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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Massachusetts
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04-2456637
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(State or other jurisdiction of incorporation)
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(I.R.S. Employer Identification No.)
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One Lincoln Street
Boston, Massachusetts
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02111
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(Address of principal executive office)
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(Zip Code)
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617-786-3000
(Registrant’s telephone number, including area code)
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Large accelerated filer
x
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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(Do not check if a smaller reporting company)
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PART I. FINANCIAL INFORMATION
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PART II. OTHER INFORMATION
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•
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the financial strength and continuing viability of the counterparties with which we or our clients do business and to which we have investment, credit or financial exposure, including, for example, the direct and indirect effects on counterparties of the sovereign-debt risks in the U.S., Europe and other regions;
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•
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increases in the volatility of, or declines in the level of, our net interest revenue, changes in the composition or valuation of the assets recorded in our consolidated statement of condition (and our ability to measure the fair value of investment securities) and the possibility that we may change the manner in which we fund those assets;
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•
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the liquidity of the U.S. and international securities markets, particularly the markets for fixed-income securities and inter-bank credits, and the liquidity requirements of our clients;
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•
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the level and volatility of interest rates and the performance and volatility of securities, credit, currency and other markets in the U.S. and internationally;
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•
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the credit quality, credit-agency ratings and fair values of the securities in our investment securities portfolio, a deterioration or downgrade of which could lead to other-than-temporary impairment of the respective securities and the recognition of an impairment loss in our consolidated statement of income;
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•
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our ability to attract deposits and other low-cost, short-term funding, and our ability to deploy deposits in a profitable manner consistent with our liquidity requirements and risk profile;
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•
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the manner and timing with which the Federal Reserve and other U.S. and foreign regulators implement the Dodd-Frank Act, changes to the Basel III capital framework and European legislation, such as the Alternative Investment Fund Managers Directive and Undertakings for Collective Investment in Transferable Securities Directives, with respect to the levels of regulatory capital we must maintain, our credit exposure to third parties, margin requirements applicable to derivatives, banking and financial activities and other regulatory initiatives in the U.S. and internationally, including regulatory developments that result in changes to our structure or operating model, increased costs or other changes to how we provide services;
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•
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adverse changes in the regulatory capital ratios that we are required or will be required to meet, whether arising under the Dodd-Frank Act or the Basel III capital and liquidity standards, or due to changes in regulatory positions, practices or regulations in jurisdictions in which we engage in banking activities, including changes in internal or external data, formulae, models, assumptions or other advanced systems used in the calculation of our capital ratios that cause changes in those ratios as they are measured from period to period;
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•
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increasing requirements to obtain the prior approval of the Federal Reserve or our other regulators for the use, allocation or distribution of our capital or other specific capital actions or programs, including acquisitions, dividends and equity purchases, without which our growth plans, distributions to shareholders, equity purchase programs or other capital initiatives may be restricted;
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•
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changes in law or regulation, or the enforcement of law or regulation, that may adversely affect our business activities or those of our clients or our counterparties, and the products or services that we sell, including additional or increased taxes or assessments thereon, capital adequacy requirements, margin requirements and changes that expose us to risks related to the adequacy of our controls or compliance programs;
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•
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financial market disruptions or economic recession, whether in the U.S., Europe, Asia or other regions;
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•
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our ability to promote a strong culture of risk management, operating controls, compliance oversight and governance that meet our
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•
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the results of, and costs associated with, governmental or regulatory inquiries and investigations, litigation and similar claims, disputes, or proceedings;
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•
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delays or difficulties in the execution of our previously announced Business Operations and Information Technology Transformation program, which could lead to changes in our estimates of the charges, expenses or savings associated with the planned program and may cause volatility of our earnings;
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•
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the potential for losses arising from our investments in sponsored investment funds;
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•
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the possibility that our clients will incur substantial losses in investment pools for which we act as agent, and the possibility of significant reductions in the liquidity or valuation of assets underlying those pools;
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•
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our ability to anticipate and manage the level and timing of redemptions and withdrawals from our collateral pools and other collective investment products;
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•
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the credit agency ratings of our debt and depository obligations and investor and client perceptions of our financial strength;
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•
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adverse publicity, whether specific to State Street or regarding other industry participants or industry-wide factors, or other reputational harm;
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•
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our ability to control operational risks, data security breach risks and outsourcing risks, and our ability to protect our intellectual property rights, the possibility of errors in the quantitative models we use to manage our business and the possibility that our controls will prove insufficient, fail or be circumvented;
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•
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dependencies on information technology and our ability to control related risks, including cyber-crime and other threats to our information technology infrastructure and systems and their effective operation both independently and with external systems, and complexities and costs of protecting the security of our systems and data;
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•
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our ability to grow revenue, control expenses, attract and retain highly skilled people and raise the capital necessary to achieve our business goals and comply with regulatory requirements;
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•
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changes or potential changes to the competitive environment, including changes due to regulatory and technological changes, the effects of industry consolidation and perceptions of State Street as a suitable service provider or counterparty;
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•
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changes or potential changes in how and in what amounts clients compensate us for our services, and the mix of services provided by us that clients choose;
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•
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our ability to complete acquisitions, joint ventures and divestitures, including the ability to obtain regulatory approvals, the ability to arrange financing as required and the ability to satisfy closing conditions;
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•
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the risks that our acquired businesses and joint ventures will not achieve their anticipated financial and operational benefits or will not be integrated successfully, or that the integration will take longer than anticipated, that expected synergies will not be achieved or unexpected negative synergies will be experienced, that client and deposit retention goals will not be met, that other regulatory or operational challenges will be experienced, and that disruptions from the transaction will harm our relationships with our clients, our employees or regulators;
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•
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our ability to recognize emerging needs of our clients and to develop products that are responsive to such trends and profitable to us, the performance of and demand for the products and services we offer, and the potential for new products and services to impose additional costs on us and expose us to increased operational risk;
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•
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changes in accounting standards and practices; and
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•
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changes in tax legislation and in the interpretation of existing tax laws by U.S. and non-U.S. tax authorities that affect the amount of taxes due.
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Quarters Ended March 31,
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|||||||
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(Dollars in millions, except per share amounts)
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2014
|
|
2013
|
|
% Change
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|||||
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Total fee revenue
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$
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1,924
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|
|
$
|
1,857
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|
4
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%
|
|
Net interest revenue
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555
|
|
|
576
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|
(4
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)
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||
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Gains (losses) related to investment securities, net
|
6
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|
|
2
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|
|
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|||
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Total revenue
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2,485
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|
|
2,435
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|
|
2
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||
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Provision for loan losses
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2
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—
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|||
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Total expenses
|
2,028
|
|
|
1,826
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|
11
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||
|
Income before income tax expense
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455
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609
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(25
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)
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Income tax expense
|
92
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|
|
145
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|
|
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|||
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Net income
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$
|
363
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|
|
$
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464
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|
|
(22
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)
|
|
Adjustments to net income:
|
|
|
|
|
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|||||
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Dividends on preferred stock
|
(6
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)
|
|
(7
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)
|
|
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|||
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Earnings allocated to participating securities
|
(1
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)
|
|
(2
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)
|
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Net income available to common shareholders
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$
|
356
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|
$
|
455
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Earnings per common share:
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Basic
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$
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.83
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$
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1.00
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|
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Diluted
|
.81
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|
.98
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(17
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)
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Average common shares outstanding (in thousands):
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|
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|||||
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Basic
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430,621
|
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454,315
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|||
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Diluted
|
438,815
|
|
|
462,751
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|||
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Cash dividends declared per common share
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$
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.26
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$
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.26
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Return on average common equity
|
7.2
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%
|
|
9.1
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%
|
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|||
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•
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In
March 2014
, we received the results of the Federal Reserve's review of our
2014
capital plan in connection with its annual Comprehensive Capital Analysis and Review, or CCAR, process. The Federal Reserve did not object to the capital actions we proposed, and, in
March 2014
, our Board of Directors approved a new common stock purchase program authorizing the purchase of up to
$1.70 billion
of our common stock through
March 31, 2015
. We did not purchase any of our common stock under this new program in the
first quarter
of
2014
.
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•
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In the
first quarter
of
2014
, we completed the
$2.10 billion
common stock purchase program authorized by the Board in
March 2013
by purchasing approximately
6.1 million
shares of our common stock, at an average price of
$69.14
per share and an aggregate cost of approximately
$420 million
.
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•
|
In the
first quarter
of
2014
, we declared a quarterly common stock dividend of
$0.26
per share, totaling approximately
$112 million
, which was paid in
April 2014
.
|
|
•
|
Our 2014 capital plan includes a proposed increase in our second-quarter 2014 common stock dividend to
$0.30
per share, subject to consideration and approval by the Board at its scheduled meeting in May.
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•
|
In February
2014
, we issued
30 million
depositary shares, each representing a
1/4,000th
ownership interest in a share of State Street’s fixed-to-floating-rate non-cumulative perpetual preferred stock, Series D, without par value, with a liquidation preference of
$100,000
per share (equivalent to
$25
per depositary share), in a public offering. The aggregate proceeds from the offering, net of underwriting discounts, commissions and other issuance costs, were approximately
$742 million
.
|
|
•
|
In the
first quarter
of
2014
, in connection with the realignment of our cost base, we recorded
$72 million
of severance costs associated with staff reductions. Additional information about these costs is provided under "Consolidated Results of Operations - Expenses" in this Management's Discussion and Analysis, and in note
14
to the consolidated financial statements, included in this Form 10-Q.
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|
•
|
In January 2014, we entered into a settlement agreement with the U.K. Financial Conduct Authority as a result of our having charged
six
clients of our U.K. transition management business amounts in excess of the underlying contractual terms in 2010 and 2011. We agreed to and paid a fine of approximately $38 million in January 2014, which we accrued as of
December 31, 2013
.
|
|
•
|
Total revenue in the
first quarter
of
2014
increased
2%
compared to the
first quarter
of
2013
, as a
6%
increase in aggregate servicing fee and management fee revenue and a
9%
increase in securities finance revenue were partly offset by declines in trading services revenue and net interest revenue of
15%
and
4%
, respectively.
|
|
•
|
Servicing fee revenue in the
first quarter
of
2014
increased
5%
compared to the
first quarter
of
2013
, mainly the result of stronger global equity markets and the revenue impact of net new business installed. Servicing fees generated outside the U.S. in the
first quarter
of
2014
and the
first quarter
of
2013
were approximately
42%
and
41%
, respectively, of total servicing fees for those periods.
|
|
•
|
Management fee revenue increased
11%
in the
first quarter
of
2014
compared to the
first quarter
of
2013
, primarily the result of stronger global equity markets. Management fees generated outside the U.S. in the
first quarter
of
2014
and the
first quarter
of
2013
were approximately
36%
and
37%
,
|
|
•
|
In the
first quarter
of
2014
, trading services revenue, composed of revenue generated by foreign exchange trading and revenue from brokerage and other trading services, declined
15%
compared to the
first quarter
of
2013
. Revenue from foreign exchange trading declined
8%
, with estimated indirect foreign exchange revenue down
3%
and direct sales and trading foreign exchange revenue down
12%
, from the
first quarter
of 2013. Both declines were mainly the result of lower volatility, partly offset by higher client volumes. Brokerage and other trading services revenue in the
first quarter
of
2014
declined
22%
compared to the
first quarter
of
2013
, primarily reflective of lower client volumes in electronic trading and the impact of lower distribution fees associated with the SPDR
®
Gold ETF, which resulted from lower average gold prices and net outflows from the SPDR
®
Gold ETF.
|
|
•
|
Securities finance revenue increased
9%
in the
first quarter
of
2014
compared to the
first quarter
of
2013
, reflective of growth in revenue earned in connection with principal securities finance transactions, which we refer to as our enhanced custody business.
|
|
•
|
Net interest revenue in the
first quarter
of
2014
declined
4%
compared to the
first quarter
of
2013
, generally the result of lower yields on interest-earning assets, as lower global interest rates affected revenue from floating-rate assets, net of the benefit of those rates on interest expense.
|
|
•
|
Total expenses in the
first quarter
of
2014
increased
11%
compared to the
first quarter
|
|
•
|
Information systems and communications expenses increased
3%
compared to the
first quarter
of
2013
, primarily in connection with the planned transition of certain functions to third-party service providers in connection with the implementation of our Business Operations and Information Technology Transformation program, and costs to support new business. Transaction processing services expenses were higher by
6%
, primarily the result of higher equity market values and higher transaction volumes in the investment servicing business.
|
|
•
|
Other expenses increased
18%
in the
first quarter
of
2014
compared to the
first quarter
of
2013
, primarily the result of a higher level of professional services associated with regulatory compliance, as well as securities processing costs associated with our transition management business.
|
|
•
|
We expect continued evolving and increasing regulatory and compliance requirements to influence our expenses by, for example, increasing our employee compensation and benefits, information systems and other expenses, as we further adjust our operations and systems in response to new or proposed requirements.
|
|
•
|
With respect to our Business Operations and Information Technology Transformation program, we expect to achieve additional pre-tax expense savings for full-year
2014
of approximately
$130 million
. These pre-tax expense savings relate only to the Business Operations and Information Technology Transformation program and are based on projected improvement from our total
2010
|
|
•
|
In the
first quarter
of
2014
, we secured an estimated
$189 billion
of new business in assets to be serviced; of the total,
$125 billion
was installed prior to
March 31, 2014
, with the remaining
$64 billion
expected to be installed in the remainder of
2014
. We also installed approximately
$77 billion
of new asset servicing business in the
first quarter
of
2014
that we were awarded in prior periods. As of
March 31, 2014
, we had an estimated
$136 billion
of new business in assets to be serviced, including the
$64 billion
referenced above, that remained to be installed in future periods. New business in assets to be serviced includes assets for which we have been instructed by existing clients to provide additional services, as well as assets from new clients.
|
|
•
|
In the
first quarter
of
2014
, SSgA had approximately
$4 billion
of net new business in assets to be managed, composed primarily of
$35 billion
of net inflows, substantially into managed cash, partly offset by net outflows of
$31 billion
from ETF and institutional
|
|
|
Quarters Ended March 31,
|
|
|
|||||||
|
(Dollars in millions)
|
2014
|
|
2013
|
|
% Change
|
|||||
|
Fee revenue:
|
|
|
|
|
|
|||||
|
Servicing fees
|
$
|
1,238
|
|
|
$
|
1,175
|
|
|
5
|
%
|
|
Management fees
|
292
|
|
|
263
|
|
|
11
|
|
||
|
Trading services:
|
|
|
|
|
|
|||||
|
Foreign exchange trading
|
134
|
|
|
146
|
|
|
(8
|
)
|
||
|
Brokerage and other trading services
|
105
|
|
|
135
|
|
|
(22
|
)
|
||
|
Total trading services
|
239
|
|
|
281
|
|
|
(15
|
)
|
||
|
Securities finance
|
85
|
|
|
78
|
|
|
9
|
|
||
|
Processing fees and other
|
70
|
|
|
60
|
|
|
17
|
|
||
|
Total fee revenue
|
1,924
|
|
|
1,857
|
|
|
4
|
|
||
|
Net interest revenue:
|
|
|
|
|
|
|||||
|
Interest revenue
|
655
|
|
|
687
|
|
|
(5
|
)
|
||
|
Interest expense
|
100
|
|
|
111
|
|
|
(10
|
)
|
||
|
Net interest revenue
|
555
|
|
|
576
|
|
|
(4
|
)
|
||
|
Gains (losses) related to investment securities, net
|
6
|
|
|
2
|
|
|
|
|||
|
Total revenue
|
$
|
2,485
|
|
|
$
|
2,435
|
|
|
2
|
|
|
|
Daily Averages of Indices
|
|
Averages of Month-End Indices
|
|
Quarter-End Indices
|
|||||||||||||||||||||
|
|
Quarters Ended March 31,
|
|
Quarters Ended March 31,
|
|
As of March 31,
|
|||||||||||||||||||||
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
|
2014
|
|
2013
|
|
% Change
|
|||||||||
|
S&P 500
®
|
1,835
|
|
|
1,514
|
|
|
21
|
%
|
|
1,838
|
|
|
1,527
|
|
|
20
|
%
|
|
1,872
|
|
|
1,569
|
|
|
19
|
%
|
|
NASDAQ
®
|
4,210
|
|
|
3,176
|
|
|
33
|
|
|
4,204
|
|
|
3,190
|
|
|
32
|
|
|
4,199
|
|
|
3,268
|
|
|
28
|
|
|
MSCI EAFE
®
|
1,894
|
|
|
1,668
|
|
|
14
|
|
|
1,896
|
|
|
1,676
|
|
|
13
|
|
|
1,916
|
|
|
1,674
|
|
|
14
|
|
|
|
Quarters Ended March 31,
|
|
|
|||||||
|
(Dollars in millions)
|
2014
|
|
2013
|
|
% Change
|
|||||
|
Servicing fees
|
$
|
1,238
|
|
|
$
|
1,175
|
|
|
5
|
%
|
|
Management fees
|
292
|
|
|
263
|
|
|
11
|
|
||
|
Trading services:
|
|
|
|
|
|
|||||
|
Foreign exchange trading
|
134
|
|
|
146
|
|
|
(8
|
)
|
||
|
Brokerage and other trading services
|
105
|
|
|
135
|
|
|
(22
|
)
|
||
|
Total trading services
|
239
|
|
|
281
|
|
|
(15
|
)
|
||
|
Securities finance
|
85
|
|
|
78
|
|
|
9
|
|
||
|
Processing fees and other
|
70
|
|
|
60
|
|
|
17
|
|
||
|
Total fee revenue
|
$
|
1,924
|
|
|
$
|
1,857
|
|
|
4
|
|
|
(In billions)
|
|
March 31, 2014
|
|
December 31, 2013
|
|
March 31, 2013
|
||||||
|
Mutual funds
|
|
$
|
6,908
|
|
|
$
|
6,811
|
|
|
$
|
6,275
|
|
|
Collective funds
|
|
6,637
|
|
|
6,428
|
|
|
5,753
|
|
|||
|
Pension products
(1)
|
|
5,472
|
|
|
5,851
|
|
|
5,331
|
|
|||
|
Insurance and other products
|
|
8,460
|
|
|
8,337
|
|
|
8,063
|
|
|||
|
Total
|
|
$
|
27,477
|
|
|
$
|
27,427
|
|
|
$
|
25,422
|
|
|
|
|
|
(In billions)
|
|
March 31, 2014
|
|
December 31, 2013
|
|
March 31, 2013
|
||||||
|
Equities
|
|
$
|
15,040
|
|
|
$
|
15,050
|
|
|
$
|
13,095
|
|
|
Fixed-income
|
|
9,053
|
|
|
9,072
|
|
|
9,069
|
|
|||
|
Short-term and other investments
|
|
3,384
|
|
|
3,305
|
|
|
3,258
|
|
|||
|
Total
|
|
$
|
27,477
|
|
|
$
|
27,427
|
|
|
$
|
25,422
|
|
|
(In billions)
|
|
March 31, 2014
|
|
December 31, 2013
|
|
March 31, 2013
|
||||||
|
North America
|
|
$
|
20,540
|
|
|
$
|
20,764
|
|
|
$
|
19,234
|
|
|
Europe/Middle East/Africa
|
|
5,704
|
|
|
5,511
|
|
|
5,060
|
|
|||
|
Asia/Pacific
|
|
1,233
|
|
|
1,152
|
|
|
1,128
|
|
|||
|
Total
|
|
$
|
27,477
|
|
|
$
|
27,427
|
|
|
$
|
25,422
|
|
|
|
|
|
(In billions)
|
|
March 31, 2014
|
|
December 31, 2013
|
|
March 31, 2013
|
||||||
|
Equity:
|
|
|
|
|
|
|
||||||
|
Active
|
|
$
|
42
|
|
|
$
|
42
|
|
|
$
|
45
|
|
|
Passive
|
|
1,323
|
|
|
1,334
|
|
|
1,134
|
|
|||
|
Total Equity
|
|
1,365
|
|
|
1,376
|
|
|
1,179
|
|
|||
|
Fixed-Income:
|
|
|
|
|
|
|
||||||
|
Active
|
|
16
|
|
|
16
|
|
|
16
|
|
|||
|
Passive
|
|
320
|
|
|
311
|
|
|
325
|
|
|||
|
Total Fixed-Income
|
|
336
|
|
|
327
|
|
|
341
|
|
|||
|
Cash
(2)
|
|
419
|
|
|
385
|
|
|
383
|
|
|||
|
Multi-Asset-Class Solutions:
|
|
|
|
|
|
|
||||||
|
Active
|
|
25
|
|
|
23
|
|
|
23
|
|
|||
|
Passive
|
|
108
|
|
|
110
|
|
|
99
|
|
|||
|
Total Multi-Asset-Class Solutions
|
|
133
|
|
|
133
|
|
|
122
|
|
|||
|
Alternative Investments
(3)
:
|
|
|
|
|
|
|
||||||
|
Active
|
|
16
|
|
|
14
|
|
|
12
|
|
|||
|
Passive
|
|
112
|
|
|
110
|
|
|
139
|
|
|||
|
Total Alternative Investments
|
|
128
|
|
|
124
|
|
|
151
|
|
|||
|
Total
|
|
$
|
2,381
|
|
|
$
|
2,345
|
|
|
$
|
2,176
|
|
|
|
|
|
(In billions)
|
|
March 31, 2014
|
|
December 31, 2013
|
|
March 31, 2013
|
||||||
|
Alternative Investments
|
|
$
|
42
|
|
|
$
|
39
|
|
|
$
|
70
|
|
|
Cash
|
|
1
|
|
|
1
|
|
|
1
|
|
|||
|
Equity
|
|
308
|
|
|
325
|
|
|
251
|
|
|||
|
Fixed-income
|
|
36
|
|
|
34
|
|
|
32
|
|
|||
|
Total Exchange-Traded Funds
|
|
$
|
387
|
|
|
$
|
399
|
|
|
$
|
354
|
|
|
|
|
|
(In billions)
|
|
March 31, 2014
|
|
December 31, 2013
|
|
March 31, 2013
|
||||||
|
North America
|
|
$
|
1,480
|
|
|
$
|
1,456
|
|
|
$
|
1,362
|
|
|
Europe/Middle East/Africa
|
|
562
|
|
|
560
|
|
|
499
|
|
|||
|
Asia/Pacific
|
|
339
|
|
|
329
|
|
|
315
|
|
|||
|
Total
|
|
$
|
2,381
|
|
|
$
|
2,345
|
|
|
$
|
2,176
|
|
|
|
|
|
(In billions)
|
|
||
|
March 31, 2013
|
$
|
2,176
|
|
|
Net lost business
|
(10
|
)
|
|
|
Market appreciation
|
179
|
|
|
|
December 31, 2013
|
2,345
|
|
|
|
Net new business
|
4
|
|
|
|
Market appreciation
|
32
|
|
|
|
March 31, 2014
|
$
|
2,381
|
|
|
|
Quarters Ended March 31,
|
|
|
|||||||
|
(Dollars in millions)
|
2014
|
|
2013
|
|
% Change
|
|||||
|
Foreign exchange trading:
|
|
|
|
|
|
|||||
|
Direct sales and trading
|
$
|
71
|
|
|
$
|
81
|
|
|
(12
|
)%
|
|
Indirect foreign exchange trading
|
63
|
|
|
65
|
|
|
(3
|
)
|
||
|
Total foreign exchange trading
|
134
|
|
|
146
|
|
|
(8
|
)
|
||
|
Brokerage and other trading services:
|
|
|
|
|
|
|||||
|
Electronic foreign exchange trading
|
53
|
|
|
64
|
|
|
(17
|
)
|
||
|
Other trading, transition management and brokerage
|
52
|
|
|
71
|
|
|
(27
|
)
|
||
|
Total brokerage and other trading services
|
105
|
|
|
135
|
|
|
(22
|
)
|
||
|
Total trading services revenue
|
$
|
239
|
|
|
$
|
281
|
|
|
(15
|
)
|
|
|
Quarters Ended March 31,
|
||||||||||||||||||||
|
|
2014
|
|
2013
|
||||||||||||||||||
|
(Dollars in millions; fully taxable-equivalent basis)
|
Average
Balance
|
|
Interest
Revenue/
Expense
|
|
Rate
|
|
Average
Balance
|
|
Interest
Revenue/
Expense
|
|
Rate
|
||||||||||
|
Interest-bearing deposits with banks
|
$
|
33,410
|
|
|
$
|
34
|
|
|
.42
|
%
|
|
$
|
30,586
|
|
|
$
|
31
|
|
|
.41
|
%
|
|
Securities purchased under resale agreements
|
6,631
|
|
|
9
|
|
|
.53
|
|
|
5,649
|
|
|
13
|
|
|
.95
|
|
||||
|
Trading account assets
|
901
|
|
|
—
|
|
|
—
|
|
|
728
|
|
|
—
|
|
|
—
|
|
||||
|
Investment securities
|
117,835
|
|
|
597
|
|
|
2.02
|
|
|
119,601
|
|
|
618
|
|
|
2.07
|
|
||||
|
Loans and leases
|
14,602
|
|
|
58
|
|
|
1.61
|
|
|
12,737
|
|
|
56
|
|
|
1.77
|
|
||||
|
Other interest-earning assets
|
13,527
|
|
|
1
|
|
|
.02
|
|
|
9,023
|
|
|
1
|
|
|
.06
|
|
||||
|
Average total interest-earning assets
|
$
|
186,906
|
|
|
$
|
699
|
|
|
1.52
|
|
|
$
|
178,324
|
|
|
$
|
719
|
|
|
1.63
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S.
