v3.26.1
Variable Interest Entities
 3 Months Ended
Mar. 31, 2026
Variable Interest Entities [Abstract]  
Variable Interest Entities
Variable Interest Entities
A variable interest in a VIE is an investment (e.g., debt or equity) or other interest (e.g., derivatives or loans and lending commitments) that will absorb portions of the VIE’s expected losses and/or receive portions of the VIE’s expected residual returns.
The firm’s variable interests in VIEs include senior and subordinated debt; loans and lending commitments; limited and general partnership interests; preferred and common equity; derivatives that may include foreign currency, equity and/or credit risk; guarantees; and certain of the fees the firm receives from investment funds. Certain interest rate, foreign currency and credit derivatives the firm enters into with VIEs are not variable interests because they create, rather than absorb, risk.
VIEs generally finance the purchase of assets by issuing debt and equity securities that are either collateralized by or indexed to the assets held by the VIE. The debt and equity securities issued by a VIE may include tranches of varying levels of subordination. The firm’s involvement with VIEs includes securitization of financial assets, as described in Note 16, and investments in and loans to other types of VIEs, as described below. See Note 3 for the firm’s consolidation policies, including the definition of a VIE.
VIE Consolidation Analysis
The enterprise with a controlling financial interest in a VIE is known as the primary beneficiary and consolidates the VIE. The firm determines whether it is the primary beneficiary of a VIE by performing an analysis that principally considers:
•Which variable interest holder has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance;
•Which variable interest holder has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE;
•The VIE’s purpose and design, including the risks the VIE was designed to create and pass through to its variable interest holders;
•The VIE’s capital structure;
•The terms between the VIE and its variable interest holders and other parties involved with the VIE; and
•Related-party relationships.
The firm reassesses its evaluation of whether an entity is a VIE when certain reconsideration events occur. The firm reassesses its determination of whether it is the primary beneficiary of a VIE on an ongoing basis based on current facts and circumstances.


VIE Activities
The firm is principally involved with VIEs through the following business activities:
Mortgage-Backed VIEs. The firm sells residential and commercial mortgage loans and securities to mortgage-backed VIEs and may retain beneficial interests in the assets sold to these VIEs. The firm purchases and sells beneficial interests issued by mortgage-backed VIEs in connection with market-making activities. In addition, the firm may enter into derivatives with certain of these VIEs, primarily interest rate swaps, which are typically not variable interests. The firm generally enters into derivatives with other counterparties to mitigate its risk.
Tax Credit, Credit-Related, Real Estate and Other Investing VIEs. The firm makes equity investments in VIEs that invest in qualified affordable housing and renewable energy projects designed to generate a return through the realization of tax credits and related tax benefits. The firm also purchases equity and debt securities issued by, and makes loans to, VIEs that hold real estate, performing and nonperforming debt, distressed loans and equity securities. In addition, the firm makes equity investments in certain investment fund VIEs it manages and is entitled to receive fees from these VIEs. The firm generally does not sell assets to, or enter into derivatives with, these VIEs.
Corporate Debt and Other Asset-Backed VIEs. The firm structures VIEs that issue notes to clients, purchases and sells beneficial interests issued by corporate debt and other asset-backed VIEs in connection with market-making activities, and makes loans to VIEs that warehouse corporate debt. Certain of these VIEs synthetically create the exposure for the beneficial interests they issue by entering into credit derivatives with the firm, rather than purchasing the underlying assets. In addition, the firm may enter into derivatives, such as total return swaps, with certain corporate debt and other asset-backed VIEs, under which the firm pays the VIE a return due to the beneficial interest holders and receives the return on the collateral owned by the VIE. The collateral owned by these VIEs is primarily other asset-backed loans and securities. The firm may be removed as the total return swap counterparty and may enter into derivatives with other counterparties to mitigate its risk related to these swaps. The firm may sell assets to the corporate debt and other asset-backed VIEs it structures.

Principal-Protected Note VIEs. The firm structures VIEs that issue principal-protected notes to clients. These VIEs own portfolios of assets, principally with exposure to hedge funds. The firm enters into total return swaps with these VIEs under which the firm pays the VIE the return due to the principal-protected note holders and receives the return on the assets owned by the VIE.
Nonconsolidated VIEs
The table below presents a summary of the nonconsolidated VIEs in which the firm holds variable interests.
 
As of
MarchDecember
$ in millions20262025
Total nonconsolidated VIEs  
Assets in VIEs$279,910 $271,331 
Carrying value of variable interests — assets$18,933 $17,746 
Carrying value of variable interests — liabilities$3,032 $3,016 
Maximum exposure to loss:  
Retained interests$6,932 $6,458 
Purchased interests746 681 
Commitments and guarantees6,113 6,239 
Derivatives9,355 9,445 
Debt and equity7,061 6,284 
Total$30,207 $29,107 
In the table above:
•The nature of the firm’s variable interests is described in the rows under maximum exposure to loss.
•The firm’s exposure to the obligations of VIEs is generally limited to its interests in these entities. In certain instances, the firm provides guarantees, including derivative guarantees, to VIEs or holders of variable interests in VIEs.
•The maximum exposure to loss excludes the benefit of offsetting financial instruments that are held to mitigate the risks associated with these variable interests.
•The maximum exposure to loss from retained interests, purchased interests, and debt and equity is the carrying value of these interests.
•The maximum exposure to loss from commitments and guarantees, and derivatives is the notional amount, which does not represent anticipated losses and has not been reduced by unrealized losses. As a result, the maximum exposure to loss exceeds liabilities recorded for commitments and guarantees, and derivatives.


