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Document And Entity Information (USD $)
In Billions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Jan. 31, 2012
Jun. 30, 2011
Document And Entity Information [Abstract]
Document Type 10-K
Amendment Flag false
Document Period End Date Dec 31, 2011
Document Fiscal Year Focus 2011
Document Fiscal Period Focus FY
Entity Registrant Name STATE STREET Corp
Entity Central Index Key 0000093751
Current Fiscal Year End Date --12-31
Entity Filer Category Large Accelerated Filer
Entity Common Stock, Shares Outstanding 487,849,175
Entity Well-known Seasoned Issuer Yes
Entity Current Reporting Status Yes
Entity Voluntary Filers No
Entity Public Float $ 22.4
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Consolidated Statement Of Income (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Fee revenue:
Servicing fees $ 4,382 $ 3,938 $ 3,334
Management fees 917 829 766
Trading services 1,220 1,106 1,094
Securities finance 378 318 570
Processing fees and other 297 349 171
Total fee revenue 7,194 6,540 5,935
Net interest revenue:
Interest revenue 2,946 3,462 3,286
Interest expense 613 763 722
Net interest revenue 2,333 2,699 2,564
Gains (Losses) related to investment securities, net:
Net gains (losses) from sales of investment securities 140 (55) 368
Losses from other-than-temporary impairment (123) (651) (1,155)
Losses not related to credit 50 [1] 420 [1] 928 [1]
Gains (Losses) related to investment securities, net 67 (286) 141
Total revenue 9,594 8,953 8,640
Provision for loan losses 25 149
Expenses:
Compensation and employee benefits 3,820 3,524 3,037
Information systems and communications 776 713 656
Transaction processing services 732 653 583
Occupancy 455 463 475
Securities lending charge 414
Provision for fixed-income litigation exposure 9 250
Acquisition and restructuring costs 269 245 49
Professional services 347 277 264
Amortization of other intangible assets 200 179 136
Other 459 374 516
Total expenses 7,058 6,842 5,966
Income before income tax expense and extraordinary loss 2,536 2,086 2,525
Income tax expense 616 530 722
Income before extraordinary loss 1,920 1,556 1,803
Extraordinary loss, net of taxes (3,684)
Net income (loss) 1,920 1,556 (1,881)
Net income before extraordinary loss available to common shareholders 1,882 1,540 1,640
Net income (loss) available to common shareholders $ 1,882 $ 1,540 $ (2,044)
Earnings per common share before extraordinary loss:
Basic $ 3.82 $ 3.11 $ 3.5
Diluted $ 3.79 [2] $ 3.09 [2] $ 3.46 [2]
Earnings (Loss) per common share:
Basic $ 3.82 $ 3.11 $ (4.32)
Diluted $ 3.79 $ 3.09 $ (4.31)
Average common shares outstanding (in thousands):
Basic 492,598 495,394 470,602
Diluted 496,072 497,924 474,003
[1] Pursuant to revised GAAP adopted on April 1, 2009, these losses were recorded, net of related taxes, a component of other comprehensive income; refer to note 12.
[2] Calculations for 2011 and 2010 reflected the allocation of earnings to participating securities using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.
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Consolidated Statement Of Condition (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Assets
Cash and due from banks $ 2,193 $ 3,311
Interest-bearing deposits with banks 58,886 22,234
Securities purchased under resale agreements 7,045 2,928
Trading account assets 707 479
Investment securities available for sale 99,832 81,881
Investment securities held to maturity (fair value of $9,362 and $12,576) 9,321 12,249
Loans and leases (less allowance for losses of $22 and $100) 10,031 11,857
Premises and equipment (net of accumulated depreciation of $3,673 and $3,425) 1,747 1,802
Accrued income receivable 1,822 1,733
Goodwill 5,645 5,597
Other intangible assets 2,459 2,593
Other assets 17,139 13,841
Total assets 216,827 160,505
Deposits:
Noninterest-bearing 59,229 17,464
Interest-bearing - U.S. 7,148 6,957
Interest-bearing - Non-U.S. 90,910 73,924
Total deposits 157,287 98,345
Securities sold under repurchase agreements 8,572 7,599
Federal funds purchased 656 7,748
Other short-term borrowings 4,766 7,202
Accrued expenses and other liabilities 18,017 13,274
Long-term debt 8,131 8,550
Total liabilities 197,429 142,718
Commitments and contingencies (note 10)      
Shareholders' equity
Preferred stock, no par: 3,500,000 shares authorized; 5,001 shares issued and outstanding 500   
Common stock, $1 par: 750,000,000 shares authorized; 503,965,849 and 502,064,454 shares issued 504 502
Surplus 9,557 9,356
Retained earnings 10,176 8,634
Accumulated other comprehensive loss (659) (689)
Treasury stock, at cost (16,541,985 and 420,016 shares) (680) (16)
Total shareholders' equity 19,398 17,787
Total liabilities and shareholders' equity $ 216,827 $ 160,505
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Consolidated Statement Of Condition (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Consolidated Statement Of Condition [Abstract]
Investment securities held to maturity, Fair Value $ 9,362 $ 12,576
Loans and leases, allowance for losses 22 100
Premises and equipment, accumulated depreciation $ 3,673 $ 3,425
Preferred stock, no par value      
Preferred stock, shares authorized 3,500,000 3,500,000
Preferred stock, shares issued 5,001 5,001
Preferred stock, shares outstanding 5,001 5,001
Common stock, par $ 1 $ 1
Common stock, shares authorized 750,000,000 750,000,000
Common stock, shares issued 503,965,849 502,064,454
Treasury stock, shares 16,541,985 420,016
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Consolidated Statement Of Changes In Shareholders' Equity (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
Preferred Stock [Member]
Common Stock [Member]
Surplus [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive (Loss) Income [Member]
Treasury Stock [Member]
Total
Balance at Dec. 31, 2008 $ 1,883 $ 432 $ 6,992 $ 9,135 $ (5,650) $ (18) $ 12,774
Balance, Shares at Dec. 31, 2008 431,976 418
Comprehensive income:
Net income (loss) (1,881) (1,881)
Change in net unrealized loss on available-for-sale securities, net of reclassification adjustment and net of related taxes 3,410 3,410
Change in net unrealized loss on available-for-sale securities designated in fair value hedges, net of related taxes 129 129
Expected losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes (387) (387)
Foreign currency translation, net of related taxes 213 213
Change in net unrealized loss on cash flow hedges, net of related taxes 10 10
Change in minimum pension liability, net of related taxes 37 37
Total comprehensive income (1,881) 3,412 1,531
Stock issued 59 2,172 2,231
Cash dividends declared:
Common stock (20) (20)
Preferred stock (46) (46)
Accretion of preferred stock discount 11 (11) 117
Prepayment of preferred stock discount 106 (106)
Stock issued, Shares 58,974
Redemption of TARP preferred stock (2,000) (2,000)
Repurchase of TARP common stock warrant (60) (60)
Common stock awards and options exercised, including related taxes, Shares 4,416
Common stock awards and options exercised, including related taxes 4 76 80
Other, Shares 14
Other 1 1
Balance at Dec. 31, 2009 495 9,180 7,071 (2,238) (17) 14,491
Adjustment for effect of application of provisions of new accounting standard at Dec. 31, 2009 27 (27)
Balance, Shares at Dec. 31, 2009 495,366 432
Balance at Dec. 31, 2009 495 9,180 7,098 (2,265) (17) 14,491
Balance, Shares at Dec. 31, 2009 432
Comprehensive income:
Net income (loss) 1,556 1,556
Change in net unrealized loss on available-for-sale securities, net of reclassification adjustment and net of related taxes 1,398 1,398
Change in net unrealized loss on available-for-sale securities designated in fair value hedges, net of related taxes (22) (22)
Expected losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes 276 276
Foreign currency translation, net of related taxes (65) (65)
Change in net unrealized loss on cash flow hedges, net of related taxes 7 7
Change in minimum pension liability, net of related taxes (18) (18)
Total comprehensive income 1,556 1,576 3,132
Cash dividends declared:
Common stock (20) (20)
Common stock awards and options exercised, including related taxes, Shares 6,698 297
Common stock awards and options exercised, including related taxes 7 176 183
Other, Shares (12)
Other 1 1
Balance at Dec. 31, 2010 502 9,356 8,634 (689) (16) 17,787
Balance, Shares at Dec. 31, 2010 502,064 420
Comprehensive income:
Net income (loss) 1,920 1,920
Change in net unrealized loss on available-for-sale securities, net of reclassification adjustment and net of related taxes 328 328
Change in net unrealized loss on available-for-sale securities designated in fair value hedges, net of related taxes (75) (75)
Expected losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes 25 25
Foreign currency translation, net of related taxes (216) (216)
Change in net unrealized loss on cash flow hedges, net of related taxes 6 6
Change in minimum pension liability, net of related taxes (38) (38)
Total comprehensive income 1,920 30 1,950
Stock issued 500 500
Cash dividends declared:
Common stock (358) (358)
Preferred stock (20) (20)
Common stock acquired (675) (675)
Common stock acquired,shares 16,313
Common stock awards and options exercised, including related taxes, Shares 1,902 (177) 1,028
Common stock awards and options exercised, including related taxes 2 223 10 235
Other, Shares (14)
Other (22) 1 (21)
Balance at Dec. 31, 2011 $ 500 $ 504 $ 9,557 $ 10,176 $ (659) $ (680) $ 19,398
Balance, Shares at Dec. 31, 2011 503,966 16,542
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Consolidated Statement Of Changes In Shareholders' Equity (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Consolidated Statement Of Changes In Shareholders' Equity [Abstract]
Change in net unrealized loss on available-for-sale securities, reclassification adjustment and expected losses from other-than-temporary impairment related to factors other than credit, related taxes $ 242 $ 870 $ 2,158
Change in net unrealized loss on fair value hedges of available-for-sale securities, related taxes (49) (17) 82
Expected losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit, related taxes 15 164 (237)
Foreign currency translation, related taxes 68 56 (96)
Change in net unrealized losses on cash flow hedges, related taxes 3 7
Change in minimum pension liability, related taxes (15) (11) 23
Cash dividends declared per common share $ 0.72 $ 0.04 $ 0.04
Common stock awards and options exercised, related taxes $ (14) $ (11) $ (52)
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Consolidated Statement Of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Operating Activities:
Net income (loss) $ 1,920 $ 1,556 $ (1,881)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred income tax expense (benefit) 218 1,244 (1,961)
Amortization of other intangible assets 200 179 136
Other non-cash adjustments for depreciation, amortization and accretion 180 (409) (457)
Extraordinary loss 6,096
(Gains) Losses related to investment securities, net (67) 286 (141)
Change in trading account assets, net (183) (331) 366
Change in accrued income receivable (89) (236) 241
Change in collateral deposits 817 (1,900) 1,358
Change in trading liabilities, net (441) 555
Other, net 819 (121) (7,988)
Net cash (used in) provided by operating activities 3,374 823 (4,231)
Investing Activities:
Net (increase) decrease in interest-bearing deposits with banks (36,652) 4,398 29,222
Net increase in securities purchased under resale agreements (4,117) (541) (752)
Proceeds from sales of available-for-sale securities 16,272 24,736 8,274
Proceeds from maturities of available-for-sale securities 44,810 34,250 43,995
Purchases of available-for-sale securities (78,748) (65,485) (58,780)
Net decrease in securities related to AMLF 6,111
Proceeds from sales of held-to-maturity securities 4,676
Proceeds from maturities of held-to-maturity securities 3,653 5,249 4,498
Purchases of held-to-maturity securities (457) (426) (1,600)
Net (increase) decrease in loans 1,638 (1,320) 800
Business acquisitions, net of cash acquired (214) (2,332)
Purchases of equity investments and other long-term assets (69) (114) (241)
Purchases of premises and equipment (298) (262) (325)
Other, net 287 363 430
Net cash (used in) provided by investing activities (53,895) 3,192 31,632
Financing Activities:
Net increase (decrease) in time deposits (124) 857 1,267
Net increase (decrease) in all other deposits 59,066 7,426 (23,408)
Net decrease in short term borrowings related to AMLF (6,042)
Net decrease in short-term borrowings (8,555) (11,233) (4,163)
Proceeds from issuance of long-term debt, net of issuance costs 1,986 4,435
Payments for long-term debt and obligations under capital leases (2,486) (341) (29)
Proceeds from issuance of preferred stock 500
Redemption of TARP preferred stock (2,000)
Proceeds from public offering of common stock, net of issuance costs 2,231
Repurchase of TARP common stock warrant (60)
Purchases of common stock (675)
Proceeds from exercises of common stock options 40 10 34
Repurchases of common stock for employee tax withholding (63) (44) (38)
Proceeds from issuances of treasury stock for common stock awards and option exercises 9
Payments for cash dividends (295) (20) (168)
Net cash (used in) provided by financing activities 49,403 (3,345) (27,941)
Net increase (decrease) (1,118) 670 (540)
Cash and due from banks at beginning of year 3,311 2,641 3,181
Cash and due from banks at end of year 2,193 3,311 2,641
Supplemental disclosure:
Interest paid 611 763 722
Income taxes paid (refunded), net 305 (11) 884
Non-cash acquisitions of investment securities 14,111
Non-cash acquisitions of loans 2,510
Non-cash investments in premises and equipment and capital leases 126
Non-cash additions of short-term borrowings $ 20,919
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Summary Of Significant Accounting Policies
12 Months Ended
Dec. 31, 2011
Summary Of Significant Accounting Policies [Abstract]
Summary Of Significant Accounting Policies

Note 1.     Summary of Significant Accounting Policies

The accounting and financial reporting policies of State Street Corporation conform to accounting principles generally accepted in the United States of America, referred to as GAAP. State Street Corporation, the parent company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to "State Street," "we," "us," "our" or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary, State Street Bank and Trust Company, is referred to as State Street Bank. We have two lines of business:

 

   

Investment Servicing provides services for U.S. mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations and endowments worldwide. Products include custody, product- and participant-level accounting, daily pricing and administration; master trust and master custody; record-keeping; foreign exchange, brokerage and other trading services; securities finance; deposit and short- term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; and performance, risk and compliance analytics to support institutional investors.

 

   

Investment Management, through State Street Global Advisors, or SSgA, provides a broad range of investment management strategies, specialized investment management advisory services and other financial services, such as securities finance, for corporations, public funds, and other sophisticated investors. Management strategies offered by SSgA include passive and active, such as enhanced indexing and hedge fund strategies, using quantitative and fundamental methods for both U.S. and non-U.S. equity and fixed-income securities. SSgA also offers exchange-traded funds.

The preparation of consolidated financial statements requires management to make estimates and assumptions in the application of certain of our accounting policies that may materially affect the reported amounts of assets, liabilities, revenues and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-K with the SEC.

The following is a summary of our significant accounting policies.

Basis of Presentation:

Our consolidated financial statements include the accounts of the parent company and its majority- and wholly-owned subsidiaries, including State Street Bank. All material inter-company transactions and balances have been eliminated. Certain previously reported amounts have been reclassified to conform to current year presentation.

We consolidate subsidiaries in which we hold a majority of the voting rights or exercise control. Investments in unconsolidated subsidiaries, recorded in other assets, generally are accounted for under the equity method of accounting if we have the ability to exercise significant influence over the operations of the investee. For investments accounted for under the equity method, our share of income or loss is recorded in processing fees and other revenue in our consolidated statement of income. Investments not meeting the criteria for equity method treatment are accounted for under the cost method of accounting.

 

Foreign Currency Translation:

The assets and liabilities of our operations with functional currencies other than the U.S. dollar are translated at month- end exchange rates, and revenues and expenses are translated at rates that approximate average monthly exchange rates. Gains or losses from the translation of the net assets of subsidiaries with functional currencies other than the U.S. dollar, net of related taxes, are recorded in accumulated other comprehensive income, a component of shareholders' equity.

 

 

Interest-bearing Deposits with Banks:

Interest-bearing deposits with banks generally consist of highly liquid, short-term investments maintained at the Federal Reserve Bank and other central banks with original maturities at the time of purchase of one month or less.

 

Securities Purchased Under Resale Agreements and Securities Sold Under Repurchase Agreements:

U.S. Treasury and federal agency securities, referred to as "U.S. government securities," purchased under resale agreements or sold under repurchase agreements are treated as collateralized financing transactions, and are recorded in our consolidated statement of condition at the amounts at which the securities will be subsequently resold or repurchased, plus accrued interest. Our policy is to take possession or control of securities underlying resale agreements, allowing borrowers the right of collateral substitution and/or short-notice termination. We revalue these securities daily to determine if additional collateral is necessary from the borrower to protect us against credit exposure. We can use these securities as collateral for repurchase agreements. For securities sold under repurchase agreements collateralized by our U.S. government securities portfolio, the dollar value of the U.S. government securities remains in investment securities in our consolidated statement of condition. Where a master netting agreement exists or both parties are members of a common clearing organization, resale and repurchase agreements with the same counterparty or clearing house and maturity date are reported on a net basis.

 

Investment Securities:

Investment securities held by us are classified as either trading account assets, investment securities available for sale or investment securities held to maturity at the time of purchase, based on management's intent.

Trading account assets are debt and equity securities purchased in connection with our trading activities and, as such, are expected to be sold in the near term. Our trading activities typically involve active and frequent buying and selling with the objective of generating profits on short-term movements. Securities available for sale are those that we intend to hold for an indefinite period of time. Available-for-sale securities include securities utilized as part of our asset and liability management activities that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. Securities held to maturity are debt securities that management has the intent and the ability to hold to maturity.

Trading account assets are carried at fair value. Both realized and unrealized gains and losses on trading account assets are recorded in trading services revenue in our consolidated statement of income. Debt and marketable equity securities classified as available for sale are carried at fair value, and after-tax net unrealized gains and losses are recorded in accumulated other comprehensive income. Gains or losses realized on sales of available-for-sale securities are computed using the specific identification method and are recorded in gains related to investment securities, net, in our consolidated statement of income. Securities held to maturity are carried at cost, adjusted for amortization of premiums and accretion of discounts.

We review the fair values of debt securities at least quarterly, and evaluate individual securities for impairment that may be deemed to be other than temporary. For impaired securities that we plan to sell, or when it is more likely than not that we will be forced to sell the security, the impairment is deemed to be other than temporary and the security is written down to its fair value. Otherwise, we determine whether or not we expect to recover the entire amortized cost basis of the security, primarily by comparing the present value of expected future principal, interest and other contractual cash flows to the security's amortized cost basis. Our evaluation of impairment of mortgage- and asset-backed securities incorporates detailed information with respect to underlying loan-level performance. Accordingly, the range of estimates pertaining to each collateral type reflects the unique characteristics of the underlying loans, such as payment options and collateral geography, among other factors.

 

When we conclude that other-than-temporary impairment exists and we have no intention to sell, or will not be forced to sell, the security, the impairment is separated into the amount related to credit losses and the amount related to factors other than credit. The amount related to credit losses is recognized in our consolidated statement of income in gains (losses) related to investment securities, net, and the amortized cost basis of the security is written down by this amount. The portion of impairment related to all other factors is recognized in other comprehensive income.

Interest revenue related to debt securities is recognized in our consolidated statement of income using the interest method, or on a basis approximating a level rate of return over the contractual or estimated life of the security. The level rate of return considers any nonrefundable fees or costs, as well as purchase premiums or discounts, resulting in amortization or accretion, accordingly.

With respect to debt securities acquired, for those which we consider it probable as of the date of acquisition that we will be unable to collect all contractually required principal, interest and other payments, the excess of our estimate of undiscounted future cash flows from these securities over their initial recorded investment is accreted into interest revenue on a level-yield basis over the securities' estimated remaining terms. Subsequent decreases in these securities' expected future cash flows are either recognized prospectively through an adjustment of the yields on the securities over their remaining terms, or are evaluated for other-than-temporary impairment as described above. Increases in expected future cash flows are recognized prospectively over the securities' estimated remaining terms through the recalculation of their yields.

With respect to certain debt securities acquired which are considered to be beneficial interests in securitized financial assets, the excess of our estimate of undiscounted future cash flows from these securities over their initial recorded investment is accreted into interest revenue on a level-yield basis over the securities' estimated remaining terms. Subsequent decreases in these securities' expected future cash flows are either recognized prospectively through an adjustment of the yields on the securities over their remaining terms, or are evaluated for other-than-temporary impairment as described above. Increases in expected future cash flows are recognized prospectively over the securities' estimated remaining terms through the recalculation of their yields.

 

Loans and Leases:

Loans generally are recorded at their principal amount outstanding, net of the allowance for loan losses, unearned income, and any net unamortized deferred loan origination fees. Acquired loans are recorded at fair value, based on management's expectation with respect to future principal and interest collection as of the date of acquisition.

Loans acquired with evidence of deterioration in credit quality subsequent to origination, and for which our inability to collect all contractually required payments is probable on the date of acquisition, are recorded at fair value. The excess of expected future cash flows from these loans over their initial recorded investment is accreted into interest revenue on a level- yield basis over the remaining life of the loans. The carrying amount of acquired loans is assessed on an ongoing basis using a discounted cash flow model, which incorporates management expectations of prepayments. Subsequent decreases in expected cash flows result in an addition to the related allowance to allow the loan to maintain its level yield. Increases in expected cash flows are recognized, first, as a reduction of any remaining allowance, and then are recognized prospectively over the remaining life of the loan through a recalculation of the loan's level yield.

Interest revenue related to loans is recognized in our consolidated statement of income using the interest method or on a basis approximating a level rate of return over the term of the loan. Fees received for providing loan commitments and letters of credit that we anticipate will result in loans typically are deferred and amortized to interest revenue over the life of the related loan, beginning with the initial borrowing. Fees on commitments and letters of credit are amortized to processing fees and other revenue over the commitment period when funding is not known or expected.

For all loan classes, other than loans acquired with evidence of deterioration in credit quality, loans are placed on non- accrual status when they become 60 days past-due as to either principal or interest, or earlier when full collection of principal or interest is not considered probable. Loans 60 days past-due, but considered both well secured and in the process of collection, are treated as exceptions and may be excluded from non-accrual status. When we place a loan on non-accrual status, the accrual of interest is discontinued and previously recorded but unpaid interest is reversed and generally charged against interest revenue. For loans on non-accrual status, revenue is recognized on a cash basis after recovery of principal, if and when interest payments are received. Loans may be removed from non-accrual status when repayment is reasonably assured and performance under the terms of the loan has been demonstrated.

In certain circumstances, we restructure troubled loans by granting concessions to borrowers experiencing financial difficulty. Once restructured, the loans are generally considered impaired until their maturity, regardless of whether the borrowers perform under the modified terms of the loans.

Leveraged lease investments are reported at the aggregate of lease payments receivable and estimated residual values, net of non-recourse debt and unearned income. Lease residual values are reviewed regularly for other-than-temporary impairment, with valuation adjustments recorded currently against processing fees and other revenue. Unearned income is recognized to yield a level rate of return on the net investment in the leases. Gains and losses on residual values of leased equipment sold are recorded in processing fees and other revenue.

 

Allowance for Loan Losses:

The allowance for loan losses, recorded as a reduction of loans and leases in our consolidated statement of condition, represents management's estimate of probable credit losses inherent in our loan and lease portfolio as of the balance sheet date. The allowance is evaluated on a regular basis by management. Factors considered in evaluating the appropriate level of the allowance for both the institutional and commercial real estate segments of our loan and lease portfolio include previous loss experience, current economic conditions and adverse situations that may affect the borrower's ability to repay, the estimated value of the underlying collateral, if any, the performance of individual credits in relation to contract terms, and other relevant factors. Provisions for loan losses reflect our estimate of the amount necessary to maintain the allowance at a level considered by us to be appropriate to absorb estimated probable credit losses inherent in the loan and lease portfolio.

Loans are charged off to the allowance for loan losses in the reporting period in which either an event occurs that confirms the existence of a loss on a loan or a portion of a loan is determined to be uncollectible. In addition, any impaired loan that is determined to be collateral dependent is reduced to an amount equal to the fair value of the collateral less costs to sell. A loan is identified as collateral dependent when management determines that it is probable that the underlying collateral will be the sole source of repayment. Recoveries are recorded as adjustments to the allowance on a cash basis.

In addition, we maintain a reserve for off-balance sheet credit exposures that is recorded in other liabilities in our consolidated statement of condition. Factors considered in evaluating the appropriate level of this reserve are similar to those considered with respect to the allowance for loan losses. Provisions to change the level of this reserve are recorded in other expenses in our consolidated statement of income.

 

 

Fee and Net Interest Revenue:

Fees from investment servicing, investment management, securities finance, trading services and certain types of processing fees and other revenue are recorded in our consolidated statement of income based on estimates or specific contractual terms as transactions occur or services are rendered, provided that persuasive evidence exists, the price to the client is fixed or determinable and collectability is reasonably assured. Amounts accrued at period-end are recorded in accrued income receivable in our consolidated statement of condition. Performance fees from investment management are recorded when earned, based on predetermined benchmarks associated with the applicable fund's performance.

Interest revenue on interest-earning assets and interest expense on interest-bearing liabilities are recorded in our consolidated statement of income as components of net interest revenue, and are generally based on the effective yield of the related financial asset or liability.

 

Employee Benefits Expense:

Employee benefits expense, recorded in our consolidated statement of income, includes costs of certain pension and other post-retirement benefit plans related to prior and current service, which are accrued on a current basis, as well as contributions associated with defined contribution savings plans, unrestricted cash and stock awards under other employee incentive compensation plans, and the amortization of restricted stock awards.

 

Equity-Based Compensation:

We record compensation expense for equity-based awards. Accordingly, we measure compensation expense at fair value on a straight-line basis over the service or performance period, net of estimated forfeitures.

The fair values of equity-based awards, such as restricted stock, deferred stock and performance awards, are based on the closing price of our common stock on the date of grant, adjusted if appropriate based upon the award's eligibility to receive dividends. The fair value of stock options and stock appreciation rights is determined using the Black-Scholes valuation model.

Compensation expense related to equity-based awards with service-only conditions and terms that provide for a graded vesting schedule are recognized on a straight-line basis over the required service period for the entire award. Compensation expense related to equity-based awards with performance conditions and terms that provide for a graded vesting schedule is recognized over the requisite service period for each separately vesting tranche of the award, and is based on the probable outcome of the performance conditions at each reporting date. The expense is adjusted for assumptions with respect to the estimated amount of awards that will be forfeited prior to vesting, and for employees who have met certain retirement eligibility criteria.

 

Dividend equivalents for certain equity-based awards are paid on stock units on a current basis prior to vesting and distribution. Compensation expense for common stock and cash awards granted to employees meeting early retirement eligibility criteria is fully expensed and accrued at the grant date.

Income Taxes:

We use an asset and liability approach to account for income taxes. Our objective is to recognize the amount of taxes payable or refundable for the current year through charges or credits to the current tax provision, and to recognize deferred tax assets and liabilities for the future tax consequences resulting from temporary differences between the amounts reported in our consolidated financial statements and their respective tax bases. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates. The effects of a tax position on our consolidated financial statements are recognized when we believe it more likely than not that the position will be sustained. A deferred tax valuation allowance is established if it is considered more likely than not that all or a portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are netted within the same tax jurisdiction.

 

Earnings Per Share:

Basic earnings per share, or EPS, is calculated pursuant to the "two-class" method, using net income available to common shareholders and the weighted-average number of common shares outstanding during the period. Diluted EPS is calculated pursuant to the two-class method, by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period and the shares representing the dilutive effect of common stock options and other equity-based awards. The effect of common stock options and other equity-based awards is excluded from the calculation of diluted EPS in periods in which their effect would be anti-dilutive.

The two-class method requires the allocation of undistributed net income between common and participating shareholders. Net income available to common shareholders, presented separately in our consolidated statement of income, is the basis for the calculation of both basic and diluted EPS. Participating securities are composed of unvested restricted stock and director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with common shareholders in undistributed earnings.

 

Variable Interest Entities:

We are involved in the normal course of our business with various types of special purpose entities, some of which are variable interest entities, or VIEs, as defined by GAAP. We also invest in various forms of asset-backed securities, which we carry in our investment securities portfolio. These asset-backed securities meet the GAAP definition of asset securitization entities, which entities are considered to be VIEs. We are not considered to be the primary beneficiary of these VIEs, as defined by GAAP, since we do not have control over their activities.

We use special purpose entities to structure and sell certificated interests in pools of tax-exempt investment-grade assets, principally to our mutual fund clients. These trusts are recorded in our consolidated financial statements. We transfer assets to these trusts, which are legally isolated from us, from our investment securities portfolio at adjusted book value. The trusts finance the acquisition of these assets by selling certificated interests issued by the trusts to third-party investors and to State Street as residual holder. The investment securities of the trusts are carried at fair value in investment securities available for sale. The certificated interests are carried at the amount owed to the third-party investors in other short-term borrowings. The interest revenue and interest expense generated by the investments and certificated interests, respectively, are recorded as components of net interest revenue when earned or incurred.

 

 

Recent Accounting Developments:

The FASB is currently deliberating potentially significant changes to the U.S. accounting framework as part of an overall convergence effort with the International Accounting Standards Board under a previously signed memorandum of understanding. Some of these proposed changes have been exposed for comment, while others are expected to be exposed for comment over the next six to twelve months. These new proposals include potential changes to the accounting for financial instruments and hedging, the accounting for leases, revenue recognition and financial statement presentation. Once these proposed changes are finalized, we will disclose their nature and potential effect, if any, on our consolidated financial statements in our future filings. These proposed changes may have a material effect on our consolidated financial statements.

In September 2011, the FASB issued an amendment to GAAP that modifies existing guidance with respect to impairment of goodwill. The amendment provides companies with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. The amendment is effective, for State Street, for interim and annual periods beginning on January 1, 2012. Adoption of the amendment is not expected to have a material effect on our consolidated financial statements.

In June 2011, the FASB issued an amendment to GAAP that eliminates the option to report other comprehensive income and its components in the statement of changes in shareholders' equity. Instead, an entity can elect to present the components of net income and other comprehensive income in either one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The amendment does not change which items are reported in other comprehensive income or the requirement to report reclassifications of items from other comprehensive income to net income. The amendment is effective, for State Street, for interim and annual periods beginning on January 1, 2012, and is required to be applied retrospectively. We are currently evaluating the options for presentation of other comprehensive income permitted by the amendment.

 

In May 2011, the FASB issued an amendment to GAAP associated with fair value measurement and related disclosures. While the amendment is not expected to significantly affect current practice, it clarifies the FASB's intent about the application of existing fair value measurement requirements, and requires the disclosure of additional quantitative information about fair value measurements. The amendment includes guidance about, among other things, the determination of a principal market and the measurement of fair value of instruments with offsetting market or counterparty credit risks. The amendment is effective, for State Street, for interim and annual periods beginning on January 1, 2012, and is required to be applied prospectively. Adoption of the amendment is not expected to have a material effect on our consolidated financial statements from a fair value measurement perspective. However, adoption is expected to result in additional disclosures in our consolidated financial statements.

In April 2011, the FASB issued an amendment to GAAP that eliminates the requirement to consider collateral maintenance when determining whether a transfer of assets subject to a repurchase arrangement is accounted for as a sale or as a secured borrowing. The amendment is effective prospectively, for State Street, for new transactions and modifications of existing transactions that occur on or after January 1, 2012. Adoption of the amendment is not expected to have a material effect on our consolidated financial statements, since we currently account for repurchase agreements as secured borrowings.

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Acquisitions
12 Months Ended
Dec. 31, 2011
Acquisitions [Abstract]
Acquisitions

Note 2.     Acquisitions

On November 3, 2011 and October 3, 2011, respectively, we completed our acquisitions of Pulse Trading, Inc., a full- service agency brokerage firm based in Boston, Massachusetts, and Complementa Investment-Controlling AG, an investment performance measurement and analytics firm based in Switzerland. Both transactions were cash acquisitions financed through available capital.

Pulse Trading offers a broad range of services to institutional investors, including trading, independent research, portfolio consulting and trading technology, and has offices in Boston, Massachusetts; New York City, New York; San Francisco, California and St. Louis, Missouri. We acquired Pulse Trading to enhance the electronic trading technology we provide to our institutional clients. Our acquisition of Pulse Trading includes its institutional equities business. Complementa provides services associated with asset consolidation, investment performance measurement, investment controlling and investment consulting for institutional and large private investors, and has offices in Switzerland, Germany and Liechtenstein. We acquired Complementa to enhance our investment analytics capabilities and our overall presence in key markets in Europe. Our acquisition of Complementa includes its wholly-owned asset management software provider.

In connection with these two acquisitions, we recorded aggregate goodwill of approximately $68 million, substantially all of which is not expected to be tax deductible, and aggregate other intangible assets of approximately $67 million in our consolidated statement of condition. The purchase price allocations for the acquisitions were preliminary as of December 31, 2011, and are subject to future adjustment as information needed to measure the acquisition-date fair values of certain identifiable assets acquired and liabilities assumed is obtained. Accordingly, the measurement periods for both acquisitions remained open as of December 31, 2011. Results of operations of the acquired Pulse Trading and Complementa businesses are included in our consolidated financial statements beginning on their respective dates of acquisition.

On January 10, 2011, we completed our acquisition of Bank of Ireland's asset management business, or BIAM, in a cash acquisition financed through available capital. We acquired BIAM to enhance SSgA's range of investment management solutions and expand our overall presence in Ireland, where we already provide services to institutional clients, to provide a range of investment management products. In connection with our acquisition of BIAM, we recorded approximately $31 million of goodwill, substantially all of which is not expected to be tax deductible, and approximately $27 million of other intangible assets in our consolidated statement of condition, and added approximately $23 billion to our assets under management as of March 31, 2011. The assets under management are not recorded in our consolidated financial statements. Results of operations of the acquired BIAM business are included in our consolidated financial statements beginning on January 10, 2011.

 

In May 2010, we completed our acquisition of Intesa Sanpaolo's securities services business in a cash acquisition financed through available capital. Results of operations of the acquired Intesa business have been included in our consolidated financial statements from the date the acquisition was completed. In connection with the acquisition, the assets acquired, liabilities assumed and consideration paid were recorded in our consolidated statement of condition at their estimated fair values on the acquisition date. These assets included $932 million of goodwill and $848 million of other intangible assets, including assets related to client relationships and core deposits. The goodwill, substantially all of which is not expected to be tax deductible, represents the expected long-term value of cost savings, growth opportunities and business efficiencies created by the integration of the acquired Intesa business. We also added approximately $564 billion to our assets under custody and administration as of June 30, 2010. These assets are not recorded in our consolidated financial statements.

With respect to the acquired Intesa business, we may be entitled to a return of a portion of the purchase price, should we lose the business of certain key clients during a defined period subsequent to the closing of the transaction. This contingent asset, which was approximately $53 million as of December 31, 2011, compared to approximately $72 million as of December 31, 2010, will be re-measured to fair value at each reporting date through the end of the defined purchase price adjustment period, with any changes in its fair value recorded in our consolidated statement of income.

During the fourth quarter of 2010, Italian tax authorities issued an assessment for taxes, penalties and interest for corporate income tax, regional tax and withholding taxes of approximately €130 million to an Italian banking subsidiary acquired by us in connection with the acquisition. The assessment related to 2005, a pre-acquisition tax year. State Street was indemnified for this liability under the acquisition agreement, which further required the indemnity obligation to be collateralized in the event of a tax assessment and provided that the seller had the right to control the defense of indemnified claims. During the fourth quarter of 2011, the Italian banking subsidiary reached a settlement agreement with the Italian tax authorities regarding these assessments, as well as the Italian tax authorities' audit of the 2006 tax year. As such, we recorded the impact of the tax settlement and associated indemnification in our 2011 consolidated financial statements.

In April 2010, we completed our acquisition of Mourant International Finance Administration, or MIFA, in a cash transaction financed through available capital. We acquired MIFA to enhance our position as an administrator of alternative investments and to expand our presence outside of the U.S. In connection with our acquisition of MIFA, a provider of fund administration services, particularly for alternative investment funds such as private equity, real estate and hedge funds with operations in Jersey in the Channel Islands, Dublin, Singapore and New York, we recorded $73 million of goodwill, substantially all of which is not expected to be tax deductible, and $59 million of other intangible assets in our consolidated statement of condition, and added $122 billion to our assets under administration as of June 30, 2010. The assets under administration are not recorded in our consolidated financial statements. Results of operations of the acquired MIFA business are included in our consolidated financial statements beginning on April 1, 2010.

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Investment Securities
12 Months Ended
Dec. 31, 2011
Investment Securities [Abstract]
Investment Securities
Note 3. Investment Securities

The following table presents the amortized cost and fair value, and associated unrealized gains and losses, of investment securities as of December 31:

 

 

 Aggregate investment securities carried at $44.66 billion and $44.81 billion at December 31, 2011 and 2010, respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law.

