(833
)
—

(2,228
)
(283
)
(370
)
2,960

AFS debt securities:
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
Agency
37

—

—

—

—

—

(4
)
—

(33
)
—

Non-agency residential
860

(69
)
19

—

(305
)
—

(2
)
—

(502
)
1

Non-agency commercial
40

—

—

—

(11
)
—

(6
)
—

—

23

Corporate/Agency bonds
162

(2
)
—

(2
)
—

—

(38
)
—

(27
)
93

Other taxable securities
4,265

7

51

1,558

—

—

(551
)
—

(209
)
5,121

Tax-exempt securities
2,648

61

18

—

(132
)
—

(1,534
)
—

—

1,061

Total AFS debt securities
8,012

(3
)
88

1,556

(448
)
—

(2,135
)
—

(771
)
6,299

Loans and leases (4, 5)
2,744

284

—

317

(1,308
)
—

(229
)
450

(5
)
2,253

Mortgage servicing rights (5)
7,378

(1,297
)
—

—

(113
)
268

(1,149
)
—

—

5,087

Loans held-for-sale (4)
3,387

265

—

606

(40
)
—

(330
)
57

(632
)
3,313

Other assets (6)
4,235

(110
)
—

89

(950
)
—

(275
)
—

(11
)
2,978

Trading account liabilities – Corporate securities and other
(114
)
4

—

72

(114
)
—

—

(65
)
52

(165
)
Short-term borrowings (4)
—

—

—

—

—

(232
)
—

—

—

(232
)
Accrued expenses and other liabilities (4)
(14
)
4

—

5

—

(7
)
—

—

3

(9
)
Long-term debt (4)
(2,943
)
(239
)
—

188

(33
)
(253
)
1,099

(1,569
)
1,460

(2,290
)

(1) 
Assets (liabilities). For assets, increase / (decrease) to Level 3 and for liabilities, (increase) / decrease to Level 3.
(2) 
During the nine months ended September 30, 2012, approximately $900 million was reclassified from Trading account assets - Corporate securities, trading loans and other to Trading account assets - Mortgage trading loans and ABS. In the table above, this reclassification is presented as a sale of Trading account assets - Corporate securities, trading loans and other and a purchase of Trading account assets - Mortgage trading loans and ABS.
(3) 
Net derivatives include derivative assets of $10.0 billion and derivative liabilities of $7.0 billion.
(4) 
Amounts represent instruments that are accounted for under the fair value option.
(5) 
Issuances represent loan originations and mortgage servicing rights retained following securitizations or whole loan sales.
(6) 
Other assets is primarily comprised of net monoline exposure to a single counterparty and private equity investments.

Level 3 Changes in Unrealized Gains (Losses) Relating to Assets and Liabilities Still Held at Reporting Date
The following tables summarize changes in unrealized gains (losses) recorded in earnings during the three and nine months ended September 30, 2013 and 2012 for Level 3 assets and liabilities that were still held at September 30, 2013 and 2012. These amounts include changes in fair value on loans, LHFS, loan commitments and structured liabilities that are accounted for under the fair value option.

Level 3 – Changes in Unrealized Gains (Losses) Relating to Assets and Liabilities Still Held at Reporting Date
 
Three Months Ended September 30, 2013
(Dollars in millions)
Equity
Investment
Income
(Loss)
 
Trading
Account
Profits
(Losses)
 
Mortgage
Banking
Income
(Loss) (1)
 
Other
Income
(Loss)
 
Total
Trading account assets:
 
 
 
 
 
 
 
 
 
Corporate securities, trading loans and other
$
—

 
$
(6
)
 
$
—

 
$
—

 
$
(6
)
Equity securities
—

 
4

 
—

 
—

 
4

Non-U.S. sovereign debt
—

 
5

 
—

 
—

 
5

Mortgage trading loans and ABS
—

 
(55
)
 
—

 
—

 
(55
)
Total trading account assets
—

 
(52
)
 
—

 
—

 
(52
)
Net derivative assets
—

 
(754
)
 
91

 
—

 
(663
)
Loans and leases (2)
—

 
—

 
(35
)
 
27

 
(8
)
Mortgage servicing rights
—

 
—

 
(14
)
 
—

 
(14
)
Loans held-for-sale (2)
—

 
—

 
—

 
35

 
35

Other assets
17

 
—

 
11

 
(13
)
 
15

Long-term debt (2)
—

 
(31
)
 
—

 
(31
)
 
(62
)
Total
$
17

 
$
(837
)
 
$
53

 
$
18

 
$
(749
)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2012
Trading account assets:
 
 
 
 
 
 
 
 
 
Corporate securities, trading loans and other
$
—

 
$
36

 
$
—

 
$
—

 
$
36

Equity securities
—

 
13

 
—

 
—

 
13

Non-U.S. sovereign debt
—

 
8

 
—

 
—

 
8

Mortgage trading loans and ABS
—

 
89

 
—

 
—

 
89

Total trading account assets
—

 
146

 
—

 
—

 
146

Net derivative assets
—

 
(1,202
)
 
566

 
—

 
(636
)
Loans and leases (2)
—

 
—

 
—

 
76

 
76

Mortgage servicing rights
—

 
—

 
(552
)
 
—

 
(552
)
Loans held-for-sale (2)
—

 
—

 
15

 
68

 
83

Other assets
115

 
—

 
(14
)
 
4

 
105

Accrued expenses and other liabilities (2)
—

 
—

 
—

 
(2
)
 
(2
)
Long-term debt (2)
—

 
(46
)
 
—

 
(46
)
 
(92
)
Total
$
115

 
$
(1,102
)
 
$
15

 
$
100

 
$
(872
)
(1) 
Mortgage banking income does not reflect the impact of Level 1 and Level 2 hedges on MSRs.
(2) 
Amounts represent instruments that are accounted for under the fair value option.
Level 3 – Changes in Unrealized Gains (Losses) Relating to Assets and Liabilities Still Held at Reporting Date
 
Nine Months Ended September 30, 2013
(Dollars in millions)
Equity
Investment
Income
(Loss)
 
Trading
Account
Profits
(Losses)
 
Mortgage
Banking
Income
(Loss) (1)
 
Other
Income
(Loss)
 
Total
Trading account assets:
 
 
 
 
 
 
 
 
 
Corporate securities, trading loans and other
$
—

 
$
48

 
$
—

 
$
—

 
$
48

Equity securities
—

 
26

 
—

 
—

 
26

Non-U.S. sovereign debt
—

 
70

 
—

 
—

 
70

Mortgage trading loans and ABS
—

 
5

 
—

 
—

 
5

Total trading account assets
—

 
149

 
—

 
—

 
149

Net derivative assets
—

 
(853
)
 
92

 
—

 
(761
)
Loans and leases (2)
—

 
—

 
(35
)
 
133

 
98

Mortgage servicing rights
—

 
—