|
$
|
12,072
|
|
|
$
|
1
|
|
|
.03
|
%
|
|
$
|
13,398
|
|
|
$
|
6
|
|
|
.19
|
%
|
|
Non-U.S.
|
101,282
|
|
|
14
|
|
|
.06
|
|
|
99,720
|
|
|
28
|
|
|
.11
|
|
||||
|
Securities sold under repurchase agreements
|
8,424
|
|
|
—
|
|
|
—
|
|
|
7,839
|
|
|
—
|
|
|
—
|
|
||||
|
Federal funds purchased
|
20
|
|
|
—
|
|
|
—
|
|
|
363
|
|
|
—
|
|
|
—
|
|
||||
|
Other short-term borrowings
|
3,909
|
|
|
15
|
|
|
1.57
|
|
|
4,640
|
|
|
16
|
|
|
1.42
|
|
||||
|
Long-term debt
|
9,668
|
|
|
63
|
|
|
2.60
|
|
|
7,400
|
|
|
56
|
|
|
3.03
|
|
||||
|
Other interest-bearing liabilities
|
6,758
|
|
|
7
|
|
|
.43
|
|
|
6,496
|
|
|
5
|
|
|
.31
|
|
||||
|
Average total interest-bearing liabilities
|
$
|
142,133
|
|
|
$
|
100
|
|
|
.29
|
|
|
$
|
139,856
|
|
|
$
|
111
|
|
|
.32
|
|
|
Interest-rate spread
|
|
|
|
|
1.23
|
%
|
|
|
|
|
|
1.31
|
%
|
||||||||
|
Net interest revenue—fully taxable-equivalent basis
|
|
|
$
|
599
|
|
|
|
|
|
|
$
|
608
|
|
|
|
||||||
|
Net interest margin—fully taxable-equivalent basis
|
|
|
|
|
1.30
|
%
|
|
|
|
|
|
1.38
|
%
|
||||||||
|
Tax-equivalent adjustment
|
|
|
(44
|
)
|
|
|
|
|
|
(32
|
)
|
|
|
||||||||
|
Net interest revenue—GAAP basis
|
|
|
$
|
555
|
|
|
|
|
|
|
$
|
576
|
|
|
|
||||||
|
|
Quarters Ended March 31,
|
||||||
|
(In millions)
|
2014
|
|
2013
|
||||
|
Average U.S. short-duration advances
|
$
|
2,079
|
|
|
$
|
2,089
|
|
|
Average non-U.S. short-duration advances
|
1,411
|
|
|
1,401
|
|
||
|
Average total short-duration advances
|
$
|
3,490
|
|
|
$
|
3,490
|
|
|
|
Quarters Ended March 31,
|
||||||
|
(In millions)
|
2014
|
|
2013
|
||||
|
Net realized gains from sales of available-for-sale securities
|
$
|
15
|
|
|
$
|
5
|
|
|
Net impairment losses:
|
|
|
|
||||
|
Gross losses from other-than-temporary impairment
|
(1
|
)
|
|
—
|
|
||
|
Losses reclassified (from) to other comprehensive income
|
(8
|
)
|
|
(3
|
)
|
||
|
Net impairment losses
(1)
|
(9
|
)
|
|
(3
|
)
|
||
|
Gains (losses) related to investment securities, net
|
$
|
6
|
|
|
$
|
2
|
|
|
|
|
|
|
||||
|
(1)
Net impairment losses, recognized in our consolidated statement of income, were composed of the following:
|
|
|
|
||||
|
Impairment associated with expected credit losses
|
$
|
(9
|
)
|
|
$
|
—
|
|
|
Impairment associated with adverse changes in timing of expected future cash flows
|
—
|
|
|
(3
|
)
|
||
|
Net impairment losses
|
$
|
(9
|
)
|
|
$
|
(3
|
)
|
|
|
Quarters Ended March 31,
|
|
|
|||||||
|
(Dollars in millions)
|
2014
|
|
2013
|
|
% Change
|
|||||
|
Compensation and employee benefits
|
$
|
1,157
|
|
|
$
|
1,035
|
|
|
12
|
%
|
|
Information systems and communications
|
244
|
|
|
237
|
|
|
3
|
|
||
|
Transaction processing services
|
191
|
|
|
180
|
|
|
6
|
|
||
|
Occupancy
|
114
|
|
|
116
|
|
|
(2
|
)
|
||
|
Acquisition costs
|
21
|
|
|
15
|
|
|
|
|||
|
Restructuring charges, net
|
12
|
|
|
(1
|
)
|
|
|
|||
|
Other:
|
|
|
|
|
|
|||||
|
Professional services
|
105
|
|
|
79
|
|
|
33
|
|
||
|
Amortization of other intangible assets
|
54
|
|
|
53
|
|
|
2
|
|
||
|
Securities processing costs
|
23
|
|
|
5
|
|
|
|
|||
|
Regulatory fees and assessments
|
19
|
|
|
15
|
|
|
|
|||
|
Other
|
88
|
|
|
92
|
|
|
(4
|
)
|
||
|
Total other
|
289
|
|
|
244
|
|
|
18
|
|
||
|
Total expenses
|
$
|
2,028
|
|
|
$
|
1,826
|
|
|
11
|
|
|
Number of employees as of quarter-end
|
29,530
|
|
|
29,500
|
|
|
|
|||
|
(In millions)
|
Employee-Related
Costs
|
|
Real Estate
Consolidation
|
|
Information
Technology Costs
|
|
Total
|
||||||||
|
2010
|
$
|
105
|
|
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
156
|
|
|
2011
|
85
|
|
|
7
|
|
|
41
|
|
|
133
|
|
||||
|
2012
|
27
|
|
|
20
|
|
|
20
|
|
|
67
|
|
||||
|
2013
|
13
|
|
|
13
|
|
|
(1
|
)
|
|
25
|
|
||||
|
First quarter of 2014
|
6
|
|
|
3
|
|
|
—
|
|
|
9
|
|
||||
|
Total
|
$
|
236
|
|
|
$
|
94
|
|
|
$
|
60
|
|
|
$
|
390
|
|
|
(In millions)
|
Employee-Related
Costs
|
|
Asset and Other Write-Offs
|
|
Total
|
||||||
|
2012
|
$
|
129
|
|
|
$
|
4
|
|
|
$
|
133
|
|
|
2013
|
(4
|
)
|
|
7
|
|
|
3
|
|
|||
|
First quarter of 2014
|
—
|
|
|
3
|
|
|
3
|
|
|||
|
Total
|
$
|
125
|
|
|
$
|
14
|
|
|
$
|
139
|
|
|
(In millions)
|
Employee-
Related
Costs
|
|
Real Estate
Consolidation
|
|
Information Technology
Costs
|
|
Fixed-Income Trading Portfolio
|
|
Asset and Other Write-Offs
|
|
Total
|
||||||||||||
|
Initial accrual
|
$
|
105
|
|
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
156
|
|
|
Payments
|
(15
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
||||||
|
Balance as of December 31, 2010
|
90
|
|
|
47
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
137
|
|
||||||
|
Additional accruals for Business Operations and Information Technology Transformation program
|
85
|
|
|
7
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
133
|
|
||||||
|
Accruals for 2011 expense control measures
|
62
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
20
|
|
|
120
|
|
||||||
|
Payments and adjustments
|
(75
|
)
|
|
(15
|
)
|
|
(8
|
)
|
|
—
|
|
|
(5
|
)
|
|
(103
|
)
|
||||||
|
Balance as of December 31, 2011
|
162
|
|
|
39
|
|
|
33
|
|
|
38
|
|
|
15
|
|
|
287
|
|
||||||
|
Additional accruals for Business Operations and Information Technology Transformation program
|
27
|
|
|
20
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
67
|
|
||||||
|
Additional accruals for 2011 expense control measures
|
3
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
5
|
|
|
(1
|
)
|
||||||
|
Accruals for 2012 expense control measures
|
129
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
133
|
|
||||||
|
Payments and adjustments
|
(126
|
)
|
|
(10
|
)
|
|
(48
|
)
|
|
(29
|
)
|
|
(11
|
)
|
|
(224
|
)
|
||||||
|
Balance as of December 31, 2012
|
195
|
|
|
49
|
|
|
5
|
|
|
—
|
|
|
13
|
|
|
262
|
|
||||||
|
Additional accruals for Business Operations and Information Technology Transformation program
|
13
|
|
|
13
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
25
|
|
||||||
|
Additional accruals for 2012 expense control measures
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
3
|
|
||||||
|
Payments and adjustments
|
(154
|
)
|
|
(13
|
)
|
|
(4
|
)
|
|
—
|
|
|
(13
|
)
|
|
(184
|
)
|
||||||
|
Balance as of December 31, 2013
|
50
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
106
|
|
||||||
|
Additional accruals for Business Operations and Information Technology Transformation program
|
6
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||||
|
Additional accruals for 2012 expense control measures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||||
|
Payments and adjustments
|
(17
|
)
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(31
|
)
|
||||||
|
Balance as of March 31, 2014
|
$
|
39
|
|
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
87
|
|
|
|
Quarters Ended March 31,
|
||||||||||||||||||||||||||||||||||||
|
|
Investment
Servicing
|
|
Investment
Management
|
|
Other
|
|
Total
|
||||||||||||||||||||||||||||||
|
(Dollars in millions, except where otherwise noted)
|
2014
|
|
2013
|
|
% Change Q1 2014 vs. Q1 2013
|
|
2014
|
|
2013
|
|
% Change Q1 2014 vs. Q1 2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||||
|
Fee revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Servicing fees
|
$
|
1,238
|
|
|
$
|
1,175
|
|
|
5
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,238
|
|
|
$
|
1,175
|
|
|
Management fees
|
—
|
|
|
—
|
|
|
|
|
|
292
|
|
|
263
|
|
|
11
|
%
|
|
—
|
|
|
—
|
|
|
292
|
|
|
263
|
|
||||||||
|
Trading services
|
227
|
|
|
257
|
|
|
(12
|
)
|
|
12
|
|
|
24
|
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
|
239
|
|
|
281
|
|
||||||||
|
Securities finance
|
85
|
|
|
78
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|
78
|
|
||||||||
|
Processing fees and other
|
69
|
|
|
55
|
|
|
25
|
|
|
1
|
|
|
5
|
|
|
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
60
|
|
||||||||
|
Total fee revenue
|
1,619
|
|
|
1,565
|
|
|
3
|
|
|
305
|
|
|
292
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
1,924
|
|
|
1,857
|
|
||||||||
|
Net interest revenue
|
538
|
|
|
557
|
|
|
(3
|
)
|
|
17
|
|
|
19
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
555
|
|
|
576
|
|
||||||||
|
Gains (losses) related to investment securities, net
|
6
|
|
|
2
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
2
|
|
||||||||
|
Total revenue
|
2,163
|
|
|
2,124
|
|
|
2
|
|
|
322
|
|
|
311
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
2,485
|
|
|
2,435
|
|
||||||||
|
Provision for loan losses
|
2
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||||
|
Total expenses
|
1,673
|
|
|
1,590
|
|
|
5
|
|
|
244
|
|
|
222
|
|
|
10
|
|
|
111
|
|
|
14
|
|
|
2,028
|
|
|
1,826
|
|
||||||||
|
Income before income tax expense
|
$
|
488
|
|
|
$
|
534
|
|
|
(9
|
)
|
|
$
|
78
|
|
|
$
|
89
|
|
|
(12
|
)
|
|
$
|
(111
|
)
|
|
$
|
(14
|
)
|
|
$
|
455
|
|
|
$
|
609
|
|
|
Pre-tax margin
|
23
|
%
|
|
25
|
%
|
|
|
|
24
|
%
|
|
29
|
%
|
|
|
|
|
|
|
|
18
|
%
|
|
25
|
%
|
||||||||||||
|
Average assets (in billions)
|
$
|
212.2
|
|
|
$
|
204.4
|
|
|
|
|
$
|
3.4
|
|
|
$
|
3.9
|
|
|
|
|
|
|
|
|
$
|
215.6
|
|
|
$
|
208.3
|
|
||||||
|
Quarters Ended March 31,
|
2014
|
|
2013
|
||||
|
(In millions)
|
Average Balance
|
|
Average Balance
|
||||
|
Assets:
|
|
|
|
||||
|
Interest-bearing deposits with banks
|
$
|
33,410
|
|
|
$
|
30,586
|
|
|
Securities purchased under resale agreements
|
6,631
|
|
|
5,649
|
|
||
|
Trading account assets
|
901
|
|
|
728
|
|
||
|
Investment securities
|
117,835
|
|
|
119,601
|
|
||
|
Loans and leases
|
14,602
|
|
|
12,737
|
|
||
|
Other interest-earning assets
|
13,527
|
|
|
9,023
|
|
||
|
Average total interest-earning assets
|
186,906
|
|
|
178,324
|
|
||
|
Cash and due from banks
|
4,618
|
|
|
3,984
|
|
||
|
Other noninterest-earning assets
|
24,045
|
|
|
25,957
|
|
||
|
Average total assets
|
$
|
215,569
|
|
|
$
|
208,265
|
|
|
Liabilities and shareholders’ equity:
|
|
|
|
||||
|
Interest-bearing deposits:
|
|
|
|
||||
|
U.S.
|
$
|
12,072
|
|
|
$
|
13,398
|
|
|
Non-U.S.
|
101,282
|
|
|
99,720
|
|
||
|
Total interest-bearing deposits
|
113,354
|
|
|
113,118
|
|
||
|
Securities sold under repurchase agreements
|
8,424
|
|
|
7,839
|
|
||
|
Federal funds purchased
|
20
|
|
|
363
|
|
||
|
Other short-term borrowings
|
3,909
|
|
|
4,640
|
|
||
|
Long-term debt
|
9,668
|
|
|
7,400
|
|
||
|
Other interest-bearing liabilities
|
6,758
|
|
|
6,496
|
|
||
|
Average total interest-bearing liabilities
|
142,133
|
|
|
139,856
|
|
||
|
Noninterest-bearing deposits
|
40,711
|
|
|
34,061
|
|
||
|
Other noninterest-bearing liabilities
|
12,034
|
|
|
13,509
|
|
||
|
Preferred shareholders’ equity
|
722
|
|
|
489
|
|
||
|
Common shareholders’ equity
|
19,969
|
|
|
20,350
|
|
||
|
Average total liabilities and shareholders’ equity
|
$
|
215,569
|
|
|
$
|
208,265
|
|
|
(In millions)
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Available for sale:
|
|
|
|
||||
|
U.S. Treasury and federal agencies:
|
|
|
|
||||
|
Direct obligations
|
$
|
1,963
|
|
|
$
|
709
|
|
|
Mortgage-backed securities
|
23,092
|
|
|
23,563
|
|
||
|
Asset-backed securities:
|
|
|
|
||||
|
Student loans
(1)
|
14,280
|
|
|
14,542
|
|
||
|
Credit cards
|
7,237
|
|
|
8,210
|
|
||
|
Sub-prime
|
1,155
|
|
|
1,203
|
|
||
|
Other
|
4,880
|
|
|
5,064
|
|
||
|
Total asset-backed securities
|
27,552
|
|
|
29,019
|
|
||
|
Non-U.S. debt securities:
|
|
|
|
||||
|
Mortgage-backed securities
|
11,196
|
|
|
11,029
|
|
||
|
Asset-backed securities
|
4,994
|
|
|
5,390
|
|
||
|
Government securities
|
3,692
|
|
|
3,761
|
|
||
|
Other
|
4,984
|
|
|
4,727
|
|
||
|
Total non-U.S. debt securities
|
24,866
|
|
|
24,907
|
|
||
|
State and political subdivisions
|
10,444
|
|
|
10,263
|
|
||
|
Collateralized mortgage obligations
|
5,262
|
|
|
5,269
|
|
||
|
Other U.S. debt securities
|
4,946
|
|
|
4,980
|
|
||
|
U.S. equity securities
|
36
|
|
|
34
|
|
||
|
Non-U.S. equity securities
|
1
|
|
|
1
|
|
||
|
U.S. money-market mutual funds
|
993
|
|
|
422
|
|
||
|
Non-U.S. money-market mutual funds
|
7
|
|
|
7
|
|
||
|
Total
|
$
|
99,162
|
|
|
$
|
99,174
|
|
|
(In millions)
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Held to Maturity:
|
|
|
|
||||
|
U.S. Treasury and federal agencies:
|
|
|
|
||||
|
Direct obligations
|
$
|
5,096
|
|
|
$
|
5,041
|
|
|
Mortgage-backed securities
|
81
|
|
|
91
|
|
||
|
Asset-backed securities:
|
|
|
|
||||
|
Student loans
(1)
|
1,889
|
|
|
1,627
|
|
||
|
Credit cards
|
897
|
|
|
762
|
|
||
|
Other
|
738
|
|
|
782
|
|
||
|
Total asset-backed securities
|
3,524
|
|
|
3,171
|
|
||
|
Non-U.S. debt securities:
|
|
|
|
||||
|
Mortgage-backed securities
|
4,323
|
|
|
4,211
|
|
||
|
Asset-backed securities
|
2,399
|
|
|
2,202
|
|
||
|
Government securities
|
2
|
|
|
2
|
|
||
|
Other
|
192
|
|
|
192
|
|
||
|
Total non-U.S. debt securities
|
6,916
|
|
|
6,607
|
|
||
|
State and political subdivisions
|
16
|
|
|
24
|
|
||
|
Collateralized mortgage obligations
|
2,709
|
|
|
2,806
|
|
||
|
Total
|
$
|
18,342
|
|
|
$
|
17,740
|
|
|
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||
|
AAA
(1)
|
70
|
%
|
|
70
|
%
|
|
AA
|
19
|
|
|
19
|
|
|
A
|
6
|
|
|
6
|
|
|
BBB
|
3
|
|
|
3
|
|
|
Below BBB
|
2
|
|
|
2
|
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
(In millions)
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Available for Sale:
|
|
|
|
||||
|
United Kingdom
|
$
|
9,238
|
|
|
$
|
9,357
|
|
|
Australia
|
3,694
|
|
|
3,551
|
|
||
|
Netherlands
|
3,528
|
|
|
3,471
|
|
||
|
Canada
|
2,352
|
|
|
2,549
|
|
||
|
France
|
1,516
|
|
|
1,581
|
|
||
|
Germany
|
1,384
|
|
|
1,410
|
|
||
|
Japan
|
991
|
|
|
971
|
|
||
|
South Korea
|
837
|
|
|
744
|
|
||
|
Finland
|
378
|
|
|
397
|
|
||
|
Norway
|
368
|
|
|
369
|
|
||
|
Sweden
|
143
|
|
|
142
|
|
||
|
Italy
|
142
|
|
|
—
|
|
||
|
Austria
|
83
|
|
|
83
|
|
||
|
Other
|
212
|
|
|
282
|
|
||
|
Total
|
$
|
24,866
|
|
|
$
|
24,907
|
|
|
Held to Maturity:
|
|
|
|
||||
|
Australia
|
$
|
2,295
|
|
|
$
|
2,216
|
|
|
Germany
|
1,536
|
|
|
1,263
|
|
||
|
United Kingdom
|
1,414
|
|
|
1,474
|
|
||
|
Netherlands
|
970
|
|
|
934
|
|
||
|
Italy
|
266
|
|
|
270
|
|
||
|
Spain
|
204
|
|
|
206
|
|
||
|
Ireland
|
84
|
|
|
86
|
|
||
|
Other
|
147
|
|
|
158
|
|
||
|
Total
|
$
|
6,916
|
|
|
$
|
6,607
|
|
|
March 31, 2014
|
Total Municipal
Securities
|
|
Credit and
Liquidity Facilities
|
|
Total
|
|
% of Total Municipal
Exposure
|
|||||||
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|||||||
|
State of Issuer:
|
|
|
|
|
|
|
|
|||||||
|
Texas
|
$
|
1,251
|
|
|
$
|
1,628
|
|
|
$
|
2,879
|
|
|
16
|
%
|
|
New York
|
940
|
|
|
996
|
|
|
1,936
|
|
|
11
|
|
|||
|
California
|
394
|
|
|
1,373
|
|
|
1,767
|
|
|
10
|
|
|||
|
Massachusetts
|
980
|
|
|
756
|
|
|
1,736
|
|
|
10
|
|
|||
|
Maryland
|
393
|
|
|
626
|
|
|
1,019
|
|
|
6
|
|
|||
|
Total
|
$
|
3,958
|
|
|
$
|
5,379
|
|
|
$
|
9,337
|
|
|
|
|
|
December 31, 2013
|
Total Municipal
Securities
|
|
Credit and
Liquidity Facilities
|
|
Total
|
|
% of Total Municipal Exposure
|
|||||||
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|||||||
|
State of Issuer:
|
|
|
|
|
|
|
|
|||||||
|
Texas
|
$
|
1,233
|
|
|
$
|
1,628
|
|
|
$
|
2,861
|
|
|
16
|
%
|
|
New York
|
919
|
|
|
1,000
|
|
|
1,919
|
|
|
10
|
|
|||
|
Massachusetts
|
967
|
|
|
759
|
|
|
1,726
|
|
|
9
|
|
|||
|
California
|
373
|
|
|
1,266
|
|
|
1,639
|
|
|
9
|
|
|||
|
Maryland
|
327
|
|
|
643
|
|
|
970
|
|
|
5
|
|
|||
|
Total
|
$
|
3,819
|
|
|
$
|
5,296
|
|
|
$
|
9,115
|
|
|
|
|
|
|
March 31, 2014
(1)
|
|
December 31, 2013
(1)
|
||||||||||||||||||||
|
(In millions)
|
Amortized Cost
|
|
Net Unrealized Gains(Losses)
|
|
Fair Value
|
|
Amortized Cost
|
|
Net Unrealized Gains(Losses)
|
|
Fair Value
|
||||||||||||
|
Available for sale
(2)
|
$
|
98,770
|
|
|
$
|
392
|
|
|
$
|
99,162
|
|
|
$
|
99,159
|
|
|
$
|
15
|
|
|
$
|
99,174
|
|
|
Held to maturity
(2)
|
18,342
|
|
|
(16
|
)
|
|
18,326
|
|
|
17,740
|
|
|
(180
|
)
|
|
17,560
|
|
||||||
|
Total investment securities
|
117,112
|
|
|
376
|
|
|
117,488
|
|
|
116,899
|
|
|
(165
|
)
|
|
116,734
|
|
||||||
|
Net after-tax unrealized gain (loss)
|
|
|
$
|
226
|
|
|
|
|
|
|
$
|
(96
|
)
|
|
|
||||||||
|
|
|
|
|
|
(In millions)
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Institutional:
|
|
|
|
||||
|
U.S.