 

 

The following table presents contractual maturities of debt investment securities as of December 31, 2011:

 

                                 
(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

   $ 1,200       $ 38       $ 822       $ 776   

Mortgage-backed securities

     5         755         10,871         18,390   

Asset-backed securities:

                                   

Student loans

     155         3,331         8,490         4,569   

Credit cards

     1,893         5,893         2,701         —     

Sub-prime

     581         82         17         724   

Other

     119         1,602         1,198         546   

Total asset-backed securities

     2,748         10,908         12,406         5,839   
             

 

 

    

 

 

    

 

 

 

Non-U.S. debt securities:

                                   

Mortgage-backed securities

     474         2,358         987         7,056   

Asset-backed securities

     230         916         2,511         646   

Government securities

     1,671         —           —           —     

Other

     1,636         958         231         —     

Total non-U.S. debt securities

     4,011         4,232         3,729         7,702   
             

 

 

    

 

 

    

 

 

 

State and political subdivisions

     471         2,326         3,328         922   

Collateralized mortgage obligations

     81         1,163         1,209         1,527   

Other U.S. debt securities

     289         1,391         1,899         36   
         

Total

   $ 8,805       $ 20,813       $ 34,264       $ 35,192   
             

 

 

    

 

 

    

 

 

 
         

Held to maturity:

                                   

U.S. Treasury and federal agencies:

                                   

Mortgage-backed securities

          $ 19       $ 102       $ 144   

Asset-backed securities

            —           —           31   

Non-U.S. debt securities:

                                   

Mortgage-backed securities

   $ 1,304         254         —           3,415   

Asset-backed securities

     —           204         217         15   

Government securities

     3         —           —           —     

Other

     —           155         —           17   
             

 

 

    

 

 

    

 

 

 

Total non-U.S. debt securities

     1,307         613         217         3,447   

State and political subdivisions

     56         49         2         —     

Collateralized mortgage obligations

     394         1,350         530         1,060   
         

Total

   $ 1,757       $ 2,031       $ 851       $ 4,682   
             

 

 

    

 

 

    

 

 

 

The maturities of asset-backed securities, mortgage-backed securities and collateralized mortgage obligations are based on expected principal payments.

 

Impairment:

We conduct periodic reviews of individual securities to assess whether other-than-temporary impairment exists. Impairment exists when the current fair value of an individual security is below its amortized cost basis. When the decline in the security's fair value is deemed to be other than temporary, the loss is recorded in our consolidated statement of income. For debt securities available for sale and held to maturity, impairment is recorded in our consolidated statement of income when management intends to sell (or may be required to sell) the securities before they recover in value, or when management expects the present value of cash flows expected to be collected from the securities to be less than the amortized cost of the impaired security (a credit loss).

 

Our review of impaired securities generally includes:

 

   

the identification and evaluation of securities that have indications of possible 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 asset- and mortgage-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.

Factors considered in determining whether impairment is other than temporary include:

 

   

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 recovery in value.

The substantial majority of our investment securities portfolio is composed of debt securities. A critical component of the evaluation for other-than-temporary impairment of our debt securities is the identification of credit-impaired securities for which management does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security.

Debt securities that are not deemed to be credit-impaired are subject to additional management analysis to assess whether management intends to sell, or, more likely than not, would be required to sell, the security before the expected recovery to its amortized cost basis.

The following describes our process for identifying credit impairment in security types with the most significant unrealized losses as of December 31, 2011.

Mortgage- and Asset-Backed Securities

For certain vintages of U.S. mortgage-backed securities (in particular, sub-prime first-lien mortgages, "Alt-A" mortgages and home equity lines of credit (2006 and 2007 originations) that have significant unrealized losses as a percentage of their amortized cost), other-than-temporary impairment related to credit is assessed using cash flow models, tailored for each security, that estimate the future cash flows from the underlying mortgages, using the security-specific collateral and transaction structure. Estimates of future cash flows are subject to management judgment. The future cash flows and performance of our portfolio of U.S. mortgage-backed securities are a function of a number of factors, including, but not limited to, the condition of the U.S. economy, the condition of the U.S. residential mortgage markets, and the level of loan defaults, prepayments and loss severities. Management's estimates of future losses for each security also consider the underwriting and historical performance of our specific securities, the underlying collateral type, vintage, borrower profile, third-party guarantees, current levels of subordination, geography and other factors.

 

The following tables present the parameters used in the evaluation of 2006- and 2007-vintage U.S. residential mortgage- backed securities as of December 31, 2011 and 2010:

 

      Sub-Prime A       Sub-Prime A       Sub-Prime A  
     Sub-Prime ARM     Alt-A     Non-
Agency Prime
 

December 31, 2011:

                        

Prepayment rate

     1-3     2-6     5-10

Cumulative loss estimates

     46-54        26-39        9-19   

Loss severity(1)

     70-72        59-61        52-53   

Peak-to-trough housing price decline(2)

     35        35        35   

 

      Sub-Prime ARM       Sub-Prime ARM       Sub-Prime ARM  
     Sub-Prime ARM     Alt-A     Non-
Agency Prime
 

December 31, 2010:

                        

Prepayment rate

     2-3     7     7-10

Cumulative loss estimates

     33        21        13   

Loss severity(1)

     67        49        49   

Peak-to-trough housing price decline(2)

     35-40        35-40        35-40   

 

 

The following table presents other-than-temporary impairment recorded on securities in these vintages, when both fair value was below carrying value and a credit loss existed, for the years indicated:

                         
     Year Ended
December 31, 2011
     Year Ended
December 31, 2010
     Year Ended
December 31, 2009 (1)
 
(In millions)                     

Sub-prime ARM

   $ 2       $ 26       $ 29   

Alt-A

     5         43         20   

Non-agency prime

     5         89         60   
    

 

 

    

 

 

    

 

 

 

Total

   $ 12       $ 158       $ 109   
    

 

 

    

 

 

    

 

 

 

(1) 

Represents the period from April 1, 2009 through December 31, 2009, subsequent to the adoption of the revised GAAP related to other-than-temporary impairment.

Asset-Backed Securities—Student Loans

Asset-backed securities collateralized by student loans are primarily composed of securities collateralized by Federal Family Education Loan Program, or FFELP, loans. FFELP loans benefit from a federal government guarantee of at least 97% of principal, with additional credit support provided in the form of overcollateralization, subordination and excess spread, which collectively total in excess of 100% of principal and interest. Accordingly, the vast majority of FFELP loan-backed securities are not exposed to traditional consumer credit risk. Our total exposure to private student loan-backed securities is less than $1.0 billion; our evaluation of impairment considers the impact of high unemployment rates on the collateral performance of private student loans. Other risk factors are considered in our evaluation of other-than-temporary impairment.

Non-U.S. Mortgage- and Asset-Backed Securities

Non-U.S. mortgage- and asset-backed securities are composed primarily of U.K., Dutch and Australian securities collateralized by residential mortgages. Our evaluation of impairment considers the location of the underlying collateral, collateral enhancement and structural features, expected credit losses under base-case and stressed conditions and the macroeconomic outlook for the country in which the collateral resides, including housing prices and unemployment. Where appropriate, any potential loss after consideration of the above-referenced factors is further evaluated to determine whether any other-than-temporary impairment exists.

 

Our aggregate exposure to Spain, Italy, Ireland, Greece and Portugal totaled approximately $1.08 billion as of December 31, 2011. While we had no direct sovereign debt exposure to these countries, we had indirect exposure consisting of mortgage- and asset-backed securities, composed of $424 million in Spain, $373 million in Italy, $114 million in Ireland, $99 million in Greece and $69 million in Portugal. These securities had an aggregate pre-tax gross unrealized loss of approximately $122 million as of December 31, 2011. We recorded no other-than-temporary impairment on these securities in 2011. Our evaluation of potential other-than-temporary impairment of these securities assumes a negative baseline macroeconomic environment for this region, due to the continued sovereign debt crisis, and the combination of slower economic growth and continued government austerity measures. Our baseline view assumes a recessionary period characterized by higher unemployment and by additional house price declines between 5% and 15% across these five countries. Our evaluation of other-than-temporary impairment does not assume a disorderly sovereign debt restructuring or countries leaving the euro common currency, consistent with management's expectations. In addition, stress testing and sensitivity analysis is performed in order to understand the impact of more severe assumptions on potential other-than-temporary impairment.

State and Political Subdivisions

In assessing other-than-temporary impairment, we may from time to time rely on support from third-party financial guarantors for certain asset-backed and municipal (state and political subdivisions) securities. Factors taken into consideration when determining the level of support include the guarantor's credit rating and management's assessment of the guarantor's financial condition. For those guarantors that management deems to be under financial duress, we assume an immediate default by those guarantors, with a modest recovery of claimed amounts (up to 20%). In addition, for various forms of collateralized securities, management considers the liquidation value of the underlying collateral based on expected housing prices and other relevant factors.

The assumptions presented above are used by management to identify those securities which are subject to further analysis of potential credit losses. Additional analyses are performed using more severe assumptions to further evaluate sensitivity of losses relative to the above factors. However, since the assumptions are based on the unique characteristics of each security, management uses a range of point estimates for prepayment speeds and housing prices that reflect the collateral profile of the securities within each asset class. In addition, in measuring expected credit losses, the individual characteristics of each security are examined to determine whether any additional factors would increase or mitigate the expected loss. Once losses are determined, the timing of the loss will also affect the ultimate other-than-temporary impairment, since the loss is ultimately subject to a discount commensurate with the purchase yield of the security. Primarily as a result of rising delinquencies and management's continued expectation of declining housing prices, we recorded credit-related other-than- temporary impairment of $73 million in 2011.

After a review of the investment portfolio, taking into consideration current economic conditions, adverse situations that might affect our ability to fully collect principal and interest, the timing of future payments, the credit quality and performance of the collateral underlying asset-backed securities and other relevant factors, and excluding the securities for which other-than- temporary impairment was recorded in 2011, management considers the aggregate decline in fair value of the remaining securities and the resulting gross pre-tax unrealized losses of $1.96 billion related to 1,703 securities as of December 31, 2011 to be temporary and not the result of any material changes in the credit characteristics of the securities.

 

 

The following tables present the aggregate fair values of investment securities with a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for longer than 12 months, as of the dates indicated:

 

 

                                                 
      Less than 12 months      12 months or longer      Total  
December 31, 2011
(In millions)
   Fair
Value
     Gross
Unrealized
Losses
     Fair
Value
     Gross
Unrealized
Losses
     Fair
Value
     Gross
Unrealized
Losses
 

Available for sale:

                                                     

U.S. Treasury and federal agencies:

                                                     

Direct obligations

   $ 1,373       $ 1                     $ 1,373       $ 1   

Mortgage-backed securities

     4,714         26       $ 370       $ 2         5,084         28   

Asset-backed securities:

                                                     

Student loans

     2,642         23         10,706         688         13,348         711   

Credit cards

     2,581         6         1,461         8         4,042         14   

Sub-prime

     16         1         1,360         446         1,376         447   

Other

     1,482         19         1,122         106         2,604         125   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total asset-backed

     6,721         49         14,649         1,248         21,370         1,297   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Non-U.S. debt securities:

                                                     

Mortgage-backed securities

     6,069         55         1,151         52         7,220         107   

Asset-backed securities

     2,205         14         108         3         2,313         17   

Other

     1,543         13                         1,543         13   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total non-U.S. debt securities

     9,817         82         1,259         55         11,076         137   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

State and political subdivisions

     171         3         1,446         118         1,617         121   

Collateralized mortgage obligations

     2,024         43         68         10         2,092         53   

Other U.S. debt securities

     220         2         57         13         277         15   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 25,040       $ 206       $ 17,849       $ 1,446       $ 42,889       $ 1,652   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Held to maturity:

                                                     

Asset-backed securities

                     $ 29       $ 2       $ 29       $ 2   

Non-U.S. debt securities:

                                                     

Mortgage-backed securities

   $ 341       $ 6         1,382         218         1,723         224   

Asset-backed securities

     9         1         70         2         79         3   

Other

                     138         17         138         17   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total non U.S. debt securities

     350         7         1,590         237         1,840         244   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Collateralized mortgage obligations

     649         32         231         25         880         57   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 999       $ 39       $ 1,850       $ 264       $ 2,849       $ 303   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

                                                 
      Less than 12 months      12 months or longer      Total  

December 31, 2010

(In millions)

   Fair
Value
     Gross
Unrealized
Losses
     Fair
Value
     Gross
Unrealized
Losses
     Fair
Value
     Gross
Unrealized
Losses
 

Available for sale:

                                                     

U.S. Treasury and federal agencies:

                                                     

Direct obligations

                     $ 153       $ 2       $ 153       $ 2   

Mortgage-backed securities

   $ 6,639       $ 81         431         2         7,070         83   

Asset-backed securities:

                                                     

Student loans

     1,980         25         8,457         627         10,437         652   

Credit cards

     1,268         5         2,396         26         3,664         31   

Sub-prime

                     1,769         346         1,769         346   

Other

     269         3         1,122         153         1,391         156   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total asset-backed securities

     3,517         33         13,744         1,152         17,261         1,185   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Non-U.S. debt securities:

                                                     

Mortgage-backed securities

     2,621         22         370         24         2,991         46   

Asset-backed securities

                     54         17         54         17   

Other

     348         2                         348         2   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total non-U.S. debt securities

     2,969         24         424         41         3,393         65   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

State and political subdivisions

     1,097         19         1,967         185         3,064         204   

Collateralized mortgage obligations

     494         5         109         11         603         16   

Other U.S. debt securities

     330         7         61         11         391         18   

Non-U.S. equity securities

     8         1                         8         1   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 15,054       $ 170       $ 16,889       $ 1,404       $ 31,943       $ 1,574   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Held to maturity:

                                                     

Asset-backed securities

                     $ 53       $ 5       $ 53       $ 5   

Non-U.S. debt securities:

                                                     

Mortgage-backed securities

   $ 1,445       $ 72         862         88         2,307         160   

Asset-backed securities

                     68         3         68         3   

Other

     206         2                         206         2   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total non-U.S. debt securities

     1,651         74         930         91         2,581         165   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Collateralized mortgage obligations

     125         2         575         42         700         44   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 1,776       $ 76       $ 1,558       $ 138       $ 3,334       $ 214   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

The following table presents realized gains and losses related to investment securities for the years ended December 31:

The following table presents activity with respect to credit-related losses recognized in our consolidated statement of income for the years ended December 31, associated with securities considered other-than-temporarily impaired:

 

                         
(In millions)        2011           2010          2009(1)  

Beginning balance

   $ 63      $ 175      $   

Plus expected credit-related losses for which other-than-temporary impairment was not previously recognized

     10        88        214   

Plus expected credit-related losses for which other-than-temporary impairment was previously recognized

     55        142          

Less losses realized for securities sold

     (13     (342     (17

Less losses realized for securities intended or required to be sold

     (2            (22
    

 

 

   

 

 

   

 

 

 

Ending balance

   $ 113      $ 63      $ 175   
    

 

 

   

 

 

   

 

 

 

The impairment losses were related to non-agency securities collateralized by U.S. mortgages, which management concluded had experienced credit losses based on the present value of the securities' expected future cash flows, which evidenced deterioration in the performance of individual securities in the portfolio.

In December 2010, we undertook a repositioning of our investment securities portfolio by selling approximately $11 billion of securities, composed of $4.3 billion of asset-backed securities, $4.1 billion of non-agency mortgage-backed securities and $2.5 billion of mortgage-backed securities. The repositioning was undertaken to enhance our regulatory capital ratios under evolving regulatory capital standards, increase our balance sheet flexibility in deploying our capital, and reduce our exposure to certain asset classes. The sale resulted in a pre-tax net loss of approximately $344 million, which was recorded in our consolidated statement of income and is reflected in the gross realized gains and gross realized losses presented in the preceding table.

The sale included approximately $4.8 billion of securities classified as held to maturity in our consolidated statement of condition. These securities were sold at a net pre-tax loss of $119 million in response to changes in regulatory capital requirements and previous downgrades of the securities.

 

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Loans And Leases
12 Months Ended
Dec. 31, 2011
Loans And Leases [Abstract]
Loans And Leases
Note 4. Loans and Leases

The following table presents our recorded investment in loans and leases, by segment and class, as of December 31:

 

(In millions)    2011     2010  

Institutional:

    

Investment funds:

    

U.S.

   $ 5,592      $ 5,316   

Non-U.S.

     796        1,478   

Commercial and financial:

    

U.S.

     563        540   

Non-U.S.

     453        190   

Purchased receivables:

    

U.S.

     563        728   

Non-U.S.

     372        1,471   

Lease financing:

    

U.S.

     397        417   

Non-U.S.

     857        1,053   
    

 

 

 

Total institutional

     9,593        11,193   

Commercial real estate:

    

U.S.

     460        764   

Total loans and leases

     10,053        11,957   

Allowance for loan losses

     (22     (100

Loans and leases, net of allowance for loan losses

   $ 10,031      $ 11,857   
    

 

 

 

The components of our net investment in leveraged lease financing, included in the institutional segment in the preceding table, were as follows as of December 31:

 

(In millions)    2011     2010  

Net rental income receivable

   $ 1,671      $ 2,187   

Estimated residual values

     110        118   

Unearned income

     (527     (835
  

 

 

   

 

 

 

Investment in leveraged lease financing

     1,254        1,470   

Less related deferred income tax liabilities

     (397     (463
  

 

 

   

 

 

 

Net investment in leveraged lease financing

   $ 857      $ 1,007   
  

 

 

   

 

 

 

We segregate our loans and leases into two segments: institutional and commercial real estate, or CRE. Within these two segments, we further segregate the receivables into classes based on their risk characteristics, their initial measurement attributes and the methods we use to monitor and assess credit risk.

The institutional segment is composed of the following classes: investment funds, commercial and financial, purchased receivables and lease financing. Investment funds includes lending to mutual and other collective investment funds and short- duration advances to fund clients in order to provide liquidity in support of their transaction flows associated with securities settlement activities. Commercial and financial includes lending to corporate borrowers, including broker/dealers. Purchased receivables represents undivided interests in securitized pools of underlying third-party receivables. Lease financing includes our investment in leveraged lease financing.

Aggregate short-duration advances to our clients included in the institutional segment were $2.17 billion and $2.63 billion at December 31, 2011 and 2010, respectively.

 

The CRE segment represents the commercial real estate loans acquired in 2008 pursuant to indemnified repurchase agreements with an affiliate of Lehman as a result of the Lehman Brothers bankruptcy. These loans, which are primarily collateralized by direct and indirect interests in commercial real estate, were recorded at their then-current fair value, based on management's expectations with respect to future cash flows from the loans using appropriate market discount rates as of the date of acquisition. These cash flow estimates are updated quarterly to reflect changes in management's expectations, which consider market conditions and other factors. The CRE segment is composed of the following classes: property development; other—acquired credit-impaired; and other.

The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated:

 

Loans and leases are grouped in the tables presented above into the rating categories that align with our internal risk- rating framework. Management considers the ratings to be current as of December 31, 2011. We use an internal risk-rating system to assess the risk of credit loss for each loan or lease. This risk-rating process incorporates the use of risk-rating tools in conjunction with management judgment. Qualitative and quantitative inputs are captured in a systematic manner, and following a formal review and approval process, an internal credit rating based on our credit scale is assigned.

In assessing the risk rating assigned to each individual loan or lease, among the factors considered are the borrower's debt capacity, collateral coverage, payment history and delinquency experience, financial flexibility and earnings strength, the expected amounts and sources of repayment, the level and nature of contingencies, if any, and the industry and geography in which the borrower operates. These factors are based on an evaluation of historical and current information, and involve subjective assessment and interpretation. Credit counterparties are evaluated and risk-rated on an individual basis at least annually.

 

The following table presents our recorded investment in loans and leases and the related allowance for loan losses, disaggregated based on our impairment methodology, as of December 31:

 

     Institutional      Commercial Real Estate      Total Loans and Leases  
(In millions)    2011      2010      2011      2010      2011      2010  

Loans and leases:

                 

Individually evaluated for impairment

   $ 56       $ 112       $ 421       $ 623       $ 477       $ 735   

Collectively evaluated for impairment

     9,537         11,081         —           —           9,537         11,081   

Loans acquired with deteriorated credit quality

     —           —           39         141         39         141   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total loans and leases

   $ 9,593       $ 11,193       $ 460       $ 764       $ 10,053       $ 11,957   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Allowance for loan losses:

                 

Individually evaluated for impairment

            $ 24          $ 24   

Collectively evaluated for impairment

   $ 22       $ 31            —         $ 22         31   

Loans acquired with deteriorated credit quality

     —           —              45         —           45   

Total allowance for loan losses

   $ 22       $ 31         —         $ 69       $ 22       $ 100   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The following table presents our recorded investment in impaired loans and leases as of the dates or for the periods indicated:

 

December 31, 2011     Year Ended December 31,
2011
    December 31, 2010  
(In millions)   Recorded
Investment
    Unpaid
Principal
Balance
    Related
Allowance(1)
    Average
Recorded
Investment
    Interest
Revenue
Recognized
    Recorded
Investment
    Unpaid
Principal
Balance
    Related
Allowance(1)
 

With no related allowance recorded:

               

CRE - property development

  $ 199      $ 227        $ 200      $ 15      $ 209      $ 240     

CRE - property development – acquired credit-impaired

    —          34          —          —            34     

CRE - other - acquired credit-impaired

    8        69          12        —          16        47     

CRE - other

    —          —            —          —          27        29     

With an allowance recorded:

               

CRE - property development

    —          —            —          —          79        113      $ 24   

CRE - property development – acquired credit-impaired

    —          —            —          —          42        47        19   

CRE - other - acquired credit-impaired

    31        37        —          31        1        83        100        26   

CRE - other

    —          —          —          —          —          7        9        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total CRE

  $ 238      $ 367        —        $ 243      $ 16      $ 463      $ 619      $ 69   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(1)

As of December 31, 2011 and December 31, 2010, we maintained allowances for loan losses of $22 million and $31 million, respectively, associated with loans and leases that were not impaired.

As of December 31, 2011, we held an aggregate of approximately $199 million of CRE loans which were modified in troubled debt restructurings compared to $307 million as of December 31, 2010. No impairment loss was recognized upon restructuring of the loans, as the discounted cash flows of the modified loans exceeded the carrying amount of the original loans as of the modification date. No loans were modified in troubled debt restructurings in 2011.

No institutional loans or leases were 90 days or more contractually past due as of December 31, 2011 or 2010. Although a portion of the CRE loans was 90 days or more contractually past-due as of December 31, 2011 and 2010, we do not report them as past-due loans, pursuant to GAAP that governs the accounting for acquired credit-impaired loans.

We generally place loans on non-accrual status once principal or interest payments are 60-days contractually past due, or earlier if management determines that full collection is not probable. Loans 60-days past due, but considered both well-secured and in the process of collection, may be excluded from non-accrual status. For loans placed on non-accrual status, revenue recognition is suspended.

 

The following table presents the components of our recorded investment in loans and leases on non-accrual status as of December 31:

 

(In millions)    2011      2010  

Commercial Real Estate:

     

Property development

      $ 79   

Property development - acquired credit-impaired

        42   

Other - acquired credit-impaired

   $ 5         22   

Other

     —           15   

Total

   $ 5       $ 158   
     

 

 

 

The loans presented in the table above were placed on non-accrual status by management because the yield associated with those loans was deemed to be non-accretable, based on the expected future collection of principal and interest from the loans. The property development loan of $79 million presented in the table was transferred to other real estate owned in 2011 subsequent to our execution of a deed-in-lieu-of-foreclosure agreement, net of a partial charge-off. The acquired credit-impaired property development loan of $42 million presented in the table was foreclosed upon and transferred to other real estate owned in 2011, net of a partial charge-off. Neither transfer had an impact on our 2011 consolidated statement of income.

The following table presents activity in the allowance for loan losses for the years ended December 31:

(In millions)    2011     2010     2009  
     Institutional     Commercial
Real  Estate
    Total Loans
and Leases
    Total Loans
and Leases
    Total Loans
and Leases
 

Allowance for loan losses:

          

Beginning balance

   $ 31      $ 69      $ 100      $ 79      $ 18   

Charge-offs

     —          (78     (78     (4     (91

Provisions

     (9     9        —          25        149   

Recoveries

     —          —          —          —          3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

   $ 22      $ —        $ 22      $ 100      $ 79   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The charge-offs recorded in 2011 were mainly related to the previously described deed-in-lieu-of-foreclosure agreement and acquired credit-impaired CRE loan foreclosure, as well as an acquired credit-impaired CRE loan whose underlying collateral had deteriorated in value.

 

Loans and leases are reviewed on a regular basis, and any provisions for loan losses that are recorded reflect management's estimate of the amount necessary to maintain the allowance for loan losses at a level considered appropriate to absorb estimated probable credit losses inherent in the loan and lease portfolio. With respect to CRE loans, management also considers its expectations with respect to future cash flows from those loans and the value of available collateral. These expectations are based, among other things, on an assessment of economic conditions, including conditions in the commercial real estate market and other factors.

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Goodwill And Other Intangible Assets
12 Months Ended
Dec. 31, 2011
Goodwill And Other Intangible Assets [Abstract]
Goodwill And Other Intangible Assets

Note 5.    Goodwill and Other Intangible Assets

The following table presents changes in the carrying amount of goodwill during the years ended December 31:

     2011     2010  
(In millions)   

Investment

Servicing

   

Investment

Management

    Total    

Investment

Servicing

    

Investment

Management

     Total  

Beginning balance

   $ 5,591      $ 6      $ 5,597      $ 4,544       $ 6       $ 4,550   

Acquisitions

     68        32        100        1,005         —           1,005   

Foreign currency translation, net

     (49     (3     (52     42         —           42   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Ending balance

   $ 5,610      $ 35      $ 5,645      $ 5,591       $ 6       $ 5,597   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

The following table presents changes in the net carrying amount of other intangible assets during the years ended December 31:

 

     2011     2010  
(In millions)    Investment
Servicing
    Investment
Management
    Total     Investment
Servicing
    Investment
Management
    Total  

Beginning balance

   $ 2,559      $ 34      $ 2,593      $ 1,760      $ 50      $ 1,810   

Acquisitions

     67        29        96        969        —          969   

Amortization

     (189     (11     (200     (170     (9     (179

Foreign currency translation, net

     (29     (1     (30     (6     (1     (7

Other

     —          —          —          6        (6     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

   $ 2,408      $ 51      $ 2,459      $ 2,559      $ 34      $ 2,593   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets as of December 31:

 

     2011      2010  
(In millions)   

Gross

Carrying
Amount

     Accumulated
Amortization
   

Net

Carrying
Amount

    

Gross

Carrying
Amount

     Accumulated
Amortization
   

Net

Carrying
Amount

 

Customer relationships

   $ 2,369       $ (641   $ 1,728       $ 2,341       $ (520   $ 1,821   

Core deposits

     702         (117     585         710         (83     627   

Other

     233         (87     146         220         (75     145   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 3,304       $ (845   $ 2,459       $ 3,271       $ (678   $ 2,593   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Amortization expense related to other intangible assets was $200 million, $179 million and $136 million for the years ended December 31, 2011, 2010 and 2009, respectively. Expected amortization expense for other intangible assets recorded as of December 31, 2011 is $214 million for 2012, $212 million for 2013, $205 million for 2014, $190 million for 2015 and $178 million for 2016.

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Other Assets
12 Months Ended
Dec. 31, 2011
Other Assets [Abstract]
Other Assets

Note 6.    Other Assets

The following table presents the components of other assets as of December 31:

 

(In millions)    2011      2010  

Collateral deposits

   $ 6,688       $ 3,251   

Unrealized gains on derivative financial instruments

     6,366         5,255   

Investments in joint ventures and other unconsolidated entities

     1,060         927   

Income taxes receivable

     989         530   

Accounts receivable

     431         290   

Deferred tax assets, net of valuation allowance(1)

     395         1,786   

Prepaid expenses

     308         382   

Receivable for securities sold

             122   

Other(2)

     902         1,298   
  

 

 

    

 

 

 

Total

   $ 17,139       $ 13,841   
  

 

 

    

 

 

 

(1)

Deferred tax assets as of December 31, 2011 are net of deferred tax liabilities within the same tax jurisdiction.

 

(2)

Amount for 2011 included other real estate owned of approximately $75 million.

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Deposits
12 Months Ended
Dec. 31, 2011
Deposits [Abstract]
Deposits
Note 7. Deposits

At December 31, 2011 and 2010, we had $8.90 billion and $9.03 billion, respectively, of time deposits outstanding. Non- U.S. time deposits were $2.56 billion and $2.21 billion at December 31, 2011 and 2010, respectively. Substantially all U.S. and non-U.S. time deposits were in amounts of $100,000 or more. The following table presents the scheduled maturities of aggregate U.S. and non-U.S. time deposits at December 31, 2011:

 

(In millions)       

2012

   $ 8,862   

2013

     —     

2014

     —     

2015

     —     

2016

     40   
  

 

 

 

Total

   $ 8,902   
  

 

 

 

The following table presents the scheduled maturities of U.S. time deposits at December 31, 2011:

 

(In millions)       

3 months or less

   $ 6,141   

4 months to a year

     161   

Over a year

     40   

Total

   $ 6,342   
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Short-Term Borrowings
12 Months Ended
Dec. 31, 2011
Short-Term Borrowings [Abstract]
Short-Term Borrowings

Note 8.    Short-Term Borrowings

Our short-term borrowings include securities sold under repurchase agreements, federal funds purchased and other short- term borrowings, including borrowings associated with our tax-exempt investment program, more fully described in note 11, and commercial paper issued under our corporate program. Collectively, short-term borrowings had weighted-average interest rates of 0.64% and 1.10% for the years ended December 31, 2011 and 2010, respectively.

 

The following tables present information with respect to the amounts outstanding and weighted-average interest rates of the primary components of short-term borrowings as of and for the years ended December 31:

     Securities Sold Under
Repurchase Agreements
    Federal Funds Purchased  
(Dollars in millions)    2011     2010     2009     2011     2010     2009  

Balance at December 31

   $ 8,572      $ 7,599      $ 10,542      $ 656      $ 7,748      $ 4,532   

Maximum outstanding at any month-end

     9,853        9,058        12,993        8,259        7,748        7,166   

Average outstanding during the year

     9,040        8,108        11,065        845        1,759        956   

Weighted-average interest rate at year-end

     .04     .04     .03     .05     .01     .01

Weighted-average interest rate during the year

     .11        .05        .03        .05        .05        .04   

 

     Tax-Exempt
Investment Program
    Corporate Commercial
Paper Program
 
(Dollars in millions)    2011     2010     2009     2011     2010     2009  

Balance at December 31

   $ 2,294      $ 2,484      $ 2,736      $ 2,384      $ 2,799      $ 2,777   

Maximum outstanding at any month-end

     2,473        2,690        2,838        2,825        2,831        2,851   

Average outstanding during the year

     2,404        2,594        2,774        2,449        2,791        1,993   

Weighted-average interest rate at year-end

     .18     .37     .33     .22     .31     .21

Weighted-average interest rate during the year

     .26        .33        .47        .23        .31        .30   
     Conduit Commercial
Paper  Program
 
(Dollars in millions)    2011     2010     2009 (1)  

Balance at December 31

     $ 1,919      $ 12,071   

Maximum outstanding at any month-end

   $ 271        7,275        15,645   

Average outstanding during the year

     113        6,339        10,691   

Weighted-average interest rate at year-end

     —          .57     1.31

Weighted-average interest rate during the year

     .47     .32        1.26   

(1)

Amounts other than balance and weighted-average interest rate at year-end related to the period subsequent to the May 2009 conduit consolidation.

The following table presents the components of securities sold under repurchase agreements by underlying collateral as of December 31, 2011:

 

(In millions)       

Collateralized by securities purchased under resale agreements

   $ 5,651   

Collateralized by investment securities

     2,921   
  

 

 

 

Total

   $ 8,572   
  

 

 

 
The obligations to repurchase securities sold are recorded as a liability in our consolidated statement of condition. U.S. government securities with a fair value of $2.98 billion underlying the repurchase agreements remained in investment securities at December 31, 2011. The following table presents information about these U.S. government securities and the related repurchase agreements, including accrued interest, as of December 31, 2011. The table excludes repurchase agreements collateralized by securities purchased under resale agreements.

 

     U.S. Government
Securities Sold
     Repurchase
Agreements
 
(Dollars in millions)    Amortized
Cost
     Fair Value      Amortized
Cost
     Rate  

Overnight maturity

   $ 2,931       $ 2,978       $ 2,921         .001

 

We have entered into an agreement with a clearing organization that enables us to net all securities purchased under resale agreements and sold under repurchase agreements with counterparties that are also members of this organization. As a result of this netting, the average balances of securities purchased under resale agreements and securities sold under repurchase agreements were each reduced by $20.97 billion for 2011 and by $16.27 billion for 2010.

We maintain a corporate commercial paper program, under which we can issue up to $3 billion of commercial paper with original maturities of up to 270 days from the date of issue. At December 31, 2011 and 2010, $2.38 billion and $2.80 billion, respectively, of commercial paper was outstanding under our corporate program.

State Street Bank had initial Board authority to issue bank notes up to an aggregate of $5 billion, including up to $1 billion of subordinated bank notes. Approximately $2.05 billion was available under this Board authority as of December 31, 2011. At December 31, 2010, $2.45 billion of senior notes was outstanding (refer to note 9), all of which matured during 2011. State Street Bank currently maintains a line of credit of CAD $800 million, or approximately $787 million as of December 31, 2011, to support its Canadian securities processing operations. The line of credit has no stated termination date and is cancelable by either party with prior notice. At December 31, 2011, no balance was outstanding on this line of credit.

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Long-Term Debt
12 Months Ended
Dec. 31, 2011
Long-Term Debt [Abstract]
Long-Term Debt
Note 9. Long-Term Debt

 


Statutory Business Trusts:

As of December 31, 2011, we had two statutory business trusts, State Street Capital Trusts I and IV, which as of December 31, 2011, collectively had issued $955 billion of trust preferred capital securities. Proceeds received by each of the trusts from their capitalization and from their capital securities issuances are invested in junior subordinated debentures issued by the parent company. The junior subordinated debentures are the sole assets of Capital Trusts I and IV. Each of the trusts is wholly-owned by us; however, we do not record the trusts in our consolidated financial statements in accordance with GAAP.

 

Payments made by the trusts to holders of the capital securities are dependent on our payments made to the trusts on the junior subordinated debentures. Our fulfillment of these commitments has the effect of providing a full, irrevocable and unconditional guarantee of the trusts' obligations under the capital securities. While the capital securities issued by the trusts are not recorded in our consolidated statement of condition, the junior subordinated debentures qualify for inclusion in tier 1 regulatory capital under federal regulatory capital guidelines. Information about restrictions on our ability to obtain funds from our subsidiary banks is provided in note 15.

Interest paid on the debentures by the parent company is recorded in interest expense. Distributions to holders of the capital securities by the trusts are payable from interest payments received on the debentures and are due quarterly by State Street Capital Trusts I and IV, subject to deferral for up to five years under certain conditions. The capital securities are subject to mandatory redemption in whole at the stated maturity upon repayment of the debentures, with an option by us to redeem the debentures at any time upon the occurrence of certain tax events or changes to tax treatment, investment company regulation or capital treatment; or at any time after May 15, 2008 for the Capital Trust I securities and any time after June 15, 2012 for the Capital Trust IV securities. Redemptions are subject to federal regulatory approval.

Parent Company and Non-Banking Subsidiary Issuances:

The $1.5 billion of 2.15% notes mature on April 30, 2012, with interest payable semi-annually in arrears on April 30 and October 30 of each year. We have the option to redeem the notes prior to their maturity if we become obligated to pay certain additional amounts because of changes in the laws or regulations of any U.S. taxing authority. These senior notes are guaranteed by the FDIC under its TLGP. If we fail to make a timely payment of any principal or interest, the FDIC is obligated to make such payment following required notification. The FDIC's guarantee of the notes will expire upon their redemption or on April 30, 2012.

In 2011, we issued an aggregate of $2 billion of senior notes, composed of $1 billion of 2.875% notes due March 7, 2016, $750 million of 4.375% notes due March 7, 2021 and $250 million of floating-rate notes due March 7, 2014. Interest on the 2.875% notes and the 4.375% notes is payable semi-annually in arrears on March 7 and September 7 of each year, beginning on September 7, 2011. Interest on the floating-rate notes is payable quarterly in arrears on March 7, June 7, September 7 and December 7 of each year, beginning on June 7, 2011.

At December 31, 2011 and 2010, long-term capital leases included $422 million and $431 million, respectively, related to our One Lincoln Street headquarters building and the One Lincoln Street parking garage, with the remaining $272 million and $279 million, respectively, substantially related to an office building in the U.K. Refer to note 19 for additional information.

 

In 2011, we issued approximately $500 million of 4.956% junior subordinated debentures due March 15, 2018, in a remarketing of the 6.001% junior subordinated debentures due 2042 originally issued to State Street Capital Trust III in 2008. The original debentures were issued to Capital Trust III in connection with our concurrent offering of the trust's 8.25% fixed- to-floating rate normal automatic preferred enhanced capital securities, referred to as normal APEX.

The net proceeds from the sale of the remarketed 4.956% junior subordinated debentures were ultimately used by Capital Trust III to make a final distribution to the holders of the normal APEX with respect to the original 6.001% junior subordinated debentures and to satisfy the obligation of Capital Trust III to purchase $500 million of our non-cumulative perpetual preferred stock, series A, $100,000 liquidation preference per share (refer to note 12). The preferred stock constitutes the principal asset of the trust.

As a result of the above-described transactions, as of December 31, 2011 we had outstanding the above-referenced $500 million of 4.956% junior subordinated debentures due March 15, 2018 and $500 million of non-cumulative perpetual preferred stock. The 4.956% debentures qualify for inclusion in tier 2 regulatory capital and the perpetual preferred stock qualifies for inclusion in tier 1 regulatory capital, both under federal regulatory capital guidelines. The original 6.001% junior subordinated debentures, which qualified for inclusion in tier 1 regulatory capital as trust preferred securities, were canceled as a result of the remarketing transaction.

Interest on the 4.956% junior subordinated debentures is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2011. The debentures mature on March 15, 2018, and we do not have the right to redeem the debentures prior to maturity other than upon the occurrence of specified events. Redemption of the debentures is subject to federal regulatory approval.

