Fair Value Disclosures (Tables)

v2.4.0.6

Fair Value Disclosures (Tables)	9 Months Ended
	Sep. 30, 2012
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	(dollars in millions)   Fair Value Measurements on a Recurring Basis   as of December 31, 2011   Level 1   Level 2   Level 3   Netting Adj(1)   Total Assets:                   Securities segregated for regulatory purposes or deposited with clearing organizations:                   Corporate debt $ —   $ 295   $ —   $ —   $ 295 Non-U.S. governments and agencies —   1,757   —   —   1,757 U.S. Government and agencies 1,796   740   —   —   2,536 Total securities segregated for regulatory purposes or deposited with clearing organizations 1,796   2,792   —   —   4,588 Receivables under resale agreements —   85,652   —   —   85,652 Receivables under securities borrowed transactions —   259   —   —   259 Trading assets, excluding derivative contracts:                   Equities 14,962   5,860   179   —   21,001 Convertible debentures —   4,519   99   —   4,618 Non-U.S. governments and agencies 28,026   1,871   342   —   30,239 Corporate debt —   13,027   3,962   —   16,989 Preferred stock —   89   227   —   316 Mortgages, mortgage-backed and asset-backed —   5,055   3,199   —   8,254 U.S. Government and agencies 22,183   20,820   —   —   43,003 Municipals and money markets 1,067   9,755   2,047   —   12,869 Physical commodities and other —   175   —   —   175  Total trading assets, excluding derivative contracts 66,238   61,171   10,055   —   137,464   Derivative contracts(2) 1,810   722,108   10,110   (699,015 )   35,013 Investment securities available-for-sale:                   U.S. Government and agencies 398   —   —   —   398 Securities, mortgage-backed and asset backed                        Non-agency MBS —   249   —   —   249      Corporate ABS —   —   47   —   47 Total investment securities available-for-sale 398   249   47   —   694 Investment securities non-qualifying 2,624   328   574   —   3,526 Total investment securities 3,022   577   621   —   4,220 Securities received as collateral 13,058   658   —   —   13,716 Loans, notes and mortgages —   596   1,726   —   2,322 Other assets —   —   1,349   —   1,349 Liabilities:                   Payables under repurchase agreements —   34,235   —   —   34,235 Short-term borrowings —   5,908   —   —   5,908 Trading liabilities, excluding derivative contracts:                   Equities 10,868   1,230   —   —   12,098 Convertible debentures —   125   —   —   125 Non-U.S. governments and agencies 15,911   643   —   —   16,554 Corporate debt —   6,927   52   —   6,979 Preferred stock —   89   16   —   105 U.S. Government and agencies 15,603   1,373   —   —   16,976 Municipals, money markets and other 549   51   45   —   645 Total trading liabilities, excluding derivative contracts 42,931   10,438   113   —   53,482 Derivative contracts(2) 1,419   724,713   5,615   (705,508 )   26,239 Obligation to return securities received as collateral 13,058   658   —   —   13,716 Other payables — interest and other —   163   10   —   173 Long-term borrowings —   28,139   2,186   —   30,325                     (1) Represents counterparty and cash collateral netting. (2) Refer to Note 6 for product level detail. T The following tables present Merrill Lynch’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2012 and December 31, 2011, respectively. (dollars in millions)   Fair Value Measurements on a Recurring Basis   as of September 30, 2012   Level 1   Level 2   Level 3   Netting Adj(1)   Total Assets:                   Securities segregated for regulatory purposes or deposited with clearing organizations:                   Non-U.S. governments and agencies $ 431   $ 1,729   $ —   $ —   $ 2,160 U.S. Government and agencies 3,347   251   —   —   3,598 Total securities segregated for regulatory purposes or deposited with clearing organizations 3,778   1,980   —   —   5,758 Receivables under resale agreements —   99,587   —   —   99,587 Receivables under securities borrowed transactions —   1,258   —   —   1,258 Trading assets, excluding derivative contracts:                   Equities 21,821   10,719   120   —   32,660 Convertible debentures —   4,457   33   —   4,490 Non-U.S. governments and agencies 35,110   3,392   303   —   38,805 Corporate debt —   13,895   2,002   —   