|
$
|
12,434
|
|
|
$
|
10,623
|
|
|
Non-U.S.
|
3,446
|
|
|
2,654
|
|
||
|
Commercial real estate:
|
|
|
|
||||
|
U.S.
|
234
|
|
|
209
|
|
||
|
Total loans and leases
|
16,114
|
|
|
13,486
|
|
||
|
Allowance for loan losses
|
(30
|
)
|
|
(28
|
)
|
||
|
Loans and leases, net of allowance for loan losses
|
$
|
16,084
|
|
|
$
|
13,458
|
|
|
|
Quarters Ended March 31,
|
||||||
|
(In millions)
|
2014
|
|
2013
|
||||
|
Allowance for loan losses:
|
|
|
|
||||
|
Beginning balance
|
$
|
28
|
|
|
$
|
22
|
|
|
Provision for loan losses:
|
|
|
|
||||
|
Institutional
|
2
|
|
|
—
|
|
||
|
Ending balance
|
$
|
30
|
|
|
$
|
22
|
|
|
(In millions)
|
Investment Securities and Other Assets
|
|
Derivatives and Securities on Loan
|
|
Total Cross-Border Outstandings
|
||||||
|
March 31, 2014
|
|
|
|
|
|
||||||
|
United Kingdom
|
$
|
13,662
|
|
|
$
|
1,328
|
|
|
$
|
14,990
|
|
|
Australia
|
7,210
|
|
|
209
|
|
|
7,419
|
|
|||
|
Japan
|
6,618
|
|
|
133
|
|
|
6,751
|
|
|||
|
Germany
|
4,509
|
|
|
406
|
|
|
4,915
|
|
|||
|
Netherlands
|
4,582
|
|
|
135
|
|
|
4,717
|
|
|||
|
France
|
2,849
|
|
|
673
|
|
|
3,522
|
|
|||
|
Canada
|
2,709
|
|
|
500
|
|
|
3,209
|
|
|||
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|||
|
United Kingdom
|
$
|
15,422
|
|
|
$
|
1,697
|
|
|
$
|
17,119
|
|
|
Australia
|
7,309
|
|
|
672
|
|
|
7,981
|
|
|||
|
Netherlands
|
4,542
|
|
|
277
|
|
|
4,819
|
|
|||
|
Canada
|
3,675
|
|
|
620
|
|
|
4,295
|
|
|||
|
Germany
|
4,062
|
|
|
147
|
|
|
4,209
|
|
|||
|
France
|
2,887
|
|
|
735
|
|
|
3,622
|
|
|||
|
Japan
|
2,445
|
|
|
605
|
|
|
3,050
|
|
|||
|
(In millions)
|
Investment
Securities and
Other Assets
|
|
Derivatives and Securities on Loan
|
|
Total Cross-Border Outstandings
|
||||||
|
March 31, 2014
|
|
|
|
|
|
||||||
|
Italy
|
$
|
1,012
|
|
|
$
|
1
|
|
|
$
|
1,013
|
|
|
Ireland
|
408
|
|
|
240
|
|
|
648
|
|
|||
|
Spain
|
204
|
|
|
15
|
|
|
219
|
|
|||
|
Portugal
|
80
|
|
|
—
|
|
|
80
|
|
|||
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|||
|
Italy
|
$
|
763
|
|
|
$
|
2
|
|
|
$
|
765
|
|
|
Ireland
|
369
|
|
|
304
|
|
|
673
|
|
|||
|
Spain
|
271
|
|
|
11
|
|
|
282
|
|
|||
|
Portugal
|
78
|
|
|
—
|
|
|
78
|
|
|||
|
•
|
credit and counterparty risk;
|
|
•
|
liquidity risk, funding and management;
|
|
•
|
operational risk, including execution, technology, business practice and fiduciary risks;
|
|
•
|
market risk, including market risk associated with our trading activities and market risk associated with our non-trading, or asset-and-liability management, activities, the latter of which is primarily composed of interest-rate risk;
|
|
•
|
model risk; and
|
|
•
|
business risk, including reputational risk.
|
|
•
|
A culture of risk awareness that extends across all of our business activities;
|
|
•
|
The identification, classification and quantification of State Street's material risks;
|
|
•
|
The establishment of our risk appetite and associated limits and policies, and our compliance with these limits;
|
|
•
|
The establishment of a risk management structure at the “top of the house” that enables the control and coordination of risk-taking across the business lines;
|
|
•
|
The implementation of stress testing practices and a dynamic risk-assessment capability; and
|
|
•
|
The overall flexibility to adapt to the ever-changing business and market conditions.
|
|
RISK GOVERNANCE COMMITTEE STRUCTURE
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Board Oversight
|
|
|
Risk and Capital Committee of the Board of Directors (RCC)
|
|
|
|
|
|
Examining & Audit Committee of the Board of Directors (E&A)
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Management Oversight
|
|
Management Risk and Capital Committee (MRAC)
|
|
|
Business Conduct Review Committee
(BCRC)
|
|
|
|
Technology and Operational Risk Committee (TORC)
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Committees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset, Liability and Capital Committee (ALCCO)
|
|
Credit Risk and Policy Committee
|
|
Country Risk Committee
|
|
Trading and Markets Risk Committee (TMRC)
|
|
Securities Finance Risk Management Committee
|
|
Model Assessment Committee
(MAC)
|
|
Basel ICAAP Oversight Committee
(BIOC)
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mandate
|
|
Oversight of interest rate risk, liquidity risk and capital adequacy
|
|
Oversight of credit and counterparty risk
|
|
Oversight of country risk and international exposure
|
|
Senior risk committee governing all global markets trading activities
|
|
Oversight of Securities Finance and collateral reinvestment activities
|
|
Oversight of model deployment
|
|
Oversight of Basel II and Basel III program
|
||||||||||||
|
|
|
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CCAR Steering Committee
(1)
|
|
Recovery and Resolution Planning Executive Steering Group
|
|
New Business and Product Committee
|
|
Compliance and Ethics Committee
|
|
Fiduciary Review Committee
|
|
Operational
Risk Committee (ORC) |
|
Technology Risk Governance Committee
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mandate
|
|
Oversight of CCAR stress-testing program
|
|
Oversight of process for development of recovery and resolution plans
|
|
Oversight of evaluation of risk inherent in new products and services and new business
|
|
Oversight of compliance programs including employee ethics standards
|
|
Oversight of corporate-wide fiduciary risk
|
|
Oversight of corporate-wide operational risk
|
|
Oversight of corporate-wide technology risk
|
||||||||||||
|
|
|
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
▪
|
“Vertical” business unit-aligned risk groups that assist business managers with risk management, measurement and monitoring activities;
|
|
▪
|
“Horizontal” risk groups that monitor the risks that cross all of our business units (for example, credit and operational risk); and
|
|
▪
|
Risk oversight for international activities, which adds important regional and legal entity perspectives to global vertical and horizontal risk management.
|
|
•
|
The review of our risk appetite framework and top-level risk limits and policies;
|
|
•
|
The monitoring and assessment of our capital adequacy based on regulatory requirements and internal policies; and
|
|
•
|
The review of business performance in the context of risk and capital allocation.
|
|
•
|
The Credit Risk and Policy Committee is responsible for cross-business unit review and oversight of credit and counterparty risk;
|
|
▪
|
The Country Risk Committee oversees the identification, assessment, monitoring, reporting and mitigation, where necessary, of country risks;
|
|
▪
|
The Trading and Markets Risk Committee, or TMRC, reviews the effectiveness of, and approves, the market risk framework at least annually; it is the most senior oversight and decision making committee for risk management within State Street Global Markets and the trading-and-clearing business of State Street Global Exchange;
|
|
▪
|
The Securities Finance Risk Management Committee provides oversight of the risks in our securities finance business, including collateral and margin policies;
|
|
▪
|
The Model Assessment Committee, or MAC, provides recommendations concerning technical modeling issues and validates
|
|
▪
|
The Basel / ICAAP Oversight Committee, or BIOC, reviews and assesses compliance with regulatory capital rules, and oversees initiatives related to the development and enhancement of relevant reporting capabilities;
|
|
▪
|
The CCAR Steering Committee provides primary supervision of the stress tests performed in conformity with CCAR and the Dodd-Frank Act, and is responsible for the overall management, review, and approval of all material assumptions, methodologies, and results of each stress scenario;
|
|
▪
|
The Recovery and Resolution Planning Executive Steering Group oversees the development of recovery and resolution plans as required by banking regulators;
|
|
▪
|
The New Business and Product Committee provides oversight of the evaluation of the risk inherent in proposed new products or services and new business, as well as divestitures, restructurings and outsourcing arrangements; evaluations include economic justification, material risk, compliance, regulatory and legal considerations, and capital and liquidity analyses;
|
|
•
|
The Compliance and Ethics Committee provides review and oversight of State Street's compliance programs, including its culture of compliance and high standards of ethical behavior;
|
|
▪
|
The Fiduciary Review Committee reviews and assesses the risk management programs of those units in which State Street serves in a fiduciary capacity;
|
|
▪
|
The Operational Risk Committee provides cross-business oversight of operational risk to identify, measure, manage and control operational risk in an effective and consistent manner across State Street; and
|
|
▪
|
The Technology Risk Governance Committee provides regular reporting to the TORC and escalates technology risk issues to the TORC, as appropriate.
|
|
▪
|
Default risk is the risk that a counterparty fails to meet its contractual payment obligations;
|
|
▪
|
Country risk is the risk that we may suffer a loss, in any given country, due to any of the following reasons: deterioration of economic conditions, political and social upheaval, nationalization and appropriation of assets, government repudiation of indebtedness, exchange controls, and disruptive currency depreciation or devaluation; and
|
|
▪
|
Settlement risk is the risk that the settlement or clearance of transactions will fail, and arises whenever the exchange of cash, securities and/or other assets is not simultaneous.
|
|
▪
|
All credit risks to each counterparty, or group of counterparties, are measured and consolidated in accordance with a ‘one obligor’ principle that aggregates all risks types across all business areas;
|
|
▪
|
We seek to avoid or minimize undue concentrations of risk; counterparty (or groups of counterparties), industry, country and product-specific concentrations of risk are subject to frequent review and approval in accordance with State Street’s prevailing risk appetite;
|
|
▪
|
All extensions of credit, or material changes to extensions of credit (such as its tenor, collateral structure or covenants), are approved by ERM in conformity with assigned credit-approval authorities;
|
|
▪
|
We assign credit approval authorities to individuals according to their qualifications, experience and training, and review these authorities periodically; our largest exposures require approval by the Credit Committee, a sub-committee of the Credit Risk and Policy
|
|
▪
|
The creditworthiness of all counterparties is determined by way of a detailed risk assessment, including the use of comprehensive internal rating methodologies; all rating methodologies in use at State Street are authorized for use within the advanced internal-ratings-based approach under applicable Basel requirements; and
|
|
▪
|
A review of the creditworthiness of all counterparties, as well as all extensions of credit, is undertaken at least annually; the nature and extent of these reviews is determined by the size, nature and tenor of the extensions of credit, as well as the creditworthiness of the counterparty.
|
|
•
|
Separate and objective assessments of our credit and counterparty exposures to determine the nature and extent of risk undertaken by the business units;
|
|
•
|
Periodic business unit reviews, focusing on the assessment of credit analysis, policy compliance, prudent transaction structure and underwriting standards, administration and documentation, risk-rating integrity, and relevant trends;
|
|
•
|
Identification and monitoring of developing trends to minimize risk of loss and protect capital;
|
|
•
|
Maintenance of risk-rating system integrity and assurance of counterparty risk-rating transparency through testing of ratings;
|
|
•
|
Providing resources for specialized risk assessments (on an as-needed basis);
|
|
•
|
Opining on the adequacy of the allowance for loan losses; and
|
|
•
|
Serving as liaison with auditors and banking regulators with respect to risk rating, reporting and measurement.
|
|
•
|
Structural liquidity management addresses liquidity by monitoring and directing the composition of our consolidated statement of condition. Structural liquidity is measured by metrics such as the percentage of total wholesale funds to consolidated total assets, and the percentage of non-government investment securities to client deposits. In addition, on a regular basis and as described further below, our structural liquidity is evaluated under various stress scenarios.
|
|
•
|
Tactical liquidity management addresses our day-to-day funding requirements and is largely driven by changes in our primary source of funding, which is client deposits.
|
|
•
|
Stress testing and contingent funding planning are longer-term strategic liquidity risk management practices. Regular and ad hoc liquidity stress testing are performed under various severe but plausible scenarios at the consolidated level and at significant subsidiaries, including State Street Bank. These tests contemplate severe market and State Street-specific events under various time horizons and severities. Tests contemplate the impact of material changes in key funding sources, credit ratings, additional collateral requirements, contingent uses of funding, systemic shocks to the financial markets, and operational failures based on market and State Street-specific assumptions. The stress tests evaluate the required level of funding versus available sources in an adverse environment. As stress testing contemplates potential forward-looking scenarios, results also serve as a trigger to activate specific liquidity stress levels and contingent funding actions.
|
|
(In millions)
|
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Asset Liquidity:
|
|
|
|
|
||||
|
Highly liquid short-term investments
(1)
|
|
$
|
75,796
|
|
|
$
|
64,257
|
|
|
Investment securities
|
|
21,612
|
|
|
22,322
|
|
||
|
Total
|
|
$
|
97,408
|
|
|
$
|
86,579
|
|
|
|
|
|
|
|
||||
|
|
|
Quarters Ended March 31,
|
||||||
|
(In millions)
|
|
2014
|
|
2013
|
||||
|
Average Asset Liquidity:
|
|
|
|
|
||||
|
Highly liquid short-term investments
(1)
|
|
$
|
33,410
|
|
|
$
|
30,585
|
|
|
Investment securities
|
|
21,457
|
|
|
25,794
|
|
||
|
Total
|
|
$
|
54,867
|
|
|
$
|
56,379
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
|
||||||||||
|
|
March 31,
|
|
Quarters Ended March 31,
|
||||||||||||
|
(In millions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
Client deposits
(1)
|
$
|
194,648
|
|
|
$
|
150,130
|
|
|
$
|
154,086
|
|
|
$
|
138,750
|
|
|
|
|
|
|
|
(In millions)
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Additional collateral or termination payments for a one- or two-notch downgrade
|
$
|
3
|
|
|
$
|
7
|
|
|
▪
|
The alignment of business priorities with risk management objectives;
|
|
▪
|
The active management of risk and the avoidance of surprises;
|
|
▪
|
The clarification of responsibilities for the management of operational risk;
|
|
▪
|
A common understanding of operational risk management and its supporting processes; and
|
|
▪
|
The consistent application of policies and collection of data for risk management and measurement.
|
|
▪
|
Identify, assess and measure risk - understand business unit strategy, risk profile and potential exposure;
|
|
▪
|
Monitor risk - proactively monitor the business environment and associated operational risk exposure;
|
|
▪
|
Evaluate and test controls - verify that internal controls are designed appropriately, are consistent with corporate and regulatory standards, and are operating effectively;
|
|
▪
|
Provide integrated management reporting - facilitate management's ability to maintain
|
|
▪
|
Support risk-based decision making - make conscious risk-based decisions and understand the trade-off between risk and return.
|
|
▪
|
Board oversight of our operational risk framework is primarily the responsibility of the RCC, which annually reviews and approves our operational risk policy and delegates day-to-day oversight to ERM;
|
|
▪
|
Senior business unit managers are responsible for the management of operational risk;
|
|
▪
|
ERM and other corporate groups provide separate oversight, validation and verification of the management and measurement of operational risk; and
|
|
▪
|
Executive management provides oversight through participation on risk-management committees and direct management of risk in business activities.
|
|
▪
|
The RCC approves our operational risk policy, delegates the implementation and monitoring of the operational risk guidelines, framework and related programs to ERM, and reviews periodic reporting of management information related to operational risk; and
|
|
▪
|
Senior business unit management is responsible for the direct management of operational risk arising from our business activities, as well as operational risk oversight through representation on the MRAC, the BCRC, the TORC, and the local Operational Risk and Fiduciary Review Committees.
|
|
▪
|
ERM’s Corporate Operational Risk Management group is responsible for the development and implementation of State Street's operational risk guidelines, framework and supporting tools. It also reviews and analyzes operational key risk information, metrics and indicators at the business line and corporate level for purposes of reporting and escalating operational risk events;
|
|
▪
|
ERM’s Corporate Risk Analytics group develops and maintains operational risk capital estimation models and regularly calculates State Street's operational risk regulatory capital requirements;
|
|
▪
|
ERM’s Model Governance group separately validates the quantitative models used to measure operational risk; and
|
|
▪
|
Corporate Audit performs separate reviews of the application of operational risk management practices and methodologies utilized across State Street.
|
|
VaR - COVERED PORTFOLIOS (TEN-DAY VaR)
|
Quarter Ended March 31, 2014
|
|
Quarter Ended March 31, 2013
|
|
As of March 31, 2014
|
|
As of December 31, 2013
|
||||||||||||||||||||||||
|
(In thousands)
|
Average
|
|
Maximum
|
|
Minimum
|
|
Average
|
|
Maximum
|
|
Minimum
|
|
VaR
|
|
VaR
|
||||||||||||||||
|
Foreign exchange
|
$
|
6,321
|
|
|
$
|
12,327
|
|
|
$
|
2,273
|
|
|
$
|
7,114
|
|
|
$
|
22,835
|
|
|
$
|
1,626
|
|
|
$
|
4,664
|
|
|
$
|
5,463
|
|
|
Money market/Global Treasury
|
51
|
|
|
62
|
|
|
42
|
|
|
140
|
|
|
559
|
|
|
24
|
|
|
61
|
|
|
58
|
|
||||||||
|
Total VaR
|
$
|
6,298
|
|
|
$
|
12,283
|
|
|
$
|
2,262
|
|
|
$
|
7,046
|
|
|
$
|
22,834
|
|
|
$
|
1,641
|
|
|
$
|
4,634
|
|
|
$
|
5,441
|
|
|
STRESSED VaR - COVERED PORTFOLIOS (TEN-DAY VaR)
|
Quarter Ended March 31, 2014
|
|
Quarter Ended March 31, 2013
|
|
As of March 31, 2014
|
|
As of December 31, 2013
|
||||||||||||||||||||||||
|
(In thousands)
|
Average
|
|
Maximum
|
|
Minimum
|
|
Average
|
|
Maximum
|
|
Minimum
|
|
VaR
|
|
VaR
|
||||||||||||||||
|
Foreign exchange
|
$
|
30,664
|
|
|
$
|
50,900
|
|
|
$
|
15,625
|
|
|
$
|
16,424
|
|
|
$
|
37,633
|
|
|
$
|
5,333
|
|
|
$
|
34,072
|
|
|
$
|
30,338
|
|
|
Money market/Global Treasury
|
230
|
|
|
572
|
|
|
84
|
|
|
310
|
|
|
965
|
|
|
56
|
|
|
140
|
|
|
280
|
|
||||||||
|
Total Stressed VaR
|
$
|
30,610
|
|
|
$
|
50,795
|
|
|
$
|
15,495
|
|
|
$
|
16,313
|
|
|
$
|
37,445
|
|
|
$
|
5,385
|
|
|
$
|
33,930
|
|
|
$
|
30,403
|
|
|
VaR - COVERED PORTFOLIOS (TEN-DAY VaR)
|
As of March 31, 2014
|
|
As of December 31, 2013
|
||||||||||||||||||||
|
(In thousands)
|
Foreign Exchange
|
|
Interest Rate
|
|
Volatility
|
|
Foreign Exchange
|
|
Interest Rate
|
|
Volatility
|
||||||||||||
|
By component:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Foreign exchange/Global Markets
|
$
|
4,107
|
|
|
$
|
4,132
|
|
|
$
|
234
|
|
|
$
|
3,492
|
|
|
$
|
4,561
|
|
|
$
|
306
|
|
|
Money market/Global Treasury
|
48
|
|
|
25
|
|
|
—
|
|
|
46
|
|
|
52
|
|
|
—
|
|
||||||
|
Total VaR
|
$
|
4,070
|
|
|
$
|
4,125
|
|
|
$
|
234
|
|
|
$
|
3,457
|
|
|
$
|
4,577
|
|
|
$
|
306
|
|
|
|
Estimated Exposure to
Net Interest Revenue
|
||||||||||||
|
(Dollars in millions)
|
March 31,
2014 |
|
December 31,
2013 |
||||||||||
|
Rate change:
|
Exposure
|
|
% of Base NIR
|
|
Exposure
|
|
% of Base NIR
|
||||||
|
+100 bps shock
|
$
|
344
|
|
|
14.2
|
%
|
|
$
|
334
|
|
|
14.0
|
%
|
|
–100 bps shock
|
(291
|
)
|
|
(12.0
|
)
|
|
(261
|
)
|
|
(10.9
|
)
|
||
|
+100 bps ramp
|
128
|
|
|
5.3
|
|
|
126
|
|
|
5.3
|
|
||
|
–100 bps ramp
|
(158
|
)
|
|
(6.5
|
)
|
|
(124
|
)
|
|
(5.2
|
)
|
||
|
|
Estimated Sensitivity of
Economic Value of Equity
|
||||||||||||
|
(Dollars in millions)
|
March 31,
2014 |
|
December 31,
2013 |
||||||||||
|
Rate change:
|
Exposure
|
|
% of Tier 1/Tier 2 Capital
|
|
Exposure
|
|
% of Tier 1/Tier 2 Capital
|
||||||
|
+200 bps shock
|
$
|
(2,346
|
)
|
|
(13.2
|
)%
|
|
$
|
(2,359
|
)
|
|
(14.9
|
)%
|
|
–200 bps shock
|
1,146
|
|
|
6.5
|
|
|
1,149
|
|
|
7.2
|
|
||
|
▪
|
A model risk governance program supports risk management by defining roles and responsibilities, by providing policies and guidance that define relevant model risk management activities, and by describing procedures that implement those policies;
|
|
▪
|
A model development process facilitates the appropriate design and accuracy of models; the development process also includes ongoing model integrity activities designed to test for robustness and stability and to evaluate a model's limitations and assumptions; and
|
|
▪
|
A set of model validation processes and activities is designed to validate that models are theoretically sound, are performing as expected, and are in line with their design objectives; model validation also checks that a model's key assumptions and limitations are identified and clearly communicated to the model's end users and to senior management.
|
|
•
|
Risk Management - identification, measurement, monitoring and forecasting of different types of risk and their combined impact on capital adequacy;
|
|
•
|
Capital Management - determination of optimal capital and liquidity levels; and
|
|
•
|
Business Management - strategic planning, budgeting, forecasting, and performance management.