The $500 million of 4.30% notes mature on May 30, 2014, with interest payable semi-annually in arrears on May 30 and November 30 of each year. We cannot redeem the notes prior to maturity. We completed the issuance primarily in connection with our intention to redeem the U.S. Treasury's preferred equity investment received in October 2008 under the TARP Capital Purchase Program.

The $450 million of 5.375% notes mature on April 30, 2017, with interest payable semi-annually in arrears on April 30 and October 30 of each year. The $250 million of floating-rate notes mature on April 30, 2012, with interest payable quarterly in arrears at the three-month LIBOR rate plus 10 basis points on January 30, April 30, July 30, and October 30 of each year. We may not redeem the notes prior to their maturity. The $150 million of 7.35% notes mature on June 15, 2026, with interest payable semi-annually on June 15 and December 15 of each year. We may not redeem the notes prior to their maturity.

State Street Bank Issuances:

With respect to the 5.25% subordinated bank notes due 2018, State Street Bank is required to make semi-annual interest payments on the outstanding principal balance of the notes on April 15 and October 15 of each year, and the notes qualify for inclusion in tier 2 regulatory capital under federal regulatory capital guidelines. With respect to the 5.30% subordinated notes due 2016 and the floating-rate subordinated notes due 2015, State Street Bank is required to make semi-annual interest payments on the outstanding principal balance of the 5.30% notes on January 15 and July 15 of each year, and quarterly interest payments on the outstanding principal balance of the floating-rate notes on March 8, June 8, September 8 and December 8 of each year. Each of the subordinated notes qualifies for inclusion in tier 2 regulatory capital under federal regulatory capital guidelines.

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Commitments And Contingencies
12 Months Ended
Dec. 31, 2011
Commitments And Contingencies [Abstract]
Commitments And Contingencies
Note 10. Commitments and Contingencies

Credit-Related Commitments and Contingencies:

Credit-related financial instruments, which are off-balance sheet, include indemnified securities financing, unfunded commitments to extend credit or purchase assets, and standby letters of credit. The potential loss associated with indemnified securities financing, unfunded commitments and standby letters of credit is equal to the total gross contractual amount, which does not consider the value of any collateral.

The following table summarizes the total gross contractual amounts of credit-related off-balance sheet financial instruments at December 31. Amounts reported do not reflect participations to independent third parties.

 

Approximately 77% of the unfunded commitments to extend credit expire within one year from the date of issue. Since many of these commitments are expected to expire or renew without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

Securities Finance:

On behalf of our clients, we lend their securities, as agent, to brokers and other institutions. In most circumstances, we indemnify our clients for the fair market value of those securities against a failure of the borrower to return such securities. We require the borrowers to maintain collateral in an amount equal to or in excess of 100% of the fair market value of the securities borrowed. Securities on loan are revalued daily to determine if additional collateral is necessary. Collateral received in connection with our securities lending services is held by us as agent and is not recorded in our consolidated statement of condition. The collateral held by us as agent is invested on behalf of our clients. In certain cases, the collateral is invested in third-party repurchase agreements, for which we indemnify the client against loss of the principal invested. We require the counterparty to the indemnified repurchase agreement to provide collateral in an amount equal to or in excess of 100% of the amount of the repurchase obligation. In our role as agent, the indemnified repurchase agreements and the related collateral held by us are not recorded in our consolidated statement of condition.

The following table summarizes the fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, at December 31:

 

(In millions)    2011      2010  

Aggregate fair value of indemnified securities financing

   $ 302,342       $ 334,235   

Aggregate fair value of cash and securities held as collateral for indemnified securities financing

     312,598         343,410   

Aggregate fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements

     88,656         89,069   

Aggregate fair value of cash and securities held by us or our agents as collateral for indemnified repurchase agreements

     93,039         93,294   

In certain cases, we participate in securities lending transactions as principal, rather than as agent. As principal, we borrow securities from the lending client and then lend such securities to the subsequent borrower, either a State Street client or a broker/dealer. Collateral provided and received associated with such transactions is recorded in other assets and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. At December 31, 2011 and 2010, we had approximately $5.21 billion and $2.72 billion, respectively, of collateral provided and approximately $4.59 billion and $1.21 billion, respectively, of collateral received in connection with principal securities lending transactions.

Legal Proceedings:

In the ordinary course of business, we and our subsidiaries are involved in disputes, litigation and regulatory inquiries and investigations, both pending and threatened. These matters, if resolved adversely against us, may result in monetary damages, fines and penalties or require changes in our business practices. The resolution of these proceedings is inherently difficult to predict. However, we do not believe that the amount of any judgment, settlement or other action arising from any pending proceeding will have a material adverse effect on our consolidated financial condition or cash flows, although the outcome of certain of the matters described below may have a material adverse effect on our consolidated results of operations for the period in which such matter is resolved or a reserve is determined to be required. To the extent that we have established reserves in our consolidated statement of condition for probable loss contingencies, such reserves may not be sufficient to cover our ultimate financial exposure associated with any settlements or judgments. We may be subject to proceedings in the future that, if adversely resolved, would have a material adverse effect on our businesses or on our future consolidated results of operations or financial condition. Except where otherwise noted below, we have not recorded a reserve with respect to the claims discussed and do not believe that potential exposure, if any, as to any matter discussed can be reasonably estimated.

SSgA

The SEC has requested information regarding registered mutual funds managed by SSgA that invested in sub-prime securities. As of June 30, 2007, these funds had net assets of less than $300 million, and the net asset value per share of the funds experienced an average decline of approximately 7.23% during the third quarter of 2007. Average returns for industry peer funds were positive during the same period. During the course of our responding to such inquiry, certain potential compliance issues have been identified and are in the process of being resolved with the SEC staff. These funds were not covered by our regulatory settlement, announced in the first quarter of 2010, with the SEC, the Massachusetts Attorney General and the Massachusetts Securities Division of the Office of the Secretary of State, which concerned certain unregistered SSgA-managed funds that pursued active fixed-income strategies. Four lawsuits by individual investors in those active fixed- income strategies remain pending. The U.S. Attorney's office in Boston and the Financial Industry Regulatory Authority have also requested information in connection with our active-fixed income strategies.

One of the four lawsuits by investors was filed by Prudential Retirement Insurance and Annuity Co. in 2007 in New York federal court. Prudential sought damages in excess of the compensation it received from the fair fund established by State Street in the first quarter of 2010 in connection with the regulatory settlement noted above. Prudential is also seeking related costs, including pre-judgment interest and attorneys' fees. On February 3, 2012, the Court issued a ruling finding that Prudential is entitled to a payment from State Street, after adjustment for the compensation received from the fair fund, in the amount of $28.1 million. This award may ultimately be increased if the Court awards Prudential interest and costs. We intend to appeal the Court's February 3, 2012 ruling. The timing of the remaining phases of further trial proceedings or of any appeal can not currently be determined. Two of the other three lawsuits by individual investors are in federal court in Texas, with one scheduled for trial in March 2012, and the other is in federal court in New York. The plaintiffs in these lawsuits also seek to recover amounts in excess of their compensation from the fair fund established by the 2010 settlement, along with pre- judgment interest, attorneys' fees and punitive damages.

We estimate that our exposure in the Prudential and three other lawsuits may be, in the aggregate, in a range from $0 to approximately $90 million. This estimated exposure range includes estimated pre-judgment interest and attorneys' fees, if awarded. The estimated exposure range does not include any potential awards of claimed punitive damages, which cannot reasonably be estimated. The actual amount, if any, of our ultimate aggregate liability in the Prudential and three other lawsuits may be more or less than the top of the estimated range. We have not established a reserve with respect to these matters.

We are currently defending a putative ERISA class action by investors in unregistered SSgA-managed funds which challenges the division of our securities lending-related revenue between the SSgA lending funds and State Street in its role as lending agent. The action alleges, among other things, that State Street breached its fiduciary duty to investors in the SSgA lending funds. The plaintiff contends that State Street's agency lending clients received more favorable fee splits than did clients of the SSgA lending funds.

 

As previously reported, we managed, through SSgA, four common trust funds for which, in our capacity as manager and trustee, we appointed various Lehman entities as prime broker. As of September 15, 2008 (the date two of the Lehman entities involved entered insolvency proceedings), these funds had cash and securities held by Lehman with net asset values of approximately $312 million. Some clients who invested in the funds managed by us brought litigation against us seeking compensation and additional damages, including double or treble damages, for their alleged losses in connection with our prime brokerage arrangements with Lehman's entities. A total of seven clients were invested in such funds, of which three currently have suits pending against us. Two cases are pending in federal court in Boston and the third is pending in Nova Scotia. We have entered into settlements with three clients, one of which was entered into after the client obtained a €42 million judgment from a Dutch court. As of September 15, 2008, the four clients with whom we have not entered into settlement agreements had approximately $143 million invested in the funds at issue. We have not established a reserve with respect to any of the unsettled claims.

Securities Finance

Two related participants in our agency securities lending program have brought suit against us challenging actions taken by us in response to their withdrawal from the program. We believe that certain withdrawals by these participants were inconsistent with the redemption policy applicable to the agency lending collateral pools and, consequently, redeemed their remaining interests through an in-kind distribution that reflected the assets these participants would have received had they acted in accordance with the collateral pools' redemption policy. The participants have asserted damages of $120 million, an amount that plaintiffs have stated was the difference between the amortized cost and market value of the assets that State Street proposed to distribute to the plans in-kind in or about August 2009. While management does not believe that such difference is an appropriate measure of damages, as of September 30, 2010, the last date on which State Street acted as custodian for the participants, the difference between the amortized cost and market value of the in-kind distribution was approximately $49 million, and if such securities were still held by the participants on such date, would have been approximately $28.5 million as of December 31, 2011. In taking these actions, we believe that we acted in the best interests of all participants in the collateral pools. We have not established a reserve with respect to this litigation.

Foreign Exchange

We offer our custody clients and their investment managers the option to route foreign exchange transactions to our foreign exchange desk through our asset servicing operation. We record as revenue an amount approximately equal to the difference between the rates we set for those trades and indicative interbank market rates at the time of execution of the trade. As discussed more fully below, claims have been asserted on behalf of certain current and former custody clients, and future claims may be asserted, alleging that our indirect foreign exchange rates (including the differences between those rates and indicative interbank market rates) were not adequately disclosed or were otherwise improper, and seeking to recover, among other things, the full amount of the revenue we earned from our indirect foreign exchange trading with them.

In October 2009, the Attorney General of the State of California commenced an action under the California False Claims Act and California Business and Professional Code related to services State Street provides to California state pension plans. The California Attorney General asserts that the pricing of certain foreign exchange transactions for these pension plans was governed by the custody contracts for these plans and that our pricing was not consistent with the terms of those contracts and related disclosures to the plans, and that, as a result, State Street made false claims and engaged in unfair competition. The Attorney General asserted actual damages of $56 million for periods from 2001 to 2009 and seeks additional penalties, including treble damages. This action is in the discovery phase.

In October 2010, we entered into a $12 million settlement with the State of Washington. This settlement resolves a contract dispute related to the manner in which we priced some foreign exchange transactions during our ten-year relationship with the State of Washington. Our contractual obligations and related disclosures to the State of Washington were significantly different from those presented in our ongoing litigation in California.

 

We provide custody and principal foreign exchange services to government pension plans in other jurisdictions. Since the commencement of the litigation in California, attorneys general and other governmental authorities from a number of jurisdictions, as well as U.S. Attorney's offices, the U.S. Department of Labor and the U.S. Securities and Exchange Commission, have requested information or issued subpoenas in connection with inquiries into the pricing of our foreign exchange services. We continue to respond to such inquiries and subpoenas.

We offer indirect foreign exchange services such as those we offer to the California pension plans to a broad range of custody clients in the U.S. and internationally. We have responded and are responding to information requests from a number of clients concerning our indirect foreign exchange rates. In February 2011, a putative class action was filed in federal court in Boston seeking unspecified damages, including treble damages, on behalf of all custodial clients that executed certain foreign exchange transactions with State Street from 1998 to 2009. The putative class action alleges, among other things, that the rates at which State Street executed foreign currency trades constituted an unfair and deceptive practice under Massachusetts law and a breach of the duty of loyalty. A second putative class action is currently pending in federal court in Boston alleging various violations of ERISA on behalf of all ERISA plans custodied with us that executed indirect foreign exchange transactions with State Street between 2001 and 2009. The complaint, originally filed in federal court in Baltimore, alleges that State Street caused class members to pay unfair and unreasonable rates for indirect foreign exchange transactions with State Street. The complaint seeks unspecified damages, disgorgement of profits, and other equitable relief.

We have not established a reserve with respect to any of the pending legal proceedings relating to our indirect foreign exchange services. There can be no assurance as to the outcome of the pending proceedings in California or Massachusetts, or whether any other proceedings might be commenced against us by clients or government authorities. We expect that plaintiffs will seek to recover their share of all or a portion of the revenue that we have recorded from providing indirect foreign exchange services. Our total revenue worldwide from such services was approximately $331 million for the year ended December 31, 2011, approximately $336 million for the year ended December 31, 2010, approximately $369 million for the year ended December 31, 2009 and approximately $462 million for the year ended December 31, 2008. Although we did not calculate revenue for such services prior to 2006 in the same manner, and have refined our calculation method over time, we believe that the amount of our revenue for such services has been of a similar or lesser order of magnitude for many years.

We cannot predict the outcome of any pending proceedings or whether a court, in the event of an adverse resolution, would consider our revenue to be the appropriate measure of damages. The resolution of pending proceedings or any that may be filed or threatened could have a material adverse effect on our future consolidated results of operations and our reputation. Our revenue calculations related to indirect foreign exchange services reflect a judgment concerning the relationship between the rates we charge for indirect foreign exchange execution and indicative interbank market rates near in time to execution. Our revenue from foreign exchange trading generally depends on the difference between the rates we set for indirect trades and indicative interbank market rates on the date trades settle.

Shareholder Litigation

Three shareholder-related class action complaints are currently pending in federal court in Boston. One complaint purports to be brought on behalf of State Street shareholders. The two other complaints purport to be brought on behalf of participants and beneficiaries in the State Street Salary Savings Program who invested in the program's State Street common stock investment option. The complaints variously allege violations of the federal securities laws and ERISA in connection with our foreign exchange trading business, our investment securities portfolio and our asset-backed commercial paper conduit program.

 

Lehman Entities

We have claims against Lehman entities, referred to as Lehman, in bankruptcy proceedings in the U.S. and the U.K. We also have amounts that we owe, or return obligations, to Lehman. The various claims and amounts owed have arisen from transactions that existed at the time Lehman entered bankruptcy, including foreign exchange transactions, securities lending arrangements and repurchase agreements. During the third quarter of 2011, we reached agreement with certain Lehman bankruptcy estates in the U.S. to resolve the value of deficiency claims arising out of indemnified repurchase transactions in the U.S., and the bankruptcy court has allowed those claims in the amount of $400 million. The amount we ultimately collect will be subject to the availability of assets in those estates. We are in discussions with other Lehman bankruptcy administrators and would expect over time to resolve or obtain greater clarity on the other outstanding claims. We continue to believe that our allowed and/or realizable claims against Lehman exceed our potential return obligations, but the ultimate outcomes of these matters cannot be predicted with certainty. In addition, given the complexity of these matters, it remains likely that the resolution of these matters could occur in different periods, potentially resulting in the recognition of gains or losses in different periods.

Investment Servicing

State Street Bank is named as a defendant in three complaints filed in federal court in Boston in January 2012 by investment management clients of TAG Virgin Islands, Inc., or TAG, who hold custodial accounts with State Street. The complaints, collectively, allege claims for breach of contract, gross negligence, negligence, negligent misrepresentation, unjust enrichment, breach of fiduciary duty and aiding and/or abetting a breach of fiduciary duty, in connection with certain assets managed by TAG and custodied with State Street. One complaint is an individual action. Two of the complaints are putative class actions asserted on behalf of certain persons or entities who were clients of TAG and entered into a custodial relationship with State Street and/or its predecessors in interest. Collectively, the complaints seek relief including claimed damages in excess of $100 million.

Tax Contingencies:

In the normal course of our business, we are subject to challenges from U.S. and non-U.S. income tax authorities regarding the amount of taxes due. These challenges may result in adjustments to the timing or amount of taxable income or deductions or the allocation of taxable income among tax jurisdictions. The IRS completed its review of our U.S. income tax returns for the tax years 2000—2006. In 2011, we reached agreement with the IRS to close their review of those tax years, and the adjustments recorded in our consolidated financial statements to reflect our ultimate exposure with respect to the results of the review did not differ materially from the amounts accrued.

Other Contingencies:

In the normal course of our business, we offer products that provide book-value protection primarily to plan participants in stable value funds managed by non-affiliated investment managers of post-retirement defined contribution benefit plans, particularly 401(k) plans. The book-value protection is provided on portfolios of intermediate, investment grade fixed-income securities, and is intended to provide safety and stable growth of principal invested. The protection is intended to cover any shortfall in the event that a significant number of plan participants withdraw funds when book value exceeds market value and the liquidation of the assets is not sufficient to redeem the participants. The investment parameters of the underlying portfolios, combined with structural protections, are designed to provide cushion and guard against payments even under extreme stress scenarios.

As of December 31, 2011 and 2010, the aggregate notional amount of the contingencies associated with these products, which are individually accounted for as derivative financial instruments, totaled $40.96 billion and $46.76 billion, respectively. The notional amounts of these contingencies are presented as "derivatives not designated as hedging instruments" in the table of aggregate notional amounts of derivative financial instruments provided in note 16. As of December 31, 2011, we have not made a payment under these contingencies that we consider material to our consolidated financial condition, and management believes that the probability of payment under these contingencies in the future that we would consider material to our consolidated financial condition is remote.

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Variable Interest Entities
12 Months Ended
Dec. 31, 2011
Variable Interest Entities [Abstract]
Variable Interest Entities
Note 11. Variable Interest Entities

Tax-Exempt Investment Program:

In the normal course of our business, we structure and sell certificated interests in pools of tax-exempt investment-grade assets, principally to our mutual fund clients. We structure these pools as partnership trusts, and the assets and liabilities of the trusts are recorded in our consolidated statement of condition as investment securities available for sale and other short-term borrowings. We may also provide liquidity and re-marketing services to the trusts. As of December 31, 2011 and 2010, we carried investment securities available for sale, composed of securities related to state and political subdivisions, with a fair value of $2.81 billion and $2.85 billion, respectively, and other short-term borrowings (refer to note 8) of $2.29 billion and $2.48 billion, respectively, in our consolidated statement of condition in connection with these trusts.

 We transfer assets to the trusts from our investment securities portfolio at adjusted book value, and the trusts finance the acquisition of these assets by selling certificated interests issued by the trusts to third-party investors and to State Street as residual holder. These transfers do not meet the de-recognition criteria defined by GAAP, and therefore, are recorded in our consolidated financial statements. The trusts had a weighted-average life of approximately 7.4 years at December 31, 2011, compared to approximately 7.7 years at December 31, 2010.

Under separate legal agreements, we provide standby bond-purchase agreements to these trusts and, with respect to certain securities, letters of credit. Our commitments to the trusts under these standby bond-purchase agreements and letters of credit totaled $2.35 billion and $669 million, respectively, at December 31, 2011, none of which was utilized at period-end. In the event that our obligations under these agreements are triggered, no material impact to our consolidated results of operations or financial condition is expected to occur, because the securities are already recorded at fair value in our consolidated statement of condition.

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Shareholders' Equity
12 Months Ended
Dec. 31, 2011
Shareholders' Equity [Abstract]
Shareholders' Equity
Note 12. Shareholders' Equity

In 2011, we issued 5,001 shares, or $500 million, of our non-cumulative perpetual preferred stock, series A, $100,000 liquidation preference per share, in connection with the remarketing of our 6.001% junior subordinated debentures due 2042 originally issued to State Street Capital Trust III in 2008. The preferred stock was purchased by State Street Capital Trust III using the ultimate proceeds from the remarketing transaction, and now constitutes the principal asset of the trust. The preferred stock qualifies for inclusion in tier 1 regulatory capital under federal regulatory capital guidelines. Additional information about the remarketing transaction is provided in note 9. Quarterly dividends on the preferred stock are calculated at an annual rate equal to the relevant three-month LIBOR plus 4.99%, with such dividend rate applied to the outstanding liquidation preference of the preferred stock. Dividends are non-cumulative, and are accrued when declared.

In 2011, our Board of Directors approved a new program authorizing the purchase by us of up to $675 million of our common stock in 2011. This new program superseded the Board's prior authorization under which 13.25 million common shares were available for purchase as of December 31, 2010. During the period from April 1, 2011 through December 31, 2011, we purchased approximately 16.3 million shares of our common stock, at an average cost per share of approximately $41.38 and an aggregate cost of approximately $675 million. As of December 31, 2011, no purchase authority remained under this program. No shares of our common stock were purchased by us in 2010 or 2009. We may employ third-party broker/dealers to acquire shares on the open market in connection with our common stock purchase programs.

Our common shares may be acquired for other deferred compensation plans, held by an external trustee, that are not part of our common stock purchase program. As of December 31, 2011 and 2010, approximately 406,000 and 420,000 shares, respectively, had been purchased and were held in trust. These shares are recorded as treasury stock in our consolidated statement of condition.

 

The following table presents the after-tax components of accumulated other comprehensive loss as of December 31:

 

(In millions)    2011     2010     2009  

Foreign currency translation

     $ 216      $ 281   

Net unrealized loss on hedges of net investments in non-U.S. subsidiaries

   $ (14     (14     (14

Net unrealized gain (loss) on available-for-sale securities portfolio

     110        (90     (1,001

Net unrealized loss related to reclassified available-for-sale securities

     (189     (317     (635
  

 

 

   

 

 

   

 

 

 

Net unrealized loss on available-for-sale securities

     (79     (407     (1,636

Net unrealized loss on available-for-sale securities designated in fair value hedges

     (210     (135     (113

Expected losses from other-than-temporary impairment on available-for-sale securities related to factors other than credit

     (17     (17     (159

Expected losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit

     (86     (111     (387

Net unrealized loss on cash flow hedges

     (5     (11     (18

Minimum pension liability

     (248     (210     (192
  

 

 

   

 

 

   

 

 

 

Total

   $ (659   $ (689   $ (2,238
  

 

 

   

 

 

   

 

 

 

For the year ended December 31, 2011, we realized net gains of $140 million from sales of available-for-sale securities. Unrealized pre-tax gains of $76 million were included in other comprehensive income, or OCI, at December 31, 2010, net of deferred taxes of $30 million, related to these sales.

For the year ended December 31, 2010, we realized net losses of $55 million from sales of investment securities. Unrealized pre-tax losses of $728 million were included in OCI at December 31, 2009, net of deferred taxes of $291 million, related to these sales.

For the year ended December 31, 2009, we realized net gains of $368 million from sales of available-for-sale securities. Unrealized pre-tax gains of $46 million were included in OCI at December 31, 2008, net of deferred taxes of $18 million, related to these sales.

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Fair Value
12 Months Ended
Dec. 31, 2011
Fair Value [Abstract]
Fair Value

Note 13.    Fair Value

Fair Value Measurements:

We carry trading account assets, investment securities available for sale and various types of derivative financial instruments at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of OCI within shareholders' equity in our consolidated statement of condition.

We measure fair value for the above-described financial assets and liabilities in accordance with GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to valuation methods using significant unobservable inputs (level 3). If the inputs used to measure a financial asset or liability cross different levels of the hierarchy, categorization is based on the lowest-level input that is most significant to the fair value measurement. Management's assessment of the significance of a particular input to the overall fair value measurement of a financial asset or liability requires judgment, and considers factors specific to that asset or liability. The three valuation levels are described below.

Level 1. Financial assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market. Fair value is measured using unadjusted quoted prices in active markets for identical securities. Our level 1 financial assets and liabilities primarily include long and short positions in U.S. government securities and highly liquid U.S. and non-U.S. government fixed-income securities. We carry U.S. government securities in our available-for-sale portfolio in connection with our asset and liability management activities. We carry the long and short positions in highly liquid fixed-income securities in trading account assets and accrued expenses and other liabilities in connection with our trading activities. We assume these long and short positions in our role as a financial intermediary, which includes accommodating our clients' investment and risk management needs. Our level 1 financial assets also include active exchange-traded equity securities.

Level 2. Financial assets and liabilities with values based on quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include the following:

 

   

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 the investment securities in level 2 is measured primarily using information obtained from independent third parties. This third-party information is subject to review by management as part of a validation process, which includes obtaining an understanding of the underlying assumptions and the level of market participant information used to support those assumptions. In addition, management compares significant assumptions used by third parties to available market information. Such information may include known trades or, to the extent that trading activity is limited, comparisons to market research information pertaining to credit expectations, execution prices and the timing of cash flows, and where information is available, back-testing.

The fair value of the derivative instruments categorized in level 2 predominantly represents foreign exchange contracts used in our trading activities, for which fair value is measured using discounted cash flow techniques, with inputs consisting of observable spot and forward points, as well as observable interest rate curves. With respect to derivative instruments, we evaluated the impact on valuation of the credit risk of our counterparties and our own credit risk. We considered factors such as the likelihood of default by us and our counterparties, our current and potential future net exposures and remaining maturities in determining the appropriate measurements of fair value. Valuation adjustments associated with derivative instruments were not significant for the years ended December 31, 2011, 2010 or 2009.

Our level 2 financial assets and liabilities primarily include various types of foreign exchange and interest-rate derivative instruments, as well as trading account assets and fixed-income investment securities.

Level 3. Financial assets and liabilities with values based on prices or valuation techniques that require inputs that are both unobservable in the market and significant to the overall fair value measurement. These inputs reflect management's judgment about the assumptions that a market participant would use in pricing the asset or liability, and are based on the best available information, some of which is internally developed. The following provides a more detailed discussion of our financial assets and liabilities that we may categorize in level 3 and the related valuation methodology.

 

   

For certain investment securities available for sale, fair value is measured using information obtained from third-party sources or through the use of pricing models. Management evaluated its methodologies used to determine fair value, but considered the level of observable market information to be insufficient to categorize the securities in level 2.

 

   

Foreign exchange contracts carried in other assets and accrued expenses and other liabilities are primarily composed of long- dated forward contracts and options. The fair value of long-dated foreign exchange forward contracts is measured using discounted cash flow techniques. However, in certain circumstances, extrapolation is required to develop certain forward points, which are not observable. The fair value of foreign exchange options is measured using an option pricing model. Because of a limited number of observable transactions, certain model inputs are unobservable, such as volatilities, and are based on historical experience.

 

   

The fair value of certain interest-rate caps with long-dated maturities, also carried in other assets and accrued expenses and other liabilities, 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.

The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition as of the dates indicated. No significant transfers of financial assets or liabilities between levels 1 and 2 occurred during 2011 or 2010.

 

 

The following table presents total realized and unrealized gains and losses for the years indicated that were recorded in revenue for our financial assets and liabilities categorized in level 3:

     Year Ended December 31, 2011     Year Ended December 31, 2010     Year Ended December 31, 2009  
(In millions)    Total Realized
and
Unrealized
Gains (Losses)
Recorded
in Revenue
   

Change in
Unrealized

Gains (Losses)
Related to
Financial
Instruments
Held at
December 31,
2011

    Total Realized
and
Unrealized
Gains (Losses)
Recorded
in Revenue
     Change in
Unrealized
Gains (Losses)
Related to
Financial
Instruments
Held at
December 31,
2010
    Total Realized
and
Unrealized
Gains (Losses)
Recorded
in Revenue
   

Change in
Unrealized

Gains (Losses)
Related to
Financial
Instruments
Held at
December 31,
2009

 

Fee revenue:

             

Trading services

   $ (13   $ (9   $ 17       $ (5   $ 38      $ (5

Processing fees and other

     —          —          —           —          50        50   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total fee revenue

     (13     (9     17         (5     88        45   

Net interest revenue

     561        —          141         —          (101     —     
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total revenue

   $ 548      $ (9   $ 158       $ (5   $ (13   $ 45   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Fair Values of Financial Instruments:

Estimates of fair value for financial instruments not carried at fair value on a recurring basis in our consolidated statement of condition, as defined by GAAP, are generally subjective in nature, and are made as of a specific point in time based on the characteristics of the financial instruments and relevant market information. Disclosure of fair value estimates is not required by GAAP for certain items, such as lease financing, equity method investments, obligations for pension and other post-retirement plans, premises and equipment, other intangible assets and income tax assets and liabilities. Accordingly, aggregate fair value estimates presented do not purport to represent, and should not be considered representative of, our underlying "market" or franchise value. In addition, because of potential differences in methodologies and assumptions used to estimate fair values, our estimates of fair value should not be compared to those of other financial institutions.

We use the following methods to estimate the fair values of our financial instruments:

 

   

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 value, after taking into consideration any applicable credit risk.

 

   

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.

The generally short duration of certain of our assets and liabilities results in a significant number of financial instruments for which fair value equals or closely approximates the amount reported in our consolidated statement of condition. These financial instruments are reported in the following captions in our consolidated statement of condition: cash and due from banks; interest-bearing deposits with banks; securities purchased under resale agreements; accrued income receivable; deposits; securities sold under repurchase agreements; federal funds purchased; and other short-term borrowings. In addition, due to the relatively short duration of certain of our net loans (excluding leases), we consider fair value for these loans to approximate their reported value. The fair value of other types of loans, such as purchased receivables and CRE loans, is estimated by discounting expected future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings for the same remaining maturities. Loan commitments have no reported value because their terms are at prevailing market rates.

The following table presents the reported amounts and estimated fair values of the financial instruments defined by GAAP, excluding the aforementioned short-term financial instruments and financial assets and liabilities carried at fair value on a recurring basis, as of the dates indicated:

     Reported      Fair  
(In millions)    Amount      Value  

2011:

     

Financial Assets:

     

Investment securities held to maturity

   $ 9,321       $ 9,362   

Net loans (excluding leases)

     8,777         8,752   

Financial Liabilities:

     

Long-term debt

     8,131         8,206   

2010:

     

Financial Assets:

     

Investment securities held to maturity

   $ 12,249       $ 12,576   

Net loans (excluding leases)

     10,387         10,242   

Financial Liabilities:

     

Long-term debt

     8,550         8,498   
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Equity-Based Compensation
12 Months Ended
Dec. 31, 2011
Equity-Based Compensation [Abstract]
Equity-Based Compensation

Note 14.     Equity-Based Compensation

In May 2009, our shareholders amended the 2006 Equity Incentive Plan to increase the number of shares of common stock approved for issuance for stock and stock-based awards, including stock options, stock appreciation rights, restricted stock, deferred stock and performance awards, from 20 million shares to 37 million shares. As of December 31, 2011, a total of 32.84 million shares had been awarded under the 2006 plan, compared with cumulative totals of 26.39 million shares and 17.59 million shares as of December 31, 2010 and 2009, respectively.

In addition, up to 8 million shares from our 1997 Equity Incentive Plan were approved for issuance under the 2006 Plan. This included shares that were available for issuance when the plan expired on December 18, 2006, and any shares that subsequently become available for issuance due to cancellations and forfeitures. We have stock options outstanding from the 1997 Plan. As of December 31, 2011, all shares from the 1997 Plan have been awarded and no further grants can be made.

 

The exercise price of non-qualified and incentive stock options and stock appreciation rights may not be less than the fair value of such shares on the date of grant. Stock options and stock appreciation rights granted under the 1997 and 2006 plans generally vest over four years and expire no later than ten years from the date of grant. For restricted stock awards granted under the plans, common stock is issued at the time of grant and recipients have dividend and voting rights. In general, these grants vest over three to four years. For deferred stock awards granted under the plans, no common stock is issued at the time of grant and the stock does not have dividend and voting rights. Generally, these grants vest over two to four years. Performance awards granted are earned over a performance period based on the achievement of defined goals, generally over one to four years. Payment for performance awards is made in shares of our common stock equal to its fair market value per share, based on certain financial ratios, after the conclusion of each performance period.

No common stock options or stock appreciation rights were granted in 2011 or 2010. The weighted-average assumptions used in connection with the option-pricing model were as follows for options granted in 2009:

 

     2009  

Dividend yield

     4.82

Expected volatility

     26.70   

Risk-free interest rate

     2.49   

Expected option lives (in years)

     7.8   

Compensation expense related to stock options, stock appreciation rights, restricted stock awards, deferred stock awards and performance awards, which we record as a component of compensation and employee benefits expense in our consolidated statement of income, was $261 million, $229 million and $126 million for the years ended December 31, 2011, 2010 and 2009, respectively. The 2011 and 2010 expense excluded $25 million and $12 million, respectively, associated with acceleration of expense in connection with the reductions in force discussed in note 20. This expense was included in the severance-related portion of the associated restructuring charges. The aggregate income tax benefit recorded in our consolidated statement of income related to the compensation expense recorded as a component of compensation and employee benefits expense was $103 million, $95 million and $50 million for the years ended December 31, 2011, 2010 and 2009, respectively.

The following table presents information about the 2006 Plan and 1997 Plan as of December 31, 2011, and related activity during the years indicated:

    

Shares

(in thousands)

    Weighted
Average
Exercise
Price
    

Weighted
Average
Remaining
Contractual
Term

(in years)

    

Aggregate
Intrinsic
Value

(in millions)

 

Stock Options and Stock Appreciation Rights:

          

Outstanding at December 31, 2009

     13,167      $ 51.64         

Exercised

     (297     37.53         

Forfeited or expired

     (1,887     54.76         

Outstanding at December 31, 2010

     10,983        51.49         

Exercised

     (1,028     40.52         

Forfeited or expired

     (2,246     50.06         
  

 

 

         

Outstanding at December 31, 2011

     7,709      $ 53.37         3.2       $ 10   
  

 

 

         

Exercisable at December 31, 2011

     7,221      $ 53.69         2.9       $ 4   

The weighted-average grant date fair value of stock options granted in 2009 was $2.96 per share. The total intrinsic value of options exercised during the years ended December 31, 2011, 2010 and 2009 was $6 million, $2 million and $5 million, respectively. As of December 31, 2011, total unrecognized compensation cost, net of estimated forfeitures, related to stock options and stock appreciation rights was less than $1 million, which is expected to be recognized over a weighted- average period of 7 months.

 

The following tables present activity related to other common stock awards during the years indicated:

    

Shares

(in thousands)

   

Weighted-

Average
Grant Date Fair
Value

 

Restricted Stock Awards:

    

Outstanding at December 31, 2009

     1,247      $ 41.87   

Granted

     5,264        44.49   

Vested

     (489     52.87   

Forfeited

     (221     44.95   

Outstanding at December 31, 2010

     5,801        43.21   

Vested

     (1,509     42.96   

Forfeited

     (127     44.59   

Outstanding at December 31, 2011

     4,165      $ 43.25   

The weighted-average grant date fair value of restricted stock awards granted in 2009 was $34.58 per share. The total fair value of restricted stock awards vested was $66 million, $23 million and $20 million for the years ended December 31, 2011, 2010 and 2009, respectively. As of December 31, 2011, total unrecognized compensation cost, net of estimated forfeitures, related to restricted stock was $101 million, which is expected to be recognized over a weighted-average period of 2.1 years.

     Shares
(in  thousands)
    Weighted-Average
Grant Date Fair
Value
 

Deferred Stock Awards:

    

Outstanding at December 31, 2009

     6,573      $ 51.88   

Granted

     2,287        42.45   

Vested

     (2,356     57.76   

Forfeited

     (313     43.13   
  

 

 

   

Outstanding at December 31, 2010

     6,191        46.71   

Granted

     5,468        41.92   

Vested

     (2,361     52.86   

Forfeited

     (345     41.99   
  

 

 

   

Outstanding at December 31, 2011

     8,953      $ 42.34   
  

 

 

   

The weighted-average grant date fair value of deferred stock awards granted in 2009 was $25.51 per share. The total fair value of deferred stock awards vested was $107 million for each of the years ended December 31, 2011 and 2010 and $193 million for the year ended December 31, 2009. As of December 31, 2011, total unrecognized compensation cost, net of estimated forfeitures, related to deferred stock awards was $214 million, which is expected to be recognized over a weighted- average period of 2.6 years.

 

     Shares
(in  thousands)
    Weighted-Average
Grant Date Fair
Value
 

Performance Awards:

    

Outstanding at December 31, 2009

     430      $ 24.14   

Granted

     1,421        43.33   

Forfeited

     (716     25.72   

Paid out

     (15     64.57   
  

 

 

   

Outstanding at December 31, 2010

     1,120        43.89   

Granted

     1,906        42.28   

Forfeited

     (173     42.90   

Paid out

     (224     46.03   
  

 

 

   

Outstanding at December 31, 2011

     2,629      $ 42.52   
  

 

 

   

 

The weighted-average grant date fair value of performance awards granted in 2009 was $19.46 per share. The total fair value of performance awards paid out was $10 million, $12 million and $23 million for the years ended December 31, 2011, 2010 and 2009, respectively. As of December 31, 2011, total unrecognized compensation cost, net of estimated forfeitures, related to performance awards was $29 million, which is expected to be recognized over a weighted-average period of 1.7 years.

We utilize either treasury shares or authorized but unissued shares to satisfy the issuance of common stock under our equity incentive plans. We do not have a specific policy concerning purchases of our common stock to satisfy stock issuances, including exercises of stock options. We have a general policy concerning purchases of our common stock to meet issuances under our employee benefit plans, including option exercises and other corporate purposes. Various factors determine the amount and timing of our purchases of our common stock, including regulatory approvals, our regulatory capital requirements, the number of shares we expect to issue under employee benefit plans, market conditions (including the trading price of our common stock), and legal considerations. These factors can change at any time, and the number of shares of common stock we will purchase or when we will purchase them cannot be assured.