15,897 Preferred stock —   96   267   —   363 Mortgages, mortgage-backed and asset-backed —   5,231   4,738   —   9,969 U.S. Government and agencies 21,920   23,942   —   —   45,862 Municipals and money markets 1,137   8,627   1,510   —   11,274 Physical commodities and other —   450   —   —   450 Total trading assets, excluding derivative contracts 79,988   70,809   8,973   —   159,770 Derivative contracts(2) 2,448   680,484   6,875   (663,186 )   26,621 Investment securities available-for-sale:                   U.S. Government and agencies 405   —   —   —   405 Securities, mortgage-backed and asset backed                        Non-agency MBS —   45   —   —   45      Corporate ABS —   364   8   —   372 Total investment securities available-for-sale 405   409   8   —   822 Investment securities non-qualifying 2,693   711   354   —   3,758 Total investment securities 3,098   1,120   362   —   4,580 Securities received as collateral 14,267   464   —   —   14,731 Loans, notes and mortgages —   1,001   1,679   —   2,680    Other assets —   —   1,263   —   1,263 Liabilities:                   Payables under repurchase agreements —   53,635   —   —   53,635 Short-term borrowings —   3,309   —   —   3,309 Trading liabilities, excluding derivative contracts:                   Equities 17,041   2,305   —   —   19,346 Convertible debentures —   242   —   —   242 Non-U.S. governments and agencies 20,294   1,060   —   —   21,354 Corporate debt —   9,019   20   —   9,039 Preferred stock —   154   —   —   154 U.S. Government and agencies 17,401   596   —   —   17,997 Municipals, money markets and other 403   74   51   —   528 Total trading liabilities, excluding derivative contracts 55,139   13,450   71   —   68,660  Derivative contracts(2) 2,062   681,830   4,429   (665,750 )   22,571 Obligation to return securities received as collateral 14,267   464   —   —   14,731 Other payables — interest and other —   80   9   —   89 Long-term borrowings —   30,044   1,455   —   31,499                     D
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings	(dollars in millions)                                                     Level 3 Financial Assets and Liabilities Three Months Ended September 30, 2011       Total Realized and Unrealized Gains or (Losses) included in Income   Total Realized and Unrealized Gains or (Losses) included in Income   Unrealized Gains or (Losses) to OCI   Sales   Purchases   Issuances   Settlements               Beginning Balance   Principal Transactions   Other Revenue   Interest               Transfers In   Transfers Out   Ending Balance Assets:                                                   Trading assets, excluding derivative contracts:                                                   Equities 163   (9 )   —   —   (9 )   —   (73 )   73   —   (1 )   11   —   164 Convertible debentures 152   —   —   —   —   —   (13 )   9   —   —   18   (12 )   154 Non-U.S. governments and agencies 391   (17 )   —   —   (17 )   —   (3 )   3   —   —   1   —   375 Corporate debt 3,846   (199 )   —   —   (199 )   —   (433 )   925   —   (238 )   516   (103 )   4,314 Preferred stock 307   1   —   —   1   —   (17 )   30   —   (24 )   —   —   297 Mortgages, mortgage-backed and asset-backed 4,848   (98 )   —   —   (98 )   —   (1,281 )   83   —   (51 )   —   (281 )   3,220 Municipals and money markets 2,486   22   —   —   22   —   (158 )   52   —   (189 )   54   (1 )   2,266 Total trading assets, excluding derivative contracts 12,193   (300 )   —   —   (300 )   —   (1,978 )   1,175   —   (503 )   600   (397 )   10,790 Derivative contracts, net 5,101   988   —   —   988   —   (114 )   109   —   (1,912 )   285   (4 )   4,453 Investment securities available-for-sale :                                                   Mortgage-backed securities — agency CMOs 55   —   —   —   —   —   —   —   —   —   —   —   55 Mortgage-backed securities — non-agency MBSs 96   —   (5 )   —   (5 )   (13 )   (1 )   9   —   —   —   —   86 Corporate ABS 86   —   (6 )   —   (6 )   —   —   162   —   —   —   —   242 Total investment securities available-for-sale 237   —   (11 )   —   (11 )   (13 )   (1 )   171   —   —   —   —   383 Investment securities non-qualifying 1,571   —   106   —   106   —   (286 )   6   —   (109 )   —   —   1,288 Total investment securities 1,808   —   95   —   95   (13 )   (287 )   177   —   (109 )   —   —   1,671 Loans, notes and mortgages 1,940   —   (61 )   8   (53 )   —   (154 )   2   450   (20 )   —   (326 )   1,839     Other Assets   —   —   —   —   —   —   1,578   —   —   —   —   1,578 Liabilities:                                                   Trading liabilities, excluding derivative contracts:                                                   Corporate debt 28   1   —   —   1   —   12   (10 )   —   —   24   —   53 Preferred stock 23   2   —   —   2   —   —   (7 )   —   —   —   —   14 Municipals, money markets and other 3   (1 )   —   —   (1 )   —   —   (1 )   —   —   —   —   3 Total trading liabilities, excluding derivative contracts 54   2   —   —   2   —   12   (18 )   —   —   24   —   70 Other payables - interest and other 108   —   1   —   1   —   —   —   —   —   —   (100 )   7 Long-term borrowings 2,532   344   18   —   362   —   17   (120 )   164   (173 )   326   (240 )   2,144                                                     Net gains in principal transactions related to derivative contracts, net were primarily due to credit spreads widening on short CDS baskets. Sales of mortgages, mortgage-backed and asset-backed securities primarily relates to the sale of CDO and CLO positions. Purchases of corporate debt primarily relates to purchases of non-investment grade and distressed corporate loans and bonds. The purchases for other assets and settlements for derivative contracts, net reflect the reclassification of approximately $1.6 billion of net monoline exposure from derivative contracts (assets) to other assets because of the inherent default risk and given that these contracts no longer provide a hedge benefit. Transfers in for corporate debt are primarily due to decreased observability (i.e., decreased market liquidity) for certain corporate loans and bonds. Transfers out for mortgages, mortgage-backed and asset-backed securities primarily relates to increased observability (i.e., trading activity) for certain CMBS positions. Transfers in for derivative contracts, net are primarily due to certain equity derivative positions with unobservable correlation. Transfers out for loans, notes and mortgages and other payables - interest and other primarily relates to increased observability (i.e., liquid comparables) for certain corporate loans and unfunded loan commitments. Transfers in and out related to long-term borrowings are primarily due to changes in the impact of unobservable inputs on the value of certain equity-linked structured notes. (dollars in millions)   Level 3 Financial Assets and Liabilities Nine Months Ended September 30, 2011       Total Realized and Unrealized Gains or (Losses) included in Income   Total Realized and Unrealized Gains or (Losses) included in Income   Unrealized Gains to OCI   Sales   Purchases   Issuances   Settlements               Beginning Balance   Principal Transactions   Other Revenue   Interest               Transfers In   Transfers Out   Ending Balance Assets:                                                   Trading assets, excluding derivative contracts:                                                   Equities $ 170   $ 26   $ —   $ —   $ 26   $ —   $ (159 )   $ 181   $ —   $ (64 )   $ 11   $ (1 )   $ 164 Convertible debentures —   7   —   —   7   —   (97 )   238   —   —   18   (12 )   154 Non-U.S. governments and agencies 243   68   —   —   68   —   (18 )   125   —   (3 )   4   (44 )   375 Corporate debt 4,605   128   —   —   128   —   (2,529 )   2,043   —   (346 )   763   (350 )   4,314 Preferred stock 287   29   —   —   29   —   (123 )   60   —   (76 )   120   —   297 Mortgages, mortgage-backed and asset-backed 5,747   286   —   —   286   —   (3,689 )   1,596   —   (90 )   1   (631 )   3,220 Municipals and money markets 2,327   53   —   —   53   —   (1,810 )   1,936   —   (361 )   126   (5 )   2,266 Total trading assets, excluding derivative contracts 13,379   597   —   —   597   —   (8,425 )   6,179   —   (940 )   1,043   (1,043 )   10,790 Derivative contracts, net 6,368   1,015   —   —   1,015   —   (796 )   742   —   (2,774 )   584   (686 )   4,453 Investment securities available-for-sale :                                                   Mortgage-backed securities — agency CMOs —   —   —   —   —   —   —   56   —   (1 )   —   —   55 Mortgage-backed securities — non-agency MBSs 213   —   (20 )   —   (20 )   (35 )   (83 )   11   —   —   —   —   86 Corporate ABS —   —   (6 )   —   (6 )   —   —   248   —   —   —   —   242 Total investment securities available-for-sale 213   —   (26 )   —   (26 )   (35 )   (83 )   315   —   (1 )   —   —   383 Investment securities non-qualifying 3,394   —   451   —   451   —   (1,138 )   52   —   (298 )   375   (1,548 )   1,288 Total investment securities 3,607   —   425   —   425   (35 )   (1,221 )   367   —   (299 )   375   (1,548 )   1,671 Loans, notes and mortgages 1,891   —   168   25   193   —   (650 )   146   665   (175 )   135   (366 )   1,839 Other Assets —   —   —   —   —   —   —   1,578   —   —   —   —   1,578 Liabilities:                                                   Trading liabilities, excluding derivative contracts:                                                   Corporate debt —   —   —   —   —   —   84   (55 )   —   —   24   —   53 Preferred stock —   2   —   —   2   —   23   (7 )   —   —   —   —   14 Municipals, money markets and other —   (1 )   —   —   (1 )   —   22   (20 )   —   —   —   —   3 Total trading liabilities, excluding derivative contracts —   1   —   —   1   —   129   (82 )   —   —   24   —   70 Other payables - interest and other 126   —   26   —   26   —   4   (6 )   9   —   —   (100 )   7 Long-term borrowings 2,396   242   3   —   245   —   72   (232 )   412   (499 )   855   (615 )   2,144                                                     The following tables provide a summary of changes in Merrill Lynch’s Level 3 financial assets and liabilities for the three and nine months ended September 30, 2012 and September 30, 2011. (dollars in millions)                                                     Level 3 Financial Assets and Liabilities Three Months Ended September 30, 2012       Total Realized and Unrealized Gains or (Losses) included in Income   Total Realized and Unrealized Gains or (Losses) included in Income   Unrealized Gains or (Losses) to OCI   Sales   Purchases   Issuances   Settlements               Beginning Balance   Principal Transactions   Other Revenue   Interest               Transfers In   Transfers Out   Ending Balance Assets:                                                   Trading assets, excluding derivative contracts:                                                   Equities $ 185   $ (5 )   $ —   $ —   $ (5 )   $ —   (2 )   16   $ —   (9 )   $ 1   $ (66 )   $ 120 Convertible debentures 34   1   —   —   1   —   (3 )   —   —   —   3   (2 )   33 Non-U.S. governments and agencies 389   7   —   —   7   —   (112 )   29   —   (4 )   1   (7 )   303 Corporate debt 2,106   45   —   —   45   —   (236 )   350   —   (103 )   100   (260 )   2,002 Preferred stock 228   18   —   —   18   —   (10 )   27   —   —   4   —   267 Mortgages, mortgage-backed and asset-backed 4,578   106   —   —   106   —   (228 )   380   —   (97 )   —   (1 )   4,738 Municipals and money markets 1,730   10   —   —   10   —   (361 )   150   —   (15 )   —   (4 )   1,510 Total trading assets, excluding derivative contracts 9,250   182   —   —   182   —   (952 )   952   —   (228 )   109   (340 )   8,973 Derivative contracts, net 3,414   (766 )   —   —   (766 )   —   (41 )   56   —   (24 )   (212 )   19   2,446 Investment securities available-for-sale :                                                   Corporate ABS 8   —   —   —   —   —   —   —   —   —   —   —   8 Total investment securities available-for-sale 8   —   —   —   —   —   —   —   —   —   —   —   8 Investment securities non-qualifying 333   —   (1 )   —   (1 )   —   (6 )   41   —   (13 )   —   —   354 Total investment securities 341   —   (1 )   —   (1 )   —   (6 )   41   —   (13 )   —   —   362 Loans, notes and mortgages 1,776   —   66   8   74   —   (150 )   —   —   (21 )   —   —   1,679 Other assets 1,263   —   —   —   —   —   —   —   —   —   —   —   1,263 Liabilities:                                                   Trading liabilities, excluding derivative contracts:                                                   Corporate debt 9   2   —   —   2   —   22   (8 )   —   —   1   (2 )   20 Preferred stock 9   —   —   —   —   —   —   (9 )   —   —   —   —   — Municipals, money markets and other 44   2   —   —   2   —   9   —   —   —   —   —   51 Total trading liabilities, excluding derivative contracts 