|
|
|
Currently Applicable Regulatory Guidelines
|
|
State Street
|
|
State Street Bank
|
||||||||||||
|
|
Minimum
|
|
Well
Capitalized
|
|
March 31, 2014
|
|
December 31, 2013
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||
|
Tier 1 risk-based capital ratio
|
4
|
%
|
|
6
|
%
|
|
18.3
|
%
|
|
17.3
|
%
|
|
17.3
|
%
|
|
16.4
|
%
|
|
Total risk-based capital ratio
|
8
|
|
|
10
|
|
|
21.0
|
|
|
19.7
|
|
|
19.6
|
|
|
19.0
|
|
|
Tier 1 leverage ratio
(1)
|
4
|
|
|
5
|
|
|
7.4
|
|
|
6.9
|
|
|
6.9
|
|
|
6.4
|
|
|
|
|
|
|
|
State Street
|
|
State Street Bank
|
||||||||||||
|
(In millions)
|
March 31, 2014
|
|
December 31, 2013
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||
|
Tier 1 capital
(1)
:
|
|
|
|
|
|
|
|
||||||||
|
Total common shareholders' equity
|
$
|
20,040
|
|
|
$
|
19,887
|
|
|
$
|
20,024
|
|
|
$
|
19,755
|
|
|
Preferred stock
|
1,233
|
|
|
491
|
|
|
—
|
|
|
—
|
|
||||
|
Trust preferred capital securities
(2)
|
475
|
|
|
950
|
|
|
—
|
|
|
—
|
|
||||
|
Goodwill and other intangible assets, net of associated deferred tax liabilities
(3)
|
(6,122
|
)
|
|
(7,743
|
)
|
|
(5,838
|
)
|
|
(7,341
|
)
|
||||
|
Other
|
(139
|
)
|
|
310
|
|
|
(63
|
)
|
|
304
|
|
||||
|
Tier 1 capital
|
15,487
|
|
|
13,895
|
|
|
14,123
|
|
|
12,718
|
|
||||
|
Tier 2 capital
(1)
:
|
|
|
|
|
|
|
|
||||||||
|
Qualifying subordinated debt
|
1,738
|
|
|
1,918
|
|
|
1,755
|
|
|
1,936
|
|
||||
|
Trust preferred capital securities
(2)
|
475
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Allowances for on- and off-balance sheet credit exposures and other
|
50
|
|
|
48
|
|
|
48
|
|
|
45
|
|
||||
|
Tier 2 capital
|
2,263
|
|
|
1,966
|
|
|
1,803
|
|
|
1,981
|
|
||||
|
Deduction for investments in finance subsidiaries
|
—
|
|
|
(74
|
)
|
|
—
|
|
|
—
|
|
||||
|
Total capital
(1)
|
$
|
17,750
|
|
|
$
|
15,787
|
|
|
$
|
15,926
|
|
|
$
|
14,699
|
|
|
Total risk-weighted assets
(4)
:
|
|
|
|
|
|
|
|
||||||||
|
On-balance sheet assets:
|
|
|
|
|
|
|
|
||||||||
|
Cash and interest-bearing assets
|
$
|
2,362
|
|
|
$
|
2,175
|
|
|
$
|
2,191
|
|
|
$
|
1,979
|
|
|
Investment securities
|
34,134
|
|
|
34,000
|
|
|
33,435
|
|
|
33,514
|
|
||||
|
Loans and leases
|
15,754
|
|
|
13,201
|
|
|
15,807
|
|
|
13,257
|
|
||||
|
Interest, fees and other receivables
|
2,746
|
|
|
2,951
|
|
|
2,111
|
|
|
2,332
|
|
||||
|
Other assets
|
9,835
|
|
|
7,950
|
|
|
8,183
|
|
|
6,517
|
|
||||
|
Total on-balance sheet assets
|
64,831
|
|
|
60,277
|
|
|
61,727
|
|
|
57,599
|
|
||||
|
Off-balance sheet equivalent assets:
|
|
|
|
|
|
|
|
||||||||
|
Guarantees and unfunded commitments to extend credit
|
10,989
|
|
|
10,125
|
|
|
10,989
|
|
|
10,125
|
|
||||
|
Foreign exchange derivative contracts
|
4,167
|
|
|
5,282
|
|
|
4,167
|
|
|
5,302
|
|
||||
|
Standby letters of credit and asset purchase agreements
|
3,011
|
|
|
2,995
|
|
|
3,011
|
|
|
2,995
|
|
||||
|
Other
|
315
|
|
|
185
|
|
|
173
|
|
|
176
|
|
||||
|
Total off-balance sheet equivalent assets
|
18,482
|
|
|
18,587
|
|
|
18,340
|
|
|
18,598
|
|
||||
|
Market risk equivalent assets
|
1,381
|
|
|
1,262
|
|
|
1,381
|
|
|
1,262
|
|
||||
|
Total risk-weighted assets
|
$
|
84,694
|
|
|
$
|
80,126
|
|
|
$
|
81,448
|
|
|
$
|
77,459
|
|
|
Adjusted quarterly average assets
|
$
|
209,021
|
|
|
$
|
202,801
|
|
|
$
|
205,409
|
|
|
$
|
199,301
|
|
|
|
|
|
|
|
|
March 31, 2014
|
|
Currently Applicable Regulatory Requirements
(1)
|
|
Basel III Final Rule Standardized Approach (Estimated)
(2)
|
|
Basel III Final Rule Advanced Approach (Estimated)
(2)
|
||||||
|
(Dollars in millions)
|
|
|
|
|||||||||
|
Tier 1 capital
|
|
$
|
15,487
|
|
|
$
|
15,487
|
|
|
$
|
15,487
|
|
|
Less:
|
|
|
|
|
|
|
||||||
|
Trust preferred capital securities
|
|
475
|
|
|
475
|
|
|
475
|
|
|||
|
Preferred stock
|
|
1,233
|
|
|
1,233
|
|
|
1,233
|
|
|||
|
Plus: Other
|
|
145
|
|
|
145
|
|
|
145
|
|
|||
|
Tier 1 common capital
|
|
$
|
13,924
|
|
|
$
|
13,924
|
|
|
$
|
13,924
|
|
|
Total risk-weighted assets
|
|
$
|
84,694
|
|
|
$
|
124,783
|
|
|
$
|
105,729
|
|
|
Tier 1 common ratio
|
|
16.4
|
%
|
|
11.2
|
%
|
|
13.2
|
%
|
|||
|
Minimum tier 1 common ratio requirement, assuming full implementation on January 1, 2019
|
|
|
|
4.5
|
|
|
4.5
|
|
||||
|
Capital conservation buffer, assuming full implementation on January 1, 2019
|
|
|
|
2.5
|
|
|
2.5
|
|
||||
|
Minimum tier 1 common ratio requirement, including capital conservation buffer, assuming full implementation on January 1, 2019
(3)
|
|
|
|
7.0
|
|
|
7.0
|
|
||||
|
|
|
|
|
•
|
Under the standardized approach, total risk-weighted assets used in the calculation of the estimated tier 1 common ratio increased by
$40.09 billion
as a result of applying the provisions of the Basel III final rule to Basel I total risk-weighted assets of
$84.69 billion
as of
March 31, 2014
. Under the advanced approach, total risk-weighted assets used in the calculation of the estimated tier 1 common ratio increased by
$21.04 billion
as a result of applying the provisions of the final rule to Basel I total risk-weighted assets of
$84.69 billion
as of
March 31, 2014
.
|
|
•
|
Market risk: the risk of adverse financial impact due to fluctuations in market prices, primarily as they relate to our trading activities;
|
|
•
|
Interest-rate risk: the risk of loss in non-trading asset-and-liability management positions, primarily the impact of adverse movements in interest rates on the repricing mismatches that exist between the assets and liabilities carried in our consolidated statement of condition;
|
|
•
|
Credit risk: the risk of loss that may result from the default or downgrade of a borrower or counterparty;
|
|
•
|
Operational risk: the risk of loss from inadequate or failed internal processes and systems, human error, or from external events, which is generally consistent with the Basel III definition; and
|
|
•
|
Business risk: the risk of negative earnings resulting from adverse changes in business factors, including changes in the competitive environment, changes in the operational economics of our business activities, and the effect of strategic and reputational risks.
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2014
|
|
2013
|
||||
|
(Dollars in millions, except per share amounts)
|
|
|
|
||||
|
Fee revenue:
|
|
|
|
||||
|
Servicing fees
|
$
|
1,238
|
|
|
$
|
1,175
|
|
|
Management fees
|
292
|
|
|
263
|
|
||
|
Trading services
|
239
|
|
|
281
|
|
||
|
Securities finance
|
85
|
|
|
78
|
|
||
|
Processing fees and other
|
70
|
|
|
60
|
|
||
|
Total fee revenue
|
1,924
|
|
|
1,857
|
|
||
|
Net interest revenue:
|
|
|
|
||||
|
Interest revenue
|
655
|
|
|
687
|
|
||
|
Interest expense
|
100
|
|
|
111
|
|
||
|
Net interest revenue
|
555
|
|
|
576
|
|
||
|
Gains (losses) related to investment securities, net:
|
|
|
|
||||
|
Net gains (losses) from sales of available-for-sale securities
|
15
|
|
|
5
|
|
||
|
Losses from other-than-temporary impairment
|
(1
|
)
|
|
—
|
|
||
|
Losses reclassified (from) to other comprehensive income
|
(8
|
)
|
|
(3
|
)
|
||
|
Gains (losses) related to investment securities, net
|
6
|
|
|
2
|
|
||
|
Total revenue
|
2,485
|
|
|
2,435
|
|
||
|
Provision for loan losses
|
2
|
|
|
—
|
|
||
|
Expenses:
|
|
|
|
||||
|
Compensation and employee benefits
|
1,157
|
|
|
1,035
|
|
||
|
Information systems and communications
|
244
|
|
|
237
|
|
||
|
Transaction processing services
|
191
|
|
|
180
|
|
||
|
Occupancy
|
114
|
|
|
116
|
|
||
|
Acquisition and restructuring costs
|
33
|
|
|
14
|
|
||
|
Professional services
|
105
|
|
|
79
|
|
||
|
Amortization of other intangible assets
|
54
|
|
|
53
|
|
||
|
Other
|
130
|
|
|
112
|
|
||
|
Total expenses
|
2,028
|
|
|
1,826
|
|
||
|
Income before income tax expense
|
455
|
|
|
609
|
|
||
|
Income tax expense
|
92
|
|
|
145
|
|
||
|
Net income
|
$
|
363
|
|
|
$
|
464
|
|
|
Net income available to common shareholders
|
$
|
356
|
|
|
$
|
455
|
|
|
Earnings per common share:
|
|
|
|
||||
|
Basic
|
$
|
.83
|
|
|
$
|
1.00
|
|
|
Diluted
|
.81
|
|
|
.98
|
|
||
|
Average common shares outstanding (in thousands):
|
|
|
|
||||
|
Basic
|
430,621
|
|
|
454,315
|
|
||
|
Diluted
|
438,815
|
|
|
462,751
|
|
||
|
Cash dividends declared per common share
|
$
|
.26
|
|
|
$
|
.26
|
|
|
|
Three Months Ended March 31,
|
||||||
|
(In millions)
|
2014
|
|
2013
|
||||
|
Net income
|
$
|
363
|
|
|
$
|
464
|
|
|
Other comprehensive income (loss), net of related taxes:
|
|
|
|
||||
|
Foreign currency translation, net of related taxes of $8 and ($64), respectively
|
27
|
|
|
(248
|
)
|
||
|
Change in net unrealized gains on available-for-sale securities, net of reclassification adjustment and net of related taxes of $162 and $29, respectively
|
259
|
|
|
51
|
|
||
|
Change in net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes of ($6) and $9, respectively
|
(10
|
)
|
|
15
|
|
||
|
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $5 and $4, respectively
|
8
|
|
|
6
|
|
||
|
Change in net unrealized losses on cash flow hedges, net of related taxes of ($5) and $41, respectively
|
(7
|
)
|
|
64
|
|
||
|
Change in net unrealized losses on retirement plans, net of related taxes of $3 and $2, respectively
|
6
|
|
|
3
|
|
||
|
Other comprehensive income (loss)
|
283
|
|
|
(109
|
)
|
||
|
Total comprehensive income
|
$
|
646
|
|
|
$
|
355
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
(Dollars in millions, except per share amounts)
|
(Unaudited)
|
|
|
||||
|
Assets:
|
|
|
|
||||
|
Cash and due from banks
|
$
|
3,877
|
|
|
$
|
3,220
|
|
|
Interest-bearing deposits with banks
|
75,796
|
|
|
64,257
|
|
||
|
Securities purchased under resale agreements
|
6,087
|
|
|
6,230
|
|
||
|
Trading account assets
|
889
|
|
|
843
|
|
||
|
Investment securities available for sale
|
99,162
|
|
|
99,174
|
|
||
|
Investment securities held to maturity (fair value of $18,326 and $17,560)
|
18,342
|
|
|
17,740
|
|
||
|
Loans and leases (less allowance for losses of $30 and $28)
|
16,084
|
|
|
13,458
|
|
||
|
Premises and equipment (net of accumulated depreciation of $4,521 and $4,417)
|
1,896
|
|
|
1,860
|
|
||
|
Accrued interest and fees receivable
|
2,197
|
|
|
2,123
|
|
||
|
Goodwill
|
6,038
|
|
|
6,036
|
|
||
|
Other intangible assets
|
2,306
|
|
|
2,360
|
|
||
|
Other assets
|
23,989
|
|
|
25,990
|
|
||
|
Total assets
|
$
|
256,663
|
|
|
$
|
243,291
|
|
|
Liabilities:
|
|
|
|
||||
|
Deposits:
|
|
|
|
||||
|
Noninterest-bearing
|
$
|
72,800
|
|
|
$
|
65,614
|
|
|
Interest-bearing—U.S.
|
15,327
|
|
|
13,392
|
|
||
|
Interest-bearing—non-U.S.
|
106,521
|
|
|
103,262
|
|
||
|
Total deposits
|
194,648
|
|
|
182,268
|
|
||
|
Securities sold under repurchase agreements
|
8,953
|
|
|
7,953
|
|
||
|
Federal funds purchased
|
18
|
|
|
19
|
|
||
|
Other short-term borrowings
|
3,811
|
|
|
3,780
|
|
||
|
Accrued expenses and other liabilities
|
18,457
|
|
|
19,194
|
|
||
|
Long-term debt
|
9,503
|
|
|
9,699
|
|
||
|
Total liabilities
|
235,390
|
|
|
222,913
|
|
||
|
Commitments, guarantees and contingencies (notes 7 and 8)
|
|
|
|
||||
|
Shareholders’ equity:
|
|
|
|
||||
|
Preferred stock, no par, 3,500,000 shares authorized:
|
|
|
|
||||
|
Series C, 5,000 shares issued and outstanding
|
491
|
|
|
491
|
|
||
|
Series D, 7,500 shares issued and outstanding
|
742
|
|
|
—
|
|
||
|
Common stock, $1 par, 750,000,000 shares authorized:
|
|
|
|
||||
|
503,881,095 and 503,882,841 shares issued
|
504
|
|
|
504
|
|
||
|
Surplus
|
9,737
|
|
|
9,776
|
|
||
|
Retained earnings
|
13,639
|
|
|
13,395
|
|
||
|
Accumulated other comprehensive income (loss)
|
188
|
|
|
(95
|
)
|
||
|
Treasury stock, at cost (73,440,407 and 69,754,255 shares)
|
(4,028
|
)
|
|
(3,693
|
)
|
||
|
Total shareholders’ equity
|
21,273
|
|
|
20,378
|
|
||
|
Total liabilities and shareholders’ equity
|
$
|
256,663
|
|
|
$
|
243,291
|
|
|
(Dollars in millions, except per share amounts, shares in thousands)
|
PREFERRED
STOCK
|
|
COMMON STOCK
|
|
Surplus
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
TREASURY STOCK
|
|
Total
|
||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||
|
Balance as of December 31, 2012
|
$
|
489
|
|
|
503,900
|
|
|
$
|
504
|
|
|
$
|
9,667
|
|
|
$
|
11,751
|
|
|
$
|
360
|
|
|
45,238
|
|
|
$
|
(1,902
|
)
|
|
$
|
20,869
|
|
|
Net income
|
|
|
|
|
|
|
|
|
464
|
|
|
|
|
|
|
|
|
464
|
|
||||||||||||||
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
(109
|
)
|
|
|
|
|
|
(109
|
)
|
||||||||||||||
|
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Common stock - $.26 per share
|
|
|
|
|
|
|
|
|
(118
|
)
|
|
|
|
|
|
|
|
(118
|
)
|
||||||||||||||
|
Preferred stock
|
|
|
|
|
|
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
(7
|
)
|
||||||||||||||
|
Common stock acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
6,548
|
|
|
(360
|
)
|
|
(360
|
)
|
|||||||||||||
|
Common stock awards and options exercised, including related taxes of $27
|
|
|
(4
|
)
|
|
|
|
2
|
|
|
|
|
|
|
(3,475
|
)
|
|
128
|
|
|
130
|
|
|||||||||||
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
(7
|
)
|
|
|
|
|
—
|
|
|||||||||||||
|
Balance as of March 31, 2013
|
$
|
489
|
|
|
503,896
|
|
|
$
|
504
|
|
|
$
|
9,669
|
|
|
$
|
12,090
|
|
|
$
|
251
|
|
|
48,304
|
|
|
$
|
(2,134
|
)
|
|
$
|
20,869
|
|
|
Balance as of December 31, 2013
|
$
|
491
|
|
|
503,883
|
|
|
$
|
504
|
|
|
$
|
9,776
|
|
|
$
|
13,395
|
|
|
$
|
(95
|
)
|
|
69,754
|
|
|
$
|
(3,693
|
)
|
|
$
|
20,378
|
|
|
Net income
|
|
|
|
|
|
|
|
|
363
|
|
|
|
|
|
|
|
|
363
|
|
||||||||||||||
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
283
|
|
|
|
|
|
|
283
|
|
||||||||||||||
|
Preferred stock issued
|
742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
742
|
|
||||||||||||||
|
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Common stock - $.26 per share
|
|
|
|
|
|
|
|
|
(112
|
)
|
|
|
|
|
|
|
|
(112
|
)
|
||||||||||||||
|
Preferred stock
|
|
|
|
|
|
|
|
|
(6
|
)
|
|
|
|
|
|
|
|
(6
|
)
|
||||||||||||||
|
Common stock acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
6,075
|
|
|
(420
|
)
|
|
(420
|
)
|
|||||||||||||
|
Common stock awards and options exercised, including income tax benefit of $41
|
|
|
(2
|
)
|
|
|
|
|
(39
|
)
|
|
|
|
|
|
(2,403
|
)
|
|
85
|
|
|
46
|
|
||||||||||
|
Other
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
14
|
|
|
|
|
(1
|
)
|
||||||||||||
|
Balance as of March 31, 2014
|
$
|
1,233
|
|
|
503,881
|
|
|
$
|
504
|
|
|
$
|
9,737
|
|
|
$
|
13,639
|
|
|
$
|
188
|
|
|
73,440
|
|
|
$
|
(4,028
|
)
|
|
$
|
21,273
|
|
|
|
Three Months Ended March 31,
|
||||||
|
(In millions)
|
2014
|
|
2013
|
||||
|
Operating Activities:
|
|
|
|
||||
|
Net income
|
$
|
363
|
|
|
$
|
464
|
|
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
|
|
|
||||
|
Deferred income tax expense
|
7
|
|
|
57
|
|
||
|
Amortization of other intangible assets
|
54
|
|
|
53
|
|
||
|
Other non-cash adjustments for depreciation, amortization and accretion, net
|
99
|
|
|
107
|
|
||
|
Gains related to investment securities, net
|
(6
|
)
|
|
(2
|
)
|
||
|
Change in trading account assets, net
|
(46
|
)
|
|
(17
|
)
|
||
|
Change in accrued interest and fees receivable, net
|
(74
|
)
|
|
(133
|
)
|
||
|
Change in collateral deposits, net
|
(419
|
)
|
|
(321
|
)
|
||
|
Change in unrealized losses on foreign exchange derivatives, net
|
267
|
|
|
72
|
|
||
|
Change in other assets, net
|
34
|
|
|
639
|
|
||
|
Change in accrued expenses and other liabilities, net
|
1,542
|
|
|
(734
|
)
|
||
|
Other, net
|
126
|
|
|
197
|
|
||
|
Net cash provided by operating activities
|
1,947
|
|
|
382
|
|
||
|
Investing Activities:
|
|
|
|
||||
|
Net (increase) decrease in interest-bearing deposits with banks
|
(11,539
|
)
|
|
11,539
|
|
||
|
Net decrease (increase) in securities purchased under resale agreements
|
143
|
|
|
(3,687
|
)
|
||
|
Proceeds from sales of available-for-sale securities
|
1,816
|
|
|
2,750
|
|
||
|
Proceeds from maturities of available-for-sale securities
|
8,733
|
|
|
9,723
|
|
||
|
Purchases of available-for-sale securities
|
(10,377
|
)
|
|
(8,240
|
)
|
||
|
Proceeds from maturities of held-to-maturity securities
|
667
|
|
|
437
|
|
||
|
Proceeds from sales of held-to-maturity securities
|
2
|
|
|
—
|
|
||
|
Purchases of held-to-maturity securities
|
(1,157
|
)
|
|
(2,570
|
)
|
||
|
Net increase in loans
|
(2,628
|
)
|
|
(1,702
|
)
|
||
|
Purchases of equity investments and other long-term assets
|
(82
|
)
|
|
(51
|
)
|
||
|
Purchases of premises and equipment
|
(110
|
)
|
|
(119
|
)
|
||
|
Other, net
|
18
|
|
|
36
|
|
||
|
Net cash (used in) provided by investing activities
|
(14,514
|
)
|
|
8,116
|
|
||
|
Financing Activities:
|
|
|
|
||||
|
Net decrease in time deposits
|
(1,084
|
)
|
|
(10,218
|
)
|
||
|
Net increase in all other deposits
|
13,464
|
|
|
812
|
|
||
|
Net increase in short-term borrowings
|
1,030
|
|
|
3,555
|
|
||
|
Payments for long-term debt and obligations under capital leases
|
(257
|
)
|
|
(7
|
)
|
||
|
Proceeds from issuance of preferred stock
|
742
|
|
|
—
|
|
||
|
Proceeds from exercises of common stock options
|
9
|
|
|
60
|
|
||
|
Purchases of common stock
|
(420
|
)
|
|
(360
|
)
|
||
|
Repurchases of common stock for employee tax withholding
|
(140
|
)
|
|
(112
|
)
|
||
|
Payments for cash dividends
|
(120
|
)
|
|
(110
|
)
|
||
|
Net cash provided by (used in) financing activities
|
13,224
|
|
|
(6,380
|
)
|
||
|
Net increase
|
657
|
|
|
2,118
|
|
||
|
Cash and due from banks at beginning of period
|
3,220
|
|
|
2,590
|
|
||
|
Cash and due from banks at end of period
|
$
|
3,877
|
|
|
$
|
4,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Quoted prices for similar assets or liabilities in active markets;
|
|
•
|
Quoted prices for identical or similar assets or liabilities in non-active markets;
|
|
•
|
Pricing models whose inputs are observable for substantially the full term of the asset or liability; and
|
|
•
|
Pricing models whose inputs are derived principally from, or corroborated by, observable market information through correlation or other means for substantially the full term of the asset or liability.
|
|
•
|
The fair value of our investment securities categorized in level 3 is measured using information obtained from third-party sources, typically non-binding broker or dealer quotes, or through the use of internally-developed pricing models. Management has evaluated its methodologies used to measure fair value, but has considered the level of observable market information to be insufficient to categorize the securities in level 2.
|
|
•
|
The fair value of foreign exchange contracts, primarily options, is measured using an option-pricing model. Because of a limited number of observable transactions, certain model inputs are not observable, such as implied volatility surface, but are derived from observable market information.
|
|
•
|
The fair value of certain interest-rate caps with long-dated maturities, is measured using a matrix-pricing approach. Observable market prices are not available for these derivatives, so extrapolation is necessary to value these instruments, since they have a strike and/or maturity outside of the matrix.