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Regulatory Matters
12 Months Ended
Dec. 31, 2011
Regulatory Matters [Abstract]
Regulatory Matters

Note 15.     Regulatory Matters

Regulatory Capital:

We are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum regulatory capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial condition. Under regulatory capital adequacy guidelines, we must meet specified capital requirements that involve quantitative measures of our consolidated assets, liabilities and off-balance sheet exposures calculated in accordance with regulatory accounting practices. Our capital components and their classifications are subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require State Street and State Street Bank to maintain minimum risk-based capital and leverage ratios as set forth in the following table. The risk-based capital ratios are tier 1 capital and total capital, each divided by adjusted total risk-weighted assets and market-risk equivalents, and the tier 1 leverage ratio is tier 1 capital divided by adjusted quarterly average assets. As of December 31, 2011 and 2010, State Street and State Street Bank met all regulatory capital adequacy requirements to which they were subject.

As of December 31, 2011, State Street Bank was categorized as "well capitalized" under the regulatory capital adequacy framework. To be categorized as "well capitalized," State Street Bank must meet or exceed the minimum ratios for "well capitalized," as set forth in the following table, and meet certain other requirements. State Street Bank exceeded all "well capitalized" ratio guidelines as of December 31, 2011 and 2010. Management believes that no conditions or events have occurred since December 31, 2011 that have changed the capital categorization of State Street Bank.

 

The following table presents regulatory capital ratios and related components as of December 31:

 

Cash, Dividend, Loan and Other Restrictions:

During 2011, our banking subsidiaries were required by the Federal Reserve to maintain average aggregate cash balances of approximately $3.6 billion to satisfy reserve requirements. Federal and state banking regulations place certain restrictions on dividends paid by banking subsidiaries to a parent company. For 2012, aggregate dividends by State Street Bank without prior regulatory approval are limited to approximately $2.26 billion of its undistributed earnings at December 31, 2011, plus an additional amount equal to its net profits, as defined, for 2012 up to the date of any dividend. In addition, the prior approval of the Federal Reserve is required for us to pay future common stock dividends.

 

The Federal Reserve Act requires that extensions of credit by State Street Bank to certain affiliates, including the parent company, be secured by specific collateral, that the extension of credit to any one affiliate be limited to 10% of State Street Bank's capital and surplus, as defined, and that extensions of credit to all such affiliates be limited to 20% of State Street Bank's capital and surplus.

At December 31, 2011, our consolidated retained earnings included $442 million representing undistributed earnings of unconsolidated entities that are accounted for under the equity method of accounting.

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Derivative Financial Instruments
12 Months Ended
Dec. 31, 2011
Derivative Financial Instruments [Abstract]
Derivative Financial Instruments
Note 16. Derivative Financial Instruments

We use derivative financial instruments to support our clients' needs and to manage our interest-rate and currency risk. In undertaking these activities, we assume positions in both the foreign exchange and interest-rate markets by buying and selling cash instruments and using derivative financial instruments, including foreign exchange forward contracts, foreign exchange and interest-rate options and interest-rate swaps, interest-rate forward contracts and interest-rate futures.

Interest-rate contracts involve an agreement with a counterparty to exchange cash flows based on the movement of an underlying interest-rate index. An interest-rate swap agreement involves the exchange of a series of interest payments, either at a fixed or variable rate, based on the notional amount without the exchange of the underlying principal amount. An interest-rate option contract provides the purchaser, for a premium, the right, but not the obligation, to receive an interest rate based upon a predetermined notional amount during a specified period. An interest-rate futures contract is a commitment to buy or sell, at a future date, a financial instrument at a contracted price; it may be settled in cash or through the delivery of the contracted instrument.

Foreign exchange contracts involve an agreement to exchange one currency for another currency at an agreed-upon rate and settlement date. Foreign exchange contracts generally consist of foreign exchange forward and spot contracts, option contracts and cross-currency swaps. Future cash requirements, if any, related to foreign exchange contracts are represented by the gross amount of currencies to be exchanged under each contract unless we and the counterparty have agreed to pay or to receive the net contractual settlement amount on the settlement date.

Derivative financial instruments involve the management of interest-rate and foreign currency risk, and involve, to varying degrees, market risk and credit and counterparty risk (risk related to repayment). Market risk is defined as the risk of adverse financial impact due to fluctuations in interest rates, foreign exchange rates and other market-driven factors and prices. We use a variety of risk management tools and methodologies to measure, monitor and manage the market risk associated with our trading activities. One such risk-management measure is value-at-risk, or VaR. VaR is an estimate of potential loss for a given period within a stated statistical confidence interval. We use a risk-measurement system to estimate VaR daily. We have adopted standards for estimating VaR, and we maintain regulatory capital for market risk in accordance with federal regulatory capital guidelines.

Derivative financial instruments are also subject to credit and counterparty risk, which is defined as the risk of financial loss if a borrower or counterparty is either unable or unwilling to repay borrowings or settle a transaction in accordance with the underlying contractual terms. We manage credit and counterparty risk by performing credit reviews, maintaining individual counterparty limits, entering into netting arrangements and requiring the receipt of collateral. Collateral requirements are determined after a comprehensive review of the creditworthiness of each counterparty, and the requirements are monitored and adjusted daily. Collateral is generally held in the form of cash or highly liquid U.S. government securities. We may be required to provide collateral to the counterparty in connection with our entry into derivative financial instruments. Collateral received and collateral provided in connection with derivative financial instruments is recorded in accrued expenses and other liabilities and other assets, respectively, in our consolidated statement of condition. As of December 31, 2011 and 2010, we had approximately $1.15 billion and $79 million, respectively, of cash collateral received and approximately $1.48 billion and $530 million, respectively, of cash collateral provided in connection with derivative financial instruments.

We enter into master netting agreements with many of our derivative counterparties. Certain of these agreements contain credit risk-related contingent features in which the counterparty has the option to declare State Street in default and accelerate cash settlement of our net derivative liabilities with the counterparty in the event our credit rating falls below specified levels. The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a net liability position as of December 31, 2011 totaled approximately $911 million, against which we had posted aggregate collateral of approximately $276 million. If State Street's credit rating were downgraded below levels specified in the agreements, the maximum additional amount of payments related to termination events that could have been required pursuant to these contingent features as of December 31, 2011 was approximately $635 million. Such accelerated settlement would not affect our consolidated results of operations.

Derivatives Not Designated as Hedging Instruments:

In connection with our trading activities, we use derivative financial instruments in our role as a financial intermediary and as both a manager and servicer of financial assets, in order to accommodate our clients' investment and risk management needs. In addition, we use derivative financial instruments for risk management purposes as economic hedges, which are not formally designated as accounting hedges, in order to contribute to our overall corporate earnings and liquidity. These activities are designed to generate trading revenue and to manage volatility in our net interest revenue. The level of market risk that we assume is a function of our overall objectives and liquidity needs, our clients' requirements and market volatility.

With respect to cross-border investing, clients have a need for foreign exchange forward contracts to convert currency for international investment and to manage the currency risk in their investment portfolios. As an active participant in the foreign exchange markets, we provide foreign exchange forward contracts and options in support of our clients' needs with respect to their management of currency risk. We also participate in the interest-rate markets, and provide interest-rate swaps, interest-rate forward contracts, interest-rate futures and other interest-rate contracts to our clients to enable them to mitigate or modify their interest-rate risk. As part of our trading activities, we may assume positions in both the foreign exchange and interest-rate markets by buying and selling cash instruments and using derivative financial instruments, including foreign exchange forward contracts, foreign exchange and interest-rate options and interest-rate swaps, interest-rate forward contracts, and interest-rate futures. In the aggregate, positions are matched closely to minimize currency and interest-rate risk. Gains or losses in the fair values of trading derivatives are recorded in trading services revenue in our consolidated statement of income.

We offer products that provide book-value protection primarily to plan participants in stable value funds managed by non- affiliated investment managers of post-retirement defined contribution benefit plans, particularly 401(k) plans. We account for the associated contingencies, more fully described in note 10, individually as derivatives not designated as hedging instruments. These contracts are valued quarterly and unrealized losses, if any, are recorded in other expenses in our consolidated statement of income.

Derivatives Designated as Hedging Instruments:

In connection with our asset and liability management activities, we use derivative financial instruments to manage our interest-rate risk. Interest-rate risk, defined as the sensitivity of income or financial condition to variations in interest rates, is a significant non-trading market risk to which our assets and liabilities are exposed. These hedging relationships are formally designated, and qualify for hedge accounting, as fair value or cash flow hedges. We manage interest-rate risk by identifying, quantifying and hedging our exposures, using fixed-rate portfolio securities and a variety of derivative financial instruments, most frequently interest-rate swaps and options (e.g., interest rate caps and floors). Interest-rate swap agreements alter the interest-rate characteristics of specific balance sheet assets or liabilities. When appropriate, forward rate agreements, options on swaps, and exchange-traded futures and options are also used.

Fair value hedges

Derivatives designated as fair value hedges are utilized to mitigate the risk of changes in fair value of recognized assets and liabilities. Gains and losses on fair value hedges are recorded in processing fees and other revenue in our consolidated statement of income along with the gain or loss on the asset or liability attributable to the hedged risk. Differences between the gains and losses on fair value hedges and the gains and losses on the asset or liability attributable to the hedged risk represent hedge ineffectiveness, which is recorded in net interest revenue or in processing fees and other revenue. We use interest-rate or foreign exchange contracts in this manner to manage our exposure to changes in the fair value of hedged items caused by changes in interest rates or foreign exchange rates.

We have entered into interest-rate swap agreements to modify our interest revenue from certain available-for-sale securities from a fixed rate to a floating rate. The securities hedged have a weighted-average life of approximately 7.4 years as of December 31, 2011, compared to 7.7 years as of December 31, 2010. These securities are hedged with interest-rate swap contracts of similar maturity, repricing and fixed-rate coupons. The interest-rate swap contracts convert the interest revenue from a fixed rate to a floating rate indexed to LIBOR, thereby mitigating our exposure to fluctuations in the fair value of the securities attributable to changes in the benchmark interest rate.

We have entered into interest-rate swap agreements to modify our interest expense on two senior notes and two subordinated notes from fixed rates to floating rates. The senior notes are due in 2016 and 2021; one pays fixed interest at a 2.875% annual rate and the other pays fixed interest at a 4.375% annual rate. The subordinated notes mature in 2018; one pays fixed interest at a 4.956% annual rate and the other pays fixed interest at a 5.25% annual rate. The senior and subordinated notes are hedged with interest-rate swap contracts with notional amounts, maturities and fixed-rate coupon terms that align with the

hedged notes. The interest-rate swap contracts convert the fixed-rate coupons to floating rates indexed to LIBOR, thereby mitigating our exposure to fluctuations in the fair values of the subordinated notes stemming from changes in the benchmark interest rates.

We have entered into forward foreign exchange contracts to hedge the change in fair value attributable to foreign-exchange movements in the funding of non-functional currency denominated investment securities. These forward contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the fair value of the securities attributable to changes in foreign exchange rates. Generally, no ineffectiveness is recorded in earnings, since the notional amount of the hedging instruments is aligned with the carrying value of the hedged securities. The forward points on the hedging instruments are considered to be a hedging cost, and accordingly are excluded from the evaluation of hedge effectiveness and recorded in net interest revenue.

Cash flow hedges

Derivatives categorized as cash flow hedges are utilized to offset the variability of cash flows to be received from or paid on a floating-rate asset or liability. Gains and losses on cash flow hedges that are considered highly effective are recorded in accumulated OCI in our consolidated statement of condition until earnings are affected by the hedged item. When gains or losses are reclassified from accumulated OCI into earnings, they are recorded in net interest revenue in our consolidated statement of income. The ineffectiveness of cash flow hedges, defined as the extent to which the changes in fair value of the derivative exceeded the variability of cash flows of the forecasted transaction, is recorded in processing fees and other revenue.

We have entered into interest-rate swap agreements to modify our interest revenue from certain available-for-sale securities from a floating rate to a fixed rate. The securities hedged have a weighted-average life of approximately 2.8 years as of December 31, 2011, compared to 3.8 years as of December 31, 2010. These securities are hedged with interest-rate swap contracts of similar maturities, repricing and other characteristics. The interest-rate swap contracts convert the interest revenue from a floating rate to a fixed rate, thereby mitigating our exposure to fluctuations in the cash flows of the securities attributable to changes in the benchmark interest rate.

The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments entered into in connection with trading and asset and liability management activities as of the dates indicated:

 

(In millions)    December 31,
2011
     December 31,
2010
 

Derivatives not designated as hedging instruments:

     

Interest-rate contracts:

     

Swap agreements and forwards

   $ 238,008       $ 52,383   

Options and caps purchased

     1,431         140   

Options and caps written

     1,324         130   

Futures

     66,620         25,253   

Foreign exchange contracts:

     

Forward, swap and spot

     1,033,045         637,847   

Options purchased

     11,215         14,299   

Options written

     12,342         14,587   

Credit derivative contracts:

     

Credit default swap agreements

     105         155   

Other:

     

Stable value contracts

     40,963         46,758   

Derivatives designated as hedging instruments:

     

Interest-rate contracts:

     

Swap agreements

     3,872         1,886   

Foreign exchange contracts:

     

Forwards

     2,613         —     

 

In connection with our asset and liability management activities, we have entered into interest-rate contracts designated as fair value and cash flow hedges to manage our interest-rate risk. The following table presents the aggregate notional amounts of these interest-rate contracts and the related assets or liabilities being hedged as of the dates indicated:

 

The following table presents the contractual and weighted-average interest rates for long-term debt, which include the effects of the hedges presented in the table above, for the years indicated:

     Years Ended December 31,  
     2011     2010  
     Contractual
Rates
    Rate Including
Impact of Hedges
    Contractual
Rates
    Rate Including
Impact of Hedges
 

Long-term debt

     3.64     3.22     3.70     3.30

For cash flow hedges, any changes in the fair value of the derivative financial instruments remain in accumulated OCI and are generally recorded in our consolidated statement of income in future periods when earnings are affected by the variability of the hedged cash flow.

The following table presents the fair value of the derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is disclosed in note 13.

Asset Derivatives      Liability Derivatives  
      December 31, 2011      December 31, 2011  
(In millions)    Balance Sheet
Location
   Fair
Value
     Balance Sheet
Location
   Fair
Value
 

Derivatives not designated as hedging instruments:

           

Foreign exchange contracts

   Other assets    $ 12,210       Other liabilities    $ 12,315   

Interest-rate contracts

   Other assets      1,682       Other liabilities      1,688   

Other derivative contracts

   Other assets      1       Other liabilities      10   
     

 

 

       

 

 

 

Total

      $ 13,893          $ 14,013   
     

 

 

       

 

 

 

Derivatives designated as hedging instruments:

           

Interest-rate contracts

   Other assets    $ 123       Other liabilities    $ 293   

Foreign exchange contracts

   Other assets      3       Other liabilities      37   
     

 

 

       

 

 

 

Total

      $ 126          $ 330   
     

 

 

       

 

 

 

 

   

Asset Derivatives

    

Liability Derivatives

 
    

December 31, 2010

    

December 31, 2010

 
(In millions)  

Balance Sheet
Location

   Fair
Value
    

Balance Sheet
Location

   Fair
Value
 

Derivatives not designated as hedging instruments:

          

Foreign exchange contracts

  Other assets    $ 8,058       Other liabilities    $ 8,455   

Interest-rate contracts

  Other assets            133       Other liabilities          131   

Other derivative contracts

  Other assets      2       Other liabilities      10   
    

 

 

       

 

 

 

Total

     $ 8,193          $ 8,596   
    

 

 

       

 

 

 

Derivatives designated as hedges:

          

Interest-rate contracts

  Other assets    $ 32       Other liabilities    $ 228   
    

 

 

       

 

 

 

Total

     $ 32          $ 228   
    

 

 

       

 

 

 

The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the years indicated:

 

Differences between the gains (losses) on the derivative and the gains (losses) on the hedged item, excluding any amounts recorded in net interest revenue, represent hedge ineffectiveness.

 

    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
 
    Year Ended December 31,         Year Ended December 31,         Year Ended December 31,  
(In millions)   2011     2010     2009         2011     2010     2009         2011     2010     2009  

Derivatives designated as cash flow hedges:

                     

Interest-rate contracts

  $ 9      $ 7      $ 14      Net interest

revenue

  $ (7   $ (7          Net interest

revenue

  $ 3      $ 5          
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Total

  $ 9      $ 7      $ 14        $ (7   $ (7            $ 3      $ 5          
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

 

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Net Interest Revenue
12 Months Ended
Dec. 31, 2011
Net Interest Revenue [Abstract]
Net Interest Revenue

Note 17.     Net Interest Revenue

The following table presents the components of interest revenue and interest expense, and related net interest revenue, for the years ended December 31:

 

(In millions)    2011      2010      2009  

Interest revenue:

        

Deposits with banks Investment securities:

   $ 149       $ 93       $ 156   

U.S. Treasury and federal agencies

     775         682         520   

State and political subdivisions

     221         222         225   

Other investments

     1,493         2,109         2,075   

Securities purchased under resale agreements and federal funds sold

     28         24         24   

Loans and leases(1)

     278         329         239   

Trading account assets

                     20   

Interest revenue associated with AMLF(2)

                     25   

Other interest-earning assets

     2         3         2   
  

 

 

    

 

 

    

 

 

 

Total interest revenue

     2,946         3,462         3,286   

Interest expense:

        

Deposits

     220         213         195   

Short-term borrowings(1)

     96         257         200   

Long-term debt

     289         286         304   

Interest expense associated with AMLF(2)

                     18   

Other interest-bearing liabilities

     8         7         5   
  

 

 

    

 

 

    

 

 

 

Total interest expense

     613         763         722   
  

 

 

    

 

 

    

 

 

 

Net interest revenue

   $ 2,333       $ 2,699       $ 2,564   
  

 

 

    

 

 

    

 

 

 

(1) 

Amounts for 2010 included $67 million of interest revenue and interest expense related to the third-party asset-backed securitization trusts consolidated into our financial statements on January 1, 2010 in connection with our adoption of new GAAP. These trusts were de-consolidated in June 2010.

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Employee Benefits
12 Months Ended
Dec. 31, 2011
Employee Benefits [Abstract]
Employee Benefits

Note 18.     Employee Benefits

State Street Bank and certain of its U.S. subsidiaries participate in a non-contributory, tax-qualified defined benefit pension plan. Since January 1, 2008, when the plan was amended, we no longer make employer contribution credits to the plan; employee account balances earn annual interest credits until the employee's retirement. In addition to the defined benefit pension plan, we have non-qualified unfunded supplemental retirement plans, referred to as SERPs, that provide certain officers with defined pension benefits in excess of allowable qualified plan limits. Non-U.S. employees participate in local defined benefit plans. State Street Bank and certain of its U.S. subsidiaries participate in a post-retirement plan that provides health care and insurance benefits for certain retired employees.

 

The following tables present combined information for the U.S. and non-U.S. defined benefit plans, and information for the post-retirement plan, as of the December 31 measurement date:

     Primary U.S.
and Non-U.S.
Defined
Benefit Plans
    Post-Retirement
Plan
 
(In millions)    2011     2010     2011     2010  

Benefit obligations:

        

Beginning of year

   $ 905      $ 808      $ 114      $ 112   

Service cost

     9        11        6        5   

Interest cost

     47        44        6        6   

Employee contributions

     1        1        —          —     

Plan amendments

     (4     —          —          —     

Acquisitions and transfers

     30        3        —          —     

Actuarial losses (gains)

     67        72        (5     (4

Benefits paid

     (28     (28     (9     (7

Expenses paid

     (1     —          —          —     

Settlements

     (1     (2     —          —     

Foreign currency translation

     (8     (4     —          —     

Adjustment for rounding

     —          —          —          2   
  

 

 

   

 

 

   

 

 

   

 

 

 

End of year

   $ 1,017      $ 905      $ 112      $ 114   
  

 

 

   

 

 

   

 

 

   

 

 

 

Plan assets at fair value:

        

Beginning of year

   $ 884      $ 828       

Actual return on plan assets

     50        84       

Employer contributions

     8        8      $ 9      $ 7   

Acquisitions and transfers

     21        (2     —          —     

Benefits paid

     (28     (28     (9     (7

Expenses paid

     (1     —          —          —     

Plan settlements

     (1     (2     —          —     

Foreign currency translation

     (5     (4     —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

End of year

   $ 928      $ 884      $ —        $ —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Accrued benefit expense:

        

Funded status (plan assets less benefit obligations)

   $ (89   $ (21   $ (112   $ (114
  

 

 

   

 

 

   

 

 

   

 

 

 

Net accrued benefit expense

   $ (89   $ (21   $ (112   $ (114
  

 

 

   

 

 

   

 

 

   

 

 

 
     Primary U.S.
and Non-U.S.
Defined
Benefit Plans
    Post-
Retirement
Plan
 
(In millions)    2011     2010     2011     2010  

Amounts recognized in our consolidated statement of condition as of December 31:

        

Non-current assets

   $ 45      $ 26       

Current liabilities

     (1     (2   $ (6   $ (9

Non-current liabilities

     (133     (45     (106     (105
  

 

 

   

 

 

   

 

 

   

 

 

 

Net accrued amount recognized in statement of condition

   $ (89   $ (21   $ (112   $ (114
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts recognized in accumulated other comprehensive income:

        

Prior service credit

     $ (4   $ 3      $ 4   

Net loss

   $ (307     (242     (36     (43
  

 

 

   

 

 

   

 

 

   

 

 

 

Accumulated other comprehensive loss

     (307     (246     (33     (39

Cumulative employer contributions in excess of net periodic benefit cost

     218        225        (79     (75
  

 

 

   

 

 

   

 

 

   

 

 

 

Net obligation recognized in our consolidated statement of condition

   $ (89   $ (21   $ (112   $ (114
  

 

 

   

 

 

   

 

 

   

 

 

 

Accumulated benefit obligation

   $ 999      $ 887       

Actuarial assumptions (U.S. Plans):

        

Used to determine benefit obligations as of December 31:

        

Discount rate

     4.50     5.50     4.50     5.50

Rate of increase for future compensation

            4.50                 

Used to determine periodic benefit cost for the years ended December 31:

        

Discount rate

     5.50     6.00     5.50     6.00

Rate of increase for future compensation

     4.50        4.50                 

Expected long-term rate of return on plan assets

     7.25        7.25                 

Assumed health care cost trend rates as of December 31:

        

Cost trend rate assumed for next year

                   7.80     7.62

Rate to which the cost trend rate is assumed to decline

                   4.50        4.50   

Year that the rate reaches the ultimate trend rate

                   2029        2026   

The following table presents expected benefit payments for the next ten years:

(In millions)    Primary U.S.
and  Non-U.S.
Defined
Benefit Plans
     Non-
Qualified
SERPs
     Post-Retirement
Plan
 

2012

   $ 33       $ 27       $ 6   

2013

     33         13         6   

2014

     34         12         7   

2015

     35         14         7   

2016

     27         13         7   

2017-2021

     169         59         35   

The accumulated benefit obligation for all of our U.S. defined benefit pension plans was $872 million and $784 million at December 31, 2011, and 2010, respectively.

 

To develop the assumption of the expected long-term rate of return on plan assets, we considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. This analysis resulted in the determination of the assumed long-term rate of return on plan assets of 7.25% for the year ended December 31, 2011.

Plan Assets:

The primary purpose of the investment policy and strategy is to invest plan assets in a manner that provides for sufficient resources to be available to meet the plans' benefit and expense obligations when due. The portfolio, together with contributions, is intended to provide adequate liquidity to make benefit payments when due while preserving principal and maximizing returns, given appropriate risk constraints. A secondary but important objective is to enhance the plans' long-term viability through the generation of competitive returns that will limit the financial burden on State Street and contribute to our ability to maintain our retirement program.

Plan assets are managed solely in the interests of the participants and consistent with generally recognized fiduciary standards, including all applicable provisions of ERISA and other applicable laws and regulations. Management believes that its investment policy satisfies the standards of prudence and diversification prescribed by ERISA. Plan assets are diversified across asset classes to achieve a balance between risk and return and between income and growth of assets through capital appreciation, to produce a prudently well-diversified portfolio.

With respect to the U.S. pension plan, the plan assets are primarily invested in pooled investment funds of State Street Bank. The fair value of the participation units owned by the plans is based on the redemption value on the last business day of the plan year, where values are based on the fair value of the underlying assets in each fund. The net asset value of units of participation in other funds is based on the fair value of the underlying securities in each fund.

Alternative investments are composed of investments in limited liability corporations and limited liability partnerships. These investments are valued at fair value as determined by the fund managers, and represent the plans' proportionate share of the estimated fair value of the underlying net assets of the limited liability corporations.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or be reflective of future fair values. Furthermore, while management believes that its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement as of the reporting date.

With respect to the U.K. pension plan, the plan assets are invested in sub-funds of Managed Pension Funds Limited, a U.K.-incorporated insurance vehicle of which the ultimate parent company is State Street. These investments are valued based on the mid-market price of the underlying investments held by Managed Pension Funds Limited. This valuation method may produce a calculation that is not indicative of net realizable value or reflective of future fair values.

 

The following tables present, by level within the fair value hierarchy prescribed by GAAP, the plans' assets measured at fair value on a recurring basis, and activity related to assets categorized in level 3, as of the dates and for the periods indicated:

 

    Fair Value Measurements on a Recurring Basis
as of December 31, 2011
 
(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)
    Total Net
Carrying Value
 

Assets:

       

U.S. Pension Plan

       

Investments in pooled investment funds:

       

Domestic large cap equity

    $ 129        $ 129   

Domestic small cap equity

      14          14   

Developed international equities

      62          62   

Emerging markets equity

      28          28   

Investment grade fixed-income

      311          311   

High yield fixed-income

      26          26   

Real estate investment trusts

      23          23   

Alternative investments (commingled fund)

           $ 5        5   

Alternative investments (fund of funds)

             14        14   

Private equity

             2        2   

Cash

      6               6   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. Pension Plan

      —        599        21        620   
 

 

 

   

 

 

   

 

 

   

 

 

 

U.K. Pension Plan

       

Investments in pooled investment funds:

       

Developed international equity

      24               24   

U.K. fixed-income

      187               187   

Emerging market index

      8               8   

Alternative investments

             32        32   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total U.K. pension plan

           219        32        251   
 

 

 

   

 

 

   

 

 

   

 

 

 

Other Non-U.S. Pension Plans (Excluding U.K.)

       

Insurance group annuity contracts

             57        57   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Non-U.S. Pension Plans (Excluding U.K.)

                  57        57   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total assets carried at fair value

         $ 818      $ 110      $ 928   
 

 

 

   

 

 

   

 

 

   

 

 

 
    Fair Value Measurements Using Significant Unobservable Inputs
Year Ended December 31, 2011
 
    U.S. Pension Plans     U.K. Pension Plan     Non-U.S. Pension Plans
(Excluding U.K.)
 
(In millions)   Alternative
Investments
    Private
Equity
    Alternative
Investments
    Insurance group
annuity contract
 

Assets:

       

Fair value at December 31, 2010

  $ 19      $ 2      $ 33      $ 36   

Purchases and sales, net

                  (1     24   

Unrealized losses

                         (3
 

 

 

   

 

 

   

 

 

   

 

 

 

Fair value at December 31, 2011

  $ 19      $ 2      $ 32      $ 57   
 

 

 

   

 

 

   

 

 

   

 

 

 

 

 

    Fair Value Measurements on a Recurring Basis
as of December 31, 2010
 
(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)
    Total Net
Carrying Value
 

Assets:

       

U.S. Pension Plan

       

Investments in pooled investment funds:

       

Domestic large cap equity

    $ 120        $ 120   

Domestic small cap equity

      15          15   

Developed international equities

      67          67   

Emerging markets equity

      38          38   

Investment grade fixed-income

      308          308   

High yield fixed-income

      31          31   

Real estate investment trusts

      21          21   

Alternative investments (commingled fund)

           $ 5        5   

Alternative investments (fund of funds)

             14        14   

Private equity

             2        2   

Cash

      9               9   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. Pension Plan

      —        609        21        630   
 

 

 

   

 

 

   

 

 

   

 

 

 

U.K. Pension Plan

       

Investments in insurance vehicles:

       

Developed international equity

      33               33   

U.K. fixed-income

      144               144   

Emerging market index

      8               8   

Alternative investments

             33        33   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total U.K. pension plan

           185        33        218   
 

 

 

   

 

 

   

 

 

   

 

 

 

Other Non-U.S. Pension Plans (Excluding U.K.)

       

Insurance group annuity contracts

             36        36   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Non-U.S. Pension Plans (Excluding U.K.)

                  36        36   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total assets carried at fair value

         $ 794      $ 90      $ 884   
 

 

 

   

 

 

   

 

 

   

 

 

 
    Fair Value Measurements Using Significant Unobservable Inputs
Year Ended December 31, 2010
 
    U.S. Pension Plans     U.K. Pension Plan     Non-U.S. Pension Plans
(Excluding U.K.)
 
(In millions)   Alternative
Investments
    Private
Equity
    Alternative
Investments
    Insurance group
annuity contract
 

Assets:

       

Fair Value at December 31, 2009

  $ 13      $ 2      $ 24      $ 31   

Purchases and sales, net

    4               7        1   

Unrealized gains

    2               2        4   
 

 

 

   

 

 

   

 

 

   

 

 

 

Fair value at December 31, 2010

  $ 19      $ 2      $ 33      $ 36   
 

 

 

   

 

 

   

 

 

   

 

 

 

The plans' investment strategy is intended to reduce the concentration risk of an adverse influence on investment values from the poor performance of a small number of individual investments through diversification of the assets. The significant holdings of the plans are monitored each quarter so that the plans do not fall outside of the allowable maximum amount per issuer. The plans are re-balanced on a monthly basis so that actual weights of the plan assets are within the allowable ranges set forth in the investment policy. The plans' operating cash flows (benefit payments, expenses, contributions) are used to bring the weights back into line on a monthly basis. If these cash flows do not provide enough benefit, additional re-balancing is effected.

 

Expected employer contributions to the tax-qualified U.S. and Non-U.S. defined benefit pension plans, SERPs, and post-retirement plan for the year ending December 31, 2012 are $7 million, $27 million and $6 million, respectively.

State Street has unfunded SERPs that provide certain officers with defined pension benefits in excess of qualified plan limits imposed by U.S. federal tax law. Information for the SERPs was as follows for the years ended December 31:

 

     Non-Qualified SERPs  
(In millions)        2011             2010      

Benefit obligations:

    

Beginning of year

   $ 165      $ 182   

Service cost

     1        1   

Interest cost

     8        10   

Actuarial gain (losses)

     23        (2

Benefits paid

     (2     (2

Settlements

     (22     (24
  

 

 

   

 

 

 

End of year

   $ 173      $ 165   
  

 

 

   

 

 

 

Accrued benefit expense:

    

Funded status (plan assets less benefit obligations)

   $ (173   $ (165
  

 

 

   

 

 

 

Net accrued benefit expense

   $ (173   $ (165
  

 

 

   

 

 

 

Amounts recognized in our consolidated statement of condition as of December 31:

    

Current liabilities

   $ (27   $ (27

Non-current liabilities

     (146     (138
  

 

 

   

 

 

 

Net accrued amount recognized in our consolidated statement of condition

   $ (173   $ (165
  

 

 

   

 

 

 

Amounts recognized in accumulated other comprehensive income:

    

Net loss

   $ (58   $ (45
  

 

 

   

 

 

 

Accumulated other comprehensive loss

     (58     (45

Cumulative employer contributions in excess of net periodic benefit cost

     (115     (120
  

 

 

   

 

 

 

Net obligation recognized in our consolidated statement of condition

   $ (173   $ (165
  

 

 

   

 

 

 

Accumulated benefit obligation

   $ 173      $ 165   

Actuarial assumptions:

    

Assumptions used to determine benefit obligations and periodic benefit costs are consistent with those noted for the post-retirement plan, with the following exceptions:

    

Rate of increase for future compensation—SERPs

            4.75

Rate of increase for future compensation—Executive SERPs

     10.00     10.00   
For those defined benefit plans that have accumulated benefit obligations in excess of plan assets as of December 31, 2011 and 2010, the accumulated benefit obligations are $960 million and $231 million, respectively, and the plan assets are $671 million and $36 million, respectively.

For those defined benefit plans that have projected benefit obligations in excess of plan assets as of December 31, 2011 and 2010, the projected benefit obligations are $981 million and $263 million, respectively, and the plan assets are $674 million and $50 million, respectively.

If trend rates for health care costs were increased by 1%, the post-retirement benefit obligation as of December 31, 2011 would have increased 7%, and the aggregate expense for service and interest costs for 2011 would have increased 10%. Conversely, if trend rates for health care costs were decreased by 1%, the post-retirement benefit obligation as of December 31, 2011 would have decreased 6%, and the aggregate expense for service and interest costs for 2011 would have decreased 9%.

 

Certain of our U.S. employees are eligible to contribute a portion of their pre-tax salary to a 401(k) savings plan, or post-tax Roth contributions, or both, up to the annual IRS limit. Our matching portion of these contributions is paid in cash, and the related compensation and employee benefits expense recorded in our consolidated statement of income was $77 million, $71 million and $73 million for the years ended December 31, 2011, 2010 and 2009, respectively. In addition, employees in certain non-U.S. offices participate in other local plans. Expenses related to these plans were $65 million for the year ended December 31, 2011 and $45 million for each of the years ended December 31, 2010, and 2009.

We have a defined contribution supplemental executive retirement plan, referred to as a DC SERP, which provides for a discretionary contribution of cash and/or equity to certain executive officers. The amount is subject to certain vesting requirements as provided in the plan. We recorded compensation and employee benefits expense of $10 million for each of the years ended December 31, 2011, 2010, and 2009 in our consolidated statement of income related to this DC SERP.

Shares of common stock and interest in the savings plan may be acquired by eligible employees through the Employee Stock Ownership Plan, referred to as an ESOP. The ESOP is a non-leveraged plan. Employee benefits expense is equal to the contribution called for by the plan formula and is composed of the cash contributed for the purchase of common stock on the open market or the fair value of the shares contributed from treasury stock. Dividends on shares held by the ESOP are charged to retained earnings, and shares are treated as outstanding for the calculation of earnings per common share.

 

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Occupancy Expense And Information Systems And Communications Expense
12 Months Ended
Dec. 31, 2011
Occupancy Expense And Information Systems And Communications Expense [Abstract]
Occupancy Expense And Information Systems And Communications Expense

Note 19.    Occupancy Expense and Information Systems and Communications Expense

Occupancy expense and information systems and communications expense include expense for depreciation of buildings, leasehold improvements, computers, equipment and furniture and fixtures. Total depreciation expense for the years ended December 31, 2011, 2010 and 2009 was $368 million, $373 million and $380 million, respectively.

We lease 1,025,000 square feet at One Lincoln Street, our headquarters building located in Boston, Massachusetts, and a related 366,000-square-foot underground parking garage, under 20-year, non-cancelable capital leases expiring in September 2023. A portion of the lease payments is offset by subleases for 153,390 square feet of the building. In addition, we lease approximately 362,000 square feet at 20 Churchill Place, an office building located in the U.K., under a 20-year capital lease expiring in December 2028, with the option to cancel the lease after the first 15 years. As of December 31, 2011 and 2010, an aggregate net book value of $565 million and $606 million, respectively, related to the above-described capital leases was recorded in premises and equipment, with the related liability recorded in long-term debt in our consolidated statement of condition. Capital lease asset amortization is recorded in occupancy expense in our consolidated statement of income over the respective lease term. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. For the years ended December 31, 2011, 2010 and 2009, interest expense related to these capital lease obligations, reflected in net interest revenue, was $43 million, $44 million and $47 million, respectively. As of December 31, 2011 and 2010, accumulated amortization of capital lease assets was $273 million and $230 million, respectively.

We have entered into non-cancelable operating leases for premises and equipment. Nearly all of these leases include renewal options. Costs related to operating leases for office space are recorded in occupancy expense. Costs related to operating leases for computers and equipment are recorded in information systems and communications expense.

Total rental expense, net of sublease revenue, amounted to $232 million, $241 million and $230 million for the years ended December 31, 2011, 2010 and 2009, respectively. Total rental expense was reduced by sublease revenue of $12 million for the years ended December 31, 2011 and 2010 and $17 million for the year ended December 31, 2009.

The following table presents a summary of future minimum lease payments under non-cancelable capital and operating leases as of December 31, 2011. Aggregate future minimum rental commitments have been reduced by aggregate sublease rental commitments of $32 million for capital leases and $19 million for operating leases.