62   4   —   —   4   —   31   (17 )   —   —   1   (2 )   71 Other payables - interest and other 2   —   (1 )   —   (1 )   —   —     5   —   1   —   9 Long-term borrowings 1,469   (45 )   (3 )   —   (48 )   —   —   (11 )   16   (109 )   308   (266 )   1,455                                                     Transfers out for equities primarily relate to increased market liquidity and price observability for certain equity positions. Transfers in and out for corporate debt primarily relate to changes in market liquidity for certain corporate loans. Transfers in for derivative contracts, net primarily relate to decreased price observability for certain long-dated equity derivative liabilities due to a lack of independent pricing. Transfers in and out related to long-term borrowings are primarily due to changes in the impact of unobservable inputs on the value of certain equity-linked structured notes. (dollars in millions)                                                     Level 3 Financial Assets and Liabilities Nine Months Ended September 30, 2012       Total Realized and Unrealized Gains or (Losses) included in Income   Total Realized and Unrealized Gains or (Losses) included in Income   Unrealized Gains or (Losses) to OCI   Sales   Purchases   Issuances   Settlements               Beginning Balance   Principal Transactions   Other Revenue   Interest               Transfers In   Transfers Out   Ending Balance Assets:                                                   Trading assets, excluding derivative contracts:                                                   Equities $ 179   $ (10 )   $ —   $ —   $ (10 )   $ —   (54 )   58   $ —   (18 )   $ 33   $ (68 )   $ 120 Convertible debentures 99   1   —   —   1   —   (56 )   —   —   —   8   (19 )   33 Non-U.S. governments and agencies 342   5   —   —   5   —   (357 )   337   —   (5 )   1   (20 )   303 Corporate debt(1) 3,962   136   —   —   136   —   (1,991 )   907   —   (542 )   248   (718 )   2,002 Preferred stock 227   29   —   —   29   —   (102 )   109   —   (1 )   5   —   267 Mortgages, mortgage-backed and asset-backed(1) 3,199   158   —   —   158   —   (621 )   1,710   —   (330 )   736   (114 )   4,738 Municipals and money markets 2,047   19   —   —   19   —   (680 )   357   —   (206 )   —   (27 )   1,510 Total trading assets, excluding derivative contracts 10,055   338   —   —   338   —   (3,861 )   3,478   —   (1,102 )   1,031   (966 )   8,973 Derivative contracts, net 4,495   (1,308 )   —   —   (1,308 )   —   (420 )   616   —   (370 )   (191 )   (376 )   2,446 Investment securities available-for-sale :                                                   Corporate ABS 47   —   (2 )   —   (2 )   —   —   —   —   (37 )   —   —   8 Total investment securities available-for-sale 47   —   (2 )   —   (2 )   —   —   —   —   (37 )   —   —   8 Investment securities non-qualifying 574   —   (7 )   —   (7 )   —   (96 )   50   —   (167 )   —   —   354 Total investment securities 621   —   (9 )   —   (9 )   —   (96 )   50   —   (204 )   —   —   362 Loans, notes and mortgages 1,726   —   180   23   203   —   (166 )   7   —   (91 )   —   —   1,679 Other assets 1,349   —   (86 )   —   (86 )   —   —   —   —   —   —   —   1,263 Liabilities:                                                   Trading liabilities, excluding derivative contracts:                                                   Corporate debt 52   2   —   —   2   —   57   (52 )   —   1   3   (39 )   20 Preferred stock 16   (2 )   —   —   (2 )   —   9   (14 )   —   —   —   (13 )   — Municipals, money markets and other 45   7   —   —   7   —   18   (6 )   1   —   —   —   51 Total trading liabilities, excluding derivative contracts 113   7   —   —   7   —   84   (72 )   1   1   3   (52 )   71 Other payables - interest and other 10   —   3   —   3   —   —   (1 )   5   —   1   (3 )   9 Long-term borrowings 2,186   (104 )   (38 )   —   (142 )   —   33   (109 )   97   (738 )   749   (905 )   1,455                                                     (1) During the nine months ended September 30, 2012, approximately $900 million was reclassified from Corporate debt to Mortgages, mortgage-backed and asset-backed.  In the table above, this reclassification is presented as a sale of Corporate debt and as a purchase of Mortgages, mortgage-backed and asset-backed trading assets.