|
|
|
Fair-Value Measurements on a Recurring Basis
|
||||||||||||||||||
|
|
as of March 31, 2014
|
||||||||||||||||||
|
(In millions)
|
Quoted Market
Prices in Active
Markets
(Level 1)
|
|
Pricing Methods
with Significant
Observable
Market Inputs
(Level 2)
|
|
Pricing Methods
with Significant
Unobservable
Market Inputs
(Level 3)
|
|
Impact of Netting
(1)
|
|
Total Net
Carrying Value
in Consolidated
Statement of
Condition
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Trading account assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. government securities
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
$
|
20
|
|
||
|
Non-U.S. government securities
|
401
|
|
|
—
|
|
|
—
|
|
|
|
|
401
|
|
||||||
|
Other
|
60
|
|
|
408
|
|
|
—
|
|
|
|
|
468
|
|
||||||
|
Total trading account assets
|
481
|
|
|
408
|
|
|
—
|
|
|
|
|
889
|
|
||||||
|
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Direct obligations
|
1,280
|
|
|
683
|
|
|
—
|
|
|
|
|
1,963
|
|
||||||
|
Mortgage-backed securities
|
—
|
|
|
22,992
|
|
|
100
|
|
|
|
|
23,092
|
|
||||||
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Student loans
|
—
|
|
|
13,947
|
|
|
333
|
|
|
|
|
14,280
|
|
||||||
|
Credit cards
|
—
|
|
|
7,237
|
|
|
—
|
|
|
|
|
7,237
|
|
||||||
|
Sub-prime
|
—
|
|
|
1,155
|
|
|
—
|
|
|
|
|
1,155
|
|
||||||
|
Other
|
—
|
|
|
576
|
|
|
4,304
|
|
|
|
|
4,880
|
|
||||||
|
Total asset-backed securities
|
—
|
|
|
22,915
|
|
|
4,637
|
|
|
|
|
27,552
|
|
||||||
|
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Mortgage-backed securities
|
—
|
|
|
11,196
|
|
|
—
|
|
|
|
|
11,196
|
|
||||||
|
Asset-backed securities
|
—
|
|
|
4,382
|
|
|
612
|
|
|
|
|
4,994
|
|
||||||
|
Government securities
|
—
|
|
|
3,692
|
|
|
—
|
|
|
|
|
3,692
|
|
||||||
|
Other
|
—
|
|
|
4,522
|
|
|
462
|
|
|
|
|
4,984
|
|
||||||
|
Total non-U.S. debt securities
|
—
|
|
|
23,792
|
|
|
1,074
|
|
|
|
|
24,866
|
|
||||||
|
State and political subdivisions
|
—
|
|
|
10,402
|
|
|
42
|
|
|
|
|
10,444
|
|
||||||
|
Collateralized mortgage obligations
|
—
|
|
|
5,060
|
|
|
202
|
|
|
|
|
5,262
|
|
||||||
|
Other U.S. debt securities
|
—
|
|
|
4,938
|
|
|
8
|
|
|
|
|
4,946
|
|
||||||
|
U.S. equity securities
|
—
|
|
|
36
|
|
|
—
|
|
|
|
|
36
|
|
||||||
|
Non-U.S. equity securities
|
—
|
|
|
1
|
|
|
—
|
|
|
|
|
1
|
|
||||||
|
U.S. money-market mutual funds
|
—
|
|
|
993
|
|
|
—
|
|
|
|
|
993
|
|
||||||
|
Non-U.S. money-market mutual funds
|
—
|
|
|
7
|
|
|
—
|
|
|
|
|
7
|
|
||||||
|
Total investment securities available for sale
|
1,280
|
|
|
91,819
|
|
|
6,063
|
|
|
|
|
99,162
|
|
||||||
|
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Foreign exchange contracts
|
—
|
|
|
8,312
|
|
|
6
|
|
|
$
|
(4,850
|
)
|
|
3,468
|
|
||||
|
Interest-rate contracts
|
—
|
|
|
56
|
|
|
—
|
|
|
(56
|
)
|
|
—
|
|
|||||
|
Other derivative contracts
|
—
|
|
|
2
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|||||
|
Total derivative instruments
|
—
|
|
|
8,370
|
|
|
6
|
|
|
(4,907
|
)
|
|
3,469
|
|
|||||
|
Other
|
100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|||||
|
Total assets carried at fair value
|
$
|
1,861
|
|
|
$
|
100,597
|
|
|
$
|
6,069
|
|
|
$
|
(4,907
|
)
|
|
$
|
103,620
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Accrued expenses and other liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
7,834
|
|
|
$
|
8
|
|
|
$
|
(3,752
|
)
|
|
$
|
4,090
|
|
|
Interest-rate contracts
|
—
|
|
|
269
|
|
|
—
|
|
|
(56
|
)
|
|
213
|
|
|||||
|
Other derivative contracts
|
—
|
|
|
1
|
|
|
9
|
|
|
(1
|
)
|
|
9
|
|
|||||
|
Total derivative instruments
|
—
|
|
|
8,104
|
|
|
17
|
|
|
(3,809
|
)
|
|
4,312
|
|
|||||
|
Other
|
100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|||||
|
Total liabilities carried at fair value
|
$
|
100
|
|
|
$
|
8,104
|
|
|
$
|
17
|
|
|
$
|
(3,809
|
)
|
|
$
|
4,412
|
|
|
|
|
|
|
|
|
Fair-Value Measurements on a Recurring Basis
|
||||||||||||||||||
|
|
as of December 31, 2013
|
||||||||||||||||||
|
(In millions)
|
Quoted Market
Prices in Active
Markets
(Level 1)
|
|
Pricing Methods
with Significant
Observable
Market Inputs
(Level 2)
|
|
Pricing Methods
with Significant
Unobservable
Market Inputs
(Level 3)
|
|
Impact of Netting
(1)
|
|
Total Net
Carrying Value
in Consolidated
Statement of
Condition
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Trading account assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. government securities
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
$
|
20
|
|
||
|
Non-U.S. government securities
|
399
|
|
|
—
|
|
|
—
|
|
|
|
|
399
|
|
||||||
|
Other
|
67
|
|
|
357
|
|
|
—
|
|
|
|
|
424
|
|
||||||
|
Total trading account assets
|
486
|
|
|
357
|
|
|
—
|
|
|
|
|
843
|
|
||||||
|
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Direct obligations
|
—
|
|
|
709
|
|
|
—
|
|
|
|
|
709
|
|
||||||
|
Mortgage-backed securities
|
—
|
|
|
22,847
|
|
|
716
|
|
|
|
|
23,563
|
|
||||||
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Student loans
|
—
|
|
|
14,119
|
|
|
423
|
|
|
|
|
14,542
|
|
||||||
|
Credit cards
|
—
|
|
|
8,186
|
|
|
24
|
|
|
|
|
8,210
|
|
||||||
|
Sub-prime
|
—
|
|
|
1,203
|
|
|
—
|
|
|
|
|
1,203
|
|
||||||
|
Other
|
—
|
|
|
532
|
|
|
4,532
|
|
|
|
|
5,064
|
|
||||||
|
Total asset-backed securities
|
—
|
|
|
24,040
|
|
|
4,979
|
|
|
|
|
29,019
|
|
||||||
|
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Mortgage-backed securities
|
—
|
|
|
10,654
|
|
|
375
|
|
|
|
|
11,029
|
|
||||||
|
Asset-backed securities
|
—
|
|
|
4,592
|
|
|
798
|
|
|
|
|
5,390
|
|
||||||
|
Government securities
|
—
|
|
|
3,761
|
|
|
—
|
|
|
|
|
3,761
|
|
||||||
|
Other
|
—
|
|
|
4,263
|
|
|
464
|
|
|
|
|
4,727
|
|
||||||
|
Total non-U.S. debt securities
|
—
|
|
|
23,270
|
|
|
1,637
|
|
|
|
|
24,907
|
|
||||||
|
State and political subdivisions
|
—
|
|
|
10,220
|
|
|
43
|
|
|
|
|
10,263
|
|
||||||
|
Collateralized mortgage obligations
|
—
|
|
|
5,107
|
|
|
162
|
|
|
|
|
5,269
|
|
||||||
|
Other U.S. debt securities
|
—
|
|
|
4,972
|
|
|
8
|
|
|
|
|
4,980
|
|
||||||
|
U.S. equity securities
|
—
|
|
|
34
|
|
|
—
|
|
|
|
|
34
|
|
||||||
|
Non-U.S. equity securities
|
—
|
|
|
1
|
|
|
—
|
|
|
|
|
1
|
|
||||||
|
U.S. money-market mutual funds
|
—
|
|
|
422
|
|
|
—
|
|
|
|
|
422
|
|
||||||
|
Non-U.S. money-market mutual funds
|
—
|
|
|
7
|
|
|
—
|
|
|
|
|
7
|
|
||||||
|
Total investment securities available for sale
|
—
|
|
|
91,629
|
|
|
7,545
|
|
|
|
|
99,174
|
|
||||||
|
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivatives instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Foreign exchange contracts
|
—
|
|
|
11,892
|
|
|
19
|
|
|
$
|
(6,442
|
)
|
|
5,469
|
|
||||
|
Interest-rate contracts
|
—
|
|
|
65
|
|
|
—
|
|
|
(59
|
)
|
|
6
|
|
|||||
|
Other derivative contracts
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
|
Total derivative instruments
|
—
|
|
|
11,958
|
|
|
19
|
|
|
(6,501
|
)
|
|
5,476
|
|
|||||
|
Other
|
97
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
97
|
|
|||||
|
Total assets carried at fair value
|
$
|
583
|
|
|
$
|
103,944
|
|
|
$
|
7,564
|
|
|
$
|
(6,501
|
)
|
|
$
|
105,590
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Accrued expenses and other liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
11,454
|
|
|
$
|
17
|
|
|
$
|
(5,458
|
)
|
|
$
|
6,013
|
|
|
Interest-rate contracts
|
—
|
|
|
331
|
|
|
—
|
|
|
(94
|
)
|
|
237
|
|
|||||
|
Other derivative contracts
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|||||
|
Total derivative instruments
|
—
|
|
|
11,785
|
|
|
26
|
|
|
(5,552
|
)
|
|
6,259
|
|
|||||
|
Other
|
97
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
97
|
|
|||||
|
Total liabilities carried at fair value
|
$
|
97
|
|
|
$
|
11,785
|
|
|
$
|
26
|
|
|
$
|
(5,552
|
)
|
|
$
|
6,356
|
|
|
|
|
|
|
|
|
Fair-Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||||||||||
|
|
Three Months Ended March 31, 2014
|
||||||||||||||||||||||||||||||||||||||||||
|
|
Fair
Value as of December 31, 2013 |
|
Total Realized and
Unrealized Gains (Losses) |
|
Purchases
|
|
Issuances
|
|
Sales
|
|
Settlements
|
|
Transfers
into Level 3 |
|
Transfers
out of Level 3 |
|
Fair
Value as of March 31, 2014 |
|
Change in
Unrealized Gains (Losses) Related to Financial Instruments Held as of March 31, 2014 |
||||||||||||||||||||||||
|
(In millions)
|
Recorded
in
Revenue
|
|
Recorded
in Other
Comprehensive
Income
|
|
|||||||||||||||||||||||||||||||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
U.S. Treasury and federal agencies, mortgage-backed securities
|
$
|
716
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
(611
|
)
|
|
$
|
100
|
|
|
|
||
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Student loans
|
423
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(79
|
)
|
|
333
|
|
|
|
||||||||||||
|
Credit cards
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||||||||||
|
Other
|
4,532
|
|
|
15
|
|
|
(4
|
)
|
|
6
|
|
|
—
|
|
|
—
|
|
|
(245
|
)
|
|
—
|
|
|
—
|
|
|
4,304
|
|
|
|
||||||||||||
|
Total asset-backed securities
|
4,979
|
|
|
16
|
|
|
(3
|
)
|
|
6
|
|
|
—
|
|
|
—
|
|
|
(282
|
)
|
|
—
|
|
|
(79
|
)
|
|
4,637
|
|
|
|
||||||||||||
|
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Mortgage-backed securities
|
375
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(375
|
)
|
|
—
|
|
|
|
||||||||||||
|
Asset-backed securities
|
798
|
|
|
2
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
|
—
|
|
|
(124
|
)
|
|
612
|
|
|
|
||||||||||||
|
Other
|
464
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
462
|
|
|
|
||||||||||||
|
Total non-U.S. debt securities
|
1,637
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(63
|
)
|
|
—
|
|
|
(499
|
)
|
|
1,074
|
|
|
|
||||||||||||
|
State and political subdivisions
|
43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
42
|
|
|
|
||||||||||||
|
Collateralized mortgage obligations
|
162
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
|
—
|
|
|
(28
|
)
|
|
202
|
|
|
|
||||||||||||
|
Other U.S. debt securities
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
|
||||||||||||
|
Total investment securities available for sale
|
7,545
|
|
|
18
|
|
|
(5
|
)
|
|
86
|
|
|
—
|
|
|
(7
|
)
|
|
(357
|
)
|
|
—
|
|
|
(1,217
|
)
|
|
6,063
|
|
|
|
||||||||||||
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Derivative instruments, Foreign exchange contracts
|
19
|
|
|
(11
|
)
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
6
|
|
|
$
|
(7
|
)
|
||||||||||
|
Total derivative instruments
|
19
|
|
|
(11
|
)
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(7
|
)
|
|||||||||||
|
Total assets carried at fair value
|
$
|
7,564
|
|
|
$
|
7
|
|
|
$
|
(5
|
)
|
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
(7
|
)
|
|
$
|
(366
|
)
|
|
$
|
—
|
|
|
$
|
(1,217
|
)
|
|
$
|
6,069
|
|
|
$
|
(7
|
)
|
|
|
Fair-Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||||||||||
|
|
Three Months Ended March 31, 2014
|
||||||||||||||||||||||||||||||||||||||||||
|
|
Fair
Value as of December 31, 2013 |
|
Total Realized and
Unrealized (Gains) Losses |
|
Purchases
|
|
Issuances
|
|
Sales
|
|
Settlements
|
|
Transfers
into Level 3 |
|
Transfers
out of Level 3 |
|
Fair
Value as of March 31, 2014 |
|
Change in
Unrealized (Gains) Losses Related to Financial Instruments Held as of March 31, 2014 |
||||||||||||||||||||||||
|
(In millions)
|
Recorded
in Revenue |
|
Recorded
in Other Comprehensive Income |
|
|||||||||||||||||||||||||||||||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Accrued expenses and other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Foreign exchange contracts
|
$
|
17
|
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
(5
|
)
|
|
Other
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|||||||||||
|
Total derivative instruments
|
26
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
17
|
|
|
(5
|
)
|
|||||||||||
|
Total liabilities carried at fair value
|
$
|
26
|
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
(5
|
)
|
|
|
Fair-Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||||||||||
|
|
Three Months Ended March 31, 2013
|
||||||||||||||||||||||||||||||||||||||||||
|
|
Fair
Value as of December 31, 2012 |
|
Total Realized and
Unrealized Gains (Losses) |
|
Purchases
|
|
Issuances
|
|
Sales
|
|
Settlements
|
|
Transfers
into Level 3 |
|
Transfers
out of Level 3 |
|
Fair
Value as of March 31, 2013 |
|
Change in
Unrealized Gains (Losses) Related to Financial Instruments Held as of March 31 2013 |
||||||||||||||||||||||||
|
(In millions)
|
Recorded
in
Revenue
|
|
Recorded
in Other
Comprehensive
Income
|
||||||||||||||||||||||||||||||||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Mortgage-backed securities
|
$
|
825
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(27
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
798
|
|
|
|
||
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Student loans
|
588
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
(8
|
)
|
|
—
|
|
|
(100
|
)
|
|
461
|
|
|
|
||||||||||||
|
Credit cards
|
67
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
|
—
|
|
|
—
|
|
|
24
|
|
|
|
||||||||||||
|
Other
|
3,994
|
|
|
13
|
|
|
21
|
|
|
180
|
|
|
—
|
|
|
(10
|
)
|
|
(326
|
)
|
|
—
|
|
|
—
|
|
|
3,872
|
|
|
|
||||||||||||
|
Total asset-backed securities
|
4,649
|
|
|
13
|
|
|
28
|
|
|
180
|
|
|
—
|
|
|
(36
|
)
|
|
(377
|
)
|
|
—
|
|
|
(100
|
)
|
|
4,357
|
|
|
|
||||||||||||
|
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Mortgage-backed securities
|
555
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(207
|
)
|
|
331
|
|
|
|
||||||||||||
|
Asset-backed securities
|
524
|
|
|
2
|
|
|
3
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
(77
|
)
|
|
470
|
|
|
|
||||||||||||
|
Other
|
140
|
|
|
—
|
|
|
—
|
|
|
179
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(40
|
)
|
|
276
|
|
|
|
||||||||||||
|
Total non-U.S. debt securities
|
1,219
|
|
|
2
|
|
|
3
|
|
|
230
|
|
|
—
|
|
|
—
|
|
|
(53
|
)
|
|
—
|
|
|
(324
|
)
|
|
1,077
|
|
|
|
||||||||||||
|
State and political subdivisions
|
48
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
47
|
|
|
|
||||||||||||
|
Collateralized mortgage obligations
|
117
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
108
|
|
|
|
||||||||||||
|
Other U.S. debt securities
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
|
||||||||||||
|
Total investment securities available for sale
|
6,867
|
|
|
15
|
|
|
32
|
|
|
410
|
|
|
—
|
|
|
(36
|
)
|
|
(468
|
)
|
|
—
|
|
|
(424
|
)
|
|
6,396
|
|
|
|
||||||||||||
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Foreign exchange contracts
|
113
|
|
|
95
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
(89
|
)
|
|
—
|
|
|
—
|
|
|
172
|
|
|
$
|
53
|
|
||||||||||
|
Total derivative instruments
|
113
|
|
|
95
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
(89
|
)
|
|
—
|
|
|
—
|
|
|
172
|
|
|
53
|
|
|||||||||||
|
Total assets carried at fair value
|
$
|
6,980
|
|
|
$
|
110
|
|
|
$
|
32
|
|
|
$
|
463
|
|
|
$
|
—
|
|
|
$
|
(36
|
)
|
|
$
|
(557
|
)
|
|
$
|
—
|
|
|
$
|
(424
|
)
|
|
$
|
6,568
|
|
|
$
|
53
|
|
|
|
Fair-Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||||||||||
|
|
Three Months Ended March 31, 2013
|
||||||||||||||||||||||||||||||||||||||||||
|
|
Fair
Value as of December 31, 2012 |
|
Total Realized and
Unrealized (Gains) Losses |
|
Purchases
|
|
Issuances
|
|
Sales
|
|
Settlements
|
|
Transfers
into
Level 3
|
|
Transfers
out of
Level 3
|
|
Fair
Value as of March 31, 2013 |
|
Change in
Unrealized (Gains) Losses Related to Financial Instruments Held as of March 31, 2013 |
||||||||||||||||||||||||
|
(In millions)
|
Recorded
in
Revenue
|
|
Recorded
in Other
Comprehensive
Income
|
||||||||||||||||||||||||||||||||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Accrued expenses and other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Foreign exchange contracts
|
$
|
106
|
|
|
$
|
61
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
(64
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
153
|
|
|
$
|
39
|
|
|
Other
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|||||||||||
|
Total derivative instruments
|
115
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
(64
|
)
|
|
—
|
|
|
—
|
|
|
162
|
|
|
39
|
|
|||||||||||
|
Total liabilities carried at fair value
|
$
|
115
|
|
|
$
|
61
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
(64
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
162
|
|
|
$
|
39
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
|
Total Realized and
Unrealized Gains
(Losses) Recorded
in Revenue
|
|
Change in
Unrealized Gains
(Losses) Related to
Financial
Instruments Held as of March 31,
|
||||||||||||
|
(In millions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
Fee revenue:
|
|
|
|
|
|
|
|
||||||||
|
Trading services
|
$
|
(1
|
)
|
|
$
|
34
|
|
|
$
|
(2
|
)
|
|
$
|
14
|
|
|
Total fee revenue
|
(1
|
)
|
|
34
|
|
|
(2
|
)
|
|
14
|
|
||||
|
Net interest revenue
|
18
|
|
|
15
|
|
|
—
|
|
|
—
|
|
||||
|
Total revenue
|
$
|
17
|
|
|
$
|
49
|
|
|
$
|
(2
|
)
|
|
$
|
14
|
|
|
|
|
Quantitative Information about Level-3 Fair-Value Measurements
|
||||||||||||||||
|
|
|
Fair Value
|
|
|
|
|
|
Weighted-Average
|
||||||||||
|
(Dollars in millions)
|
|
As of March 31, 2014
|
|
As of December 31, 2013
|
|
Valuation Technique
|
|
Significant
Unobservable Input |
|
As of March 31, 2014
|
|
As of December 31, 2013
|
||||||
|
Significant unobservable inputs readily available to State Street:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Asset-backed securities, student loans
|
|
$
|
14
|
|
|
$
|
13
|
|
|
Discounted cash flows
|
|
Credit spread
|
|
2.9
|
%
|
|
3.5
|
%
|
|
Asset-backed securities, credit cards
|
|
—
|
|
|
24
|
|
|
Discounted cash flows
|
|
Credit spread
|
|
—
|
|
|
2.0
|
|
||
|
Asset-backed securities, other
|
|
87
|
|
|
92
|
|
|
Discounted cash flows
|
|
Credit spread
|
|
1.3
|
|
|
1.5
|
|
||
|
State and political subdivisions
|
|
42
|
|
|
43
|
|
|
Discounted cash flows
|
|
Credit spread
|
|
1.7
|
|
|
1.7
|
|
||
|
Derivative instruments, foreign exchange contracts
|
|
6
|
|
|
19
|
|
|
Option model
|
|
Volatility
|
|
8.0
|
|
|
11.4
|
|
||
|
Total
|
|
$
|
149
|
|
|
$
|
191
|
|
|
|
|
|
|
|
|
|
||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Derivative instruments, foreign exchange contracts
|
|
$
|
8
|
|
|
$
|
17
|
|
|
Option model
|
|
Volatility
|
|
8.0
|
|
|
11.2
|
|
|
Derivative instruments, other
(1)
|
|
9
|
|
|
9
|
|
|
Discounted cash flows
|
|
Participant redemptions
|
|
7.4
|
|
|
7.5
|
|
||
|
Total
|
|
$
|
17
|
|
|
$
|
26
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
March 31, 2014
|
|
Significant Unobservable Inputs Readily Available to State Street
(1)
|
|
Significant Unobservable Inputs Not Developed by State Street and Not Readily Available
(2)
|
|
Total Assets and Liabilities with Significant Unobservable Inputs
|
||||||
|
(In millions)
|
|
|
|
|
|
|
||||||
|
Assets:
|
|
|
|
|
|
|
||||||
|
U.S. Treasury and federal agencies, mortgage-backed securities
|
|
$
|
—
|
|
|
$
|
100
|
|
|
$
|
100
|
|
|
Asset-backed securities, student loans
|
|
14
|
|
|
319
|
|
|
333
|
|
|||
|
Asset-backed securities, other
|
|
87
|
|
|
4,217
|
|
|
4,304
|
|
|||
|
Non-U.S. debt securities, asset-backed securities
|
|
—
|
|
|
612
|
|
|
612
|
|
|||
|
Non-U.S. debt securities, other
|
|
—
|
|
|
462
|
|
|
462
|
|
|||
|
State and political subdivisions
|
|
42
|
|
|
—
|
|
|
42
|
|
|||
|
Collateralized mortgage obligations
|
|
—
|
|
|
202
|
|
|
202
|
|
|||
|
Other U.S.debt securities
|
|
—
|
|
|
8
|
|
|
8
|
|
|||
|
Derivative instruments, foreign exchange contracts
|
|
6
|
|
|
—
|
|
|
6
|
|
|||
|
Total
|
|
$
|
149
|
|
|
$
|
5,920
|
|
|
$
|
6,069
|
|
|
Liabilities:
|
|
|
|
|
|
|
||||||
|
Derivative instruments, foreign exchange contracts
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
Derivative instruments, other
|
|
9
|
|
|
—
|
|
|
9
|
|
|||
|
Total
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
Significant Unobservable Inputs Readily Available to State Street
(1)
|
|
Significant Unobservable Inputs Not Developed by State Street and Not Readily Available
(2)
|
|
Total Assets and Liabilities with Significant Unobservable Inputs
|
||||||
|
(In millions)
|
|
|
|
|
|
|
||||||
|
Assets:
|
|
|
|
|
|
|
||||||
|
U.S. Treasury and federal agencies, mortgage-backed securities
|
|
$
|
—
|
|
|
$
|
716
|
|
|
$
|
716
|
|
|
Asset-backed securities, student loans
|
|
13
|
|
|
410
|
|
|
423
|
|
|||
|
Asset-backed securities, credit cards
|
|
24
|
|
|
—
|
|
|
24
|
|
|||
|
Asset-backed securities, other
|
|
92
|
|
|
4,440
|
|
|
4,532
|
|
|||
|
Non-U.S. debt securities, mortgage-backed securities
|
|
—
|
|
|
375
|
|
|
375
|
|
|||
|
Non-U.S. debt securities, asset-backed securities
|
|
—
|
|
|
798
|
|
|
798
|
|
|||
|
Non-U.S. debt securities, other
|
|
—
|
|
|
464
|
|
|
464
|
|
|||
|
State and political subdivisions
|
|
43
|
|
|
—
|
|
|
43
|
|
|||
|
Collateralized mortgage obligations
|
|
—
|
|
|
162
|
|
|
162
|
|
|||
|
Other U.S.debt securities
|
|
—
|
|
|
8
|
|
|
8
|
|
|||
|
Derivative instruments, foreign exchange contracts
|
|
19
|
|
|
—
|
|
|
19
|
|
|||
|
Total
|
|
$
|
191
|
|
|
$
|
7,373
|
|
|
$
|
7,564
|
|
|
Liabilities:
|
|
|
|
|
|
|
||||||
|
Derivative instruments, foreign exchange contracts
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
Derivative instruments, other
|
|
9
|
|
|
—
|
|
|
9
|
|
|||
|
Total
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
26
|
|
|
|
|
|
|
|
|
•
|
The significant unobservable input used in the measurement of the fair value of our asset-backed securities and municipal securities (state and political subdivisions) is the credit spread. Significant increases (decreases) in the credit spread would result in measurements of significantly lower (higher) fair value of these securities.