 

(In millions)    Capital
Leases
    Operating
Leases
     Total  

2012

   $ 68      $ 237       $ 305   

2013

     68        207         275   

2014

     68        182         250   

2015

     67        132         199   

2016

     71        96         167   

Thereafter

     647        275         922   
  

 

 

   

 

 

    

 

 

 

Total minimum lease payments

     989      $ 1,129       $ 2,118   
    

 

 

    

 

 

 

Less amount representing interest payments

     (327     
  

 

 

      

Present value of minimum lease payments

   $ 662        
  

 

 

      
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Acquisition And Restructuring Costs
12 Months Ended
Dec. 31, 2011
Acquisition And Restructuring Costs [Abstract]
Acquisition And Restructuring Costs
Note 20. Acquisition and Restructuring Costs

The following table presents acquisition and restructuring costs incurred during the years ended December 31:

 

(In millions)    2011      2010      2009  

Acquisition costs

   $ 16       $ 89       $ 49   

Restructuring charges

     253         156         —     
  

 

 

    

 

 

    

 

 

 

Total

   $ 269       $ 245       $ 49   
  

 

 

    

 

 

    

 

 

 

Acquisition Costs:

The acquisition costs incurred in 2011 were composed of $71 million of integration costs incurred primarily in connection with our acquisitions of BIAM, the Intesa securities services business and MIFA. These costs were offset by a $55 million tax indemnification benefit for an income tax claim related to the 2010 acquisition of the Intesa securities services business. Refer to note 2 for additional information with respect to this tax indemnification. The 2010 costs were composed of integration costs primarily associated with the acquisitions of the Intesa securities services business and MIFA.

Restructuring Charges:

The restructuring charges of $253 million incurred in 2011, more fully described below, included $133 million related to the business operations and information technology transformation program and $120 million related to expense control measures.

Business Operations and Information Technology Transformation Program

In November 2010, we announced a global multi-year business operations and information technology transformation program. The program includes operational, information technology and targeted cost initiatives, including plans related to reductions in both staff and occupancy costs. To date, we have recorded aggregate pre-tax restructuring charges of $289 million, composed of $133 million in 2011 and $156 million in 2010.

The charges related to the program include costs associated with severance, benefits and outplacement services, as well as costs which resulted from actions taken to reduce our occupancy costs through consolidation of real estate. In addition, the charges include costs related to information technology, including transition fees associated with the expansion of our use of service providers associated with components of our information technology infrastructure and application maintenance and support.

In 2010, in connection with the program, we initiated a reduction of 1,400 employees, or approximately 5% of our global workforce, which was substantially completed at the end of 2011. In addition, in the third quarter of 2011, in connection with the expansion of our use of service providers associated with our information technology infrastructure and application maintenance and support, we identified 530 employees who will be provided with severance and outplacement services as their roles are eliminated. As of December 31, 2011, in connection with the planned aggregate staff reductions of 1,930 employees described above, 1,332 employees had been involuntarily terminated and left State Street, including 782 employees in 2011.

Expense Control Measures

During the fourth quarter of 2011, in connection with expense control measures designed to calibrate our expenses to our outlook for our capital markets-facing businesses in 2012, we took two actions. First, we withdrew from our fixed-income trading initiative, under which we traded in fixed-income securities and derivatives as principal with our custody clients and other third-parties that trade in these securities and derivatives. Second, we undertook other targeted staff reductions. As a result of these actions, we recorded restructuring charges of $120 million in our 2011 consolidated statement of income.

 

The charges included costs related to severance, benefits and outplacement services related to both the withdrawal from the fixed-income initiative and the other targeted staff reductions. In addition, the charges included costs associated with fair- value adjustments to the initiative's trading portfolio resulting from our decision to withdraw from the initiative, and costs related to other asset write-downs and contract terminations. In connection with the employee-related actions, we identified 442 employees who will be provided with severance and outplacement services as their roles are eliminated. As of December 31, 2011, 15 employees had been involuntarily terminated and left State Street, and an additional 184 employees were involuntarily terminated and left State Street in January 2012.

The following table presents aggregate activity associated with accruals that resulted from the charges associated with the business operations and information technology transformation program and expense control measures, for the years indicated:

(In millions)    Employee-
Related
Costs
    Real Estate
Consolidation
    Information
Technology
Costs
    Fixed-Income
Trading
Portfolio
     Asset and
Other Write-
offs
    Total  

Initial restructuring-related accrual

   $ 105      $ 51             $ 156   

Payments

     (15     (4            (19
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Balance at December 31, 2010

     90        47               137   

Additional accruals for business operations and information technology transformation program

     85        7      $ 41             133   

Accruals for expense control measures

     62        —          —        $ 38       $ 20        120   

Payments and adjustments

     (75     (15     (8     —           (5     (103
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Balance at December 31, 2011

   $ 162      $ 39      $ 33      $ 38       $ 15      $ 287   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 
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Other Expenses
12 Months Ended
Dec. 31, 2011
Other Expenses [Abstract]
Other Expenses

Note 21.    Other Expenses

In 2010, we recorded an aggregate pre-tax charge of $414 million, including associated legal costs of $9 million, in our consolidated statement of income with respect to the cash collateral pools underlying SSgA-managed investment funds engaged in securities lending, as well as the cash collateral pools underlying our agency lending program. In connection with the charge, we made a one-time cash contribution of $330 million to the cash collateral pools and liquidating trusts underlying the SSgA lending funds. In light of our assessment with respect to previously disclosed asserted and unasserted claims and our evaluation of the ultimate resolution of such claims, as well as the effect of the redemption restrictions originally imposed by SSgA on the lending funds and other considerations, we elected to make the cash contribution, which restored the net asset value per unit of the underlying cash collateral pools to $1.00 as of June 30, 2010. As a result of this action, SSgA removed the redemption restrictions from the SSgA lending funds in August 2010.

The pre-tax charge also included the establishment of a $75 million reserve to address potential inconsistencies in connection with our implementation of the redemption restrictions applicable to the collateral pools underlying our agency lending program. This charge was based on the results of a review of our implementation of the redemption restrictions with respect to participants in the agency lending collateral pools, and our assessment of the amount required to compensate clients for the dilutive effect of redemptions which may not have been consistent with the intent of the policy. In May 2011, we distributed substantially all of the reserve to "net providers" of liquidity in such pools, equal to the estimated excess liquidity used by "net consumers" of liquidity in those pools.

 

In 2009, the Staff of the SEC provided State Street Bank with a "Wells" notice related to the SEC's ongoing investigation into disclosures and management by SSgA of certain of its active fixed-income strategies during 2007 and prior periods. Subsequent to the receipt of the Wells notice, we engaged in discussions with the SEC and other governmental and regulatory authorities regarding a potential settlement of this matter. Based on such discussions in 2009, we determined it appropriate to increase our reserve, initially established in 2007 to address litigation exposure and other costs associated with SSgA's management of these fixed-income strategies, by $250 million, to take into account such a potential settlement with these governmental authorities and the other ongoing litigation related to the active fixed-income strategies. As a result, we recorded a provision of $250 million in our 2009 consolidated statement of income related to our estimate of this legal exposure. We settled regulatory inquiries related to this exposure in 2010.

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Income Taxes
12 Months Ended
Dec. 31, 2011
Income Taxes [Abstract]
Income Taxes
Note 22. Income Taxes

The following table presents the components of income tax expense for the years ended December 31:

 

(In millions)    2011      2010     2009  

Current:

       

Federal

   $ 49       $ (885   $ 75   

State

     54         15        39   

Non-U.S.

     295         156        157   
  

 

 

    

 

 

   

 

 

 

Total current expense (benefit)

     398         (714     271   

Deferred:

       

Federal

     134         745        383   

State

     8         141        28   

Non-U.S.

     76         358        40   
     

 

 

   

 

 

 

Total deferred expense

     218         1,244        451   

Total income tax expense

   $ 616       $ 530      $ 722   
     

 

 

   

 

 

 

The amounts for 2011 presented in the table included income tax expense of $55 million associated with an indemnification benefit for an income tax claim related to the 2010 acquisition of the Intesa securities services business (refer to note 2). The amounts for 2009 presented in the table excluded an income tax benefit of $2.41 billion associated with the extraordinary loss recorded in connection with the conduit consolidation.

Amounts of income tax expense (benefit) related to net gains (losses) from sales of investment securities were $55 million, $(98) million and $147 million for 2011, 2010 and 2009, respectively. Pre-tax income attributable to our operations located outside the U.S. was $1.70 billion, $1.34 billion and $801 million for 2011, 2010 and 2009, respectively.

Pre-tax earnings of our non-U.S. subsidiaries are subject to U.S. income tax when effectively repatriated. As of December 31, 2011, we have chosen to indefinitely reinvest $2.2 billion of the retained earnings of certain of our non-U.S. subsidiaries. No provision has been recorded for U.S. income taxes that could be incurred upon repatriation, and determining the tax liability that could be incurred upon repatriation is not practicable.

 

The following table presents significant components of deferred tax liabilities and assets as of December 31:

(In millions)    2011     2010  

Deferred tax liabilities:

    

Lease financing transactions

   $ 397      $ 463   

Fixed and intangible assets

     1,067        1,029   

Other

     21        122   
  

 

 

   

 

 

 

Total deferred tax liabilities

   $ 1,485      $ 1,614   
  

 

 

   

 

 

 

Deferred tax assets:

    

Foreign currency translation

   $ 2      $ 70   

Unrealized losses on securities, net

     651        1,083   

Deferred compensation

     162        183   

Defined benefit pension plan

     180        121   

Expenses

     141        177   

Real estate

     28        33   

Other

     104        137   
  

 

 

   

 

 

 

Total deferred tax assets

     1,268        1,804   
  

 

 

   

 

 

 

Valuation allowance for deferred tax assets

     (19     (18
  

 

 

   

 

 

 

Deferred tax assets net of valuation allowance

   $ 1,249      $ 1,786   
  

 

 

   

 

 

 
Management considers the valuation allowance adequate to reduce the total deferred tax assets to an aggregate amount that will more likely than not be realized. Management has determined that a valuation allowance is not required for the remaining deferred tax assets because it is more likely than not that there is sufficient taxable income of the appropriate nature within the carryback and carryforward periods to realize these assets. As of December 31, 2011 and 2010, we had deferred tax assets associated with non-U.S. and state loss carryforwards of $34 million and $26 million, respectively, included in "other" in the above table. Loss carryforwards expire in 2012 through 2031.

The following table presents a reconciliation of the U.S. statutory income tax rate to the effective tax rate based on income before income tax expense, excluding the aforementioned extraordinary loss for 2009, for the years ended December 31:

 

 

The following table presents activity related to unrecognized tax benefits as of December 31:

 

(In millions)    2011     2010  

Balance at beginning of year

   $ 446      $ 386   

Increase (Decrease) related to agreements with tax authorities

     (322     27   

Increase related to tax positions taken during current year

     1        33   
  

 

 

   

 

 

 

Balance at end of year

   $ 125      $ 446   
  

 

 

   

 

 

 

The balance as of December 31, 2011 presented in the table included $112 million of tax positions considered highly certain to ultimately result in tax deductions or credits, but for which the timing of such deductions or credits is uncertain. It is reasonably possible that unrecognized tax benefits will decrease by up to $44 million over the next 12 months as a result of amendments of state tax filings consistent with our agreement with the IRS to close their review of the tax years 2000—2006. Refer to note 10 for additional information about the agreement.

We record interest and penalties related to income taxes as a component of income tax expense. Income tax expense for 2011 and 2009 included related interest and penalties of approximately $10 million and $3 million, respectively. Income tax expense for 2010 included no interest and penalties. We had recorded accrued interest of approximately $8 million and $65 million as of December 31, 2011 and 2010, respectively.

We are presently under audit by a number of tax authorities. The earliest tax year open to examination in jurisdictions where we have material operations is 2007. Management believes that we have sufficient accrued liabilities as of December 31, 2011 for tax exposures and related interest expense.

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Earnings Per Common Share
12 Months Ended
Dec. 31, 2011
Earnings Per Common Share [Abstract]
Earnings Per Common Share

Note 23.     Earnings Per Common Share

The following table presents the computation of basic and diluted earnings per common share for the years ended December 31:

 

(Dollars in millions, except per share amounts)    2011     2010     2009  

Net income before extraordinary loss

   $ 1,920      $ 1,556      $ 1,803   

Less:

      

Prepayment and accretion of preferred stock discount

                   (117

Preferred stock dividends

     (20            (46

Dividends and undistributed earnings allocated to participating securities(1)

     (18     (16       
  

 

 

   

 

 

   

 

 

 

Net income before extraordinary loss available to common shareholders

   $ 1,882      $ 1,540      $ 1,640   
  

 

 

   

 

 

   

 

 

 

Average shares outstanding (in thousands):

      

Basic average shares

     492,598        495,394        470,602   

Effect of dilutive securities: stock options and stock awards

     3,474        2,530        3,401   
  

 

 

   

 

 

   

 

 

 

Diluted average shares

     496,072        497,924        474,003   
  

 

 

   

 

 

   

 

 

 

Anti-dilutive securities(2)

     2,382        10,316        12,904   

Earnings per common share before extraordinary loss:

      

Basic

   $ 3.82      $ 3.11      $ 3.50   

Diluted(3)

     3.79        3.09        3.46   

(1) 

Represented the portion of net income available to common equity allocated to participating securities; participating securities, composed of unvested restricted stock and director stock, have non-forfeitable rights to dividends during the vesting period on a basis equivalent to dividends paid to common shareholders.

 

(2)

Represented stock options, restricted stock and other securities outstanding but not included in the computation of diluted average shares because their effect was anti-dilutive.

 

(3)

Calculations for 2011 and 2010 reflected the allocation of earnings to participating securities using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.

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Line Of Business Information
12 Months Ended
Dec. 31, 2011
Line Of Business Information [Abstract]
Line Of Business Information

 

Note 24.     Line of Business Information

We have two lines of business: Investment Servicing and Investment Management. Given our services and management organization, the results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry.

Investment Servicing provides services for U.S. mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations and endowments worldwide. Products include custody, product-and-participant-level accounting, daily pricing and administration; master trust and master custody; recordkeeping; foreign exchange, brokerage and other trading services; securities finance; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; and performance, risk and compliance analytics to support institutional investors. We provide shareholder services, which include mutual fund and collective investment fund shareholder accounting, through 50%-owned affiliates, Boston Financial Data Services, Inc. and the International Financial Data Services group of companies.

Investment Management, through SSgA, provides a broad range of investment management strategies, specialized investment management advisory services and other financial services, such as securities finance, for corporations, public funds, and other sophisticated investors. Management strategies offered by SSgA include passive and active, such as enhanced indexing and hedge fund strategies, using quantitative and fundamental methods for both U.S. and non-U.S. equity and fixed-income securities. SSgA also offers exchange-traded funds.

Our investment servicing strategy is to focus on total client relationships and the full integration of our products and services across our client base through cross-selling opportunities. In general, a client will use a combination of services, depending on their needs, rather than one product or service. For instance, a custody client may purchase securities finance and cash management services from different business units. Products and services that we provide to our clients are parts of an integrated offering to these clients. We price our products and services on the basis of overall client relationships and other factors; as a result, revenue may not necessarily reflect the stand-alone market price of these products and services within the business lines in the same way it would for independent business entities.

Generally, approximately two-thirds of our consolidated total revenue (fee revenue from investment servicing and investment management, as well as trading services and securities finance activities) is generated by these two business lines. The remaining one-third is composed of processing and other fee revenue, net interest revenue, which is largely generated by the investment of client deposits in a variety of assets, and net gains (losses) related to investment securities. These other revenue types are generally fully allocated to, or reside in, Investment Servicing and Investment Management.

Revenue and expenses are directly charged or allocated to the lines of business through management information systems. Assets and liabilities are allocated according to policies that support management's strategic and tactical goals. Capital is allocated based on risk-weighted assets and management's judgment. Capital allocations may not be representative of the capital that might be required if these lines of business were independent business entities.

The following is a summary of our line of business results. The "Other" column for 2011 represented integration costs associated with acquisitions and restructuring charges associated with our business operations and information technology transformation program ($133 million) and expense control measures ($120 million), more fully described in note 20. The "Other" column for 2010 represented the net loss from sales of investment securities associated with the December 2010 investment portfolio repositioning, more fully described in note 3, and restructuring charges associated with our business operations and information technology transformation program and integration costs associated with acquisitions, both more fully described in note 20. The amounts presented in the "Other" column for 2009 represented net interest revenue earned in connection with our participation in the Federal Reserve's AMLF and integration costs recorded in connection with our 2007 acquisition of Investors Financial. The amounts in the "Other" columns were not allocated to State Street's business lines.

 

In 2011, management revised its methodology with respect to funds transfer pricing, which is used in the measurement of business unit net interest revenue. Net interest revenue and average assets for 2010 have been restated for comparative purposes to reflect the revised methodology. Amounts for 2009 were not restated.

 

 
    Investment
Servicing
    Management
Investment
    Other     Total  
Years ended December 31,   2011     2010     2009     2011     2010     2009     2011     2010     2009     2011     2010     2009  
(Dollars in millions, except where
otherwise noted)
                                                                       

Fee revenue:

                       

Servicing fees

  $ 4,382      $ 3,938      $ 3,334                  $ 4,382      $ 3,938      $ 3,334   

Management fees

                       $ 917      $ 829      $ 766              917        829        766   

Trading services

    1,220        1,106        1,094                                   1,220        1,106        1,094   

Securities finance

    333        265        387        45        53        183              378        318        570   

Processing fees and other

    195        225        72        102        124        99              297        349        171   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

         

 

 

   

 

 

   

 

 

 

Total fee revenue

    6,130        5,534        4,887        1,064        1,006        1,048              7,194        6,540        5,935   

Net interest revenue

    2,181        2,553        2,489        152        146        68          $ 7        2,333        2,699        2,564   

Gains (Losses) related to investment securities, net

    67        58        141                             $ (344            67        (286     141   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

    8,378        8,145        7,517        1,216        1,152        1,116          (344     7        9,594        8,953        8,640   

Provision for loan losses

           25        148                      1                               25        149   

Expenses from operations

    5,889        5,430        4,920        900        753        747                        6,789        6,183        5,667   

Securities lending charge

           75                      339                                      414          

Provision for fixed-income litigation exposure

                                       250                                      250   

Acquisition costs

                                            $ 16        89        49        16        89        49   

Restructuring charges

                                              253        156               253        156          
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    5,889        5,505        4,920        900        1,092        997        269        245        49        7,058        6,842        5,966   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes

  $ 2,489      $ 2,615      $ 2,449      $ 316      $ 60      $ 118      $ (269   $ (589   $ (42   $ 2,536      $ 2,086      $ 2,525   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Pre-tax margin

    30     32     33     26     5     11           26     23     29

Average assets (in billions)

  $ 169.4      $ 146.9      $ 143.7      $ 5.4      $ 5.1      $ 3.1            $ 174.8      $ 152.0      $ 146.8   
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Non-U.S. Activities
12 Months Ended
Dec. 31, 2011
Non-U.S. Activities [Abstract]
Non-U.S. Activities

Note 25.     Non-U.S. Activities

We define our non-U.S. activities as those revenue-producing assets and business activities that arise from clients domiciled outside the U.S. Due to the nature of our business, precise segregation of our U.S. and non-U.S. activities is not possible. Subjective judgments have been applied to determine results of operations related to our non-U.S. activities, including our application of funds transfer pricing and our asset and liability management policies. Interest expense allocations are based on the average cost of short-term borrowings.

The following table presents our non-U.S. financial results for the years ended December 31. Effective January 1, 2011, management revised its methodology with respect to funds transfer pricing, which is used in the measurement of net interest revenue related to non-U.S. activities. Prior-year net interest revenue amounts were not restated to reflect the revised methodology.

(In millions)    2011     2010      2009  

Total fee revenue

   $ 3,004      $ 2,661       $ 2,291   

Net interest revenue

     1,104        725         422   

Gains (Losses) related to investment securities, net

     (25     449         (37
  

 

 

   

 

 

    

 

 

 

Total revenue

     4,083        3,835         2,676   

Expenses

     3,415        2,962         2,457   
  

 

 

   

 

 

    

 

 

 

Income before income taxes

     668        873         219   

Income tax expense

     172        327         84   
  

 

 

   

 

 

    

 

 

 

Net income

   $ 496      $ 546       $ 135   
  

 

 

   

 

 

    

 

 

 

Non-U.S. revenue for 2011 and 2010 included $1.04 billion and $1.18 billion, respectively, in the U.K., primarily from our London operations.

 

The following table presents the significant components of our non-U.S. assets as of December 31, based on the domicile of the underlying counterparties:

(In millions)      2011         2010   

Interest-bearing deposits with banks

   $ 10,772       $ 9,443   

Non-U.S. investment securities

     25,376         19,329   

Other assets

     15,518         13,994   
  

 

 

    

 

 

 

Total assets

   $ 51,666       $ 42,766   
  

 

 

    

 

 

 
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Parent Company Financial Statements
12 Months Ended
Dec. 31, 2011
Parent Company Financial Statements [Abstract]
Parent Company Financial Statements
Note 26. Parent Company Financial Statements

The following tables present the financial statements of the parent company without consolidation of its banking and non-banking subsidiaries, as of and for the years ended December 31:

STATEMENT OF INCOME

 

Years ended December 31,    2011     2010     2009  
(In millions)                   

Cash dividends from consolidated banking subsidiary

     $ 1,400      $ 250   

Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities

   $ 60        100        25   

Other, net

     34        9        (11
  

 

 

   

 

 

   

 

 

 

Total revenue

     94        1,509        264   

Interest expense

     203        162        178   

Other expenses

     60        421        53   
  

 

 

   

 

 

   

 

 

 

Total expenses

     263        583        231   

Income tax benefit

     (125     (93     (38
  

 

 

   

 

 

   

 

 

 

Income (Loss) before equity in undistributed income of consolidated subsidiaries and unconsolidated entities

     (44     1,019        71   

Extraordinary loss, net of taxes

     —          —          (20

Equity in undistributed income (loss) of consolidated subsidiaries and unconsolidated entities:

      

Consolidated banking subsidiary

     1,773        484        (1,987

Consolidated non-banking subsidiaries and unconsolidated entities

     191        53        55   
  

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 1,920      $ 1,556      $ (1,881
  

 

 

   

 

 

   

 

 

 

 

STATEMENT OF CONDITION

 

As of December 31,    2011      2010  
(In millions)              

Assets:

     

Interest-bearing deposits with consolidated banking subsidiary

   $ 4,914       $ 5,058   

Trading account assets

     138         122   

Investment securities available for sale

     25         24   

Investments in subsidiaries:

     

Consolidated banking subsidiary

     18,724         16,697   

Consolidated non-banking subsidiaries

     2,340         2,299   

Unconsolidated entities

     326         297   

Notes and other receivables from:

     

Consolidated banking subsidiary

     618         —     

Consolidated non-banking subsidiaries and unconsolidated entities

     302         283   

Other assets

     994         850   

Total assets

   $ 28,381       $ 25,630   
  

 

 

    

 

 

 

Liabilities:

     

Commercial paper

   $ 2,384       $ 2,799   

Accrued taxes, expenses and other liabilities due to:

     

Consolidated banking subsidiary

     —           561   

Third parties

     276         161   

Long-term debt

     6,323         4,322   
  

 

 

    

 

 

 

Total liabilities

     8,983         7,843   

Shareholders' equity

     19,398         17,787   
  

 

 

    

 

 

 

Total liabilities and shareholders' equity

   $ 28,381       $ 25,630   
  

 

 

    

 

 

 

STATEMENT OF CASH FLOWS

 

Years ended December 31,    2011     2010     2009  
(In millions)                   

Net cash (used in) provided by operating activities

   $ (571   $ 1,453      $ (24

Investing Activities:

      

Net (increase) decrease in interest-bearing deposits with banking subsidiary

     144        (831     (1,457

Proceeds from sales and maturities of available-for-sale securities

            1        36   

Net decrease in securities related to AMLF

                   3,104   

Investments in non-banking subsidiaries and unconsolidated entities

     (648     (277     (776

Sale of investment in non-banking subsidiaries and unconsolidated entities

     39        127          

Business acquisitions

     (51     (141       
  

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by investing activities

     (516     (1,121     907   

Financing Activities:

      

Net decrease in short-term borrowings related to AMLF

                   (3,063

Net (decrease) increase in commercial paper

     (415     22        189   

Proceeds from issuance of long-term debt, net of issuance costs

     1,986               1,992   

Payments for long-term debt

            (300       

Proceeds from issuance of preferred stock

     500                 

Redemption of TARP preferred stock

                   (2,000

Proceeds from public offering of common stock, net of issuance costs

                   2,231   

Repurchase of TARP common stock warrant

                   (60

Purchases of common stock

     (675              

Proceeds from exercises of common stock options

     40        10        34   

Repurchases of common stock for employee tax withholding

     (63     (44     (38

Proceeds from issuances of treasury stock for common stock awards and option exercises

     9                 

Payments for cash dividends

     (295     (20     (168
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     1,087        (332     (883
  

 

 

   

 

 

   

 

 

 

Net change

                     

Cash and due from banks at beginning of year

                     
  

 

 

   

 

 

   

 

 

 

Cash and due from banks at end of year

   $      $      $   
  

 

 

   

 

 

   

 

 

 
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Summary Of Significant Accounting Policies (Policy)
12 Months Ended
Dec. 31, 2011
Summary Of Significant Accounting Policies [Abstract]
Basis Of Presentation

Basis of Presentation:

Our consolidated financial statements include the accounts of the parent company and its majority- and wholly-owned subsidiaries, including State Street Bank. All material inter-company transactions and balances have been eliminated. Certain previously reported amounts have been reclassified to conform to current year presentation.

We consolidate subsidiaries in which we hold a majority of the voting rights or exercise control. Investments in unconsolidated subsidiaries, recorded in other assets, generally are accounted for under the equity method of accounting if we have the ability to exercise significant influence over the operations of the investee. For investments accounted for under the equity method, our share of income or loss is recorded in processing fees and other revenue in our consolidated statement of income. Investments not meeting the criteria for equity method treatment are accounted for under the cost method of accounting.

Foreign Currency Translation

Foreign Currency Translation:

The assets and liabilities of our operations with functional currencies other than the U.S. dollar are translated at month- end exchange rates, and revenues and expenses are translated at rates that approximate average monthly exchange rates. Gains or losses from the translation of the net assets of subsidiaries with functional currencies other than the U.S. dollar, net of related taxes, are recorded in accumulated other comprehensive income, a component of shareholders' equity.

Cash And Cash Equivalents
Interest-Bearing Deposits With Banks

Interest-bearing Deposits with Banks:

Interest-bearing deposits with banks generally consist of highly liquid, short-term investments maintained at the Federal Reserve Bank and other central banks with original maturities at the time of purchase of one month or less.

Securities Purchased Under Resale Agreements And Securities Sold Under Repurchase Agreements

Securities Purchased Under Resale Agreements and Securities Sold Under Repurchase Agreements:

U.S. Treasury and federal agency securities, referred to as "U.S. government securities," purchased under resale agreements or sold under repurchase agreements are treated as collateralized financing transactions, and are recorded in our consolidated statement of condition at the amounts at which the securities will be subsequently resold or repurchased, plus accrued interest. Our policy is to take possession or control of securities underlying resale agreements, allowing borrowers the right of collateral substitution and/or short-notice termination. We revalue these securities daily to determine if additional collateral is necessary from the borrower to protect us against credit exposure. We can use these securities as collateral for repurchase agreements. For securities sold under repurchase agreements collateralized by our U.S. government securities portfolio, the dollar value of the U.S. government securities remains in investment securities in our consolidated statement of condition. Where a master netting agreement exists or both parties are members of a common clearing organization, resale and repurchase agreements with the same counterparty or clearing house and maturity date are reported on a net basis.

Investment Securities

Investment Securities:

Investment securities held by us are classified as either trading account assets, investment securities available for sale or investment securities held to maturity at the time of purchase, based on management's intent.

Trading account assets are debt and equity securities purchased in connection with our trading activities and, as such, are expected to be sold in the near term. Our trading activities typically involve active and frequent buying and selling with the objective of generating profits on short-term movements. Securities available for sale are those that we intend to hold for an indefinite period of time. Available-for-sale securities include securities utilized as part of our asset and liability management activities that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. Securities held to maturity are debt securities that management has the intent and the ability to hold to maturity.

Trading account assets are carried at fair value. Both realized and unrealized gains and losses on trading account assets are recorded in trading services revenue in our consolidated statement of income. Debt and marketable equity securities classified as available for sale are carried at fair value, and after-tax net unrealized gains and losses are recorded in accumulated other comprehensive income. Gains or losses realized on sales of available-for-sale securities are computed using the specific identification method and are recorded in gains related to investment securities, net, in our consolidated statement of income. Securities held to maturity are carried at cost, adjusted for amortization of premiums and accretion of discounts.

We review the fair values of debt securities at least quarterly, and evaluate individual securities for impairment that may be deemed to be other than temporary. For impaired securities that we plan to sell, or when it is more likely than not that we will be forced to sell the security, the impairment is deemed to be other than temporary and the security is written down to its fair value. Otherwise, we determine whether or not we expect to recover the entire amortized cost basis of the security, primarily by comparing the present value of expected future principal, interest and other contractual cash flows to the security's amortized cost basis. Our evaluation of impairment of mortgage- and asset-backed securities incorporates detailed information with respect to underlying loan-level performance. Accordingly, the range of estimates pertaining to each collateral type reflects the unique characteristics of the underlying loans, such as payment options and collateral geography, among other factors.

 

When we conclude that other-than-temporary impairment exists and we have no intention to sell, or will not be forced to sell, the security, the impairment is separated into the amount related to credit losses and the amount related to factors other than credit. The amount related to credit losses is recognized in our consolidated statement of income in gains (losses) related to investment securities, net, and the amortized cost basis of the security is written down by this amount. The portion of impairment related to all other factors is recognized in other comprehensive income.

Interest revenue related to debt securities is recognized in our consolidated statement of income using the interest method, or on a basis approximating a level rate of return over the contractual or estimated life of the security. The level rate of return considers any nonrefundable fees or costs, as well as purchase premiums or discounts, resulting in amortization or accretion, accordingly.

With respect to debt securities acquired, for those which we consider it probable as of the date of acquisition that we will be unable to collect all contractually required principal, interest and other payments, the excess of our estimate of undiscounted future cash flows from these securities over their initial recorded investment is accreted into interest revenue on a level-yield basis over the securities' estimated remaining terms. Subsequent decreases in these securities' expected future cash flows are either recognized prospectively through an adjustment of the yields on the securities over their remaining terms, or are evaluated for other-than-temporary impairment as described above. Increases in expected future cash flows are recognized prospectively over the securities' estimated remaining terms through the recalculation of their yields.

With respect to certain debt securities acquired which are considered to be beneficial interests in securitized financial assets, the excess of our estimate of undiscounted future cash flows from these securities over their initial recorded investment is accreted into interest revenue on a level-yield basis over the securities' estimated remaining terms. Subsequent decreases in these securities' expected future cash flows are either recognized prospectively through an adjustment of the yields on the securities over their remaining terms, or are evaluated for other-than-temporary impairment as described above. Increases in expected future cash flows are recognized prospectively over the securities' estimated remaining terms through the recalculation of their yields.

Loans And Leases

 

Loans and Leases:

Loans generally are recorded at their principal amount outstanding, net of the allowance for loan losses, unearned income, and any net unamortized deferred loan origination fees. Acquired loans are recorded at fair value, based on management's expectation with respect to future principal and interest collection as of the date of acquisition.

Loans acquired with evidence of deterioration in credit quality subsequent to origination, and for which our inability to collect all contractually required payments is probable on the date of acquisition, are recorded at fair value. The excess of expected future cash flows from these loans over their initial recorded investment is accreted into interest revenue on a level- yield basis over the remaining life of the loans. The carrying amount of acquired loans is assessed on an ongoing basis using a discounted cash flow model, which incorporates management expectations of prepayments. Subsequent decreases in expected cash flows result in an addition to the related allowance to allow the loan to maintain its level yield. Increases in expected cash flows are recognized, first, as a reduction of any remaining allowance, and then are recognized prospectively over the remaining life of the loan through a recalculation of the loan's level yield.

Interest revenue related to loans is recognized in our consolidated statement of income using the interest method or on a basis approximating a level rate of return over the term of the loan. Fees received for providing loan commitments and letters of credit that we anticipate will result in loans typically are deferred and amortized to interest revenue over the life of the related loan, beginning with the initial borrowing. Fees on commitments and letters of credit are amortized to processing fees and other revenue over the commitment period when funding is not known or expected.

For all loan classes, other than loans acquired with evidence of deterioration in credit quality, loans are placed on non- accrual status when they become 60 days past-due as to either principal or interest, or earlier when full collection of principal or interest is not considered probable. Loans 60 days past-due, but considered both well secured and in the process of collection, are treated as exceptions and may be excluded from non-accrual status. When we place a loan on non-accrual status, the accrual of interest is discontinued and previously recorded but unpaid interest is reversed and generally charged against interest revenue. For loans on non-accrual status, revenue is recognized on a cash basis after recovery of principal, if and when interest payments are received. Loans may be removed from non-accrual status when repayment is reasonably assured and performance under the terms of the loan has been demonstrated.

In certain circumstances, we restructure troubled loans by granting concessions to borrowers experiencing financial difficulty. Once restructured, the loans are generally considered impaired until their maturity, regardless of whether the borrowers perform under the modified terms of the loans.

Leveraged lease investments are reported at the aggregate of lease payments receivable and estimated residual values, net of non-recourse debt and unearned income. Lease residual values are reviewed regularly for other-than-temporary impairment, with valuation adjustments recorded currently against processing fees and other revenue. Unearned income is recognized to yield a level rate of return on the net investment in the leases. Gains and losses on residual values of leased equipment sold are recorded in processing fees and other revenue.

Allowance For Loan Losses

Allowance for Loan Losses:

The allowance for loan losses, recorded as a reduction of loans and leases in our consolidated statement of condition, represents management's estimate of probable credit losses inherent in our loan and lease portfolio as of the balance sheet date. The allowance is evaluated on a regular basis by management. Factors considered in evaluating the appropriate level of the allowance for both the institutional and commercial real estate segments of our loan and lease portfolio include previous loss experience, current economic conditions and adverse situations that may affect the borrower's ability to repay, the estimated value of the underlying collateral, if any, the performance of individual credits in relation to contract terms, and other relevant factors. Provisions for loan losses reflect our estimate of the amount necessary to maintain the allowance at a level considered by us to be appropriate to absorb estimated probable credit losses inherent in the loan and lease portfolio.

Loans are charged off to the allowance for loan losses in the reporting period in which either an event occurs that confirms the existence of a loss on a loan or a portion of a loan is determined to be uncollectible. In addition, any impaired loan that is determined to be collateral dependent is reduced to an amount equal to the fair value of the collateral less costs to sell. A loan is identified as collateral dependent when management determines that it is probable that the underlying collateral will be the sole source of repayment. Recoveries are recorded as adjustments to the allowance on a cash basis.

In addition, we maintain a reserve for off-balance sheet credit exposures that is recorded in other liabilities in our consolidated statement of condition. Factors considered in evaluating the appropriate level of this reserve are similar to those considered with respect to the allowance for loan losses. Provisions to change the level of this reserve are recorded in other expenses in our consolidated statement of income.

Premises And Equipment
Goodwill And Other Intangible Assets
Fee And Net Interest Revenue

Fee and Net Interest Revenue:

Fees from investment servicing, investment management, securities finance, trading services and certain types of processing fees and other revenue are recorded in our consolidated statement of income based on estimates or specific contractual terms as transactions occur or services are rendered, provided that persuasive evidence exists, the price to the client is fixed or determinable and collectability is reasonably assured. Amounts accrued at period-end are recorded in accrued income receivable in our consolidated statement of condition. Performance fees from investment management are recorded when earned, based on predetermined benchmarks associated with the applicable fund's performance.

Interest revenue on interest-earning assets and interest expense on interest-bearing liabilities are recorded in our consolidated statement of income as components of net interest revenue, and are generally based on the effective yield of the related financial asset or liability.

Employee Benefits Expense

Employee Benefits Expense:

Employee benefits expense, recorded in our consolidated statement of income, includes costs of certain pension and other post-retirement benefit plans related to prior and current service, which are accrued on a current basis, as well as contributions associated with defined contribution savings plans, unrestricted cash and stock awards under other employee incentive compensation plans, and the amortization of restricted stock awards.

Equity-Based Compensation

Equity-Based Compensation:

We record compensation expense for equity-based awards. Accordingly, we measure compensation expense at fair value on a straight-line basis over the service or performance period, net of estimated forfeitures.

The fair values of equity-based awards, such as restricted stock, deferred stock and performance awards, are based on the closing price of our common stock on the date of grant, adjusted if appropriate based upon the award's eligibility to receive dividends. The fair value of stock options and stock appreciation rights is determined using the Black-Scholes valuation model.

Compensation expense related to equity-based awards with service-only conditions and terms that provide for a graded vesting schedule are recognized on a straight-line basis over the required service period for the entire award. Compensation expense related to equity-based awards with performance conditions and terms that provide for a graded vesting schedule is recognized over the requisite service period for each separately vesting tranche of the award, and is based on the probable outcome of the performance conditions at each reporting date. The expense is adjusted for assumptions with respect to the estimated amount of awards that will be forfeited prior to vesting, and for employees who have met certain retirement eligibility criteria.

 

Dividend equivalents for certain equity-based awards are paid on stock units on a current basis prior to vesting and distribution. Compensation expense for common stock and cash awards granted to employees meeting early retirement eligibility criteria is fully expensed and accrued at the grant date.

Income Taxes

Income Taxes:

We use an asset and liability approach to account for income taxes. Our objective is to recognize the amount of taxes payable or refundable for the current year through charges or credits to the current tax provision, and to recognize deferred tax assets and liabilities for the future tax consequences resulting from temporary differences between the amounts reported in our consolidated financial statements and their respective tax bases. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates. The effects of a tax position on our consolidated financial statements are recognized when we believe it more likely than not that the position will be sustained. A deferred tax valuation allowance is established if it is considered more likely than not that all or a portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are netted within the same tax jurisdiction.