Fair Value, Measured on Recurring Basis, Unrecognized Gain (Loss) Included in Earnings on Assets and Liabilities related to Level 3 Still Held	The following tables provide the portion of gains or losses included in income for the three and nine months ended September 30, 2012 and September 30, 2011 attributable to unrealized gains or losses relating to those Level 3 assets and liabilities held at September 30, 2012 and September 30, 2011, respectively. (dollars in millions)   Unrealized Gains or (Losses) for Level 3 Assets and Liabilities Still Held   Three Months ended September 30, 2012   Nine Months ended September 30, 2012   Principal Transactions   Other Revenue   Interest   Total   Principal Transactions   Other Revenue   Interest   Total Assets:                               Trading assets, excluding derivative contracts:                               Equities $ (6 )   $ —   $ —   $ (6 )   $ (4 )   $ —   $ —   $ (4 ) Convertible debentures 1   —   —   1   1   —   —   1 Non-U.S. governments and agencies 8   —   —   8   16   —   —   16 Corporate debt 27   —   —   27   (8 )   —   —   (8 ) Preferred stock 17   —   —   17   23   —   —   23 Mortgages, mortgage-backed and asset-backed 88   —   —   88   95   —   —   95 Municipals and money markets 1   —   —   1   —   —   —   — Total trading assets, excluding derivative contracts 136   —   —   136   123   —   —   123 Derivative contracts, net (764 )   —   —   (764 )   (1,253 )   —   —   (1,253 ) Investment securities non-qualifying —   (1 )   —   (1 )   —   (28 )   —   (28 ) Loans, notes and mortgages —   66   —   66   —   129   —   129 Other assets —   —   —   —   —   (86 )   —   (86 ) Liabilities:                               Trading liabilities, excluding derivative contracts:                               Municipals, money markets and other 1   —   —   1   3   —   —   3 Total trading liabilities, excluding derivative contracts 1   —   —   1   3   —   —   3 Other payables — interest and other —   (2 )   —   (2 )   —   —   —   — Long-term borrowings (46 )   (3 )   —   (49 )   (105 )   (37 )   —   (142 ) (dollars in millions)   Unrealized Gains or (Losses) for Level 3 Assets and Liabilities Still Held   Three Months ended September 30, 2011   Nine Months ended September 30, 2011   Principal Transactions   Other Revenue   Interest   Total   Principal Transactions   Other Revenue   Interest   Total Assets:                               Trading assets, excluding derivative contracts:                               Equities $ (9 )   $ —   $ —   $ (9 )   $ (55 )   $ —   $ —   $ (55 ) Convertible debentures —   —   —   —   3   —   —   3 Non-U.S. governments and agencies 16   —   —   16   86   —   —   86 Corporate debt (206 )   —   —   (206 )   (52 )   —   —   (52 ) Preferred stock (11 )   —   —   (11 )   12   —   —   12 Mortgages, mortgage-backed and asset-backed (116 )   —   —   (116 )   85   —   —   85 Municipals and money markets 1   —   —   1   17   —   —   17 Total trading assets, excluding derivative contracts (325 )   —   —   (325 )   96   —   —   96 Derivative contracts, net 875   —   —   875   1,144   —   —   1,144 Investment securities available-for-sale:                               Mortgage-backed securities - non-agency MBSs —   (5 )   —   (5 )   —   (30 )   —   (30 ) Corporate/Agency bonds —   (6 )   —   (6 )   —   (6 )   —   (6 ) Total investment securities available-for-sale —   (11 )   —   (11 )   —   (36 )   —   (36 ) Investment securities non-qualifying —   (54 )   —   (54 )   —   38   —   38 Total investment securities —   (65 )   —   (65 )   —   2   —   2 Loans, notes and mortgages —   (61 )   —   (61 )   —   124   —   124                                 Liabilities:                               Trading liabilities, excluding derivative contracts:                               Corporate debt 1   —   —   1   —   —   —   — Preferred Stock 2   —   —   2   2   —   —   2 Municipals, money markets and other (1 )   —   —   (1 )   (1 )   —   —   (1 ) Total trading liabilities, excluding derivative contracts 2   —   —   2   1   —   —   1 Other payables — interest and other —   (1 )   —   (1 )   —   1   —   1 Long-term borrowings 331   18   —   349   229   (9 )   —   220