|
|
•
|
The significant unobservable input used in the measurement of the fair value of our foreign exchange option contracts is the implied volatility surface. A significant increase (decrease) in the implied volatility surface would result in measurements of significantly higher (lower) fair value of these contracts.
|
|
•
|
The significant unobservable input used in the measurement of the fair value of our other derivative instruments, specifically stable value wrap contracts, is participant redemptions. Increased volatility of participant redemptions may result in changes to our measurement of fair value. Generally, significant increases (decreases) in participant redemptions may result in measurements of significantly higher (lower) fair value of this liability.
|
|
•
|
For financial instruments that have quoted market prices, those quoted prices are used to estimate fair value.
|
|
•
|
For financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, we assume that the fair value of these instruments approximates their reported
|
|
•
|
For financial instruments for which no quoted market prices are available, fair value is estimated using information obtained from independent third parties, or by discounting the expected cash flows using an estimated current market interest rate for the financial instrument.
|
|
|
|
|
|
|
|
Fair-Value Hierarchy
|
||||||||||||||
|
March 31, 2014
|
|
Reported Amount
|
|
Estimated Fair Value
|
|
Quoted Market Prices in Active Markets (Level 1)
|
|
Pricing Methods with Significant Observable Market Inputs (Level 2)
|
|
Pricing Methods with Significant Unobservable Market Inputs (Level 3)
|
||||||||||
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and due from banks
|
|
$
|
3,877
|
|
|
$
|
3,877
|
|
|
$
|
3,877
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Interest-bearing deposits with banks
|
|
75,796
|
|
|
75,796
|
|
|
—
|
|
|
75,796
|
|
|
—
|
|
|||||
|
Securities purchased under resale agreements
|
|
6,087
|
|
|
6,087
|
|
|
—
|
|
|
6,087
|
|
|
—
|
|
|||||
|
Investment securities held to maturity
|
|
18,342
|
|
|
18,326
|
|
|
—
|
|
|
18,326
|
|
|
—
|
|
|||||
|
Net loans (excluding leases)
|
|
14,994
|
|
|
15,002
|
|
|
—
|
|
|
14,530
|
|
|
472
|
|
|||||
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Noninterest-bearing
|
|
$
|
72,800
|
|
|
$
|
72,800
|
|
|
$
|
—
|
|
|
$
|
72,800
|
|
|
$
|
—
|
|
|
Interest-bearing - U.S.
|
|
15,327
|
|
|
15,327
|
|
|
—
|
|
|
15,327
|
|
|
—
|
|
|||||
|
Interest-bearing - non-U.S.
|
|
106,521
|
|
|
106,521
|
|
|
—
|
|
|
106,521
|
|
|
—
|
|
|||||
|
Securities sold under repurchase agreements
|
|
8,953
|
|
|
8,953
|
|
|
—
|
|
|
8,953
|
|
|
—
|
|
|||||
|
Federal funds purchased
|
|
18
|
|
|
18
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|||||
|
Other short-term borrowings
|
|
3,811
|
|
|
3,811
|
|
|
—
|
|
|
3,811
|
|
|
—
|
|
|||||
|
Long-term debt
|
|
9,503
|
|
|
9,809
|
|
|
—
|
|
|
8,927
|
|
|
882
|
|
|||||
|
|
|
|
|
|
|
Fair-Value Hierarchy
|
||||||||||||||
|
December 31, 2013
|
|
Reported Amount
|
|
Estimated Fair Value
|
|
Quoted Market Prices in Active Markets (Level 1)
|
|
Pricing Methods with Significant Observable Market Inputs (Level 2)
|
|
Pricing Methods with Significant Unobservable Market Inputs (Level 3)
|
||||||||||
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and due from banks
|
|
$
|
3,220
|
|
|
$
|
3,220
|
|
|
$
|
3,220
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Interest-bearing deposits with banks
|
|
64,257
|
|
|
64,257
|
|
|
—
|
|
|
64,257
|
|
|
—
|
|
|||||
|
Securities purchased under resale agreements
|
|
6,230
|
|
|
6,230
|
|
|
—
|
|
|
6,230
|
|
|
—
|
|
|||||
|
Investment securities held to maturity
|
|
17,740
|
|
|
17,560
|
|
|
—
|
|
|
17,560
|
|
|
—
|
|
|||||
|
Net loans (excluding leases)
|
|
12,363
|
|
|
12,355
|
|
|
—
|
|
|
11,908
|
|
|
447
|
|
|||||
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Noninterest-bearing
|
|
$
|
65,614
|
|
|
$
|
65,614
|
|
|
$
|
—
|
|
|
$
|
65,614
|
|
|
$
|
—
|
|
|
Interest-bearing - U.S.
|
|
13,392
|
|
|
13,392
|
|
|
—
|
|
|
13,392
|
|
|
—
|
|
|||||
|
Interest-bearing - non-U.S.
|
|
103,262
|
|
|
103,262
|
|
|
—
|
|
|
103,262
|
|
|
—
|
|
|||||
|
Securities sold under repurchase agreements
|
|
7,953
|
|
|
7,953
|
|
|
—
|
|
|
7,953
|
|
|
—
|
|
|||||
|
Federal funds purchased
|
|
19
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|||||
|
Other short-term borrowings
|
|
3,780
|
|
|
3,780
|
|
|
—
|
|
|
3,780
|
|
|
—
|
|
|||||
|
Long-term debt
|
|
9,699
|
|
|
9,909
|
|
|
—
|
|
|
9,056
|
|
|
853
|
|
|||||
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
|
|
Amortized
Cost
|
|
Gross
Unrealized
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Gross
Unrealized
|
|
Fair
Value
|
||||||||||||||||||||
|
(In millions)
|
Gains
|
|
Losses
|
|
Gains
|
|
Losses
|
|
|||||||||||||||||||||||
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Direct obligations
|
$
|
1,959
|
|
|
$
|
10
|
|
|
$
|
6
|
|
|
$
|
1,963
|
|
|
$
|
702
|
|
|
$
|
9
|
|
|
$
|
2
|
|
|
$
|
709
|
|
|
Mortgage-backed securities
|
23,176
|
|
|
206
|
|
|
290
|
|
|
23,092
|
|
|
23,744
|
|
|
211
|
|
|
392
|
|
|
23,563
|
|
||||||||
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Student loans
(1)
|
14,355
|
|
|
128
|
|
|
203
|
|
|
14,280
|
|
|
14,718
|
|
|
92
|
|
|
268
|
|
|
14,542
|
|
||||||||
|
Credit cards
|
7,253
|
|
|
21
|
|
|
37
|
|
|
7,237
|
|
|
8,230
|
|
|
21
|
|
|
41
|
|
|
8,210
|
|
||||||||
|
Sub-prime
|
1,234
|
|
|
3
|
|
|
82
|
|
|
1,155
|
|
|
1,291
|
|
|
3
|
|
|
91
|
|
|
1,203
|
|
||||||||
|
Other
|
4,767
|
|
|
133
|
|
|
20
|
|
|
4,880
|
|
|
4,949
|
|
|
138
|
|
|
23
|
|
|
5,064
|
|
||||||||
|
Total asset-backed securities
|
27,609
|
|
|
285
|
|
|
342
|
|
|
27,552
|
|
|
29,188
|
|
|
254
|
|
|
423
|
|
|
29,019
|
|
||||||||
|
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Mortgage-backed securities
|
10,978
|
|
|
225
|
|
|
7
|
|
|
11,196
|
|
|
10,808
|
|
|
230
|
|
|
9
|
|
|
11,029
|
|
||||||||
|
Asset-backed securities
|
4,973
|
|
|
23
|
|
|
2
|
|
|
4,994
|
|
|
5,369
|
|
|
23
|
|
|
2
|
|
|
5,390
|
|
||||||||
|
Government securities
|
3,689
|
|
|
3
|
|
|
—
|
|
|
3,692
|
|
|
3,759
|
|
|
2
|
|
|
—
|
|
|
3,761
|
|
||||||||
|
Other
|
4,931
|
|
|
62
|
|
|
9
|
|
|
4,984
|
|
|
4,679
|
|
|
59
|
|
|
11
|
|
|
4,727
|
|
||||||||
|
Total non-U.S. debt securities
|
24,571
|
|
|
313
|
|
|
18
|
|
|
24,866
|
|
|
24,615
|
|
|
314
|
|
|
22
|
|
|
24,907
|
|
||||||||
|
State and political subdivisions
|
10,345
|
|
|
216
|
|
|
117
|
|
|
10,444
|
|
|
10,301
|
|
|
160
|
|
|
198
|
|
|
10,263
|
|
||||||||
|
Collateralized mortgage obligations
|
5,253
|
|
|
67
|
|
|
58
|
|
|
5,262
|
|
|
5,275
|
|
|
70
|
|
|
76
|
|
|
5,269
|
|
||||||||
|
Other U.S. debt securities
|
4,827
|
|
|
139
|
|
|
20
|
|
|
4,946
|
|
|
4,876
|
|
|
138
|
|
|
34
|
|
|
4,980
|
|
||||||||
|
U.S. equity securities
|
29
|
|
|
7
|
|
|
—
|
|
|
36
|
|
|
28
|
|
|
6
|
|
|
—
|
|
|
34
|
|
||||||||
|
Non-U.S. equity securities
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
|
U.S. money-market mutual funds
|
993
|
|
|
—
|
|
|
—
|
|
|
993
|
|
|
422
|
|
|
—
|
|
|
—
|
|
|
422
|
|
||||||||
|
Non-U.S. money-market mutual funds
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||||||
|
Total
|
$
|
98,770
|
|
|
$
|
1,243
|
|
|
$
|
851
|
|
|
$
|
99,162
|
|
|
$
|
99,159
|
|
|
$
|
1,162
|
|
|
$
|
1,147
|
|
|
$
|
99,174
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Direct obligations
|
$
|
5,096
|
|
|
$
|
—
|
|
|
$
|
328
|
|
|
$
|
4,768
|
|
|
$
|
5,041
|
|
|
$
|
—
|
|
|
$
|
448
|
|
|
$
|
4,593
|
|
|
Mortgage-backed securities
|
81
|
|
|
6
|
|
|
—
|
|
|
87
|
|
|
91
|
|
|
6
|
|
|
—
|
|
|
97
|
|
||||||||
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Student loans
(1)
|
1,889
|
|
|
5
|
|
|
2
|
|
|
1,892
|
|
|
1,627
|
|
|
—
|
|
|
10
|
|
|
1,617
|
|
||||||||
|
Credit cards
|
897
|
|
|
3
|
|
|
—
|
|
|
900
|
|
|
762
|
|
|
1
|
|
|
—
|
|
|
763
|
|
||||||||
|
Other
|
738
|
|
|
1
|
|
|
1
|
|
|
738
|
|
|
782
|
|
|
1
|
|
|
2
|
|
|
781
|
|
||||||||
|
Total asset-backed securities
|
3,524
|
|
|
9
|
|
|
3
|
|
|
3,530
|
|
|
3,171
|
|
|
2
|
|
|
12
|
|
|
3,161
|
|
||||||||
|
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Mortgage-backed securities
|
4,323
|
|
|
172
|
|
|
29
|
|
|
4,466
|
|
|
4,211
|
|
|
150
|
|
|
48
|
|
|
4,313
|
|
||||||||
|
Asset-backed securities
|
2,399
|
|
|
19
|
|
|
—
|
|
|
2,418
|
|
|
2,202
|
|
|
19
|
|
|
—
|
|
|
2,221
|
|
||||||||
|
Government securities
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||||
|
Other
|
192
|
|
|
—
|
|
|
—
|
|
|
192
|
|
|
192
|
|
|
—
|
|
|
—
|
|
|
192
|
|
||||||||
|
Total non-U.S. debt securities
|
6,916
|
|
|
191
|
|
|
29
|
|
|
7,078
|
|
|
6,607
|
|
|
169
|
|
|
48
|
|
|
6,728
|
|
||||||||
|
State and political subdivisions
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
24
|
|
|
1
|
|
|
—
|
|
|
25
|
|
||||||||
|
Collateralized mortgage obligations
|
2,709
|
|
|
163
|
|
|
25
|
|
|
2,847
|
|
|
2,806
|
|
|
176
|
|
|
26
|
|
|
2,956
|
|
||||||||
|
Total
|
$
|
18,342
|
|
|
$
|
369
|
|
|
$
|
385
|
|
|
$
|
18,326
|
|
|
$
|
17,740
|
|
|
$
|
354
|
|
|
$
|
534
|
|
|
$
|
17,560
|
|
|
|
|
|
|
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
|
March 31, 2014
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
|
(In millions)
|
|
|
|
|
|
||||||||||||||||||
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Direct obligations
|
$
|
1,433
|
|
|
$
|
5
|
|
|
$
|
130
|
|
|
$
|
1
|
|
|
$
|
1,563
|
|
|
$
|
6
|
|
|
Mortgage-backed securities
|
9,475
|
|
|
197
|
|
|
3,161
|
|
|
93
|
|
|
12,636
|
|
|
290
|
|
||||||
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Student loans
|
606
|
|
|
5
|
|
|
7,271
|
|
|
198
|
|
|
7,877
|
|
|
203
|
|
||||||
|
Credit cards
|
3,311
|
|
|
26
|
|
|
214
|
|
|
11
|
|
|
3,525
|
|
|
37
|
|
||||||
|
Sub-prime
|
—
|
|
|
—
|
|
|
1,106
|
|
|
82
|
|
|
1,106
|
|
|
82
|
|
||||||
|
Other
|
1,997
|
|
|
10
|
|
|
418
|
|
|
10
|
|
|
2,415
|
|
|
20
|
|
||||||
|
Total asset-backed securities
|
5,914
|
|
|
41
|
|
|
9,009
|
|
|
301
|
|
|
14,923
|
|
|
342
|
|
||||||
|
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Mortgage-backed securities
|
819
|
|
|
2
|
|
|
326
|
|
|
5
|
|
|
1,145
|
|
|
7
|
|
||||||
|
Asset-backed securities
|
280
|
|
|
1
|
|
|
71
|
|
|
1
|
|
|
351
|
|
|
2
|
|
||||||
|
Other
|
1,652
|
|
|
6
|
|
|
149
|
|
|
3
|
|
|
1,801
|
|
|
9
|
|
||||||
|
Total non-U.S. debt securities
|
2,751
|
|
|
9
|
|
|
546
|
|
|
9
|
|
|
3,297
|
|
|
18
|
|
||||||
|
State and political subdivisions
|
1,850
|
|
|
49
|
|
|
1,311
|
|
|
68
|
|
|
3,161
|
|
|
117
|
|
||||||
|
Collateralized mortgage obligations
|
1,444
|
|
|
34
|
|
|
551
|
|
|
24
|
|
|
1,995
|
|
|
58
|
|
||||||
|
Other U.S. debt securities
|
783
|
|
|
13
|
|
|
60
|
|
|
7
|
|
|
843
|
|
|
20
|
|
||||||
|
Total
|
$
|
23,650
|
|
|
$
|
348
|
|
|
$
|
14,768
|
|
|
$
|
503
|
|
|
$
|
38,418
|
|
|
$
|
851
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Direct obligations
|
$
|
4,751
|
|
|
$
|
328
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,751
|
|
|
$
|
328
|
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Student loans
|
297
|
|
|
1
|
|
|
176
|
|
|
1
|
|
|
473
|
|
|
2
|
|
||||||
|
Other
|
129
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
129
|
|
|
1
|
|
||||||
|
Total asset-backed securities
|
426
|
|
|
2
|
|
|
176
|
|
|
1
|
|
|
602
|
|
|
3
|
|
||||||
|
Non-U.S. mortgage-backed securities
|
906
|
|
|
2
|
|
|
825
|
|
|
27
|
|
|
1,731
|
|
|
29
|
|
||||||
|
Collateralized mortgage obligations
|
595
|
|
|
11
|
|
|
407
|
|
|
14
|
|
|
1,002
|
|
|
25
|
|
||||||
|
Total
|
$
|
6,678
|
|
|
$
|
343
|
|
|
$
|
1,408
|
|
|
$
|
42
|
|
|
$
|
8,086
|
|
|
$
|
385
|
|
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
|
December 31, 2013
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
|
(In millions)
|
|
|
|
|
|
||||||||||||||||||
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Direct obligations
|
$
|
182
|
|
|
$
|
1
|
|
|
$
|
113
|
|
|
$
|
1
|
|
|
$
|
295
|
|
|
$
|
2
|
|
|
Mortgage-backed securities
|
10,562
|
|
|
316
|
|
|
2,389
|
|
|
76
|
|
|
12,951
|
|
|
392
|
|
||||||
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Student loans
|
1,930
|
|
|
16
|
|
|
7,252
|
|
|
252
|
|
|
9,182
|
|
|
268
|
|
||||||
|
Credit cards
|
3,714
|
|
|
30
|
|
|
161
|
|
|
11
|
|
|
3,875
|
|
|
41
|
|
||||||
|
Sub-prime
|
—
|
|
|
—
|
|
|
1,150
|
|
|
91
|
|
|
1,150
|
|
|
91
|
|
||||||
|
Other
|
1,896
|
|
|
12
|
|
|
439
|
|
|
11
|
|
|
2,335
|
|
|
23
|
|
||||||
|
Total asset-backed securities
|
7,540
|
|
|
58
|
|
|
9,002
|
|
|
365
|
|
|
16,542
|
|
|
423
|
|
||||||
|
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Mortgage-backed securities
|
868
|
|
|
2
|
|
|
258
|
|
|
7
|
|
|
1,126
|
|
|
9
|
|
||||||
|
Asset-backed securities
|
551
|
|
|
1
|
|
|
16
|
|
|
1
|
|
|
567
|
|
|
2
|
|
||||||
|
Other
|
1,655
|
|
|
9
|
|
|
150
|
|
|
2
|
|
|
1,805
|
|
|
11
|
|
||||||
|
Total non-U.S. debt securities
|
3,074
|
|
|
12
|
|
|
424
|
|
|
10
|
|
|
3,498
|
|
|
22
|
|
||||||
|
State and political subdivisions
|
3,242
|
|
|
113
|
|
|
1,268
|
|
|
85
|
|
|
4,510
|
|
|
198
|
|
||||||
|
Collateralized mortgage obligations
|
1,581
|
|
|
55
|
|
|
510
|
|
|
21
|
|
|
2,091
|
|
|
76
|
|
||||||
|
Other U.S. debt securities
|
1,039
|
|
|
25
|
|
|
58
|
|
|
9
|
|
|
1,097
|
|
|
34
|
|
||||||
|
Total
|
$
|
27,220
|
|
|
$
|
580
|
|
|
$
|
13,764
|
|
|
$
|
567
|
|
|
$
|
40,984
|
|
|
$
|
1,147
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Direct obligations
|
$
|
4,571
|
|
|
$
|
448
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,571
|
|
|
$
|
448
|
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Student Loans
|
1,352
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
1,352
|
|
|
10
|
|
||||||
|
Other
|
297
|
|
|
1
|
|
|
29
|
|
|
1
|
|
|
326
|
|
|
2
|
|
||||||
|
Total asset-backed securities
|
1,649
|
|
|
11
|
|
|
29
|
|
|
1
|
|
|
1,678
|
|
|
12
|
|
||||||
|
Non-U.S. mortgage-backed securities
|
834
|
|
|
3
|
|
|
878
|
|
|
45
|
|
|
1,712
|
|
|
48
|
|
||||||
|
Collateralized mortgage obligations
|
759
|
|
|
18
|
|
|
161
|
|
|
8
|
|
|
920
|
|
|
26
|
|
||||||
|
Total
|
$
|
7,813
|
|
|
$
|
480
|
|
|
$
|
1,068
|
|
|
$
|
54
|
|
|
$
|
8,881
|
|
|
$
|
534
|
|
|
(In millions)
|
Under 1
Year
|
|
1 to 5
Years
|
|
6 to 10
Years
|
|
Over 10
Years
|
||||||||
|
Available for sale:
|
|
|
|
|
|
|
|
||||||||
|
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
||||||||
|
Direct obligations
|
$
|
2
|
|
|
$
|
526
|
|
|
$
|
835
|
|
|
$
|
600
|
|
|
Mortgage-backed securities
|
183
|
|
|
2,387
|
|
|
5,276
|
|
|
15,246
|
|
||||
|
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||
|
Student loans
|
647
|
|
|
6,608
|
|
|
4,216
|
|
|
2,809
|
|
||||
|
Credit cards
|
2,187
|
|
|
3,057
|
|
|
1,993
|
|
|
—
|
|
||||
|
Sub-prime
|
7
|
|
|
20
|
|
|
1
|
|
|
1,127
|
|
||||
|
Other
|
469
|
|
|
1,314
|
|
|
1,381
|
|
|
1,716
|
|
||||
|
Total asset-backed securities
|
3,310
|
|
|
10,999
|
|
|
7,591
|
|
|
5,652
|
|
||||
|
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
||||||||
|
Mortgage-backed securities
|
1,698
|
|
|
5,562
|
|
|
247
|
|
|
3,689
|
|
||||
|
Asset-backed securities
|
355
|
|
|
3,906
|
|
|
599
|
|
|
134
|
|
||||
|
Government securities
|
2,537
|
|
|
1,155
|
|
|
—
|
|
|
—
|
|
||||
|
Other
|
1,658
|
|
|
2,625
|
|
|
701
|
|
|
—
|
|
||||
|
Total non-U.S. debt securities
|
6,248
|
|
|
13,248
|
|
|
1,547
|
|
|
3,823
|
|
||||
|
State and political subdivisions
|
672
|
|
|
3,122
|
|
|
4,049
|
|
|
2,601
|
|
||||
|
Collateralized mortgage obligations
|
453
|
|
|
1,458
|
|
|
1,059
|
|
|
2,292
|
|
||||
|
Other U.S. debt securities
|
437
|
|
|
3,761
|
|
|
715
|
|
|
33
|
|
||||
|
Total
|
$
|
11,305
|
|
|
$
|
35,501
|
|
|
$
|
21,072
|
|
|
$
|
30,247
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
||||||||
|
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
||||||||
|
Direct obligations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,000
|
|
|
$
|
96
|
|
|
Mortgage-backed securities
|
—
|
|
|
19
|
|
|
16
|
|
|
46
|
|
||||
|
Asset-backed securities
|
|
|
|
|
|
|
|
||||||||
|
Student loans
|
19
|
|
|
192
|
|
|
383
|
|
|
1,295
|
|
||||
|
Credit cards
|
—
|
|
|
335
|
|
|
562
|
|
|
—
|
|
||||
|
Other
|
23
|
|
|
447
|
|
|
263
|
|
|
5
|
|
||||
|
Total asset-backed securities
|
42
|
|
|
974
|
|
|
1,208
|
|
|
1,300
|
|
||||
|
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
||||||||
|
Mortgage-backed securities
|
23
|
|
|
1,191
|
|
|
194
|
|
|
2,915
|
|
||||
|
Asset-backed securities
|
70
|
|
|
2,085
|
|
|
244
|
|
|
—
|
|
||||
|
Government securities
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Other
|
166
|
|
|
25
|
|
|
—
|
|
|
1
|
|
||||
|
Total non-U.S. debt securities
|
261
|
|
|
3,301
|
|
|
438
|
|
|
2,916
|
|
||||
|
State and political subdivisions
|
13
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||
|
Collateralized mortgage obligations
|
238
|
|
|
960
|
|
|
496
|
|
|
1,015
|
|
||||
|
Total
|
$
|
554
|
|
|
$
|
5,257
|
|
|
$
|
7,158
|
|
|
$
|
5,373
|
|
|
|
Three Months Ended March 31,
|
||||||
|
(In millions)
|
2014
|
|
2013
|
||||
|
Gross realized gains from sales of available-for-sale securities
|
$
|
15
|
|
|
$
|
57
|
|
|
Gross realized losses from sales of available-for-sale securities
|
—
|
|
|
(52
|
)
|
||
|
Net impairment losses:
|
|
|
|
||||
|
Gross losses from other-than-temporary impairment
|
(1
|
)
|
|
—
|
|
||
|
Losses reclassified (from) to other comprehensive income
|
(8
|
)
|
|
(3
|
)
|
||
|
Net impairment losses
(1)
|
(9
|
)
|
|
(3
|
)
|
||
|
Gains related to investment securities, net
|
$
|
6
|
|
|
$
|
2
|
|
|
(1)
Net impairment losses, recognized in our consolidated statement of income, were composed of the following:
|
|
|
|
||||
|
Impairment associated with expected credit losses
|
$
|
(9
|
)
|
|
$
|
—
|
|
|
Impairment associated with adverse changes in timing of expected future cash flows
|
—
|
|
|
(3
|
)
|
||
|
Net impairment losses
|
$
|
(9
|
)
|
|
$
|
(3
|
)
|
|
|
Three Months Ended March 31,
|
||||||
|
(In millions)
|
2014
|
|
2013
|
||||
|
Beginning balance
|
$
|
122
|
|
|
$
|
124
|
|
|
Plus losses for which other-than-temporary impairment was previously recognized
|
9
|
|
|
3
|
|
||
|
Less previously recognized losses related to securities sold or matured
|
(1
|
)
|
|
—
|
|
||
|
Less losses related to securities intended or required to be sold
|
(6
|
)
|
|
—
|
|
||
|
Ending balance
|
$
|
124
|
|
|
$
|
127
|
|
|
•
|
the identification and evaluation of securities that have indications of potential other-than-temporary impairment, such as issuer-specific concerns, including deteriorating financial condition or bankruptcy;
|
|
•
|
the analysis of expected future cash flows of securities, based on quantitative and qualitative factors;
|
|
•
|
the analysis of the collectability of those future cash flows, including information about past events, current conditions and reasonable and supportable forecasts;
|
|
•
|
the analysis of the underlying collateral for mortgage- and asset-backed securities;
|
|
•
|
the analysis of individual impaired securities, including consideration of the length of time the security has been in an unrealized loss position, the anticipated recovery period, and the magnitude of the overall price decline;
|
|
•
|
discussion and evaluation of factors or triggers that could cause individual securities to be deemed other-than- temporarily impaired and those that would not support other-than-temporary impairment; and
|
|
•
|
documentation of the results of these analyses.