The table below presents information, by principal business activity, for nonconsolidated VIEs included in the summary table above.
 As of
MarchDecember
$ in millions20262025
Mortgage-backed  
Assets in VIEs$184,467 $180,240 
Carrying value of variable interests — assets$6,597 $6,094 
Maximum exposure to loss:  
Retained interests$6,459 $5,947 
Purchased interests137 147 
Derivatives1 1 
Total$6,597 $6,095 
Tax credit, credit-related, real estate and other investing
Assets in VIEs$71,440 $67,290 
Carrying value of variable interests — assets$7,198 $7,073 
Carrying value of variable interests — liabilities$2,667 $2,587 
Maximum exposure to loss:  
Commitments and guarantees$5,252 $5,376 
Debt and equity4,699 4,494 
Total$9,951 $9,870 
Corporate debt and other asset-backed
Assets in VIEs$24,003 $23,801 
Carrying value of variable interests — assets$5,138 $4,579 
Carrying value of variable interests — liabilities$365 $429 
Maximum exposure to loss:  
Retained interests$473 $511 
Purchased interests609 534 
Commitments and guarantees861 863 
Derivatives9,354 9,444 
Debt and equity2,362 1,790 
Total$13,659 $13,142 
As of both March 2026 and December 2025, the carrying values of the firm’s variable interests in nonconsolidated VIEs are included in the consolidated balance sheets as follows:
•Mortgage-backed: Assets primarily included in trading assets and loans.
•Tax credit, credit-related, real estate and other investing: Assets primarily included in investments and other assets, and liabilities included in trading liabilities and other liabilities.
•Corporate debt and other asset-backed: Assets included in loans and trading assets, and liabilities included in trading liabilities.


Tax Credit VIEs
The firm makes equity investments in nonconsolidated tax credit VIEs that invest in qualified affordable housing and renewable energy projects. These VIEs are generally organized as limited partnerships or similar entities and a third party is typically the general partner or the managing member. The firm invests in the entity as a limited partner and receives income tax credits and other income tax benefits for such investments. The firm has elected the proportional amortization method for qualified affordable housing and renewable energy projects that receive production tax credits. The investments that meet the criteria for the proportional amortization method of accounting are amortized in proportion to the income tax credits and other income tax benefits received on such investments. The amortization of investments and the related income tax credits and other income tax benefits are recorded as a component of the provision for taxes, and are included in other operating activities in the consolidated statements of cash flows.
The table below presents information about investments (included in miscellaneous receivables and other within other assets in the consolidated balance sheets) in qualified affordable housing and renewable energy projects that met the criteria of the proportional amortization method of accounting.
 As of
MarchDecember
$ in millions20262025
Carrying value of investments
$4,060 $4,123 
In the table above, investments included $2.49 billion as of March 2026 and $2.57 billion as of December 2025 of accrued unfunded commitments. As of March 2026, a majority of such accrued unfunded commitments were expected to be funded by year-end 2028.
The table below presents information about the amortization and income tax credits and other income tax benefits related to investments in qualified affordable housing and renewable energy projects that met the criteria of the proportional amortization method of accounting.
 Three Months
Ended March
$ in millions20262025
Amortization$101 $131 
Tax credits and other benefits
$130 $168 
Investments in qualified affordable housing projects that did not meet the criteria for the proportional amortization method of accounting were $116 million as of March 2026 and not material as of December 2025.




The firm’s existing investments in renewable energy projects that receive production tax credits were not eligible for transition to the proportional amortization method of accounting upon adoption of ASU No. 2023-02. Such investments were $1.11 billion as of March 2026 and $1.17 billion as of December 2025, were included in investments in the consolidated balance sheets and were accounted for at fair value under the fair value option.
Consolidated VIEs
The table below presents a summary of the carrying value and balance sheet classification of assets and liabilities in consolidated VIEs.
 
As of
MarchDecember
$ in millions20262025
Total consolidated VIEs  
Assets  
Cash and cash equivalents$72 $49 
Customer and other receivables
1 1 
Trading assets92 112 
Investments629 347 
Other assets41 71 
Total$835 $580 
Liabilities  
Other secured financings$631 $643 
Customer and other payables7 7 
Unsecured short-term borrowings5 5 
Unsecured long-term borrowings13 14 
Other liabilities468 212 
Total$1,124 $881 
In the table above:
•Assets and liabilities are presented net of intercompany eliminations and exclude the benefit of offsetting financial instruments that are held to mitigate the risks associated with the firm’s variable interests.
•VIEs in which the firm holds a majority voting interest are excluded if (i) the VIE meets the definition of a business and (ii) the VIE’s assets can be used for purposes other than the settlement of its obligations.
•Substantially all assets can only be used to settle obligations of the VIE.


The table below presents information, by principal business activity, for consolidated VIEs included in the summary table above.
 
As of
MarchDecember
$ in millions20262025
Assets  
Real estate and other investing
$723 $466 
Corporate debt and other asset-backed
40 23 
Principal-protected notes72 91 
Total$835 $580 
Liabilities
  
Real estate and other investing$475 $221 
Corporate debt and other asset-backed294 298 
Principal-protected notes355 362 
Total$1,124 $881 
In the table above, creditors and beneficial interest holders of real estate and other investing VIEs do not have recourse to the general credit of the firm.