Fair Value Inputs, Assets and Liabilities, Quantitative Information	The following tables present information about significant unobservable inputs related to material components of Merrill Lynch's Level 3 financial assets and liabilities as of September 30, 2012. Quantitative Information about Level 3 Fair Value Measurements (dollars in millions)     Inputs   Financial Instrument Fair Value Valuation Techniques Unobservable Inputs Ranges of Inputs Loans and Securities   Instruments backed by residential real estate assets $ 1,699 Discounted Cash Flow Yield 5% to 25% Loans, notes and mortgages 1,015 Prepayment Speeds (CPR) 3% to 10% Trading assets - Mortgages, mortgage-backed and asset-backed 684 Default Rates (CDR) 1% to 3%   Loss Severities 35% to 45% Instruments backed by commercial real estate assets $ 1,723 Discounted Cash Flow Yield 5% to 7% Loans, notes and mortgages 214 Loss Severities 31% to 100% Other assets 1,263 Trading assets - Mortgages, mortgage-backed and asset-backed 246 Commercial loans, debt securities and other $ 6,260 Discounted Cash Flow, Market Comparables Yield 0% to 20% Loans, notes and mortgages 450 Enterprise Value/EBITDA multiple 3x to 7x Trading assets - Mortgages, mortgage-backed and asset-backed 3,808 Prepayment Speed 5% to 25% Trading assets - Corporate debt 2,002 Default Rates 1% to 5%   Loss Severity 25% to 40% Auction Rate Securities Discounted Cash Flow, Market Comparables Projected tender price / re-financing level 50% to 100% Trading assets - Municipals and money markets $ 1,510         Long-term borrowings (structured notes)         Long-term borrowings $ 1,455 Industry Standard Derivative Pricing (1) Equity Correlation 30% to 97%   Long- Dated Volatilities 20% to 70% (1) Includes models such as Monte Carlo simulation and Black-Scholes. CPR = Constant Prepayment Rate CDR = Constant Default Rate Quantitative Information about Level 3 Fair Value Measurements (dollars in millions)   Inputs Financial Instrument Fair Value Valuation Techniques Unobservable Inputs Ranges of Inputs Net Derivative Contracts        Credit derivatives 2,655 Discounted Cash Flow, Stochastic Recovery Correlation Model Yield 2% to 25%   Credit spreads 71bps to 600bps   Upfront points 30 to 99   Spread to index -1,874bps to 2,708bps   Credit correlation 30% to 80%   Prepayment speed (CPR) 5% to 25%   Default rates (CDR) 1% to 5%   Loss severity 25% to 40%    Equity derivatives (723 ) Industry Standard Derivative Pricing (1) Equity Correlation 30% to 97%   Long-Dated Volatilities 20% to 70%    Commodity derivatives (1 ) Discounted Cash Flow Long-term Natural Gas Basis -$0.270 to $0.314    Interest rate derivatives 515 Industry Standard Derivative Pricing (1) Correlation (IR/IR) 15% to 100%   Correlation (FX/IR) -65% to 50%   Long Dated Inflation Rates 1.8% to 2.9%   Long Dated Inflation Volatilities 0.2% to 1.3%   Long Dated Volatilities (FX) 5% to 36%   Long Dated Swap Rates 3% to 10% Total net derivative contracts $ 2,446       (1)  Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates. IR = Interest Rate FX = Foreign Exchange CPR = Constant Prepayment Rate CDR = Constant Default Rate
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis	The following tables show the fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2012 and December 31, 2011, and related gains (losses) for the three and nine month periods ended September 30, 2012 and September 30, 2011. (dollars in millions)               Non-Recurring Basis   Gains/(Losses)   Gains/(Losses)   Gains/(Losses)   Gains/(Losses)   as of September 30, 2012   Three Months Ended   Nine Months Ended   Three Months Ended   Nine Months Ended     Level 2   Level 3   Total   September 30, 2012   September 30, 2012   September 30, 2011   September 30, 2011 Assets:                             Investment securities non-qualifying   $ —   $ 4   $ 4   $ —   $ —   $ —   $ (5 ) Loans, notes and mortgages   11   247   258   (9 )   (49 )   (43 )   1 Other assets   2   97   99   (1 )   (1 )   —   (7 ) Liabilities:                             Other payables — interest and other   $ —   $ —   $ —   $ —   $ —   $ —   $ (1 ) (dollars in millions)   Non-Recurring Basis   as of December 31, 2011     Level 2   Level 3   Total Assets:             Investment securities non-qualifying   $ —   $ 5   $ 5 Loans, notes and mortgages   298   245   543 Other assets   —   19   19