|
|
•
|
certain macroeconomic drivers;
|
|
•
|
certain industry-specific drivers;
|
|
•
|
the length of time the security has been impaired;
|
|
•
|
the severity of the impairment;
|
|
•
|
the cause of the impairment and the financial condition and near-term prospects of the issuer;
|
|
•
|
activity in the market with respect to the issuer's securities, which may indicate adverse credit conditions; and
|
|
•
|
our intention not to sell, and the likelihood that we will not be required to sell, the security for a period of time sufficient to allow for its recovery in value.
|
|
•
|
$9 million
(U.S. non-agency commercial mortgage-backed securities) was associated with expected credit losses.
|
|
•
|
$3 million
(non-U.S. mortgage-backed securities) resulted from adverse changes in the timing of expected future cash flows from certain of the securities.
|
|
(In millions)
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Institutional:
|
|
|
|
||||
|
Investment funds:
|
|
|
|
||||
|
U.S.
|
$
|
10,000
|
|
|
$
|
8,695
|
|
|
Non-U.S.
|
2,310
|
|
|
1,718
|
|
||
|
Commercial and financial:
|
|
|
|
||||
|
U.S.
|
1,895
|
|
|
1,372
|
|
||
|
Non-U.S.
|
363
|
|
|
154
|
|
||
|
Purchased receivables:
|
|
|
|
||||
|
U.S.
|
202
|
|
|
217
|
|
||
|
Non-U.S.
|
20
|
|
|
26
|
|
||
|
Lease financing:
|
|
|
|
||||
|
U.S.
|
337
|
|
|
339
|
|
||
|
Non-U.S.
|
753
|
|
|
756
|
|
||
|
Total institutional
|
15,880
|
|
|
13,277
|
|
||
|
Commercial real estate:
|
|
|
|
||||
|
U.S.
|
234
|
|
|
209
|
|
||
|
Total loans and leases
|
16,114
|
|
|
13,486
|
|
||
|
Allowance for loan losses
|
(30
|
)
|
|
(28
|
)
|
||
|
Loans and leases, net of allowance for loan losses
|
$
|
16,084
|
|
|
$
|
13,458
|
|
|
|
Institutional
|
|
Commercial Real Estate
|
|
|
||||||||||||||||||||||
|
March 31, 2014
|
Investment
Funds
|
|
Commercial and Financial
|
|
Purchased
Receivables
|
|
Lease
Financing
|
|
Property Development
|
|
Other
|
|
Total
Loans and
Leases
|
||||||||||||||
|
(In millions)
|
|
|
|
|
|
||||||||||||||||||||||
|
Investment grade
(1)
|
$
|
12,073
|
|
|
$
|
961
|
|
|
$
|
222
|
|
|
$
|
1,037
|
|
|
$
|
—
|
|
|
$
|
29
|
|
|
$
|
14,322
|
|
|
Speculative
(2)
|
237
|
|
|
1,281
|
|
|
—
|
|
|
53
|
|
|
205
|
|
|
—
|
|
|
1,776
|
|
|||||||
|
Special mention
(3)
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||||
|
Total
|
$
|
12,310
|
|
|
$
|
2,258
|
|
|
$
|
222
|
|
|
$
|
1,090
|
|
|
$
|
205
|
|
|
$
|
29
|
|
|
$
|
16,114
|
|
|
|
Institutional
|
|
Commercial Real Estate
|
|
|
||||||||||||||||||||||
|
December 31, 2013
|
Investment
Funds
|
|
Commercial and Financial
|
|
Purchased
Receivables
|
|
Lease
Financing
|
|
Property Development
|
|
Other
|
|
Total
Loans and
Leases
|
||||||||||||||
|
(In millions)
|
|
|
|
|
|
||||||||||||||||||||||
|
Investment grade
(1)
|
$
|
10,282
|
|
|
$
|
740
|
|
|
$
|
243
|
|
|
$
|
1,068
|
|
|
$
|
—
|
|
|
$
|
29
|
|
|
$
|
12,362
|
|
|
Speculative
(2)
|
131
|
|
|
770
|
|
|
—
|
|
|
27
|
|
|
180
|
|
|
—
|
|
|
1,108
|
|
|||||||
|
Special mention
(3)
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||||
|
Total
|
$
|
10,413
|
|
|
$
|
1,526
|
|
|
$
|
243
|
|
|
$
|
1,095
|
|
|
$
|
180
|
|
|
$
|
29
|
|
|
$
|
13,486
|
|
|
|
|
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
(In millions)
|
Institutional
|
|
Commercial Real Estate
|
|
Total Loans and Leases
|
|
Institutional
|
|
Commercial Real Estate
|
|
Total Loans and Leases
|
||||||||||||
|
Loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
130
|
|
|
$
|
130
|
|
|
$
|
26
|
|
|
$
|
180
|
|
|
$
|
206
|
|
|
Collectively evaluated for impairment
(1)
|
15,880
|
|
|
104
|
|
|
15,984
|
|
|
13,251
|
|
|
29
|
|
|
13,280
|
|
||||||
|
Total
|
$
|
15,880
|
|
|
$
|
234
|
|
|
$
|
16,114
|
|
|
$
|
13,277
|
|
|
$
|
209
|
|
|
$
|
13,486
|
|
|
|
|
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
(In millions)
|
Recorded Investment
|
|
Unpaid
Principal
Balance
|
|
Related Allowance
(1)
|
|
Recorded Investment
|
|
Unpaid
Principal
Balance
|
|
Related Allowance
(1)
|
||||||||||||
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
CRE—property development
|
$
|
130
|
|
|
$
|
143
|
|
|
$
|
—
|
|
|
$
|
130
|
|
|
$
|
143
|
|
|
$
|
—
|
|
|
CRE—property development—acquired credit-impaired
|
—
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
||||||
|
CRE—other—acquired credit-impaired
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
||||||
|
Total CRE
|
$
|
130
|
|
|
$
|
198
|
|
|
$
|
—
|
|
|
$
|
130
|
|
|
$
|
198
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
|
Average Recorded Investment
|
|
Interest Revenue Recognized
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(In millions)
|
|
|
|
|
|
|
|
||||||||
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
|
CRE—property development
|
$
|
130
|
|
|
$
|
195
|
|
|
$
|
2
|
|
|
$
|
4
|
|
|
Total CRE
|
$
|
130
|
|
|
$
|
195
|
|
|
$
|
2
|
|
|
$
|
4
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
|
2014
|
|
2013
|
||||||||||||||||||||
|
(In millions)
|
Institutional
|
|
Commercial
Real Estate |
|
Total Loans and Leases
|
|
Institutional
|
|
Commercial
Real Estate |
|
Total Loans and Leases
|
||||||||||||
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Beginning balance
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
Provisions
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Ending balance
|
$
|
30
|
|
|
$
|
—
|
|
|
$
|
30
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
|
2014
|
|
2013
|
||||||||||||||||||||
|
(In millions)
|
Investment
Servicing
|
|
Investment
Management
|
|
Total
|
|
Investment
Servicing
|
|
Investment
Management
|
|
Total
|
||||||||||||
|
Goodwill:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Beginning balance
|
$
|
5,999
|
|
|
$
|
37
|
|
|
$
|
6,036
|
|
|
$
|
5,941
|
|
|
$
|
36
|
|
|
$
|
5,977
|
|
|
Foreign currency translation, net
|
2
|
|
|
—
|
|
|
2
|
|
|
(64
|
)
|
|
(1
|
)
|
|
(65
|
)
|
||||||
|
Ending balance
|
$
|
6,001
|
|
|
$
|
37
|
|
|
$
|
6,038
|
|
|
$
|
5,877
|
|
|
$
|
35
|
|
|
$
|
5,912
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
|
2014
|
|
2013
|
||||||||||||||||||||
|
(In millions)
|
Investment
Servicing
|
|
Investment
Management
|
|
Total
|
|
Investment
Servicing
|
|
Investment
Management
|
|
Total
|
||||||||||||
|
Other intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Beginning balance
|
$
|
2,321
|
|
|
$
|
39
|
|
|
$
|
2,360
|
|
|
$
|
2,492
|
|
|
$
|
47
|
|
|
$
|
2,539
|
|
|
Amortization
|
(52
|
)
|
|
(2
|
)
|
|
(54
|
)
|
|
(51
|
)
|
|
(2
|
)
|
|
(53
|
)
|
||||||
|
Foreign currency translation, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
|
(2
|
)
|
|
(34
|
)
|
||||||
|
Ending balance
|
$
|
2,269
|
|
|
$
|
37
|
|
|
$
|
2,306
|
|
|
$
|
2,409
|
|
|
$
|
43
|
|
|
$
|
2,452
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
(In millions)
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
||||||||||||
|
Client relationships
|
$
|
2,702
|
|
|
$
|
(1,011
|
)
|
|
$
|
1,691
|
|
|
$
|
2,706
|
|
|
$
|
(975
|
)
|
|
$
|
1,731
|
|
|
Core deposits
|
717
|
|
|
(200
|
)
|
|
517
|
|
|
717
|
|
|
(191
|
)
|
|
526
|
|
||||||
|
Other
|
230
|
|
|
(132
|
)
|
|
98
|
|
|
234
|
|
|
(131
|
)
|
|
103
|
|
||||||
|
Total
|
$
|
3,649
|
|
|
$
|
(1,343
|
)
|
|
$
|
2,306
|
|
|
$
|
3,657
|
|
|
$
|
(1,297
|
)
|
|
$
|
2,360
|
|
|
(In millions)
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Collateral deposits, net
|
$
|
13,518
|
|
|
$
|
13,706
|
|
|
Unrealized gains on derivative financial instruments, net
|
3,469
|
|
|
5,476
|
|
||
|
Bank-owned life insurance
|
2,359
|
|
|
2,343
|
|
||
|
Investments in joint ventures and other unconsolidated entities
|
1,712
|
|
|
1,644
|
|
||
|
Accounts receivable
|
687
|
|
|
950
|
|
||
|
Prepaid expenses
|
359
|
|
|
286
|
|
||
|
Income taxes receivable
|
339
|
|
|
337
|
|
||
|
Receivable for securities settlement
|
334
|
|
|
195
|
|
||
|
Deferred tax assets, net of valuation allowance
|
249
|
|
|
263
|
|
||
|
Receivable for securities sold
|
191
|
|
|
—
|
|
||
|
Deposits with clearing organizations
|
183
|
|
|
177
|
|
||
|
Other
(1)
|
589
|
|
|
613
|
|
||
|
Total
|
$
|
23,989
|
|
|
$
|
25,990
|
|
|
|
|
|
(1)
|
Included other real estate owned of approximately
$60 million
and
$59 million
as of
March 31, 2014
and
December 31, 2013
, respectively.
|
|
(In millions)
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Indemnified securities financing
|
$
|
346,789
|
|
|
$
|
320,078
|
|
|
Stable value protection
|
24,484
|
|
|
24,906
|
|
||
|
Asset purchase agreements
|
4,304
|
|
|
4,685
|
|
||
|
Standby letters of credit
|
4,870
|
|
|
4,612
|
|
||
|
(In millions)
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Aggregate fair value of indemnified securities financing
|
$
|
346,789
|
|
|
$
|
320,078
|
|
|
Aggregate fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing
|
358,240
|
|
|
331,732
|
|
||
|
Aggregate fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements
|
94,423
|
|
|
85,374
|
|
||
|
Aggregate fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements
|
99,935
|
|
|
91,097
|
|
||
|
(In millions)
|
|
Revenue from indirect foreign exchange trading
|
||
|
2008
|
|
$
|
462
|
|
|
2009
|
|
369
|
|
|
|
2010
|
|
336
|
|
|
|
2011
|
|
331
|
|
|
|
2012
|
|
248
|
|
|
|
2013
|
|
285
|
|
|
|
Three Months Ended March 31, 2014
|
|
63
|
|
|
|
(In millions)
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Net unrealized gains on cash flow hedges
|
$
|
154
|
|
|
$
|
161
|
|
|
Net unrealized gains (losses) on available-for-sale securities portfolio
|
194
|
|
|
(56
|
)
|
||
|
Net unrealized losses related to reclassified available-for-sale securities
|
(61
|
)
|
|
(72
|
)
|
||
|
Net unrealized gains (losses) on available-for-sale securities
|
133
|
|
|
(128
|
)
|
||
|
Net unrealized losses on available-for-sale securities designated in fair value hedges
|
(107
|
)
|
|
(97
|
)
|
||
|
Other-than-temporary impairment on available-for-sale securities related to factors other than credit
|
2
|
|
|
4
|
|
||
|
Net unrealized losses on hedges of net investments in non-U.S. subsidiaries
|
(14
|
)
|
|
(14
|
)
|
||
|
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit
|
(39
|
)
|
|
(47
|
)
|
||
|
Net unrealized losses on retirement plans
|
(197
|
)
|
|
(203
|
)
|
||
|
Foreign currency translation
|
256
|
|
|
229
|
|
||
|
Total
|
$
|
188
|
|
|
$
|
(95
|
)
|
|
|
Three Months Ended March 31, 2014
|
||||||||||||||||||||||||||
|
(In millions)
|
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
|
Net Unrealized Gains (Losses) on Available-for-Sale Securities
|
|
Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries
|
|
Other-Than-Temporary Impairment on Held-to-Maturity Securities
|
|
Net Unrealized Losses on Retirement Plans
|
|
Foreign Currency Translation
|
|
Total
|
||||||||||||||
|
Beginning balance
|
$
|
161
|
|
|
$
|
(221
|
)
|
|
$
|
(14
|
)
|
|
$
|
(47
|
)
|
|
$
|
(203
|
)
|
|
$
|
229
|
|
|
$
|
(95
|
)
|
|
Other comprehensive income (loss) before reclassifications
|
(8
|
)
|
|
258
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
27
|
|
|
286
|
|
|||||||
|
Amounts reclassified out of AOCI
|
1
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(3
|
)
|
|||||||
|
Other comprehensive income (loss)
|
(7
|
)
|
|
249
|
|
|
—
|
|
|
8
|
|
|
6
|
|
|
27
|
|
|
283
|
|
|||||||
|
Ending balance
|
$
|
154
|
|
|
$
|
28
|
|
|
$
|
(14
|
)
|
|
$
|
(39
|
)
|
|
$
|
(197
|
)
|
|
$
|
256
|
|
|
$
|
188
|
|
|
|
Three Months Ended March 31, 2013
|
||||||||||||||||||||||||||
|
(In millions)
|
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
|
Net Unrealized Gains (Losses) on Available-for-Sale Securities
|
|
Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries
|
|
Other-Than-Temporary Impairment on Held-to-Maturity Securities
|
|
Net Unrealized Losses on Retirement Plans
|
|
Foreign Currency Translation
|
|
Total
|
||||||||||||||
|
Beginning balance
|
$
|
69
|
|
|
$
|
519
|
|
|
$
|
(14
|
)
|
|
$
|
(65
|
)
|
|
$
|
(283
|
)
|
|
$
|
134
|
|
|
$
|
360
|
|
|
Other comprehensive income (loss) before reclassifications
|
63
|
|
|
69
|
|
|
—
|
|
|
4
|
|
|
(2
|
)
|
|
(248
|
)
|
|
(114
|
)
|
|||||||
|
Amounts reclassified out of AOCI
|
1
|
|
|
(3
|
)
|
|
—
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|||||||
|
Other comprehensive income (loss)
|
64
|
|
|
66
|
|
|
—
|
|
|
6
|
|
|
3
|
|
|
(248
|
)
|
|
(109
|
)
|
|||||||
|
Ending balance
|
$
|
133
|
|
|
$
|
585
|
|
|
$
|
(14
|
)
|
|
$
|
(59
|
)
|
|
$
|
(280
|
)
|
|
$
|
(114
|
)
|
|
$
|
251
|
|
|
|
Three Months Ended March 31,
|
|
|
||||||
|
|
2014
|
|
2013
|
|
|
||||
|
(In millions)
|
Amounts Reclassified out of AOCI
|
|
Affected Line Item in Consolidated Statement of Income
|
||||||
|
Cash flow hedges:
|
|
|
|
|
|
||||
|
Interest-rate contracts
|
$
|
1
|
|
|
$
|
1
|
|
|
Net interest revenue
|
|
Available-for-sale securities:
|
|
|
|
|
|
||||
|
Net realized gains from sales of available-for-sale securities, net of related taxes of ($6) and ($2), respectively
|
(9
|
)
|
|
(3
|
)
|
|
Net gains (losses) from sales of available-for-sale securities
|
||
|
Held-to-maturity securities:
|
|
|
|
|
|
||||
|
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related tax benefit of $1
|
—
|
|
|
2
|
|
|
Losses reclassified (from) to other comprehensive income
|
||
|
Retirement plans:
|
|
|
|
|
|
||||
|
Amortization of actuarial losses, net of related tax benefits of $3 and $3, respectively
|
5
|
|
|
5
|
|
|
Compensation and employee benefits expenses
|
||
|
Total reclassifications out of AOCI
|
$
|
(3
|
)
|
|
$
|
5
|
|
|
|
|
(In millions)
|
March 31,
2014 |
|
December 31,
2013 |
||||
|
Derivatives not designated as hedging instruments:
|
|
|
|
||||
|
Interest-rate contracts:
|
|
|
|
||||
|
Swap agreements and forwards
|
$
|
878
|
|
|
$
|
1,023
|
|
|
Options and caps purchased
|
20
|
|
|
27
|
|
||
|
Options and caps written
|
20
|
|
|
27
|
|
||
|
Futures
|
3,731
|
|
|
3,282
|
|
||
|
Foreign exchange contracts:
|
|
|
|
||||
|
Forward, swap and spot
|
1,232,146
|
|
|
1,124,355
|
|
||
|
Options purchased
|
1,484
|
|
|
1,666
|
|
||
|
Options written
|
1,140
|
|
|
1,423
|
|
||
|
Futures
|
14
|
|
|
—
|
|
||
|
Credit derivative contracts:
|
|
|
|
||||
|
Credit swap agreements
|
141
|
|
|
141
|
|
||
|
Total return swap agreements
(1)
|
180
|
|
|
—
|
|
||
|
Commodity and equity contracts:
|
|
|
|
||||
|
Commodity
(1)
|
11,363
|
|
|
2
|
|
||
|
Equity
(1)
|
18
|
|
|
1
|
|
||
|
Other:
|
|
|
|
||||
|
Stable value contracts
|
24,484
|
|
|
24,906
|
|
||
|
Derivatives designated as hedging instruments:
|
|
|
|
||||
|
Interest-rate contracts:
|
|
|
|
||||
|
Swap agreements
|
5,222
|
|
|
5,221
|
|
||
|
Foreign exchange contracts:
|
|
|
|
||||
|
Forward and swap
|
2,866
|
|
|
2,783
|
|
||
|
|
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
(In millions)
|
Fair
Value
Hedges
|
|
Cash
Flow
Hedges
|
|
Total
|
|
Fair
Value
Hedges
|
|
Cash
Flow
Hedges
|
|
Total
|
||||||||||||
|
Investment securities available for sale
|
$
|
2,589
|
|
|
$
|
133
|
|
|
$
|
2,722
|
|
|
$
|
2,589
|
|
|
$
|
132
|
|
|
$
|
2,721
|
|
|
Long-term debt
(1)
|
2,500
|
|
|
—
|
|
|
2,500
|
|
|
2,500
|
|
|
—
|
|
|
2,500
|
|
||||||
|
Total
|
$
|
5,089
|
|
|
$
|
133
|
|
|
$
|
5,222
|
|
|
$
|
5,089
|
|
|
$
|
132
|
|
|
$
|
5,221
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||||||
|
|
2014
|
|
2013
|
||||||||
|
|
Contractual
Rates
|
|
Rate Including
Impact of Hedges
|
|
Contractual
Rates
|
|
Rate Including
Impact of Hedges
|
||||
|
Long-term debt
|
3.39
|
%
|
|
2.60
|
%
|
|
3.77
|
%
|
|
3.03
|
%
|
|
|
Asset Derivatives
|
||||||||
|
|
Balance Sheet
Location
|
|
Fair Value
|
||||||
|
(In millions)
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||||
|
Foreign exchange contracts
|
Other assets
|
|
$
|
8,012
|
|
|
$
|
11,552
|
|
|
Interest-rate contracts
|
Other assets
|
|
21
|
|
|
29
|
|
||
|
Other derivative contracts
|
Other assets
|
|
2
|
|
|
1
|
|
||
|
Total
|
|
|
$
|
8,035
|
|
|
$
|
11,582
|
|
|
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||
|
Foreign exchange contracts
|
Other assets
|
|
$
|
306
|
|
|
$
|
359
|
|
|
Interest-rate contracts
|
Other assets
|
|
35
|
|
|
36
|
|
||
|
Total
|
|
|
$
|
341
|
|
|
$
|
395
|
|
|
|
Liability Derivatives
|
||||||||
|
|
Balance Sheet
Location
|
|
Fair Value
|
||||||
|
(In millions)
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||||
|
Foreign exchange contracts
|
Other liabilities
|
|
$
|
7,771
|
|
|
$
|
11,428
|
|
|
Interest-rate contracts
|
Other liabilities
|
|
21
|
|
|
29
|
|
||
|
Other derivative contracts
|
Other liabilities
|
|
10
|
|
|
9
|
|
||
|
Total
|
|
|
$
|
7,802
|
|
|
$
|
11,466
|
|
|
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||
|
Interest-rate contracts
|
Other liabilities
|
|
$
|
248
|
|
|
$
|
302
|
|
|
Foreign exchange contracts
|
Other liabilities
|
|
71
|
|
|
43
|
|
||