Earnings Per Share

Earnings Per Share:

Basic earnings per share, or EPS, is calculated pursuant to the "two-class" method, using net income available to common shareholders and the weighted-average number of common shares outstanding during the period. Diluted EPS is calculated pursuant to the two-class method, by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period and the shares representing the dilutive effect of common stock options and other equity-based awards. The effect of common stock options and other equity-based awards is excluded from the calculation of diluted EPS in periods in which their effect would be anti-dilutive.

The two-class method requires the allocation of undistributed net income between common and participating shareholders. Net income available to common shareholders, presented separately in our consolidated statement of income, is the basis for the calculation of both basic and diluted EPS. Participating securities are composed of unvested restricted stock and director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with common shareholders in undistributed earnings.

Fair Value Measurements
Variable Interest Entities

Variable Interest Entities:

We are involved in the normal course of our business with various types of special purpose entities, some of which are variable interest entities, or VIEs, as defined by GAAP. We also invest in various forms of asset-backed securities, which we carry in our investment securities portfolio. These asset-backed securities meet the GAAP definition of asset securitization entities, which entities are considered to be VIEs. We are not considered to be the primary beneficiary of these VIEs, as defined by GAAP, since we do not have control over their activities.

We use special purpose entities to structure and sell certificated interests in pools of tax-exempt investment-grade assets, principally to our mutual fund clients. These trusts are recorded in our consolidated financial statements. We transfer assets to these trusts, which are legally isolated from us, from our investment securities portfolio at adjusted book value. The trusts finance the acquisition of these assets by selling certificated interests issued by the trusts to third-party investors and to State Street as residual holder. The investment securities of the trusts are carried at fair value in investment securities available for sale. The certificated interests are carried at the amount owed to the third-party investors in other short-term borrowings. The interest revenue and interest expense generated by the investments and certificated interests, respectively, are recorded as components of net interest revenue when earned or incurred.

Derivative Financial Instruments
Recent Accounting Developments

 

Recent Accounting Developments:

The FASB is currently deliberating potentially significant changes to the U.S. accounting framework as part of an overall convergence effort with the International Accounting Standards Board under a previously signed memorandum of understanding. Some of these proposed changes have been exposed for comment, while others are expected to be exposed for comment over the next six to twelve months. These new proposals include potential changes to the accounting for financial instruments and hedging, the accounting for leases, revenue recognition and financial statement presentation. Once these proposed changes are finalized, we will disclose their nature and potential effect, if any, on our consolidated financial statements in our future filings. These proposed changes may have a material effect on our consolidated financial statements.

In September 2011, the FASB issued an amendment to GAAP that modifies existing guidance with respect to impairment of goodwill. The amendment provides companies with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. The amendment is effective, for State Street, for interim and annual periods beginning on January 1, 2012. Adoption of the amendment is not expected to have a material effect on our consolidated financial statements.

In June 2011, the FASB issued an amendment to GAAP that eliminates the option to report other comprehensive income and its components in the statement of changes in shareholders' equity. Instead, an entity can elect to present the components of net income and other comprehensive income in either one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The amendment does not change which items are reported in other comprehensive income or the requirement to report reclassifications of items from other comprehensive income to net income. The amendment is effective, for State Street, for interim and annual periods beginning on January 1, 2012, and is required to be applied retrospectively. We are currently evaluating the options for presentation of other comprehensive income permitted by the amendment.

 

In May 2011, the FASB issued an amendment to GAAP associated with fair value measurement and related disclosures. While the amendment is not expected to significantly affect current practice, it clarifies the FASB's intent about the application of existing fair value measurement requirements, and requires the disclosure of additional quantitative information about fair value measurements. The amendment includes guidance about, among other things, the determination of a principal market and the measurement of fair value of instruments with offsetting market or counterparty credit risks. The amendment is effective, for State Street, for interim and annual periods beginning on January 1, 2012, and is required to be applied prospectively. Adoption of the amendment is not expected to have a material effect on our consolidated financial statements from a fair value measurement perspective. However, adoption is expected to result in additional disclosures in our consolidated financial statements.

In April 2011, the FASB issued an amendment to GAAP that eliminates the requirement to consider collateral maintenance when determining whether a transfer of assets subject to a repurchase arrangement is accounted for as a sale or as a secured borrowing. The amendment is effective prospectively, for State Street, for new transactions and modifications of existing transactions that occur on or after January 1, 2012. Adoption of the amendment is not expected to have a material effect on our consolidated financial statements, since we currently account for repurchase agreements as secured borrowings.

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Variable Interest Entities (Policy)
12 Months Ended
Dec. 31, 2011
Variable Interest Entities [Abstract]
Asset-Backed Securitization Trusts
Tax-Exempt Investment Program

Tax-Exempt Investment Program:

In the normal course of our business, we structure and sell certificated interests in pools of tax-exempt investment-grade assets, principally to our mutual fund clients. We structure these pools as partnership trusts, and the assets and liabilities of the trusts are recorded in our consolidated statement of condition as investment securities available for sale and other short-term borrowings. We may also provide liquidity and re-marketing services to the trusts. As of December 31, 2011 and 2010, we carried investment securities available for sale, composed of securities related to state and political subdivisions, with a fair value of $2.81 billion and $2.85 billion, respectively, and other short-term borrowings (refer to note 8) of $2.29 billion and $2.48 billion, respectively, in our consolidated statement of condition in connection with these trusts.

 We transfer assets to the trusts from our investment securities portfolio at adjusted book value, and the trusts finance the acquisition of these assets by selling certificated interests issued by the trusts to third-party investors and to State Street as residual holder. These transfers do not meet the de-recognition criteria defined by GAAP, and therefore, are recorded in our consolidated financial statements. The trusts had a weighted-average life of approximately 7.4 years at December 31, 2011, compared to approximately 7.7 years at December 31, 2010.

Under separate legal agreements, we provide standby bond-purchase agreements to these trusts and, with respect to certain securities, letters of credit. Our commitments to the trusts under these standby bond-purchase agreements and letters of credit totaled $2.35 billion and $669 million, respectively, at December 31, 2011, none of which was utilized at period-end. In the event that our obligations under these agreements are triggered, no material impact to our consolidated results of operations or financial condition is expected to occur, because the securities are already recorded at fair value in our consolidated statement of condition.

Asset-Backed Commercial Paper Program
Collateralized Debt Obligations
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Investment Securities (Tables)
12 Months Ended
Dec. 31, 2011
Investment Securities [Abstract]
Schedule Of Marketable Securities
Schedule Of Contractual Maturities Of Debt Securities
                                 
(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

   $ 1,200       $ 38       $ 822       $ 776   

Mortgage-backed securities

     5         755         10,871         18,390   

Asset-backed securities:

                                   

Student loans

     155         3,331         8,490         4,569   

Credit cards

     1,893         5,893         2,701         —     

Sub-prime

     581         82         17         724   

Other

     119         1,602         1,198         546   

Total asset-backed securities

     2,748         10,908         12,406         5,839   
             

 

 

    

 

 

    

 

 

 

Non-U.S. debt securities:

                                   

Mortgage-backed securities

     474         2,358         987         7,056   

Asset-backed securities

     230         916         2,511         646   

Government securities

     1,671         —           —           —     

Other

     1,636         958         231         —     

Total non-U.S. debt securities

     4,011         4,232         3,729         7,702   
             

 

 

    

 

 

    

 

 

 

State and political subdivisions

     471         2,326         3,328         922   

Collateralized mortgage obligations

     81         1,163         1,209         1,527   

Other U.S. debt securities

     289         1,391         1,899         36   
         

Total

   $ 8,805       $ 20,813       $ 34,264       $ 35,192   
             

 

 

    

 

 

    

 

 

 
         

Held to maturity:

                                   

U.S. Treasury and federal agencies:

                                   

Mortgage-backed securities

          $ 19       $ 102       $ 144   

Asset-backed securities

            —           —           31   

Non-U.S. debt securities:

                                   

Mortgage-backed securities

   $ 1,304         254         —           3,415   

Asset-backed securities

     —           204         217         15   

Government securities

     3         —           —           —     

Other

     —           155         —           17   
             

 

 

    

 

 

    

 

 

 

Total non-U.S. debt securities

     1,307         613         217         3,447   

State and political subdivisions

     56         49         2         —     

Collateralized mortgage obligations

     394         1,350         530         1,060   
         

Total

   $ 1,757       $ 2,031       $ 851       $ 4,682   
             

 

 

    

 

 

    

 

 

 
Critical Estimates Used In Roll Rate Analysis
Sub-Prime A Sub-Prime A Sub-Prime A
     Sub-Prime ARM     Alt-A     Non-
Agency Prime
 

December 31, 2011:

      

Prepayment rate

     1-3     2-6     5-10

Cumulative loss estimates

     46-54        26-39        9-19   

Loss severity(1)

     70-72        59-61        52-53   

Peak-to-trough housing price decline(2)

     35        35        35   

 

Sub-Prime ARM Sub-Prime ARM Sub-Prime ARM
     Sub-Prime ARM     Alt-A     Non-
Agency Prime
 

December 31, 2010:

      

Prepayment rate

     2-3     7     7-10

Cumulative loss estimates

     33        21        13   

Loss severity(1)

     67        49        49   

Peak-to-trough housing price decline(2)

     35-40        35-40        35-40   

Other-Than-Temporary Impairment Recorded On Securities
Year Ended
December 31, 2011
     Year Ended
December 31, 2010
     Year Ended
December 31, 2009 (1)
 
(In millions)                     

Sub-prime ARM

   $ 2       $ 26       $ 29   

Alt-A

     5         43         20   

Non-agency prime

     5         89         60   
  

 

 

    

 

 

    

 

 

 

Total

   $ 12       $ 158       $ 109   
  

 

 

    

 

 

    

 

 

 

Schedule Of Gross Pre-tax Unrealized Losses On Investment Securities
   Less than 12 months      12 months or longer      Total  
December 31, 2011
(In millions)
   Fair
Value
     Gross
Unrealized
Losses
     Fair
Value
     Gross
Unrealized
Losses
     Fair
Value
     Gross
Unrealized
Losses
 

Available for sale:

                 

U.S. Treasury and federal agencies:

                 

Direct obligations

   $ 1,373       $ 1             $ 1,373       $ 1   

Mortgage-backed securities

     4,714         26       $ 370       $ 2         5,084         28   

Asset-backed securities:

                 

Student loans

     2,642         23         10,706         688         13,348         711   

Credit cards

     2,581         6         1,461         8         4,042         14   

Sub-prime

     16         1         1,360         446         1,376         447   

Other

     1,482         19         1,122         106         2,604         125   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total asset-backed

     6,721         49         14,649         1,248         21,370         1,297   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Non-U.S. debt securities:

                 

Mortgage-backed securities

     6,069         55         1,151         52         7,220         107   

Asset-backed securities

     2,205         14         108         3         2,313         17   

Other

     1,543         13                         1,543         13   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total non-U.S. debt securities

     9,817         82         1,259         55         11,076         137   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

State and political subdivisions

     171         3         1,446         118         1,617         121   

Collateralized mortgage obligations

     2,024         43         68         10         2,092         53   

Other U.S. debt securities

     220         2         57         13         277         15   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 25,040       $ 206       $ 17,849       $ 1,446       $ 42,889       $ 1,652   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Held to maturity:

                 

Asset-backed securities

         $ 29       $ 2       $ 29       $ 2   

Non-U.S. debt securities:

                 

Mortgage-backed securities

   $ 341       $ 6         1,382         218         1,723         224   

Asset-backed securities

     9         1         70         2         79         3   

Other

                     138         17         138         17   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total non U.S. debt securities

     350         7         1,590         237         1,840         244   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Collateralized mortgage obligations

     649         32         231         25         880         57   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 999       $ 39       $ 1,850       $ 264       $ 2,849       $ 303   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

      Less than 12 months      12 months or longer      Total  

December 31, 2010

(In millions)

   Fair
Value
     Gross
Unrealized
Losses
     Fair
Value
     Gross
Unrealized
Losses
     Fair
Value
     Gross
Unrealized
Losses
 

Available for sale:

                 

U.S. Treasury and federal agencies:

                 

Direct obligations

         $ 153       $ 2       $ 153       $ 2   

Mortgage-backed securities

   $ 6,639       $ 81         431         2         7,070         83   

Asset-backed securities:

                 

Student loans

     1,980         25         8,457         627         10,437         652   

Credit cards

     1,268         5         2,396         26         3,664         31   

Sub-prime

                     1,769         346         1,769         346   

Other

     269         3         1,122         153         1,391         156   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total asset-backed securities

     3,517         33         13,744         1,152         17,261         1,185   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Non-U.S. debt securities:

                 

Mortgage-backed securities

     2,621         22         370         24         2,991         46   

Asset-backed securities

                     54         17         54         17   

Other

     348         2                         348         2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total non-U.S. debt securities

     2,969         24         424         41         3,393         65   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

State and political subdivisions

     1,097         19         1,967         185         3,064         204   

Collateralized mortgage obligations

     494         5         109         11         603         16   

Other U.S. debt securities

     330         7         61         11         391         18   

Non-U.S. equity securities

     8         1                         8         1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 15,054       $ 170       $ 16,889       $ 1,404       $ 31,943       $ 1,574   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Held to maturity:

                 

Asset-backed securities

         $ 53       $ 5       $ 53       $ 5   

Non-U.S. debt securities:

                 

Mortgage-backed securities

   $ 1,445       $ 72         862         88         2,307         160   

Asset-backed securities

                     68         3         68         3   

Other

     206         2                         206         2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total non-U.S. debt securities

     1,651         74         930         91         2,581         165   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Collateralized mortgage obligations

     125         2         575         42         700         44   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 1,776       $ 76       $ 1,558       $ 138       $ 3,334       $ 214   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Gains And Losses Related To Investment Securities
Schedule Of Credit-Related Loss Activity Recognized In Earnings
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Loans And Leases (Tables)
12 Months Ended
Dec. 31, 2011
Loans And Leases [Abstract]
Net Loans
(In millions)    2011     2010  

Institutional:

    

Investment funds:

    

U.S.

   $ 5,592      $ 5,316   

Non-U.S.

     796        1,478   

Commercial and financial:

    

U.S.

     563        540   

Non-U.S.

     453        190   

Purchased receivables:

    

U.S.

     563        728   

Non-U.S.

     372        1,471   

Lease financing:

    

U.S.

     397        417   

Non-U.S.

     857        1,053   
    

 

 

 

Total institutional

     9,593        11,193   

Commercial real estate:

    

U.S.

     460        764   

Total loans and leases

     10,053        11,957   

Allowance for loan losses

     (22     (100

Loans and leases, net of allowance for loan losses

   $ 10,031      $ 11,857   
    

 

 

 
Components Of The Net Investment In Leveraged Leases
(In millions)    2011     2010  

Net rental income receivable

   $ 1,671      $ 2,187   

Estimated residual values

     110        118   

Unearned income

     (527     (835
  

 

 

   

 

 

 

Investment in leveraged lease financing

     1,254        1,470   

Less related deferred income tax liabilities

     (397     (463
  

 

 

   

 

 

 

Net investment in leveraged lease financing

   $ 857      $ 1,007   
  

 

 

   

 

 

 
Recorded Investment In Each Class Of Total Loans And Leases By Credit Quality Indicator
Schedule Of Allowance For Loan Losses
     Institutional      Commercial Real Estate      Total Loans and Leases  
(In millions)    2011      2010      2011      2010      2011      2010  

Loans and leases:

                 

Individually evaluated for impairment

   $ 56       $ 112       $ 421       $ 623       $ 477       $ 735   

Collectively evaluated for impairment

     9,537         11,081         —           —           9,537         11,081   

Loans acquired with deteriorated credit quality

     —           —           39         141         39         141   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total loans and leases

   $ 9,593       $ 11,193       $ 460       $ 764       $ 10,053       $ 11,957   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Allowance for loan losses:

                 

Individually evaluated for impairment

            $ 24          $ 24   

Collectively evaluated for impairment

   $ 22       $ 31            —         $ 22         31   

Loans acquired with deteriorated credit quality

     —           —              45         —           45   

Total allowance for loan losses

   $ 22       $ 31         —         $ 69       $ 22       $ 100   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Impaired Loans
December 31, 2011     Year Ended December 31,
2011
    December 31, 2010  
(In millions)   Recorded
Investment
    Unpaid
Principal
Balance
    Related
Allowance(1)
    Average
Recorded
Investment
    Interest
Revenue
Recognized
    Recorded
Investment
    Unpaid
Principal
Balance
    Related
Allowance(1)
 

With no related allowance recorded:

               

CRE - property development

  $ 199      $ 227        $ 200      $ 15      $ 209      $ 240     

CRE - property development – acquired credit-impaired

    —          34          —          —            34     

CRE - other - acquired credit-impaired

    8        69          12        —          16        47     

CRE - other

    —          —            —          —          27        29     

With an allowance recorded:

               

CRE - property development

    —          —            —          —          79        113      $ 24   

CRE - property development – acquired credit-impaired

    —          —            —          —          42        47        19   

CRE - other - acquired credit-impaired

    31        37        —          31        1        83        100        26   

CRE - other

    —          —          —          —          —          7        9        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total CRE

  $ 238      $ 367        —        $ 243      $ 16      $ 463      $ 619      $ 69   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(1)

As of December 31, 2011 and December 31, 2010, we maintained allowances for loan losses of $22 million and $31 million, respectively, associated with loans and leases that were not impaired.

Financing Receivables On Non-Accrual Status
(In millions)    2011      2010  

Commercial Real Estate:

     

Property development

      $ 79   

Property development - acquired credit-impaired

        42   

Other - acquired credit-impaired

   $ 5         22   

Other

     —           15   

Total

   $ 5       $ 158   
     

 

 

 
Schedule Of Activity In The Allowance For Loan Losses
(In millions)    2011     2010     2009  
     Institutional     Commercial
Real  Estate
    Total Loans
and Leases
    Total Loans
and Leases
    Total Loans
and Leases
 

Allowance for loan losses:

          

Beginning balance

   $ 31      $ 69      $ 100      $ 79      $ 18   

Charge-offs

     —          (78     (78     (4     (91

Provisions

     (9     9        —          25        149   

Recoveries

     —          —          —          —          3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

   $ 22      $ —        $ 22      $ 100      $ 79   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
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Goodwill And Other Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2011
Goodwill And Other Intangible Assets [Abstract]
Changes In The Carrying Amount Of Goodwill
     2011     2010  
(In millions)   

Investment

Servicing

   

Investment

Management

    Total    

Investment

Servicing

    

Investment

Management

     Total  

Beginning balance

   $ 5,591      $ 6      $ 5,597      $ 4,544       $ 6       $ 4,550   

Acquisitions

     68        32        100        1,005         —           1,005   

Foreign currency translation, net

     (49     (3     (52     42         —           42   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Ending balance

   $ 5,610      $ 35      $ 5,645      $ 5,591       $ 6       $ 5,597   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 
Changes In The Carrying Amount Of Other Intangible Assets
     2011     2010  
(In millions)    Investment
Servicing
    Investment
Management
    Total     Investment
Servicing
    Investment
Management
    Total  

Beginning balance

   $ 2,559      $ 34      $ 2,593      $ 1,760      $ 50      $ 1,810   

Acquisitions

     67        29        96        969        —          969   

Amortization

     (189     (11     (200     (170     (9     (179

Foreign currency translation, net

     (29     (1     (30     (6     (1     (7

Other

     —          —          —          6        (6     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

   $ 2,408      $ 51      $ 2,459      $ 2,559      $ 34      $ 2,593   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Gross Carrying Amount, Accumulated Amortization And Net Carrying Amount Of Other Intangible Assets
     2011      2010  
(In millions)   

Gross

Carrying
Amount

     Accumulated
Amortization
   

Net

Carrying
Amount

    

Gross

Carrying
Amount

     Accumulated
Amortization
   

Net

Carrying
Amount

 

Customer relationships

   $ 2,369       $ (641   $ 1,728       $ 2,341       $ (520   $ 1,821   

Core deposits

     702         (117     585         710         (83     627   

Other

     233         (87     146         220         (75     145   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 3,304       $ (845   $ 2,459       $ 3,271       $ (678   $ 2,593   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 
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Other Assets (Tables)
12 Months Ended
Dec. 31, 2011
Other Assets [Abstract]
Components Of Other Assets
(In millions)    2011      2010  

Collateral deposits

   $ 6,688       $ 3,251   

Unrealized gains on derivative financial instruments

     6,366         5,255   

Investments in joint ventures and other unconsolidated entities

     1,060         927   

Income taxes receivable

     989         530   

Accounts receivable

     431         290   

Deferred tax assets, net of valuation allowance(1)

     395         1,786   

Prepaid expenses

     308         382   

Receivable for securities sold

             122   

Other(2)

     902         1,298   
  

 

 

    

 

 

 

Total

   $ 17,139       $ 13,841   
  

 

 

    

 

 

 

(1)

Deferred tax assets as of December 31, 2011 are net of deferred tax liabilities within the same tax jurisdiction.

 

(2)

Amount for 2011 included other real estate owned of approximately $75 million.

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Deposits (Tables)
12 Months Ended
Dec. 31, 2011
Deposits [Abstract]
Scheduled Maturities Of Aggregate U.S. And Non-U.S. Time Deposits
(In millions)       

2012

   $ 8,862   

2013

     —     

2014

     —     

2015

     —     

2016

     40   
  

 

 

 

Total

   $ 8,902   
  

 

 

 
Scheduled Maturities Of U.S. Time Deposits
(In millions)       

3 months or less

   $ 6,141   

4 months to a year

     161   

Over a year

     40   

Total

   $ 6,342   
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Short-Term Borrowings (Tables)
12 Months Ended
Dec. 31, 2011
Short-Term Borrowings [Abstract]
Primary Components Of Short-Term Borrowings
Securities Sold Under
Repurchase Agreements
    Federal Funds Purchased  
(Dollars in millions)    2011     2010     2009     2011     2010     2009  

Balance at December 31

   $ 8,572      $ 7,599      $ 10,542      $ 656      $ 7,748      $ 4,532   

Maximum outstanding at any month-end

     9,853        9,058        12,993        8,259        7,748        7,166   

Average outstanding during the year

     9,040        8,108        11,065        845        1,759        956   

Weighted-average interest rate at year-end

     .04     .04     .03     .05     .01     .01

Weighted-average interest rate during the year

     .11        .05        .03        .05        .05        .04   

 

     Tax-Exempt
Investment Program
    Corporate Commercial
Paper Program
 
(Dollars in millions)    2011     2010     2009     2011     2010     2009  

Balance at December 31

   $ 2,294      $ 2,484      $ 2,736      $ 2,384      $ 2,799      $ 2,777   

Maximum outstanding at any month-end

     2,473        2,690        2,838        2,825        2,831        2,851   

Average outstanding during the year

     2,404        2,594        2,774        2,449        2,791        1,993   

Weighted-average interest rate at year-end

     .18     .37     .33     .22     .31     .21

Weighted-average interest rate during the year

     .26        .33        .47        .23        .31        .30   
     Conduit Commercial
Paper  Program
 
(Dollars in millions)    2011     2010     2009 (1)  

Balance at December 31

     $ 1,919      $ 12,071   

Maximum outstanding at any month-end

   $ 271        7,275        15,645   

Average outstanding during the year

     113        6,339        10,691   

Weighted-average interest rate at year-end

     —          .57     1.31

Weighted-average interest rate during the year

     .47     .32        1.26   

(1)

Amounts other than balance and weighted-average interest rate at year-end related to the period subsequent to the May 2009 conduit consolidation.

Securities Sold Under Repurchase Agreements
(In millions)       

Collateralized by securities purchased under resale agreements

   $ 5,651   

Collateralized by investment securities

     2,921   
  

 

 

 

Total

   $ 8,572   
  

 

 

 
Schedule Of U.S. Government Securities And Related Repurchase Agreements Including Accrued Interest
     U.S. Government
Securities Sold
     Repurchase
Agreements
 
(Dollars in millions)    Amortized
Cost
     Fair Value      Amortized
Cost
     Rate  

Overnight maturity

   $ 2,931       $ 2,978       $ 2,921         .001
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Long-Term Debt (Tables)
12 Months Ended
Dec. 31, 2011
Long-Term Debt [Abstract]
Long-Term Debt
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Commitments And Contingencies (Tables)
12 Months Ended
Dec. 31, 2011
Commitments And Contingencies [Abstract]
Contractual Amounts Of Credit-Related Off-Balance Sheet Financial Instruments
Schedule Of Repurchase Agreements
(In millions)    2011      2010  

Aggregate fair value of indemnified securities financing

   $ 302,342       $ 334,235   

Aggregate fair value of cash and securities held as collateral for indemnified securities financing

     312,598         343,410   

Aggregate fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements

     88,656         89,069   

Aggregate fair value of cash and securities held by us or our agents as collateral for indemnified repurchase agreements

     93,039         93,294   
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Shareholders' Equity (Tables)
12 Months Ended
Dec. 31, 2011
Shareholders' Equity [Abstract]
Schedule Of Accumulated Other Comprehensive (Loss) Income
(In millions)    2011     2010     2009  

Foreign currency translation

     $ 216      $ 281   

Net unrealized loss on hedges of net investments in non-U.S. subsidiaries

   $ (14     (14     (14

Net unrealized gain (loss) on available-for-sale securities portfolio

     110        (90     (1,001

Net unrealized loss related to reclassified available-for-sale securities

     (189     (317     (635
  

 

 

   

 

 

   

 

 

 

Net unrealized loss on available-for-sale securities

     (79     (407     (1,636

Net unrealized loss on available-for-sale securities designated in fair value hedges

     (210     (135     (113

Expected losses from other-than-temporary impairment on available-for-sale securities related to factors other than credit

     (17     (17     (159

Expected losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit

     (86     (111     (387

Net unrealized loss on cash flow hedges

     (5     (11     (18

Minimum pension liability

     (248     (210     (192
  

 

 

   

 

 

   

 

 

 

Total

   $ (659   $ (689   $ (2,238
  

 

 

   

 

 

   

 

 

 
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Fair Value (Tables)
12 Months Ended
Dec. 31, 2011
Fair Value [Abstract]
Schedule Of Fair Value Measurements On A Recurring Basis
Schedule Of Fair Value Measurements Using Significant Unobservable Inputs
Level 3 Total Realized And Unrealized Gains And Losses Recorded In Revenue
     Year Ended December 31, 2011     Year Ended December 31, 2010     Year Ended December 31, 2009  
(In millions)    Total Realized
and
Unrealized
Gains (Losses)
Recorded
in Revenue
   

Change in
Unrealized

Gains (Losses)
Related to
Financial
Instruments
Held at
December 31,
2011

    Total Realized
and
Unrealized
Gains (Losses)
Recorded
in Revenue
     Change in
Unrealized
Gains (Losses)
Related to
Financial
Instruments
Held at
December 31,
2010
    Total Realized
and
Unrealized
Gains (Losses)
Recorded
in Revenue
   

Change in
Unrealized

Gains (Losses)
Related to
Financial
Instruments
Held at
December 31,
2009

 

Fee revenue:

             

Trading services

   $ (13   $ (9   $ 17       $ (5   $ 38      $ (5

Processing fees and other

     —          —          —           —          50        50   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total fee revenue

     (13     (9     17         (5     88        45   

Net interest revenue

     561        —          141         —          (101     —     
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total revenue

   $ 548      $ (9   $ 158       $ (5   $ (13   $ 45   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 
Reported Amounts And Estimated Fair Values For Financial Instruments
     Reported      Fair  
(In millions)    Amount      Value  

2011:

     

Financial Assets:

     

Investment securities held to maturity

   $ 9,321       $ 9,362   

Net loans (excluding leases)

     8,777         8,752   

Financial Liabilities:

     

Long-term debt

     8,131         8,206   

2010:

     

Financial Assets:

     

Investment securities held to maturity

   $ 12,249       $ 12,576   

Net loans (excluding leases)

     10,387         10,242   

Financial Liabilities:

     

Long-term debt

     8,550         8,498   
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Equity-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2011
Equity-Based Compensation [Abstract]
Weighted-Average Assumptions Used In Connection With The Option-Pricing Model
     2009  

Dividend yield

     4.82

Expected volatility

     26.70   

Risk-free interest rate

     2.49   

Expected option lives (in years)

     7.8   
Stock Options And Stock Appreciation Rights Activity
    

Shares

(in thousands)

    Weighted
Average
Exercise
Price
    

Weighted
Average
Remaining
Contractual
Term

(in years)

    

Aggregate
Intrinsic
Value

(in millions)

 

Stock Options and Stock Appreciation Rights:

          

Outstanding at December 31, 2009

     13,167      $ 51.64         

Exercised

     (297     37.53         

Forfeited or expired

     (1,887     54.76         

Outstanding at December 31, 2010

     10,983        51.49         

Exercised

     (1,028     40.52         

Forfeited or expired

     (2,246     50.06         
  

 

 

         

Outstanding at December 31, 2011

     7,709      $ 53.37         3.2       $ 10   
  

 

 

         

Exercisable at December 31, 2011

     7,221      $ 53.69         2.9       $ 4   
Restricted Stock Awards Activity
    

Shares

(in thousands)

   

Weighted-

Average
Grant Date Fair
Value

 

Restricted Stock Awards:

    

Outstanding at December 31, 2009

     1,247      $ 41.87   

Granted

     5,264        44.49   

Vested

     (489     52.87   

Forfeited

     (221     44.95   

Outstanding at December 31, 2010

     5,801        43.21   

Vested

     (1,509     42.96   

Forfeited

     (127     44.59   

Outstanding at December 31, 2011

     4,165      $ 43.25   
Deferred Stock Awards Activity
     Shares
(in  thousands)
    Weighted-Average
Grant Date Fair
Value
 

Deferred Stock Awards:

    

Outstanding at December 31, 2009

     6,573      $ 51.88   

Granted

     2,287        42.45   

Vested

     (2,356     57.76   

Forfeited

     (313     43.13   
  

 

 

   

Outstanding at December 31, 2010

     6,191        46.71   

Granted

     5,468        41.92   

Vested

     (2,361     52.86   

Forfeited

     (345     41.99   
  

 

 

   

Outstanding at December 31, 2011

     8,953      $ 42.34   
  

 

 

   
Performance Awards Activity
     Shares
(in  thousands)
    Weighted-Average
Grant Date Fair
Value
 

Performance Awards:

    

Outstanding at December 31, 2009

     430      $ 24.14   

Granted

     1,421        43.33   

Forfeited

     (716     25.72   

Paid out

     (15     64.57   
  

 

 

   

Outstanding at December 31, 2010

     1,120        43.89   

Granted

     1,906        42.28   

Forfeited

     (173     42.90   

Paid out

     (224     46.03   
  

 

 

   

Outstanding at December 31, 2011

     2,629      $ 42.52   
  

 

 

   
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Regulatory Matters (Tables)
12 Months Ended
Dec. 31, 2011
Regulatory Matters [Abstract]
Regulatory Capital Ratios and Related Amounts
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Derivative Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2011
Derivative Financial Instruments [Abstract]
Schedule Of Outstanding Hedges: (Notional Amount)
(In millions)    December 31,
2011
     December 31,
2010
 

Derivatives not designated as hedging instruments:

     

Interest-rate contracts:

     

Swap agreements and forwards

   $ 238,008       $ 52,383   

Options and caps purchased

     1,431         140   

Options and caps written

     1,324         130   

Futures

     66,620         25,253   

Foreign exchange contracts:

     

Forward, swap and spot

     1,033,045         637,847   

Options purchased

     11,215         14,299   

Options written

     12,342         14,587   

Credit derivative contracts:

     

Credit default swap agreements

     105         155   

Other:

     

Stable value contracts

     40,963         46,758   

Derivatives designated as hedging instruments:

     

Interest-rate contracts:

     

Swap agreements

     3,872         1,886   

Foreign exchange contracts:

     

Forwards

     2,613         —     
Notional Amount Of Interest Rate Swap Agreements Designated As Fair Value And Cash Flow Hedges
Contractual And Weighted-Average Interest Rates, Which Include The Effects Of Hedges Related To Financial Instruments
     Years Ended December 31,  
     2011     2010  
     Contractual
Rates
    Rate Including
Impact of Hedges
    Contractual
Rates
    Rate Including
Impact of Hedges
 

Long-term debt

     3.64     3.22     3.70     3.30
Schedule Of The Fair Values Of Derivative Financial Instruments
Asset Derivatives      Liability Derivatives  
      December 31, 2011      December 31, 2011  
(In millions)    Balance Sheet
Location
   Fair
Value
     Balance Sheet
Location
   Fair
Value
 

Derivatives not designated as hedging instruments:

           

Foreign exchange contracts

   Other assets    $ 12,210       Other liabilities    $ 12,315   

Interest-rate contracts

   Other assets      1,682       Other liabilities      1,688   

Other derivative contracts

   Other assets      1       Other liabilities      10   
     

 

 

       

 

 

 

Total

      $ 13,893          $ 14,013   
     

 

 

       

 

 

 

Derivatives designated as hedging instruments:

           

Interest-rate contracts

   Other assets    $ 123       Other liabilities    $ 293   

Foreign exchange contracts

   Other assets      3       Other liabilities      37   
     

 

 

       

 

 

 

Total

      $ 126          $ 330   
     

 

 

       

 

 

 

 

   

Asset Derivatives

    

Liability Derivatives

 
    

December 31, 2010

    

December 31, 2010

 
(In millions)  

Balance Sheet
Location

   Fair
Value
    

Balance Sheet
Location

   Fair
Value
 

Derivatives not designated as hedging instruments:

          

Foreign exchange contracts

  Other assets    $ 8,058       Other liabilities    $ 8,455   

Interest-rate contracts

  Other assets            133       Other liabilities          131   

Other derivative contracts

  Other assets      2       Other liabilities      10   
    

 

 

       

 

 

 

Total

     $ 8,193          $ 8,596   
    

 

 

       

 

 

 

Derivatives designated as hedges:

          

Interest-rate contracts

  Other assets    $ 32       Other liabilities    $ 228   
    

 

 

       

 

 

 

Total

     $ 32          $ 228   
    

 

 

       

 

 

 
Impact Of Derivatives On Consolidated Statement Of Income
Schedule Of Differences Between The Gains (Losses) On The Derivative And The Gains (Losses) On The Hedged Item
    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
 
    Year Ended December 31,         Year Ended December 31,         Year Ended December 31,  
(In millions)   2011     2010     2009         2011     2010     2009         2011     2010     2009  

Derivatives designated as cash flow hedges:

                     

Interest-rate contracts

  $ 9      $ 7      $ 14      Net interest

revenue

  $ (7   $ (7          Net interest

revenue

  $ 3      $ 5          
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Total

  $ 9      $ 7      $ 14        $ (7   $ (7            $ 3      $ 5          
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 
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Net Interest Revenue (Tables)
12 Months Ended
Dec. 31, 2011
Net Interest Revenue [Abstract]
Components Of Interest Revenue And Interest Expense
(In millions)    2011      2010      2009  

Interest revenue:

        

Deposits with banks Investment securities:

   $ 149       $ 93       $ 156   

U.S. Treasury and federal agencies

     775         682         520   

State and political subdivisions

     221         222         225   

Other investments

     1,493         2,109         2,075   

Securities purchased under resale agreements and federal funds sold

     28         24         24   

Loans and leases(1)

     278         329         239   

Trading account assets

                     20   

Interest revenue associated with AMLF(2)

                     25   

Other interest-earning assets

     2         3         2   
  

 

 

    

 

 

    

 

 

 

Total interest revenue

     2,946         3,462         3,286   

Interest expense:

        

Deposits

     220         213         195   

Short-term borrowings(1)

     96         257         200   

Long-term debt

     289         286         304   

Interest expense associated with AMLF(2)

                     18   

Other interest-bearing liabilities

     8         7         5   
  

 

 

    

 

 

    

 

 

 

Total interest expense

     613         763         722   
  

 

 

    

 

 

    

 

 

 

Net interest revenue

   $ 2,333       $ 2,699       $ 2,564   
  

 

 

    

 

 

    

 

 

 

(1) 

Amounts for 2010 included $67 million of interest revenue and interest expense related to the third-party asset-backed securitization trusts consolidated into our financial statements on January 1, 2010 in connection with our adoption of new GAAP. These trusts were de-consolidated in June 2010.