Fair Value Option	The following tables provide information about the line items in the Condensed Consolidated Statements of (Loss) Earnings where changes in fair values of assets and liabilities, for which the fair value option election has been made, are included for the three and nine months ended September 30, 2012 and September 30, 2011. (dollars in millions)   Changes in Fair Value For the Three Months Ended September 30, 2012, for Items Measured at Fair Value Pursuant to the Fair Value Option Election     Changes in Fair Value For the Nine Months Ended September 30, 2012, for Items Measured at Fair Value Pursuant to the Fair Value Option Election   Gains (Losses) Principal Transactions   Gains (Losses) Other Revenues   Total Changes in Fair Value     Gains (Losses) Principal Transactions   Gains (Losses) Other Revenues   Total Changes in Fair Value Assets:                         Receivables under resale agreements $ (44 )   $ —   $ (44 )     $ (73 )   $ —   $ (73 ) Investment securities —   (2 )   (2 )     —   —   — Loans 27   74   101     56   151   207 Liabilities:                         Payables under repurchase agreements 40   —   40     15   —   15 Short-term borrowings (1 )   —   (1 )     18   —   18 Other payables — interest and other —   44   44     —   75   75 Long-term borrowings (1,476 )   (6 )   (1,482 )     (3,317 )   (27 )   (3,344 ) (dollars in millions)   Changes in Fair Value For the Three Months Ended September 30, 2011, for Items Measured at Fair Value Pursuant to the Fair Value Option Election     Changes in Fair Value For the Nine Months Ended September 30, 2011, for Items Measured at Fair Value Pursuant to the Fair Value Option Election   Gains (Losses) Principal Transactions   Gains (Losses) Other Revenues   Total Changes in Fair Value     Gains (Losses) Principal Transactions   Gains (Losses) Other Revenues   Total Changes in Fair Value Assets:                         Receivables under resale agreements $ 169   $ —   $ 169     $ 197   $ —   $ 197 Investment securities —   (26 )   (26 )     —   4   4 Loans (23 )   (114 )   (137 )     (23 )   25   2 Liabilities:                         Payables under repurchase agreements (16 )   —   (16 )     (13 )   —   (13 ) Short-term borrowings 214   —   214     307   —   307 Other payables — interest and other —   (65 )   (65 )     —   (49 )   (49 ) Long-term borrowings 4,568   134   4,702     4,062   134   4,196
Schedule Of Fair Value Option Elections	The following tables present the difference between fair values and the aggregate contractual principal amounts of receivables under resale agreements, receivables under securities borrowed transactions, loans and long-term borrowings for which the fair value option election has been made as of September 30, 2012 and December 31, 2011. (dollars in millions)             Fair Value at   Principal Amount Due Upon Maturity       September 30, 2012     Difference Assets:           Receivables under resale agreements $ 99,587   $ 99,200   $ 387 Receivables under securities borrowed transactions 1,258   1,281   (23 ) Loans (1) 3,193   3,848   (655 ) Liabilities:           Long-term borrowings (2) 31,499   33,770   (2,271 ) (1) Includes trading loans with a fair value of $513 million. (2) The difference between the fair value and principal amount due upon maturity at September 30, 2012 relates to the impact of changes in Merrill Lynch's credit spreads, as well as the fair value of the embedded derivative, where applicable. (dollars in millions)             Fair Value at   Principal Amount Due Upon Maturity       December 31, 2011     Difference Assets:           Receivables under resale agreements $ 85,652   $ 85,197   $ 455 Receivables under securities borrowed transactions 259   287   (28 ) Loans (1) 2,742   4,023   (1,281 ) Liabilities:           Long-term borrowings(2) 30,325   36,537   (6,212 ) (1) Includes loans held for sale with a fair value of $420 million, accounted for under the fair value option, which were reclassified to trading assets because they are risk managed on that basis. (2) The difference between the fair value and principal amount due upon maturity at December 31, 2011 relates to the impact of changes in Merrill Lynch's credit spreads, as well as the fair value of the embedded derivative, where applicable.