|
Total
|
|
|
$
|
319
|
|
|
$
|
345
|
|
|
|
Location of Gain (Loss) on
Derivative in Consolidated
Statement of Income
|
|
Amount of Gain (Loss) on Derivative Recognized in
Consolidated Statement
of Income
|
||||||
|
|
|
|
Three Months Ended March 31,
|
||||||
|
(In millions)
|
|
|
2014
|
|
2013
|
||||
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|||||
|
Foreign exchange contracts
|
Trading services revenue
|
|
$
|
134
|
|
|
$
|
145
|
|
|
Interest-rate contracts
|
Trading services revenue
|
|
—
|
|
|
1
|
|
||
|
Other derivative contracts
|
Processing fees and other revenue
|
|
(1
|
)
|
|
—
|
|
||
|
Total
|
|
|
$
|
133
|
|
|
$
|
146
|
|
|
|
Location of Gain (Loss) on Derivative in Consolidated Statement of Income
|
|
Amount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income
|
|
Hedged Item in Fair Value Hedging Relationship
|
|
Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income
|
|
Amount of Gain
(Loss) on Hedged
Item Recognized in
Consolidated
Statement of Income
|
||||||||||||
|
(In millions)
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
Derivatives designated as fair value hedges:
|
|
|
2014
|
|
2013
|
|
|
|
|
|
2014
|
|
2013
|
||||||||
|
Foreign exchange contracts
|
Processing fees and
other revenue
|
|
$
|
42
|
|
|
$
|
4
|
|
|
Investment securities
|
|
Processing fees and
other revenue
|
|
$
|
(42
|
)
|
|
$
|
(4
|
)
|
|
Interest-rate contracts
|
Processing fees and
other revenue
|
|
(12
|
)
|
|
1
|
|
|
Available-for-sale securities
|
|
Processing fees and
other revenue
|
|
12
|
|
|
(2
|
)
|
||||
|
Interest-rate contracts
|
Processing fees and
other revenue
|
|
49
|
|
|
(15
|
)
|
|
Long-term debt
|
|
Processing fees and
other revenue
|
|
(45
|
)
|
|
16
|
|
||||
|
Total
|
|
|
$
|
79
|
|
|
$
|
(10
|
)
|
|
|
|
|
|
$
|
(75
|
)
|
|
$
|
10
|
|
|
|
Amount of Gain
(Loss) on Derivative
Recognized in Other
Comprehensive
Income
|
|
Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income
|
|
Amount of Gain
(Loss) Reclassified
from OCI to
Consolidated
Statement of Income
|
|
Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
|
|
Amount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income
|
||||||||||||||||||
|
|
Three Months Ended March 31,
|
|
|
|
Three Months Ended March 31,
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||
|
(In millions)
|
2014
|
|
2013
|
|
|
|
2014
|
|
2013
|
|
|
|
2014
|
|
2013
|
||||||||||||
|
Derivatives designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest-rate contracts
|
$
|
(1
|
)
|
|
$
|
12
|
|
|
Net interest revenue
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
Net interest revenue
|
|
$
|
1
|
|
|
$
|
1
|
|
|
Foreign exchange contracts
|
(12
|
)
|
|
105
|
|
|
Net interest revenue
|
|
—
|
|
|
—
|
|
|
Net interest revenue
|
|
1
|
|
|
3
|
|
||||||
|
Total
|
$
|
(13
|
)
|
|
$
|
117
|
|
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
|
|
$
|
2
|
|
|
$
|
4
|
|
|
Assets:
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
(In millions)
|
|
Gross Amounts of Recognized Assets
(1)
|
|
Gross Amounts Offset in Statement of Condition
(2)
|
|
Net Amounts of Assets Presented in Statement of Condition
|
|
Gross Amounts of Recognized Assets
(1)
|
|
Gross Amounts Offset in Statement of Condition
(2)
|
|
Net Amounts of Assets Presented in Statement of Condition
|
||||||||||||
|
Derivatives:
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Interest-rate contracts
|
|
$
|
56
|
|
|
$
|
(45
|
)
|
|
$
|
11
|
|
|
$
|
65
|
|
|
$
|
(59
|
)
|
|
$
|
6
|
|
|
Foreign exchange contracts
|
|
8,318
|
|
|
(3,489
|
)
|
|
4,829
|
|
|
11,911
|
|
|
(4,514
|
)
|
|
7,397
|
|
||||||
|
Other derivative contracts
|
|
2
|
|
|
(1
|
)
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
|
Cash collateral netting
|
|
—
|
|
|
(1,372
|
)
|
|
(1,372
|
)
|
|
—
|
|
|
(1,928
|
)
|
|
(1,928
|
)
|
||||||
|
Total derivatives
|
|
$
|
8,376
|
|
|
$
|
(4,907
|
)
|
|
$
|
3,469
|
|
|
$
|
11,977
|
|
|
$
|
(6,501
|
)
|
|
$
|
5,476
|
|
|
Other financial instruments:
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Resale agreements and securities borrowing
(3)
|
|
$
|
47,715
|
|
|
$
|
(30,307
|
)
|
|
$
|
17,408
|
|
|
$
|
48,221
|
|
|
$
|
(30,700
|
)
|
|
$
|
17,521
|
|
|
Total derivatives and other financial instruments
|
|
$
|
56,091
|
|
|
$
|
(35,214
|
)
|
|
$
|
20,877
|
|
|
$
|
60,198
|
|
|
$
|
(37,201
|
)
|
|
$
|
22,997
|
|
|
|
|
|
|
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
|
|
|
|
|
Gross Amounts Not Offset in Statement of Condition
(1)
|
|
|
|
|
|
Gross Amounts Not Offset in Statement of Condition
(1)
|
|
|
||||||||||||||||||||
|
(In millions)
|
|
Net Amount of Assets Presented in Statement of Condition
|
|
Counterparty Netting
|
|
Collateral Received
|
|
Net Amount
(2)
|
|
Net Amount of Assets Presented in Statement of Condition
|
|
Counterparty Netting
|
|
Collateral Received
|
|
Net Amount
(2)
|
||||||||||||||||
|
Derivatives
|
|
$
|
3,469
|
|
|
$
|
—
|
|
|
$
|
(187
|
)
|
|
$
|
3,282
|
|
|
$
|
5,476
|
|
|
$
|
—
|
|
|
$
|
(181
|
)
|
|
$
|
5,295
|
|
|
Resale agreements and securities borrowing
|
|
17,408
|
|
|
(113
|
)
|
|
(15,099
|
)
|
|
2,196
|
|
|
17,521
|
|
|
(131
|
)
|
|
(14,983
|
)
|
|
2,407
|
|
||||||||
|
Total
|
|
$
|
20,877
|
|
|
$
|
(113
|
)
|
|
$
|
(15,286
|
)
|
|
$
|
5,478
|
|
|
$
|
22,997
|
|
|
$
|
(131
|
)
|
|
$
|
(15,164
|
)
|
|
$
|
7,702
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
(In millions)
|
|
Gross Amounts of Recognized Liabilities
(1)
|
|
Gross Amounts Offset in Statement of Condition
(2)
|
|
Net Amounts of Liabilities Presented in Statement of Condition
|
|
Gross Amounts of Recognized Liabilities
(1)
|
|
Gross Amounts Offset in Statement of Condition
(2)
|
|
Net Amounts of Liabilities Presented in Statement of Condition
|
||||||||||||
|
Derivatives:
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Interest-rate contracts
|
|
$
|
269
|
|
|
$
|
(45
|
)
|
|
$
|
224
|
|
|
$
|
331
|
|
|
$
|
(59
|
)
|
|
$
|
272
|
|
|
Foreign exchange contracts
|
|
7,842
|
|
|
(3,489
|
)
|
|
4,353
|
|
|
11,471
|
|
|
(4,514
|
)
|
|
6,957
|
|
||||||
|
Other derivative contracts
|
|
10
|
|
|
(1
|
)
|
|
9
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||||
|
Cash collateral netting
|
|
—
|
|
|
(274
|
)
|
|
(274
|
)
|
|
—
|
|
|
(979
|
)
|
|
(979
|
)
|
||||||
|
Total derivatives
|
|
$
|
8,121
|
|
|
$
|
(3,809
|
)
|
|
$
|
4,312
|
|
|
$
|
11,811
|
|
|
$
|
(5,552
|
)
|
|
$
|
6,259
|
|
|
Other financial instruments:
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Repurchase agreements and securities lending
(3)
|
|
$
|
45,545
|
|
|
$
|
(30,307
|
)
|
|
$
|
15,238
|
|
|
$
|
45,273
|
|
|
$
|
(30,700
|
)
|
|
$
|
14,573
|
|
|
Total derivatives and other financial instruments
|
|
$
|
53,666
|
|
|
$
|
(34,116
|
)
|
|
$
|
19,550
|
|
|
$
|
57,084
|
|
|
$
|
(36,252
|
)
|
|
$
|
20,832
|
|
|
|
|
|
|
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
|
|
|
|
|
Gross Amounts Not Offset in Statement of Condition
(1)
|
|
|
|
|
|
Gross Amounts Not Offset in Statement of Condition
(1)
|
|
|
||||||||||||||||||||
|
(In millions)
|
|
Net Amount of Liabilities Presented in Statement of Condition
|
|
Counterparty Netting
|
|
Collateral Provided
|
|
Net Amount
(2)
|
|
Net Amount of Liabilities Presented in Statement of Condition
|
|
Counterparty Netting
|
|
Collateral Provided
|
|
Net Amount
(2)
|
||||||||||||||||
|
Derivatives
|
|
$
|
4,312
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,312
|
|
|
$
|
6,259
|
|
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
6,253
|
|
|
Repurchase agreements and securities lending
|
|
15,238
|
|
|
(113
|
)
|
|
(13,015
|
)
|
|
2,110
|
|
|
14,573
|
|
|
(131
|
)
|
|
(13,036
|
)
|
|
1,406
|
|
||||||||
|
Total
|
|
$
|
19,550
|
|
|
$
|
(113
|
)
|
|
$
|
(13,015
|
)
|
|
$
|
6,422
|
|
|
$
|
20,832
|
|
|
$
|
(131
|
)
|
|
$
|
(13,042
|
)
|
|
$
|
7,659
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
(In millions)
|
2014
|
|
2013
|
||||
|
Interest revenue:
|
|
|
|
||||
|
Deposits with banks
|
$
|
34
|
|
|
$
|
31
|
|
|
Investment securities:
|
|
|
|
||||
|
U.S. Treasury and federal agencies
|
163
|
|
|
194
|
|
||
|
State and political subdivisions
|
71
|
|
|
51
|
|
||
|
Other investments
|
319
|
|
|
341
|
|
||
|
Securities purchased under resale agreements
|
9
|
|
|
13
|
|
||
|
Loans and leases
|
58
|
|
|
56
|
|
||
|
Other interest-earning assets
|
1
|
|
|
1
|
|
||
|
Total interest revenue
|
655
|
|
|
687
|
|
||
|
Interest expense:
|
|
|
|
||||
|
Deposits
|
15
|
|
|
34
|
|
||
|
Short-term borrowings
|
15
|
|
|
16
|
|
||
|
Long-term debt
|
63
|
|
|
56
|
|
||
|
Other interest-bearing liabilities
|
7
|
|
|
5
|
|
||
|
Total interest expense
|
100
|
|
|
111
|
|
||
|
Net interest revenue
|
$
|
555
|
|
|
$
|
576
|
|
|
|
Three Months Ended March 31,
|
||||||
|
(In millions)
|
2014
|
|
2013
|
||||
|
Acquisition costs
|
$
|
21
|
|
|
$
|
15
|
|
|
Restructuring charges, net
|
12
|
|
|
(1
|
)
|
||
|
Total acquisition and restructuring costs
|
$
|
33
|
|
|
$
|
14
|
|
|
(In millions)
|
Employee-
Related
Costs
|
|
Real Estate Consolidation
|
|
Asset and Other Write-Offs
|
|
Total
|
||||||||
|
Balance as of December 31, 2013
|
$
|
50
|
|
|
$
|
49
|
|
|
$
|
7
|
|
|
$
|
106
|
|
|
Additional accruals for Business Operations and Information Technology Transformation program
|
6
|
|
|
3
|
|
|
—
|
|
|
9
|
|
||||
|
Additional accruals for 2012 expense control measures
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||
|
Payments and adjustments
|
(17
|
)
|
|
(12
|
)
|
|
(2
|
)
|
|
(31
|
)
|
||||
|
Balance as of March 31, 2014
|
$
|
39
|
|
|
$
|
40
|
|
|
$
|
8
|
|
|
$
|
87
|
|
|
|
Three Months Ended March 31,
|
||||||
|
(Dollars in millions, except per share amounts)
|
2014
|
|
2013
|
||||
|
Net income
|
$
|
363
|
|
|
$
|
464
|
|
|
Less:
|
|
|
|
||||
|
Preferred stock dividends
|
(6
|
)
|
|
(7
|
)
|
||
|
Dividends and undistributed earnings allocated to participating securities
(1)
|
(1
|
)
|
|
(2
|
)
|
||
|
Net income available to common shareholders
|
$
|
356
|
|
|
$
|
455
|
|
|
Average common shares outstanding (in thousands):
|
|
|
|
||||
|
Basic average common shares
|
430,621
|
|
|
454,315
|
|
||
|
Effect of dilutive securities: common stock options and common stock awards
|
8,194
|
|
|
8,436
|
|
||
|
Diluted average common shares
|
438,815
|
|
|
462,751
|
|
||
|
Anti-dilutive securities
(2)
|
1,504
|
|
|
2,488
|
|
||
|
Earnings per Common Share:
|
|
|
|
||||
|
Basic
|
$
|
.83
|
|
|
$
|
1.00
|
|
|
Diluted
(3)
|
.81
|
|
|
.98
|
|
||
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||||||||||
|
|
Investment
Servicing
|
|
Investment
Management
|
|
Other
|
|
Total
|
||||||||||||||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||
|
(Dollars in millions,
except where otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Fee revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Servicing fees
|
$
|
1,238
|
|
|
$
|
1,175
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,238
|
|
|
$
|
1,175
|
|
|
Management fees
|
—
|
|
|
—
|
|
|
292
|
|
|
263
|
|
|
—
|
|
|
—
|
|
|
292
|
|
|
263
|
|
||||||||
|
Trading services
|
227
|
|
|
257
|
|
|
12
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
239
|
|
|
281
|
|
||||||||
|
Securities finance
|
85
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|
78
|
|
||||||||
|
Processing fees and other
|
69
|
|
|
55
|
|
|
1
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
60
|
|
||||||||
|
Total fee revenue
|
1,619
|
|
|
1,565
|
|
|
305
|
|
|
292
|
|
|
—
|
|
|
—
|
|
|
1,924
|
|
|
1,857
|
|
||||||||
|
Net interest revenue
|
538
|
|
|
557
|
|
|
17
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
555
|
|
|
576
|
|
||||||||
|
Gains (losses) related to investment securities, net
|
6
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
2
|
|
||||||||
|
Total revenue
|
2,163
|
|
|
2,124
|
|
|
322
|
|
|
311
|
|
|
—
|
|
|
—
|
|
|
2,485
|
|
|
2,435
|
|
||||||||
|
Provision for loan losses
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||||
|
Total expenses
|
1,673
|
|
|
1,590
|
|
|
244
|
|
|
222
|
|
|
111
|
|
|
14
|
|
|
2,028
|
|
|
1,826
|
|
||||||||
|
Income before income tax expense
|
$
|
488
|
|
|
$
|
534
|
|
|
$
|
78
|
|
|
$
|
89
|
|
|
$
|
(111
|
)
|
|
$
|
(14
|
)
|
|
$
|
455
|
|
|
$
|
609
|
|
|
Pre-tax margin
|
23
|
%
|
|
25
|
%
|
|
24
|
%
|
|
29
|
%
|
|
|
|
|
|
18
|
%
|
|
25
|
%
|
||||||||||
|
Average assets (in billions)
|
$
|
212.2
|
|
|
$
|
204.4
|
|
|
$
|
3.4
|
|
|
$
|
3.9
|
|
|
|
|
|
|
$
|
215.6
|
|
|
$
|
208.3
|
|
||||
|
|
Three Months Ended March 31,
|
||||||
|
(In millions)
|
2014
|
|
2013
|
||||
|
Total fee revenue
|
$
|
788
|
|
|
$
|
765
|
|
|
Net interest revenue
|
325
|
|
|
273
|
|
||
|
Gains (losses) related to investment securities, net
|
6
|
|
|
(3
|
)
|
||
|
Total revenue
|
1,119
|
|
|
1,035
|
|
||
|
Expenses
|
839
|
|
|
753
|
|
||
|
Income before income taxes
|
280
|
|
|
282
|
|
||
|
Income tax expense
|
65
|
|
|
69
|
|
||
|
Net income
|
$
|
215
|
|
|
$
|
213
|
|
|
(In millions)
|
March 31, 2014
|
|
December 31, 2013
|
||||
|
Interest-bearing deposits with banks
|
$
|
10,281
|
|
|
$
|
9,584
|
|
|
Investment securities
|
31,790
|
|
|
31,522
|
|
||
|
Other assets
|
17,552
|
|
|
16,778
|
|
||
|
Total non-U.S. assets
|
$
|
59,623
|
|
|
$
|
57,884
|
|
|
|
|
|
|
PART I. FINANCIAL INFORMATION
|
|
|
|
Item 1.
|
Financial Statements
|
|
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
Item 2.
|
||
|
Item 3.
|
||
|
Item 4.
|
||
|
(Dollars in millions, except per share amounts, shares in thousands)
|
|
Total Number of Shares Purchased Under Publicly Announced Program
|
|
Average Price Paid Per Share
|
|
Approximate Dollar Value of Shares Purchased Under Publicly Announced Program
|
|
Approximate Dollar Value of Shares Yet to be Purchased Under Publicly Announced Program
|
|
|||||||
|
Period:
|
|
|
|
|
|
|
|
|
|
|||||||
|
January 1 - January 31, 2014
|
|
2,976
|
|
|
$
|
71.16
|
|
|
$
|
212
|
|
|
$
|
208
|
|
|
|
February 1 - February 28, 2014
|
|
3,099
|
|
|
67.21
|
|
|
208
|
|
|
—
|
|
|
|||
|
March 1 - March 31, 2014
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,700
|
|
(1)
|
|||
|
Total
|
|
6,075
|
|
|
$
|
69.14
|
|
|
$
|
420
|
|
|
$
|
1,700
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
STATE STREET CORPORATION
|
|
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
Date:
|
May 9, 2014
|
|
By:
|
|
/s/ M
ICHAEL
W. B
ELL
|
|
|
|
|
|
|
Michael W. Bell,
|
|
|
|
|
|
|
Executive Vice President and
Chief Financial Officer (Principal Financial Officer)
|
|
|
|
|
|
|
|
|
Date:
|
May 9, 2014
|
|
By:
|
|
/s/ J
AMES
J. M
ALERBA
|
|
|
|
|
|
|
James J. Malerba,
|
|
|
|
|
|
|
Executive Vice President, Corporate Controller and
Chief Accounting Officer (Principal Accounting Officer)
|
|
|
3.1
|
|
Restated Articles of Organization, as amended
|
|
|
|
|
|
|
|
4.1
|
|
Deposit Agreement, dated March 4, 2014, among State Street Corporation, American Stock Transfer & Trust Company, LLC (as depositary), and the holders from time to time of the depositary receipts (filed as Exhibit 4.1 to State Street’s Current Report on Form 8-K filed with the SEC on March 4, 2014 and incorporated herein by reference)
|
|
|
|
|
|
|
|
10.1†
|
|
Form of amendment dated March 26, 2014 to employment agreements entered into with each of Joseph L. Hooley, Michael W. Bell, Joseph C. Antonellis, James S. Phalen and Michael F. Rogers (filed as Exhibit 99.1 to State Street’s Current Report on Form 8-K filed with the SEC on March 31, 2014 and incorporated herein by reference)
|
|
|
|
|
|
|
|
12
|
|
Ratios of earnings to fixed charges
|
|
|
|
|
|
|
|
15
|
|
Letter regarding unaudited interim financial information
|
|
|
|
|
|
|
|
31.1
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chairman, President and Chief Executive Officer
|
|
|
|
|
|
|
|
31.2
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
|
|
|
|
|
|
|
|
32
|
|
Section 1350 Certifications
|
|
|
|
|
|
|
*
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
|
|
|
*
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
*
|
101.CAL
|
|
XBRL Taxonomy Calculation Linkbase Document
|
|
|
|
|
|
|
*
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
*
|
101.LAB
|
|
XBRL Taxonomy Label Linkbase Document
|
|
|
|
|
|
|
*
|
101.PRE
|
|
XBRL Taxonomy Presentation Linkbase Document
|
|
|
|
|
|
|
†
|
|
Denotes management contract or compensatory plan or arrangement
|
|
*
|
|
Submitted electronically herewith
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
Suppliers
| Supplier name | Ticker |
|---|---|
| Canaan Inc. | CAN |
| Mastercard Incorporated | MA |
| Adobe Inc. | ADBE |
| International Business Machines Corporation | IBM |
| SPDR Gold Shares | GLD |
| iShares Silver Trust | SLV |
| TransUnion | TRU |
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|