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Employee Benefits (Tables)
12 Months Ended
Dec. 31, 2011
Employee Benefits [Abstract]
Combined Information For The U.S. And Non-U.S. Defined Benefit Plans And Post-Retirement Plan
     Primary U.S.
and Non-U.S.
Defined
Benefit Plans
    Post-Retirement
Plan
 
(In millions)    2011     2010     2011     2010  

Benefit obligations:

        

Beginning of year

   $ 905      $ 808      $ 114      $ 112   

Service cost

     9        11        6        5   

Interest cost

     47        44        6        6   

Employee contributions

     1        1        —          —     

Plan amendments

     (4     —          —          —     

Acquisitions and transfers

     30        3        —          —     

Actuarial losses (gains)

     67        72        (5     (4

Benefits paid

     (28     (28     (9     (7

Expenses paid

     (1     —          —          —     

Settlements

     (1     (2     —          —     

Foreign currency translation

     (8     (4     —          —     

Adjustment for rounding

     —          —          —          2   
  

 

 

   

 

 

   

 

 

   

 

 

 

End of year

   $ 1,017      $ 905      $ 112      $ 114   
  

 

 

   

 

 

   

 

 

   

 

 

 

Plan assets at fair value:

        

Beginning of year

   $ 884      $ 828       

Actual return on plan assets

     50        84       

Employer contributions

     8        8      $ 9      $ 7   

Acquisitions and transfers

     21        (2     —          —     

Benefits paid

     (28     (28     (9     (7

Expenses paid

     (1     —          —          —     

Plan settlements

     (1     (2     —          —     

Foreign currency translation

     (5     (4     —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

End of year

   $ 928      $ 884      $ —        $ —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Accrued benefit expense:

        

Funded status (plan assets less benefit obligations)

   $ (89   $ (21   $ (112   $ (114
  

 

 

   

 

 

   

 

 

   

 

 

 

Net accrued benefit expense

   $ (89   $ (21   $ (112   $ (114
  

 

 

   

 

 

   

 

 

   

 

 

 
Amounts Recognized In The Consolidated Statement Of Condition
     Primary U.S.
and Non-U.S.
Defined
Benefit Plans
    Post-
Retirement
Plan
 
(In millions)    2011     2010     2011     2010  

Amounts recognized in our consolidated statement of condition as of December 31:

        

Non-current assets

   $ 45      $ 26       

Current liabilities

     (1     (2   $ (6   $ (9

Non-current liabilities

     (133     (45     (106     (105
  

 

 

   

 

 

   

 

 

   

 

 

 

Net accrued amount recognized in statement of condition

   $ (89   $ (21   $ (112   $ (114
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts recognized in accumulated other comprehensive income:

        

Prior service credit

     $ (4   $ 3      $ 4   

Net loss

   $ (307     (242     (36     (43
  

 

 

   

 

 

   

 

 

   

 

 

 

Accumulated other comprehensive loss

     (307     (246     (33     (39

Cumulative employer contributions in excess of net periodic benefit cost

     218        225        (79     (75
  

 

 

   

 

 

   

 

 

   

 

 

 

Net obligation recognized in our consolidated statement of condition

   $ (89   $ (21   $ (112   $ (114
  

 

 

   

 

 

   

 

 

   

 

 

 

Accumulated benefit obligation

   $ 999      $ 887       

Actuarial assumptions (U.S. Plans):

        

Used to determine benefit obligations as of December 31:

        

Discount rate

     4.50     5.50     4.50     5.50

Rate of increase for future compensation

            4.50                 

Used to determine periodic benefit cost for the years ended December 31:

        

Discount rate

     5.50     6.00     5.50     6.00

Rate of increase for future compensation

     4.50        4.50                 

Expected long-term rate of return on plan assets

     7.25        7.25                 

Assumed health care cost trend rates as of December 31:

        

Cost trend rate assumed for next year

                   7.80     7.62

Rate to which the cost trend rate is assumed to decline

                   4.50        4.50   

Year that the rate reaches the ultimate trend rate

                   2029        2026   
Expected Benefit Payments
(In millions)    Primary U.S.
and  Non-U.S.
Defined
Benefit Plans
     Non-
Qualified
SERPs
     Post-Retirement
Plan
 

2012

   $ 33       $ 27       $ 6   

2013

     33         13         6   

2014

     34         12         7   

2015

     35         14         7   

2016

     27         13         7   

2017-2021

     169         59         35   
Plan's Assets Measured At Fair Value On A Recurring Basis

    Fair Value Measurements on a Recurring Basis
as of December 31, 2011
 
(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)
    Total Net
Carrying Value
 

Assets:

       

U.S. Pension Plan

       

Investments in pooled investment funds:

       

Domestic large cap equity

    $ 129        $ 129   

Domestic small cap equity

      14          14   

Developed international equities

      62          62   

Emerging markets equity

      28          28   

Investment grade fixed-income

      311          311   

High yield fixed-income

      26          26   

Real estate investment trusts

      23          23   

Alternative investments (commingled fund)

           $ 5        5   

Alternative investments (fund of funds)

             14        14   

Private equity

             2        2   

Cash

      6               6   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. Pension Plan

      —        599        21        620   
 

 

 

   

 

 

   

 

 

   

 

 

 

U.K. Pension Plan

       

Investments in pooled investment funds:

       

Developed international equity

      24               24   

U.K. fixed-income

      187               187   

Emerging market index

      8               8   

Alternative investments

             32        32   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total U.K. pension plan

           219        32        251   
 

 

 

   

 

 

   

 

 

   

 

 

 

Other Non-U.S. Pension Plans (Excluding U.K.)

       

Insurance group annuity contracts

             57        57   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Non-U.S. Pension Plans (Excluding U.K.)

                  57        57   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total assets carried at fair value

         $ 818      $ 110      $ 928

 

 

 

Fair Value Measurements on a Recurring Basis
as of December 31, 2010
 
(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)
    Total Net
Carrying Value
 

Assets:

       

U.S. Pension Plan

       

Investments in pooled investment funds:

       

Domestic large cap equity

    $ 120        $ 120   

Domestic small cap equity

      15          15   

Developed international equities

      67          67   

Emerging markets equity

      38          38   

Investment grade fixed-income

      308          308   

High yield fixed-income

      31          31   

Real estate investment trusts

      21          21   

Alternative investments (commingled fund)

           $ 5        5   

Alternative investments (fund of funds)

             14        14   

Private equity

             2        2   

Cash

      9               9   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total U.S. Pension Plan

      —        609        21        630   
 

 

 

   

 

 

   

 

 

   

 

 

 

U.K. Pension Plan

       

Investments in insurance vehicles:

       

Developed international equity

      33               33   

U.K. fixed-income

      144               144   

Emerging market index

      8               8   

Alternative investments

             33        33   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total U.K. pension plan

           185        33        218   
 

 

 

   

 

 

   

 

 

   

 

 

 

Other Non-U.S. Pension Plans (Excluding U.K.)

       

Insurance group annuity contracts

             36        36   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Non-U.S. Pension Plans (Excluding U.K.)

                  36        36   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total assets carried at fair value

         $ 794      $ 90      $ 884  
Fair Value Measurements Using Significant Unobservable Inputs
Fair Value Measurements Using Significant Unobservable Inputs
Year Ended December 31, 2011
 
    U.S. Pension Plans     U.K. Pension Plan     Non-U.S. Pension Plans
(Excluding U.K.)
 
(In millions)   Alternative
Investments
    Private
Equity
    Alternative
Investments
    Insurance group
annuity contract
 

Assets:

       

Fair value at December 31, 2010

  $ 19      $ 2      $ 33      $ 36   

Purchases and sales, net

                  (1     24   

Unrealized losses

                         (3
 

 

 

   

 

 

   

 

 

   

 

 

 

Fair value at December 31, 2011

  $ 19      $ 2      $ 32      $ 57   
 

 

 

   

 

 

   

 

 

   

 

 

 

 

 

 

Fair Value Measurements Using Significant Unobservable Inputs
Year Ended December 31, 2010
 
    U.S. Pension Plans     U.K. Pension Plan     Non-U.S. Pension Plans
(Excluding U.K.)
 
(In millions)   Alternative
Investments
    Private
Equity
    Alternative
Investments
    Insurance group
annuity contract
 

Assets:

       

Fair Value at December 31, 2009

  $ 13      $ 2      $ 24      $ 31   

Purchases and sales, net

    4               7        1   

Unrealized gains

    2               2        4   
 

 

 

   

 

 

   

 

 

   

 

 

 

Fair value at December 31, 2010

  $ 19      $ 2      $ 33      $ 36   
 

 

 

   

 

 

   

 

 

   

 

 

 
Defined Pension Benefits In Excess Of Qualified Plan Limits, Information For The SERPs
     Non-Qualified SERPs  
(In millions)        2011             2010      

Benefit obligations:

    

Beginning of year

   $ 165      $ 182   

Service cost

     1        1   

Interest cost

     8        10   

Actuarial gain (losses)

     23        (2

Benefits paid

     (2     (2

Settlements

     (22     (24
  

 

 

   

 

 

 

End of year

   $ 173      $ 165   
  

 

 

   

 

 

 

Accrued benefit expense:

    

Funded status (plan assets less benefit obligations)

   $ (173   $ (165
  

 

 

   

 

 

 

Net accrued benefit expense

   $ (173   $ (165
  

 

 

   

 

 

 

Amounts recognized in our consolidated statement of condition as of December 31:

    

Current liabilities

   $ (27   $ (27

Non-current liabilities

     (146     (138
  

 

 

   

 

 

 

Net accrued amount recognized in our consolidated statement of condition

   $ (173   $ (165
  

 

 

   

 

 

 

Amounts recognized in accumulated other comprehensive income:

    

Net loss

   $ (58   $ (45
  

 

 

   

 

 

 

Accumulated other comprehensive loss

     (58     (45

Cumulative employer contributions in excess of net periodic benefit cost

     (115     (120
  

 

 

   

 

 

 

Net obligation recognized in our consolidated statement of condition

   $ (173   $ (165
  

 

 

   

 

 

 

Accumulated benefit obligation

   $ 173      $ 165   

Actuarial assumptions:

    

Assumptions used to determine benefit obligations and periodic benefit costs are consistent with those noted for the post-retirement plan, with the following exceptions:

    

Rate of increase for future compensation—SERPs

            4.75

Rate of increase for future compensation—Executive SERPs

     10.00     10.00   
The Actuarially Determined Expense For U.S. And Non-U.S. Defined Benefit Plans, Post-Retirement Plan And SERPs
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Occupancy Expense And Information Systems And Communications Expense (Tables)
12 Months Ended
Dec. 31, 2011
Occupancy Expense And Information Systems And Communications Expense [Abstract]
Summary Of Future Minimum Lease Payments Under Non Cancelable Capital And Operating Leases
(In millions)    Capital
Leases
    Operating
Leases
     Total  

2012

   $ 68      $ 237       $ 305   

2013

     68        207         275   

2014

     68        182         250   

2015

     67        132         199   

2016

     71        96         167   

Thereafter

     647        275         922   
  

 

 

   

 

 

    

 

 

 

Total minimum lease payments

     989      $ 1,129       $ 2,118   
    

 

 

    

 

 

 

Less amount representing interest payments

     (327     
  

 

 

      

Present value of minimum lease payments

   $ 662        
  

 

 

      
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Acquisition And Restructuring Costs (Tables)
12 Months Ended
Dec. 31, 2011
Acquisition And Restructuring Costs [Abstract]
Costs Related To Acquisition And Restructuring
(In millions)    2011      2010      2009  

Acquisition costs

   $ 16       $ 89       $ 49   

Restructuring charges

     253         156         —     
  

 

 

    

 

 

    

 

 

 

Total

   $ 269       $ 245       $ 49   
  

 

 

    

 

 

    

 

 

 
Activity Related To Restructuring-Related Accruals
(In millions)    Employee-
Related
Costs
    Real Estate
Consolidation
    Information
Technology
Costs
    Fixed-Income
Trading
Portfolio
     Asset and
Other Write-
offs
    Total  

Initial restructuring-related accrual

   $ 105      $ 51             $ 156   

Payments

     (15     (4            (19
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Balance at December 31, 2010

     90        47               137   

Additional accruals for business operations and information technology transformation program

     85        7      $ 41             133   

Accruals for expense control measures

     62        —          —        $ 38       $ 20        120   

Payments and adjustments

     (75     (15     (8     —           (5     (103
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Balance at December 31, 2011

   $ 162      $ 39      $ 33      $ 38       $ 15      $ 287   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 
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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2011
Income Taxes [Abstract]
Schedule Of Components Of Income Tax Expense
(In millions)    2011      2010     2009  

Current:

       

Federal

   $ 49       $ (885   $ 75   

State

     54         15        39   

Non-U.S.

     295         156        157   
  

 

 

    

 

 

   

 

 

 

Total current expense (benefit)

     398         (714     271   

Deferred:

       

Federal

     134         745        383   

State

     8         141        28   

Non-U.S.

     76         358        40   
     

 

 

   

 

 

 

Total deferred expense

     218         1,244        451   

Total income tax expense

   $ 616       $ 530      $ 722   
     

 

 

   

 

 

 
Schedule Of Components Of Deferred Tax Liabilities And Assets
(In millions)    2011     2010  

Deferred tax liabilities:

    

Lease financing transactions

   $ 397      $ 463   

Fixed and intangible assets

     1,067        1,029   

Other

     21        122   
  

 

 

   

 

 

 

Total deferred tax liabilities

   $ 1,485      $ 1,614   
  

 

 

   

 

 

 

Deferred tax assets:

    

Foreign currency translation

   $ 2      $ 70   

Unrealized losses on securities, net

     651        1,083   

Deferred compensation

     162        183   

Defined benefit pension plan

     180        121   

Expenses

     141        177   

Real estate

     28        33   

Other

     104        137   
  

 

 

   

 

 

 

Total deferred tax assets

     1,268        1,804   
  

 

 

   

 

 

 

Valuation allowance for deferred tax assets

     (19     (18
  

 

 

   

 

 

 

Deferred tax assets net of valuation allowance

   $ 1,249      $ 1,786   
  

 

 

   

 

 

 
Schedule Of Reconciliation Of The U.S. Statutory Income Tax Rate To The Effective Tax Rate
Summary Of Activity Related To Unrecognized Tax Benefits
(In millions)    2011     2010  

Balance at beginning of year

   $ 446      $ 386   

Increase (Decrease) related to agreements with tax authorities

     (322     27   

Increase related to tax positions taken during current year

     1        33   
  

 

 

   

 

 

 

Balance at end of year

   $ 125      $ 446   
  

 

 

   

 

 

 
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Earnings Per Common Share (Tables)
12 Months Ended
Dec. 31, 2011
Earnings Per Common Share [Abstract]
Computation Of Basic And Diluted Earnings Per Share
(Dollars in millions, except per share amounts)    2011     2010     2009  

Net income before extraordinary loss

   $ 1,920      $ 1,556      $ 1,803   

Less:

      

Prepayment and accretion of preferred stock discount

                   (117

Preferred stock dividends

     (20            (46

Dividends and undistributed earnings allocated to participating securities(1)

     (18     (16       
  

 

 

   

 

 

   

 

 

 

Net income before extraordinary loss available to common shareholders

   $ 1,882      $ 1,540      $ 1,640   
  

 

 

   

 

 

   

 

 

 

Average shares outstanding (in thousands):

      

Basic average shares

     492,598        495,394        470,602   

Effect of dilutive securities: stock options and stock awards

     3,474        2,530        3,401   
  

 

 

   

 

 

   

 

 

 

Diluted average shares

     496,072        497,924        474,003   
  

 

 

   

 

 

   

 

 

 

Anti-dilutive securities(2)

     2,382        10,316        12,904   

Earnings per common share before extraordinary loss:

      

Basic

   $ 3.82      $ 3.11      $ 3.50   

Diluted(3)

     3.79        3.09        3.46   

(1) 

Represented the portion of net income available to common equity allocated to participating securities; participating securities, composed of unvested restricted stock and director stock, have non-forfeitable rights to dividends during the vesting period on a basis equivalent to dividends paid to common shareholders.

 

(2)

Represented stock options, restricted stock and other securities outstanding but not included in the computation of diluted average shares because their effect was anti-dilutive.

 

(3)

Calculations for 2011 and 2010 reflected the allocation of earnings to participating securities using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.

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Line Of Business Information (Tables)
12 Months Ended
Dec. 31, 2011
Line Of Business Information [Abstract]
Summary Of Line Of Business Results
    Investment
Servicing
    Management
Investment
    Other     Total  
Years ended December 31,   2011     2010     2009     2011     2010     2009     2011     2010     2009     2011     2010     2009  
(Dollars in millions, except where
otherwise noted)
                                                                       

Fee revenue:

                       

Servicing fees

  $ 4,382      $ 3,938      $ 3,334                  $ 4,382      $ 3,938      $ 3,334   

Management fees

                       $ 917      $ 829      $ 766              917        829        766   

Trading services

    1,220        1,106        1,094                                   1,220        1,106        1,094   

Securities finance

    333        265        387        45        53        183              378        318        570   

Processing fees and other

    195        225        72        102        124        99              297        349        171   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

         

 

 

   

 

 

   

 

 

 

Total fee revenue

    6,130        5,534        4,887        1,064        1,006        1,048              7,194        6,540        5,935   

Net interest revenue

    2,181        2,553        2,489        152        146        68          $ 7        2,333        2,699        2,564   

Gains (Losses) related to investment securities, net

    67        58        141                             $ (344            67        (286     141   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

    8,378        8,145        7,517        1,216        1,152        1,116          (344     7        9,594        8,953        8,640   

Provision for loan losses

           25        148                      1                               25        149   

Expenses from operations

    5,889        5,430        4,920        900        753        747                        6,789        6,183        5,667   

Securities lending charge

           75                      339                                      414          

Provision for fixed-income litigation exposure

                                       250                                      250   

Acquisition costs

                                            $ 16        89        49        16        89        49   

Restructuring charges

                                              253        156               253        156          
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    5,889        5,505        4,920        900        1,092        997        269        245        49        7,058        6,842        5,966   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes

  $ 2,489      $ 2,615      $ 2,449      $ 316      $ 60      $ 118      $ (269   $ (589   $ (42   $ 2,536      $ 2,086      $ 2,525   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Pre-tax margin

    30     32     33     26     5     11           26     23     29

Average assets (in billions)

  $ 169.4      $ 146.9      $ 143.7      $ 5.4      $ 5.1      $ 3.1            $ 174.8      $ 152.0      $ 146.8   
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Non-U.S. Activities (Tables)
12 Months Ended
Dec. 31, 2011
Non-U.S. Activities [Abstract]
Schedule Of Results From Non-U.S. Operations
(In millions)    2011     2010      2009  

Total fee revenue

   $ 3,004      $ 2,661       $ 2,291   

Net interest revenue

     1,104        725         422   

Gains (Losses) related to investment securities, net

     (25     449         (37
  

 

 

   

 

 

    

 

 

 

Total revenue

     4,083        3,835         2,676   

Expenses

     3,415        2,962         2,457   
  

 

 

   

 

 

    

 

 

 

Income before income taxes

     668        873         219   

Income tax expense

     172        327         84   
  

 

 

   

 

 

    

 

 

 

Net income

   $ 496      $ 546       $ 135   
  

 

 

   

 

 

    

 

 

 
Summary Of Non-U.S. Assets
(In millions)      2011         2010   

Interest-bearing deposits with banks

   $ 10,772       $ 9,443   

Non-U.S. investment securities

     25,376         19,329   

Other assets

     15,518         13,994   
  

 

 

    

 

 

 

Total assets

   $ 51,666       $ 42,766   
  

 

 

    

 

 

 
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Parent Company Financial Statements (Tables)
12 Months Ended
Dec. 31, 2011
Parent Company Financial Statements [Abstract]
Parent Company Statement Of Income
Years ended December 31,    2011     2010     2009  
(In millions)                   

Cash dividends from consolidated banking subsidiary

     $ 1,400      $ 250   

Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities

   $ 60        100        25   

Other, net

     34        9        (11
  

 

 

   

 

 

   

 

 

 

Total revenue

     94        1,509        264   

Interest expense

     203        162        178   

Other expenses

     60        421        53   
  

 

 

   

 

 

   

 

 

 

Total expenses

     263        583        231   

Income tax benefit

     (125     (93     (38
  

 

 

   

 

 

   

 

 

 

Income (Loss) before equity in undistributed income of consolidated subsidiaries and unconsolidated entities

     (44     1,019        71   

Extraordinary loss, net of taxes

     —          —          (20

Equity in undistributed income (loss) of consolidated subsidiaries and unconsolidated entities:

      

Consolidated banking subsidiary

     1,773        484        (1,987

Consolidated non-banking subsidiaries and unconsolidated entities

     191        53        55   
  

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 1,920      $ 1,556      $ (1,881
  

 

 

   

 

 

   

 

 

 
Parent Company Statement Of Condition
As of December 31,    2011      2010  
(In millions)              

Assets:

     

Interest-bearing deposits with consolidated banking subsidiary

   $ 4,914       $ 5,058   

Trading account assets

     138         122   

Investment securities available for sale

     25         24   

Investments in subsidiaries:

     

Consolidated banking subsidiary

     18,724         16,697   

Consolidated non-banking subsidiaries

     2,340         2,299   

Unconsolidated entities

     326         297   

Notes and other receivables from:

     

Consolidated banking subsidiary

     618         —     

Consolidated non-banking subsidiaries and unconsolidated entities

     302         283   

Other assets

     994         850   

Total assets

   $ 28,381       $ 25,630   
  

 

 

    

 

 

 

Liabilities:

     

Commercial paper

   $ 2,384       $ 2,799   

Accrued taxes, expenses and other liabilities due to:

     

Consolidated banking subsidiary

     —           561   

Third parties

     276         161   

Long-term debt

     6,323         4,322   
  

 

 

    

 

 

 

Total liabilities

     8,983         7,843   

Shareholders' equity

     19,398         17,787   
  

 

 

    

 

 

 

Total liabilities and shareholders' equity

   $ 28,381       $ 25,630   
  

 

 

    

 

 

 
Parent Company Statement Of Cash Flows
Years ended December 31,    2011     2010     2009  
(In millions)                   

Net cash (used in) provided by operating activities

   $ (571   $ 1,453      $ (24

Investing Activities:

      

Net (increase) decrease in interest-bearing deposits with banking subsidiary

     144        (831     (1,457

Proceeds from sales and maturities of available-for-sale securities

            1        36   

Net decrease in securities related to AMLF

                   3,104   

Investments in non-banking subsidiaries and unconsolidated entities

     (648     (277     (776

Sale of investment in non-banking subsidiaries and unconsolidated entities

     39        127          

Business acquisitions

     (51     (141       
  

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by investing activities

     (516     (1,121     907   

Financing Activities:

      

Net decrease in short-term borrowings related to AMLF

                   (3,063

Net (decrease) increase in commercial paper

     (415     22        189   

Proceeds from issuance of long-term debt, net of issuance costs

     1,986               1,992   

Payments for long-term debt

            (300       

Proceeds from issuance of preferred stock

     500                 

Redemption of TARP preferred stock

                   (2,000

Proceeds from public offering of common stock, net of issuance costs

                   2,231   

Repurchase of TARP common stock warrant

                   (60

Purchases of common stock

     (675              

Proceeds from exercises of common stock options

     40        10        34   

Repurchases of common stock for employee tax withholding

     (63     (44     (38

Proceeds from issuances of treasury stock for common stock awards and option exercises

     9                 

Payments for cash dividends

     (295     (20     (168
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     1,087        (332     (883
  

 

 

   

 

 

   

 

 

 

Net change

                     

Cash and due from banks at beginning of year

                     
  

 

 

   

 

 

   

 

 

 

Cash and due from banks at end of year

   $      $      $   
  

 

 

   

 

 

   

 

 

 
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Summary Of Significant Accounting Policies (Details)
12 Months Ended
Dec. 31, 2011
days
Number of days before loans are placed on non-accrual status 60
Estimated useful lives or term of the lease, minimum, years 3
Estimated useful lives or term of the lease, maximum, years 40
Other Intangible Assets [Member]
Finite-lived intangible assets, useful life, minimum, years 5
Finite-lived intangible assets, useful life, maximum, years 20
Core Deposits Intangibles [Member]
Finite-lived intangible assets, useful life, minimum, years 16
Finite-lived intangible assets, useful life, maximum, years 22
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Acquisitions (Details)
3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2010
EUR (€)
Dec. 31, 2011
USD ($)
Dec. 31, 2010
USD ($)
Jun. 30, 2010
USD ($)
Dec. 31, 2009
USD ($)
Dec. 31, 2011
Pulse Trading, Inc. [Member]
Dec. 31, 2011
Bank Of Ireland's Asset Management [Member]
USD ($)
Dec. 31, 2011
Intesa Sanpaolo's Securities Services [Member]
USD ($)
Dec. 31, 2011
Complementa Investment Controlling AG And Pulse Trading Inc [Member]
USD ($)
Jun. 30, 2010
Mourant International Finance Administration [Member]
USD ($)
Business Acquisition [Line Items]
Assessment for taxes, penalties and interest € 130,000,000
Goodwill resulting from acquisition 31,000,000 932,000,000 68,000,000 73,000,000
Other intangible assets 2,459,000,000 2,593,000,000 1,810,000,000 27,000,000 848,000,000 67,000,000 59,000,000
Contingent asset 53,000,000 72,000,000
Acquired BIAM assets under management 23,000,000,000 122,000,000,000
Date of acquisition November 3, 2011 October 3, 2011
Other assets $ 17,139,000,000 $ 13,841,000,000 $ 564,000,000,000
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Investment Securities (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2011
securities
Dec. 31, 2010
Aggregate investment securities carried $ 44,660,000,000 $ 44,810,000,000
Recovery of claimed amounts 20.00%
Gross pre-tax unrealized losses on securities 1,960,000,000
Number of investment securities 1,703
Credit-related other-than-temporary impairment 73,000,000
Available for sale, Amortized Cost 100,013,000,000 82,329,000,000
Proceeds from sale of securities 11,000,000,000
Pre-tax net loss on sale of securities 344,000,000
Securities sold included as held to maturity 4,800,000,000
Net pre-tax loss on sale of held-to-maturity securities 119,000,000
Unrealized loss on available-for-sale securities 1,652,000,000 1,574,000,000
Number of peripheral European countries 5
Asset-Backed Securities [Member]
Available for sale, Amortized Cost 32,905,000,000 27,264,000,000
Proceeds from sale of securities 4,300,000,000
Unrealized loss on available-for-sale securities 1,297,000,000 1,185,000,000
Non-Agency Mortgage Backed Securities [Member]
Proceeds from sale of securities 4,100,000,000
Mortgage-Backed Securities [Member]
Proceeds from sale of securities 2,500,000,000
Federal Family Education Loan Program [Member]
Federal government credit support guarantee, percentage minimum 97.00%
Collective credit support, percentage minimum 100.00%
Student Loans [Member]
Available for sale, Amortized Cost 17,187,000,000 [1] 14,975,000,000 [1]
Total exposure to asset backed Securities 1,000,000,000
Unrealized loss on available-for-sale securities 711,000,000 [1] 652,000,000 [1]
European Periphery [Member]
Total exposure to asset backed Securities 1,080,000,000
Unrealized loss on available-for-sale securities 122,000,000
Spain [Member]
Total exposure to asset backed Securities 424,000,000
Italy [Member]
Total exposure to asset backed Securities 373,000,000
Greece [Member]
Total exposure to asset backed Securities 99,000,000
Ireland [Member]
Total exposure to asset backed Securities 114,000,000
Portugal [Member]
Total exposure to asset backed Securities $ 69,000,000
Maximum [Member]
Percentage change in additional house price declines 15.00%
Minimum [Member]
Percentage change in additional house price declines 5.00%
[1] Substantially composed of securities guaranteed by the federal government with respect to the payment of principal and interest.
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Investment Securities (Schedule Of Marketable Securities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Available for sale, Amortized Cost $ 100,013 $ 82,329
Available for sale, Gross Unrealized Gains 1,471 1,126
Available for sale, Gross Unrealized Losses 1,652 1,574
Available for sale, Fair Value 99,832 81,881
Held to maturity, Amortized Cost 9,321 12,249
Held to maturity, Gross Unrealized Gains 344 541
Held to maturity, Gross Unrealized Losses 303 214
Held to maturity, Fair Value 9,362 12,576
Student Loans [Member]
Available for sale, Amortized Cost 17,187 [1] 14,975 [1]
Available for sale, Gross Unrealized Gains 69 [1] 92 [1]
Available for sale, Gross Unrealized Losses 711 [1] 652 [1]
Available for sale, Fair Value 16,545 [1] 14,415 [1]
Credit Cards [Member]
Available for sale, Amortized Cost 10,448 7,578
Available for sale, Gross Unrealized Gains 53 56
Available for sale, Gross Unrealized Losses 14 31
Available for sale, Fair Value 10,487 7,603
Sub-Prime [Member]
Available for sale, Amortized Cost 1,849 2,161
Available for sale, Gross Unrealized Gains 2 3
Available for sale, Gross Unrealized Losses 447 346
Available for sale, Fair Value 1,404 1,818
Other Asset-Backed Securities [Member]
Available for sale, Amortized Cost 3,421 2,550
Available for sale, Gross Unrealized Gains 169 175
Available for sale, Gross Unrealized Losses 125 156
Available for sale, Fair Value 3,465 2,569
Asset-Backed Securities [Member]
Available for sale, Amortized Cost 32,905 27,264
Available for sale, Gross Unrealized Gains 293 326
Available for sale, Gross Unrealized Losses 1,297 1,185
Available for sale, Fair Value 31,901 26,405
State And Political Subdivisions [Member]
Available for sale, Amortized Cost 6,924 6,706
Available for sale, Gross Unrealized Gains 244 102
Available for sale, Gross Unrealized Losses 121 204
Available for sale, Fair Value 7,047 6,604
Held to maturity, Amortized Cost 107 134
Held to maturity, Gross Unrealized Gains 3 3
Held to maturity, Gross Unrealized Losses   
Held to maturity, Fair Value 110 137
Collateralized Mortgage Obligations [Member]
Available for sale, Amortized Cost 3,971 1,828
Available for sale, Gross Unrealized Gains 62 49
Available for sale, Gross Unrealized Losses 53 16
Available for sale, Fair Value 3,980 1,861
Held to maturity, Amortized Cost 3,334 4,452
Held to maturity, Gross Unrealized Gains 220 328
Held to maturity, Gross Unrealized Losses 57 44
Held to maturity, Fair Value 3,497 4,736
Other U.S. Debt Securities [Member]
Available for sale, Amortized Cost 3,471 2,438
Available for sale, Gross Unrealized Gains 159 116
Available for sale, Gross Unrealized Losses 15 18
Available for sale, Fair Value 3,615 2,536
U.S. Equity Securities [Member]
Available for sale, Amortized Cost 639 1,115
Available for sale, Gross Unrealized Gains 1   
Available for sale, Gross Unrealized Losses   
Available for sale, Fair Value 640 1,115
Non-U.S. Equity Securities [Member]
Available for sale, Amortized Cost 118 122
Available for sale, Gross Unrealized Gains 5
Available for sale, Gross Unrealized Losses 1
Available for sale, Fair Value 118 126
U.S. Treasury And Federal Agencies [Member] | Direct Obligations [Member]
Available for sale, Amortized Cost 2,798 7,505
Available for sale, Gross Unrealized Gains 39 74
Available for sale, Gross Unrealized Losses 1 2
Available for sale, Fair Value 2,836 7,577
U.S. Treasury And Federal Agencies [Member] | Asset-Backed Securities [Member]
Held to maturity, Amortized Cost 31 64
Held to maturity, Gross Unrealized Gains   
Held to maturity, Gross Unrealized Losses 2 5
Held to maturity, Fair Value 29 59
U.S. Treasury And Federal Agencies [Member] | Mortgage-Backed Securities [Member]
Available for sale, Amortized Cost 29,511 23,398
Available for sale, Gross Unrealized Gains 538 325
Available for sale, Gross Unrealized Losses 28 83
Available for sale, Fair Value 30,021 23,640
Held to maturity, Amortized Cost 265 413
Held to maturity, Gross Unrealized Gains 18 26
Held to maturity, Fair Value 283 439
Non-U.S. Debt Securities [Member]
Available for sale, Amortized Cost 19,676 11,953
Available for sale, Gross Unrealized Gains 135 129
Available for sale, Gross Unrealized Losses 137 65
Available for sale, Fair Value 19,674 12,017
Held to maturity, Amortized Cost 5,584 7,186
Held to maturity, Gross Unrealized Gains 103 184
Held to maturity, Gross Unrealized Losses 244 165
Held to maturity, Fair Value 5,443 7,205
Non-U.S. Debt Securities [Member] | Asset-Backed Securities [Member]
Available for sale, Amortized Cost 4,318 1,790
Available for sale, Gross Unrealized Gains 2 13
Available for sale, Gross Unrealized Losses 17 17
Available for sale, Fair Value 4,303 1,786
Held to maturity, Amortized Cost 436 646
Held to maturity, Gross Unrealized Gains 16 18
Held to maturity, Gross Unrealized Losses 3 3
Held to maturity, Fair Value 449 661
Non-U.S. Debt Securities [Member] | Other Non-U.S. Debt Securities [Member]
Available for sale, Amortized Cost 2,797 1,900
Available for sale, Gross Unrealized Gains 41 34
Available for sale, Gross Unrealized Losses 13 2
Available for sale, Fair Value 2,825 1,932
Held to maturity, Amortized Cost 172 208
Held to maturity, Gross Unrealized Gains   
Held to maturity, Gross Unrealized Losses 17 2
Held to maturity, Fair Value 155 206
Non-U.S. Debt Securities [Member] | Government Securities [Member]
Available for sale, Amortized Cost 1,671 2,005
Available for sale, Gross Unrealized Gains   
Available for sale, Gross Unrealized Losses   
Available for sale, Fair Value 1,671 2,005
Held to maturity, Amortized Cost 3
Held to maturity, Fair Value 3
Non-U.S. Debt Securities [Member] | Mortgage-Backed Securities [Member]
Available for sale, Amortized Cost 10,890 6,258
Available for sale, Gross Unrealized Gains 92 82
Available for sale, Gross Unrealized Losses 107 46
Available for sale, Fair Value 10,875 6,294
Held to maturity, Amortized Cost 4,973 6,332
Held to maturity, Gross Unrealized Gains 87 166
Held to maturity, Gross Unrealized Losses 224 160
Held to maturity, Fair Value $ 4,836 $ 6,338
[1] Substantially composed of securities guaranteed by the federal government with respect to the payment of principal and interest.
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Investment Securities (Schedule Of Contractual Maturities Of Debt Securities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Available for sale, Under 1 Year $ 8,805
Available for sale, 1 to 5 Years 20,813
Available for sale, 6 to 10 Years 34,264
Available for sale, Over 10 Years 35,192
Held to maturity, Under 1 Year 1,757
Held to maturity, 1 to 5 Years 2,031
Held to maturity, 6 to 10 Years 851
Held to maturity, Over 10 Years 4,682
Student Loans [Member]
Available for sale, Under 1 Year 155
Available for sale, 1 to 5 Years 3,331
Available for sale, 6 to 10 Years 8,490
Available for sale, Over 10 Years 4,569
Credit Cards [Member]
Available for sale, Under 1 Year 1,893
Available for sale, 1 to 5 Years 5,893
Available for sale, 6 to 10 Years 2,701
Sub-Prime [Member]
Available for sale, Under 1 Year 581
Available for sale, 1 to 5 Years 82
Available for sale, 6 to 10 Years 17
Available for sale, Over 10 Years 724
Other Asset-Backed Securities [Member]
Available for sale, Under 1 Year 119
Available for sale, 1 to 5 Years 1,602
Available for sale, 6 to 10 Years 1,198
Available for sale, Over 10 Years 546
Asset-Backed Securities [Member]
Available for sale, Under 1 Year 2,748
Available for sale, 1 to 5 Years 10,908
Available for sale, 6 to 10 Years 12,406
Available for sale, Over 10 Years 5,839
State And Political Subdivisions [Member]
Available for sale, Under 1 Year 471
Available for sale, 1 to 5 Years 2,326
Available for sale, 6 to 10 Years 3,328
Available for sale, Over 10 Years 922
Held to maturity, Under 1 Year 56
Held to maturity, 1 to 5 Years 49
Held to maturity, 6 to 10 Years 2
Collateralized Mortgage Obligations [Member]
Available for sale, Under 1 Year 81
Available for sale, 1 to 5 Years 1,163
Available for sale, 6 to 10 Years 1,209
Available for sale, Over 10 Years 1,527
Held to maturity, Under 1 Year 394
Held to maturity, 1 to 5 Years 1,350
Held to maturity, 6 to 10 Years 530
Held to maturity, Over 10 Years 1,060
Other U.S. Debt Securities [Member]
Available for sale, Under 1 Year 289
Available for sale, 1 to 5 Years 1,391
Available for sale, 6 to 10 Years 1,899
Available for sale, Over 10 Years 36
U.S. Treasury And Federal Agencies [Member] | Direct Obligations [Member]
Available for sale, Under 1 Year 1,200
Available for sale, 1 to 5 Years 38
Available for sale, 6 to 10 Years 822
Available for sale, Over 10 Years 776
U.S. Treasury And Federal Agencies [Member] | Mortgage-Backed Securities [Member]
Available for sale, Under 1 Year 5
Available for sale, 1 to 5 Years 755
Available for sale, 6 to 10 Years 10,871
Available for sale, Over 10 Years 18,390
Held to maturity, 1 to 5 Years 19
Held to maturity, 6 to 10 Years 102
Held to maturity, Over 10 Years 144
U.S. Treasury And Federal Agencies [Member] | Asset-Backed Securities [Member]
Held to maturity, Over 10 Years 31
Non-U.S. Debt Securities [Member]
Available for sale, Under 1 Year 4,011
Available for sale, 1 to 5 Years 4,232
Available for sale, 6 to 10 Years 3,729
Available for sale, Over 10 Years 7,702
Held to maturity, Under 1 Year 1,307
Held to maturity, 1 to 5 Years 613
Held to maturity, 6 to 10 Years 217
Held to maturity, Over 10 Years 3,447
Non-U.S. Debt Securities [Member] | Mortgage-Backed Securities [Member]
Available for sale, Under 1 Year 474
Available for sale, 1 to 5 Years 2,358
Available for sale, 6 to 10 Years 987
Available for sale, Over 10 Years 7,056
Held to maturity, Under 1 Year 1,304
Held to maturity, 1 to 5 Years 254
Held to maturity, Over 10 Years 3,415
Non-U.S. Debt Securities [Member] | Asset-Backed Securities [Member]
Available for sale, Under 1 Year 230
Available for sale, 1 to 5 Years 916
Available for sale, 6 to 10 Years 2,511
Available for sale, Over 10 Years 646
Held to maturity, 1 to 5 Years 204
Held to maturity, 6 to 10 Years 217
Held to maturity, Over 10 Years 15
Non-U.S. Debt Securities [Member] | Government Securities [Member]
Available for sale, Under 1 Year 1,671
Held to maturity, Under 1 Year 3
Non-U.S. Debt Securities [Member] | Other Non-U.S. Debt Securities [Member]
Available for sale, Under 1 Year 1,636
Available for sale, 1 to 5 Years 958
Available for sale, 6 to 10 Years 231
Held to maturity, 1 to 5 Years 155
Held to maturity, Over 10 Years $ 17
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Investment Securities (Critical Estimates Used In Roll Rate Analysis) (Details)
Dec. 31, 2011
Dec. 31, 2010
Sub-Prime [Member]
Cumulative loss estimates 33.00%
Loss severity 67.00% [1]
Peak-to-trough housing price decline 35.00% [2]
Alt-A [Member]
Prepayment rate 7.00%
Cumulative loss estimates 21.00%
Loss severity 49.00% [1]
Peak-to-trough housing price decline 35.00% [2]
Non-Agency Prime [Member]
Cumulative loss estimates 13.00%
Loss severity 49.00% [1]
Peak-to-trough housing price decline 35.00% [2]
Maximum [Member] | Sub-Prime [Member]
Prepayment rate 3.00% 3.00%
Cumulative loss estimates 54.00%
Loss severity 72.00%
Peak-to-trough housing price decline 40.00%
Maximum [Member] | Alt-A [Member]
Prepayment rate 6.00%
Cumulative loss estimates 39.00%
Loss severity 61.00%
Peak-to-trough housing price decline 40.00%
Maximum [Member] | Non-Agency Prime [Member]
Prepayment rate 10.00% 10.00%
Cumulative loss estimates 19.00%
Loss severity 53.00%
Peak-to-trough housing price decline 40.00%
Minimum [Member] | Sub-Prime [Member]
Prepayment rate 1.00% 2.00%
Cumulative loss estimates 46.00%
Loss severity 70.00%
Peak-to-trough housing price decline 35.00%
Minimum [Member] | Alt-A [Member]
Prepayment rate 2.00%
Cumulative loss estimates 26.00%
Loss severity 59.00%
Peak-to-trough housing price decline 35.00%
Minimum [Member] | Non-Agency Prime [Member]
Prepayment rate 5.00% 7.00%
Cumulative loss estimates 9.00%
Loss severity 52.00%
Peak-to-trough housing price decline 35.00%
[1] Loss severity rates consider the initial loan-to-value ratio, lien position, geography, expected collateral value and other factors.
[2] Management's expectation of the Case-Shiller National Home Price Index.
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Investment Securities (Other-Than-Temporary Impairment Recorded On Securities) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Other-than-temporary impairment recorded on securities $ 73
2006 And 2007 Vintage US Residential Mortgage Backed Securities [Member]
Other-than-temporary impairment recorded on securities 12 158 109 [1]
2006 And 2007 Vintage US Residential Mortgage Backed Securities [Member] | Sub-Prime [Member]
Other-than-temporary impairment recorded on securities 2 26 29 [1]
2006 And 2007 Vintage US Residential Mortgage Backed Securities [Member] | Alt-A [Member]
Other-than-temporary impairment recorded on securities 5 43 20 [1]
2006 And 2007 Vintage US Residential Mortgage Backed Securities [Member] | Non-Agency Prime [Member]
Other-than-temporary impairment recorded on securities $ 5 $ 89 $ 60 [1]
[1] Represents the period from April 1, 2009 through December 31, 2009, subsequent to the adoption of the revised GAAP related to other-than-temporary impairment.
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Investment Securities (Schedule Of Gross Pre-Tax Unrealized Losses On Investment Securities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Student Loans [Member]
Available for sale, Fair Value Less than 12 Months $ 2,642 $ 1,980
Available for sale, Gross Unrealized Losses Less than 12 Months 23 25
Available for sale, Fair Value 12 Months or Longer 10,706 8,457
Available for sale, Gross Unrealized Losses 12 Months or Longer 688 627
Available for sale, Fair Value Total 13,348 10,437
Available for sale, Gross Unrealized Losses Total 711 652
Credit Cards [Member]
Available for sale, Fair Value Less than 12 Months 2,581 1,268
Available for sale, Gross Unrealized Losses Less than 12 Months 6 5
Available for sale, Fair Value 12 Months or Longer 1,461 2,396
Available for sale, Gross Unrealized Losses 12 Months or Longer 8 26
Available for sale, Fair Value Total 4,042 3,664
Available for sale, Gross Unrealized Losses Total 14 31
Sub-Prime [Member]
Available for sale, Fair Value Less than 12 Months 16   
Available for sale, Gross Unrealized Losses Less than 12 Months 1   
Available for sale, Fair Value 12 Months or Longer 1,360 1,769
Available for sale, Gross Unrealized Losses 12 Months or Longer 446 346
Available for sale, Fair Value Total 1,376 1,769
Available for sale, Gross Unrealized Losses Total 447 346
Other Asset-Backed Securities [Member]
Available for sale, Fair Value Less than 12 Months 1,482 269
Available for sale, Gross Unrealized Losses Less than 12 Months 19 3
Available for sale, Fair Value 12 Months or Longer 1,122 1,122
Available for sale, Gross Unrealized Losses 12 Months or Longer 106 153
Available for sale, Fair Value Total 2,604 1,391
Available for sale, Gross Unrealized Losses Total 125 156
Asset-Backed Securities [Member]
Available for sale, Fair Value Less than 12 Months 6,721 3,517
Available for sale, Gross Unrealized Losses Less than 12 Months 49 33
Available for sale, Fair Value 12 Months or Longer 14,649 13,744
Available for sale, Gross Unrealized Losses 12 Months or Longer 1,248 1,152
Available for sale, Fair Value Total 21,370 17,261
Available for sale, Gross Unrealized Losses Total 1,297 1,185
Held to maturity, Fair Value 12 Months or Longer 29 53
Held to maturity, Gross Unrealized Losses 12 Months or Longer 2 5
Held to maturity, Fair Value Total 29 53
Held to maturity, Gross Unrealized Losses Total 2 5
State And Political Subdivisions [Member]
Available for sale, Fair Value Less than 12 Months 171 1,097
Available for sale, Gross Unrealized Losses Less than 12 Months 3 19
Available for sale, Fair Value 12 Months or Longer 1,446 1,967
Available for sale, Gross Unrealized Losses 12 Months or Longer 118 185
Available for sale, Fair Value Total 1,617 3,064
Available for sale, Gross Unrealized Losses Total 121 204
Collateralized Mortgage Obligations [Member]
Available for sale, Fair Value Less than 12 Months 2,024 494
Available for sale, Gross Unrealized Losses Less than 12 Months 43 5
Available for sale, Fair Value 12 Months or Longer 68 109
Available for sale, Gross Unrealized Losses 12 Months or Longer 10 11
Available for sale, Fair Value Total 2,092 603
Available for sale, Gross Unrealized Losses Total 53 16
Held to maturity, Fair Value Less than 12 Months 649 125
Held to maturity, Gross Unrealized Losses Less than 12 Months 32 2
Held to maturity, Fair Value 12 Months or Longer 231 575
Held to maturity, Gross Unrealized Losses 12 Months or Longer 25 42
Held to maturity, Fair Value Total 880 700
Held to maturity, Gross Unrealized Losses Total 57 44
Other U.S. Debt Securities [Member]
Available for sale, Fair Value Less than 12 Months 220 330
Available for sale, Gross Unrealized Losses Less than 12 Months 2 7
Available for sale, Fair Value 12 Months or Longer 57 61
Available for sale, Gross Unrealized Losses 12 Months or Longer 13 11
Available for sale, Fair Value Total 277 391
Available for sale, Gross Unrealized Losses Total 15 18
Total AFS Securities [Member]
Available for sale, Fair Value Less than 12 Months 25,040 15,054
Available for sale, Gross Unrealized Losses Less than 12 Months 206 170
Available for sale, Fair Value 12 Months or Longer 17,849 16,889
Available for sale, Gross Unrealized Losses 12 Months or Longer 1,446 1,404
Available for sale, Fair Value Total 42,889 31,943
Available for sale, Gross Unrealized Losses Total 1,652 1,574
Total HTM Securities [Member]
Held to maturity, Fair Value Less than 12 Months 999 1,776
Held to maturity, Gross Unrealized Losses Less than 12 Months 39 76
Held to maturity, Fair Value 12 Months or Longer 1,850 1,558
Held to maturity, Gross Unrealized Losses 12 Months or Longer 264 138
Held to maturity, Fair Value Total 2,849 3,334
Held to maturity, Gross Unrealized Losses Total 303 214
Non-U.S. Equity Securities [Member]
Available for sale, Fair Value Less than 12 Months 8
Available for sale, Gross Unrealized Losses Less than 12 Months 1
Available for sale, Fair Value 12 Months or Longer   
Available for sale, Gross Unrealized Losses 12 Months or Longer   
Available for sale, Fair Value Total 8
Available for sale, Gross Unrealized Losses Total 1
U.S. Treasury And Federal Agencies [Member] | Direct Obligations [Member]
Available for sale, Fair Value Less than 12 Months 1,373
Available for sale, Gross Unrealized Losses Less than 12 Months 1
Available for sale, Fair Value 12 Months or Longer 153
Available for sale, Gross Unrealized Losses 12 Months or Longer 2
Available for sale, Fair Value Total 1,373 153
Available for sale, Gross Unrealized Losses Total 1 2
U.S. Treasury And Federal Agencies [Member] | Mortgage-Backed Securities [Member]
Available for sale, Fair Value Less than 12 Months 4,714 6,639
Available for sale, Gross Unrealized Losses Less than 12 Months 26 81
Available for sale, Fair Value 12 Months or Longer 370 431
Available for sale, Gross Unrealized Losses 12 Months or Longer 2 2
Available for sale, Fair Value Total 5,084 7,070
Available for sale, Gross Unrealized Losses Total 28 83
Non-U.S. Debt Securities [Member]
Available for sale, Fair Value Less than 12 Months 9,817 2,969
Available for sale, Gross Unrealized Losses Less than 12 Months 82 24
Available for sale, Fair Value 12 Months or Longer 1,259 424
Available for sale, Gross Unrealized Losses 12 Months or Longer 55 41
Available for sale, Fair Value Total 11,076 3,393
Available for sale, Gross Unrealized Losses Total 137 65
Held to maturity, Fair Value Less than 12 Months 350 1,651
Held to maturity, Gross Unrealized Losses Less than 12 Months 7 74
Held to maturity, Fair Value 12 Months or Longer 1,590 930
Held to maturity, Gross Unrealized Losses 12 Months or Longer 237 91
Held to maturity, Fair Value Total 1,840 2,581
Held to maturity, Gross Unrealized Losses Total 244 165
Non-U.S. Debt Securities [Member] | Mortgage-Backed Securities [Member]
Available for sale, Fair Value Less than 12 Months 6,069 2,621
Available for sale, Gross Unrealized Losses Less than 12 Months 55 22
Available for sale, Fair Value 12 Months or Longer 1,151 370
Available for sale, Gross Unrealized Losses 12 Months or Longer 52 24
Available for sale, Fair Value Total 7,220 2,991
Available for sale, Gross Unrealized Losses Total 107 46
Held to maturity, Fair Value Less than 12 Months 341 1,445
Held to maturity, Gross Unrealized Losses Less than 12 Months 6 72
Held to maturity, Fair Value 12 Months or Longer 1,382 862
Held to maturity, Gross Unrealized Losses 12 Months or Longer 218 88
Held to maturity, Fair Value Total 1,723 2,307
Held to maturity, Gross Unrealized Losses Total 224 160
Non-U.S. Debt Securities [Member] | Other Non-U.S. Debt Securities [Member]
Available for sale, Fair Value Less than 12 Months 1,543 348
Available for sale, Gross Unrealized Losses Less than 12 Months 13 2
Available for sale, Fair Value 12 Months or Longer   
Available for sale, Gross Unrealized Losses 12 Months or Longer   
Available for sale, Fair Value Total 1,543 348
Available for sale, Gross Unrealized Losses Total 13 2
Held to maturity, Fair Value Less than 12 Months 206
Held to maturity, Gross Unrealized Losses Less than 12 Months 2
Held to maturity, Fair Value 12 Months or Longer 138   
Held to maturity, Gross Unrealized Losses 12 Months or Longer 17   
Held to maturity, Fair Value Total 138 206
Held to maturity, Gross Unrealized Losses Total 17 2
Non-U.S. Debt Securities [Member] | Asset-Backed Securities [Member]
Available for sale, Fair Value Less than 12 Months 2,205
Available for sale, Gross Unrealized Losses Less than 12 Months 14
Available for sale, Fair Value 12 Months or Longer 108 54
Available for sale, Gross Unrealized Losses 12 Months or Longer 3 17
Available for sale, Fair Value Total 2,313 54
Available for sale, Gross Unrealized Losses Total 17 17
Held to maturity, Fair Value Less than 12 Months 9   
Held to maturity, Gross Unrealized Losses Less than 12 Months 1   
Held to maturity, Fair Value 12 Months or Longer 70 68
Held to maturity, Gross Unrealized Losses 12 Months or Longer 2 3
Held to maturity, Fair Value Total 79 68
Held to maturity, Gross Unrealized Losses Total $ 3 $ 3
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Investment Securities (Gains And Losses Related To Investment Securities) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Investment Securities [Abstract]
Gross realized gains from sales of investment securities $ 152 $ 1,330 $ 418
Gross realized losses from sales of investment securities (12) (1,385) (50)
Losses from other-than-temporary impairment (123) (651) (1,155)
Losses not related to credit 50 [1] 420 [1] 928 [1]
Gains (Losses) related to investment securities, net 67 (286) 141
Impairment associated with expected credit losses (42) (203) (151)
Impairment associated with management's intent to sell the impaired securities prior to their recovery in value (8) (1) (54)
Impairment associated with adverse changes in timing of expected future cash flows (23) (27) (22)
Net impairment losses $ (73) $ (231) $ (227)
[1] Pursuant to revised GAAP adopted on April 1, 2009, these losses were recorded, net of related taxes, a component of other comprehensive income; refer to note 12.
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Investment Securities (Schedule Of Credit-Related Loss Activity Recognized In Earnings) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Investment Securities [Abstract]
Beginning balance $ 63 $ 175 [1]
Plus expected credit-related losses for which other-than-temporary impairment was not previously recognized 10 88 214 [1]
Plus expected credit-related losses for which other-than-temporary impairment was previously recognized 55 142
Less losses realized for securities sold (13) (342) (17) [1]
Less losses related to securities intended or required to be sold (2) (22) [1]
Ending balance $ 113 $ 63 $ 175 [1]
[1] Beginning balance was as of April 1, 2009, pursuant to revised GAAP.
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Loans And Leases (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2011
days
Dec. 31, 2010
days
Aggregate short-duration advances 2,170,000,000 2,630,000,000
Aggregate of debt restructurings 199,000,000 307,000,000
Non-accrual status principal interest payments past due days 60
Other real estate owned 79,000,000
Property Development Acquired-Credit Impaired [Member]
Other real estate owned 42,000,000
Troubled Debt Restructuring [Member]
Aggregate of debt restructurings   
Commercial Real Estate [Member]
Loans or leases contractually past-due days 90 90
Institutional [Member]
Loans or leases contractually past-due days 90 90
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Loans And Leases (Net Loans) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2008
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases $ 10,053 $ 11,957
Allowance for loan losses (22) (100) (79) (18)
Loans and leases, net of allowance for loan losses 10,031 11,857
U.S. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Investment funds 5,592 5,316
Commercial and financial 563 540
Commercial real estate 460 764
Purchased receivables 563 728
Lease financing 397 417
Non-U.S. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Investment funds 796 1,478
Commercial and financial 453 190
Purchased receivables 372 1,471
Lease financing 857 1,053
Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases 9,593 11,193
Allowance for loan losses (22) (31)
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases 460 764
Allowance for loan losses $ (69)
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Loans And leases (Components Of The Net Investment In Leveraged Leases) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Loans And Leases [Abstract]
Net rental income receivable $ 1,671 $ 2,187
Estimated residual values 110 118
Unearned income (527) (835)
Investment in leveraged lease financing 1,254 1,470
Less related deferred income tax liabilities (397) (463)
Net investment in leveraged lease financing $ 857 $ 1,007
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Loans And Leases (Recorded Investment In Each Class Of Total Loans And Leases By Credit Quality Indicator) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases $ 10,053 $ 11,957
Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 9,593 11,193
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 460 764
Investment Funds [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 6,388 6,794
Commercial And Financial [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 1,016 730
Purchased Receivables [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 935 2,199
Lease Financing [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 1,254 1,470
Property Development [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 380 451
Property Development Acquired-Credit Impaired [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 42
Other Acquired Credit-Impaired [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 39 99
Other [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 41 172
Investment Grade [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 9,102 10,786
Investment Grade [Member] | Investment Funds [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 6,341 6,674
Investment Grade [Member] | Commercial And Financial [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 592 579
Investment Grade [Member] | Purchased Receivables [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 935 2,199
Investment Grade [Member] | Lease Financing [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 1,194 1,279
Investment Grade [Member] | Property Development [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 1 3
Investment Grade [Member] | Other Acquired Credit-Impaired [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 3 3
Investment Grade [Member] | Other [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 36 49
Speculative [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 946 929
Speculative [Member] | Investment Funds [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 47 120
Speculative [Member] | Commercial And Financial [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 424 101
Speculative [Member] | Lease Financing [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 60 191
Speculative [Member] | Property Development [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 379 362
Speculative [Member] | Other Acquired Credit-Impaired [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 31 47
Speculative [Member] | Other [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 5 108
Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 50
Substandard [Member] | Commercial And Financial [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 50
Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 5 192
Doubtful [Member] | Property Development [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 86
Doubtful [Member] | Property Development Acquired-Credit Impaired [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 42
Doubtful [Member] | Other Acquired Credit-Impaired [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases 5 49
Doubtful [Member] | Other [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases $ 15
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Loans And Leases (Schedule Of Allowance For Loan Losses) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2008
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases $ 10,053 $ 11,957
Total allowance for loan losses 22 100 79 18
Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases 9,593 11,193
Total allowance for loan losses 22 31
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases 460 764
Total allowance for loan losses 69
Loans And Leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment 477 735
Collectively evaluated for impairment 9,537 11,081
Loans acquired with deteriorated credit quality 39 141
Loans And Leases [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment 56 112
Collectively evaluated for impairment 9,537 11,081
Loans And Leases [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment 421 623
Loans acquired with deteriorated credit quality 39 141
Allowance For Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment 24
Collectively evaluated for impairment 22 31
Loans acquired with deteriorated credit quality 45
Allowance For Loan Losses [Member] | Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment 22 31
Allowance For Loan Losses [Member] | Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment 24
Loans acquired with deteriorated credit quality $ 45
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Loans And Leases (Impaired Loans) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment $ 238 $ 463
Unpaid Principal Balance 367 619
Related Allowance 69 [1]
Average Recorded Investment 243
Interest Revenue Recognized 16
Additional allowance for loan losses 22 31
With No Related Allowance Recorded [Member] | CRE-Property Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment 199 209
Unpaid Principal Balance 227 240
Average Recorded Investment 200
Interest Revenue Recognized 15
With No Related Allowance Recorded [Member] | CRE-Property Development - Acquired Credit-Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid Principal Balance 34 34
With No Related Allowance Recorded [Member] | CRE-Other-Acquired Credit-Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment 8 16
Unpaid Principal Balance 69 47
Average Recorded Investment 12
With No Related Allowance Recorded [Member] | CRE-Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment 27
Unpaid Principal Balance 29
With An Allowance Recorded [Member] | CRE-Property Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment 79
Unpaid Principal Balance 113
Related Allowance 24 [1]
With An Allowance Recorded [Member] | CRE-Property Development - Acquired Credit-Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment 42
Unpaid Principal Balance 47
Related Allowance 19 [1]
With An Allowance Recorded [Member] | CRE-Other-Acquired Credit-Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment 31 83
Unpaid Principal Balance 37 100
Related Allowance 26 [1]
Average Recorded Investment 31
Interest Revenue Recognized 1
With An Allowance Recorded [Member] | CRE-Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment 7
Unpaid Principal Balance $ 9
[1] As of December 31, 2011 and December 31, 2010, we maintained allowances for loan losses of $22 million and $31 million, respectively, associated with loans and leases that were not impaired.
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Loans And Leases (Financing Receivables On Non-Accrual Status) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, recorded investment on non-accrual status $ 5 $ 158
Property Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, recorded investment on non-accrual status 79
Property Development Acquired-Credit Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, recorded investment on non-accrual status 42
Other Acquired Credit-Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, recorded investment on non-accrual status 5 22
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, recorded investment on non-accrual status $ 15
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Loans And Leases (Schedule Of Activity In The Allowance For Loan Losses) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance $ 100 $ 79 $ 18
Charge-offs (78) (4) (91)
Provisions 25 149
Recoveries 3
Ending balance 22 100 79
Institutional [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance 31
Provisions (9)
Ending balance 22
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance 69
Charge-offs (78)
Provisions $ 9
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Goodwill And Other Intangible Assets (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Goodwill And Other Intangible Assets [Abstract]
Amortization expense related to other intangible assets $ 200 $ 179 $ 136
Expected amortization expense of other intangible assets for 2012 214
Expected amortization expense of other intangible assets for 2013 212
Expected amortization expense of other intangible assets for 2014 205
Expected amortization expense of other intangible assets for 2015 190
Expected amortization expense of other intangible assets for 2016 $ 178
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Goodwill And Other Intangible Assets (Changes In The Carrying Amount Of Goodwill) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
Investment Servicing [Member]
Dec. 31, 2010
Investment Servicing [Member]
Dec. 31, 2011
Investment Management [Member]
Dec. 31, 2009
Investment Management [Member]
Goodwill [Line Items]
Beginning balance $ 5,597 $ 4,550 $ 5,591 $ 4,544 $ 6 $ 6
Acquisitions 100 1,005 68 1,005 32
Foreign currency translation, net (52) 42 (49) 42 (3)
Ending balance $ 5,645 $ 5,597 $ 5,610 $ 5,591 $ 35 $ 6
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Goodwill And Other Intangible Assets (Changes In The Carrying Amount Of Other Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Goodwill [Line Items]
Beginning balance $ 2,593 $ 1,810
Acquisitions 96 969
Amortization (200) (179) (136)
Foreign currency translation, net (30) (7)
Ending balance 2,459 2,593 1,810
Investment Servicing [Member]
Goodwill [Line Items]
Beginning balance 2,559 1,760
Acquisitions 67 969
Amortization (189) (170)
Foreign currency translation, net (29) (6)
Other 6
Ending balance 2,408 2,559
Investment Management [Member]
Goodwill [Line Items]
Beginning balance 34 50
Acquisitions 29
Amortization (11) (9)
Foreign currency translation, net (1) (1)
Other (6)
Ending balance $ 51 $ 34
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Goodwill And Other Intangible Assets (Gross Carrying Amount, Accumulated Amortization And Net Carrying Amount Of Other Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Goodwill [Line Items]
Gross Carrying Amount $ 3,304 $ 3,271
Accumulated Amortization (845) (678)
Net Carrying Amount 2,459 2,593 1,810
Customer Relationships [Member]
Goodwill [Line Items]
Gross Carrying Amount 2,369 2,341
Accumulated Amortization (641) (520)
Net Carrying Amount 1,728 1,821
Core Deposits Intangibles [Member]
Goodwill [Line Items]
Gross Carrying Amount 702 710
Accumulated Amortization (117) (83)
Net Carrying Amount 585 627
Other Intangible Assets [Member]
Goodwill [Line Items]
Gross Carrying Amount 233 220
Accumulated Amortization (87) (75)
Net Carrying Amount $ 146 $ 145
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Other Assets (Components Of Other Assets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Jun. 30, 2010
Income taxes receivable $ 1,822 $ 1,733
Deferred tax assets, net of valuation allowance 1,249 1,786
Total 17,139 13,841 564,000
Real Estate Acquired Through Foreclosure 79
Other Assets [Member]
Real Estate Acquired Through Foreclosure 75
Reported Amount [Member] | Other Assets [Member]
Collateral deposits 6,688 3,251
Unrealized gains on derivative financial instruments 6,366 5,255
Investments in joint ventures and other unconsolidated entities 1,060 927
Income taxes receivable 989 530
Accounts receivable 431 290
Deferred tax assets, net of valuation allowance 395 [1] 1,786 [1]
Prepaid expenses 308 382
Receivable for securities sold 122
Other $ 902 [2] $ 1,298 [2]
[1] Deferred tax assets as of December 31, 2011 are net of deferred tax liabilities within the same tax jurisdiction.
[2] Amount for 2011 included other real estate owned of approximately $75 million.
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Deposits (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Deposits [Abstract]
Time deposits outstanding $ 8,900,000,000 $ 9,030,000,000
Non-U.S. time deposits 2,560,000,000 2,210,000,000
The minimum amount of U.S. and non-U.S. time deposits $ 100,000
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Deposits (Scheduled Maturities Of Aggregate U.S. And Non-U.S. Time Deposits) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Deposits [Abstract]
2012 $ 8,862
2013   
2014   
2015   
2016 40
Total $ 8,902
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Deposits (Scheduled Maturities Of U.S. Time Deposits) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Deposits [Abstract]
3 months or less $ 6,141
4 months to a year 161
Over a year 40
Total $ 6,342
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Short-Term Borrowings (Narrative) (Details)
12 Months Ended
Dec. 31, 2011
USD ($)
Dec. 31, 2011
CAD
Dec. 31, 2010
USD ($)
Short-Term Borrowings [Abstract]
Weighted-average interest rate of short-term borrowings 0.64% 1.10%
Fair value of U.S. government securities $ 2,980,000,000
Average balances of securities purchased under agreements to resell and securities sold under agreements to repurchase 20,970,000,000 16,270,000,000
Commercial paper authorized 3,000,000,000
Commercial paper maturity period, days 270
Commercial paper, outstanding 2,380,000,000 2,800,000,000
Bank notes authorized 5,000,000,000
Subordinated bank notes authorized 1,000,000,000
Bank note under board authority 2,050,000,000
Bank notes outstanding 2,450,000,000
Line of credit $ 787,000,000 800,000,000
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Short-Term Borrowings (Primary Components Of Short-term Borrowings) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Short-term Debt [Line Items]
Weighted-average interest rate at year end 0.64% 1.10%
Conduit Commercial Paper Program [Member]
Short-term Debt [Line Items]
Balance $ 1,919 $ 12,071 [1]
Maximum outstanding at any month end 271 7,275 15,645 [1]
Average outstanding during the year 113 6,339 10,691 [1]
Weighted-average interest rate at year end 0.57% 1.31% [1]
Weighted-average interest rate during the year 0.47% 0.32% 1.26% [1]
Securities Sold Under Repurchase Agreements [Member]
Short-term Debt [Line Items]
Balance 8,572 7,599 10,542
Maximum outstanding at any month end 9,853 9,058 12,993
Average outstanding during the year 9,040 8,108 11,065
Weighted-average interest rate at year end 0.04% 0.04% 0.03%
Weighted-average interest rate during the year 0.11% 0.05% 0.03%
Federal Funds Purchased [Member]
Short-term Debt [Line Items]
Balance 656 7,748 4,532
Maximum outstanding at any month end 8,259 7,748 7,166
Average outstanding during the year 845 1,759 956
Weighted-average interest rate at year end 0.05% 0.01% 0.01%
Weighted-average interest rate during the year 0.05% 0.05% 0.04%
Tax-Exempt Investment Program [Member]
Short-term Debt [Line Items]
Balance 2,294 2,484 2,736
Maximum outstanding at any month end 2,473 2,690 2,838
Average outstanding during the year 2,404 2,594 2,774
Weighted-average interest rate at year end 0.18% 0.37% 0.33%
Weighted-average interest rate during the year 0.26% 0.33% 0.47%
Corporate Commercial Paper Program [Member]
Short-term Debt [Line Items]
Balance 2,384 2,799 2,777
Maximum outstanding at any month end 2,825 2,831 2,851
Average outstanding during the year $ 2,449 $ 2,791 $ 1,993
Weighted-average interest rate at year end 0.22% 0.31% 0.21%
Weighted-average interest rate during the year 0.23% 0.31% 0.30%
[1] Amounts other than balance and weighted-average interest rate at year-end related to the period subsequent to the May 2009 conduit consolidation.
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Short-Term Borrowings (Securities Sold Under Repurchase Agreements) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Short-Term Borrowings [Abstract]
Collateralized by securities purchased under resale agreements $ 5,651
Collateralized by investment securities 2,921
Total $ 8,572 $ 7,599
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Short-Term Borrowings (U.S. Government Securities And Related Repurchase Agreements Including Accrued Interest) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
U.S. Government Securities Sold [Member]
Short-term Debt [Line Items]
Overnight maturity, Amortized Cost $ 2,931
Overnight maturity, Fair Value 2,978
Repurchase Agreements [Member]
Short-term Debt [Line Items]
Overnight maturity, Amortized Cost $ 2,921
Overnight maturity, Rate 0.00%
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Long-Term Debt (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Debt Instrument [Line Items]
Senior notes issued $ 2,000,000,000
Non-cumulative perpetual preferred stock 500,000,000   
Long-term debt 8,131,000,000 8,550,000,000
Capital lease included in long term debt 565,000,000 606,000,000
Office facility cost 272,000,000 279,000,000
One Lincoln Street Parking Garage [Member]
Debt Instrument [Line Items]
Capital lease included in long term debt 422,000,000 431,000,000
State Street Capital Trust III [Member]
Debt Instrument [Line Items]
Subordinated borrowing interest rate 6.00%
Debt Instrument maturity date Dec 31, 2042
State Street Capital Trusts I And IV [Member]
Debt Instrument [Line Items]
Number of statutory business trusts 2
Issued trust preferred capital securities 955,000,000,000
Number of years interest payments received on debentures deferral 5
Series A Preferred Stock [Member]
Debt Instrument [Line Items]
Non-cumulative perpetual preferred stock 500,000,000
Preferred stock liquidation preference per share $ 100,000
8.25% Fixed-To-Floating-Rate Subordinated Notes Due To State Street Capital Trust III In 2042 [Member]
Debt Instrument [Line Items]
Subordinated borrowing interest rate 8.25%
Junior Subordinated Debentures Due 2042 [Member]
Debt Instrument [Line Items]
Original junior subordinated debentures interest rate 6.00%
Floating-Rate Subordinated Notes Due To State Street Capital Trust IV In 2037 [Member]
Debt Instrument [Line Items]
Subordinated borrowing, due date Jan 1, 2037
Long-term debt 800,000,000 800,000,000
4.956% Junior Subordinated Debenture Due 2018 [Member]
Debt Instrument [Line Items]
Subordinated borrowing interest rate 4.96%
Debt Instrument maturity date Mar 15, 2018
Issued junior subordinated debentures 500,000,000
Non-cumulative perpetual preferred stock 500,000,000
2.15% Notes Due 2012 [Member]
Debt Instrument [Line Items]
Subordinated borrowing interest rate 2.15%
Subordinated borrowing, due date Apr 30, 2012
Long-term debt 1,500,000,000 [1] 1,499,000,000 [1]
2.875% Notes Due 2016 [Member]
Debt Instrument [Line Items]
Subordinated borrowing interest rate 2.88%
Senior notes issued 1,000,000,000
Senior notes interest rate percentage 2.88%
Debt Instrument maturity date Mar 7, 2016
Subordinated borrowing, due date Jan 1, 2016
Long-term debt 999,000,000 [2]
4.30% Notes Due 2014 [Member]
Debt Instrument [Line Items]
Subordinated borrowing interest rate 4.30%
Subordinated borrowing, due date May 30, 2014
Long-term debt 512,000,000 500,000,000
4.375% Notes Due 2021 [Member]
Debt Instrument [Line Items]
Subordinated borrowing interest rate 4.38%
Senior notes issued 750,000,000
Senior notes interest rate percentage 4.38%
Debt Instrument maturity date Mar 7, 2021
Subordinated borrowing, due date Jan 1, 2021
Long-term debt 757,000,000 [2]
5.375% Notes Due 2017 [Member]
Debt Instrument [Line Items]
Subordinated borrowing interest rate 5.38%
Subordinated borrowing, due date Apr 30, 2017
Long-term debt 450,000,000 450,000,000
Floating-Rate Notes Due 2011 [Member]
Debt Instrument [Line Items]
Subordinated borrowing, due date Jan 1, 2011
Long-term debt 1,450,000,000 [1]
Floating-Rate Notes Due 2014 [Member]
Debt Instrument [Line Items]
Senior notes issued 250,000,000
Debt Instrument maturity date Mar 7, 2014
Subordinated borrowing, due date Jan 1, 2014
Long-term debt 250,000,000
Floating-Rate Notes Due 2012 [Member]
Debt Instrument [Line Items]
Subordinated borrowing, due date Apr 30, 2012
Long-term debt 250,000,000 268,000,000
Floating-rate notes, interest rate term three-month LIBOR rate plus 10 basis points
1.85% Notes Due 2011 [Member]
Debt Instrument [Line Items]
Subordinated borrowing interest rate 1.85%
Subordinated borrowing, due date Jan 1, 2011
Long-term debt 1,000,000,000 [1]
5.25% Subordinated Notes Due 2018 [Member]
Debt Instrument [Line Items]
Subordinated borrowing interest rate 5.25%
Subordinated borrowing, due date Jan 1, 2018
Long-term debt 453,000,000 [2] 439,000,000 [2]
5.30% Subordinated Notes Due 2016 [Member]
Debt Instrument [Line Items]
Subordinated borrowing interest rate 5.30%
Subordinated borrowing, due date Jan 1, 2016
Long-term debt 419,000,000 423,000,000
Floating Rate Subordinated Notes Due 2015 [Member]
Debt Instrument [Line Items]
Subordinated borrowing, due date Jan 1, 2015
Long-term debt 200,000,000 200,000,000
Floating-Rate Subordinated Notes Due To State Street Capital Trust I In 2028 [Member]
Debt Instrument [Line Items]
Subordinated borrowing, due date Jan 1, 2028
Long-term debt $ 155,000,000 $ 155,000,000
[1] Notes are guaranteed by the FDIC under its Temporary Liquidity Guarantee Program, or TLGP.
[2] We have entered into interest-rate swap agreements, recorded as fair value hedges, to modify our interest expense on these subordinated notes from a fixed rate to a floating rate. As of December 31, 2011 and 2010, we recorded an increase of $140 million and $81 million, respectively, in the carrying value of long-term debt associated with fair value hedges. Refer to note 16 for additional information about derivatives.
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Long-Term Debt (Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Debt Instrument [Line Items]
Long-term debt $ 8,131 $ 8,550
Long-term capital leases 694 716
Increase in carrying value of long-term debt 140 81
Floating-Rate Subordinated Notes Due To State Street Capital Trust IV In 2037 [Member]
Debt Instrument [Line Items]
Long-term debt 800 800
Subordinated borrowing, due date Jan 1, 2037
Floating-Rate Subordinated Notes Due To State Street Capital Trust I In 2028 [Member]
Debt Instrument [Line Items]
Long-term debt 155 155
Subordinated borrowing, due date Jan 1, 2028
Subordinated Notes Due To State Street Capital Trust III In 2042 [Member]
Debt Instrument [Line Items]
Long-term debt 500
Subordinated borrowing, due date Jan 1, 2042
2.15% Notes Due 2012 [Member]
Debt Instrument [Line Items]
Long-term debt 1,500 [1] 1,499 [1]
Subordinated borrowing interest rate 2.15%
Subordinated borrowing, due date Apr 30, 2012
2.875% Notes Due 2016 [Member]
Debt Instrument [Line Items]
Long-term debt 999 [2]
Subordinated borrowing interest rate 2.88%
Subordinated borrowing, due date Jan 1, 2016
4.375% Notes Due 2021 [Member]
Debt Instrument [Line Items]
Long-term debt 757 [2]
Subordinated borrowing interest rate 4.38%
Subordinated borrowing, due date Jan 1, 2021
4.956% Junior Subordinated Debentures Due 2018 [Member]
Debt Instrument [Line Items]
Long-term debt 542
Subordinated borrowing interest rate 4.96%
Subordinated borrowing, due date Mar 15, 2018
4.30% Notes Due 2014 [Member]
Debt Instrument [Line Items]
Long-term debt 512 500
Subordinated borrowing interest rate 4.30%
Subordinated borrowing, due date May 30, 2014
5.375% Notes Due 2017 [Member]
Debt Instrument [Line Items]
Long-term debt 450 450
Subordinated borrowing interest rate 5.38%
Subordinated borrowing, due date Apr 30, 2017
Floating-Rate Notes Due 2012 [Member]
Debt Instrument [Line Items]
Long-term debt 250 268
Subordinated borrowing, due date Apr 30, 2012
Floating-Rate Notes Due 2014 [Member]
Debt Instrument [Line Items]
Long-term debt 250
Subordinated borrowing, due date Jan 1, 2014
7.35% Notes Due 2026 [Member]
Debt Instrument [Line Items]
Long-term debt 150 150
Subordinated borrowing interest rate 7.35%
Subordinated borrowing, due date Jun 15, 2026
5.25% Subordinated Notes Due 2018 [Member]
Debt Instrument [Line Items]
Long-term debt 453 [2] 439 [2]
Subordinated borrowing interest rate 5.25%
Subordinated borrowing, due date Jan 1, 2018
5.30% Subordinated Notes Due 2016 [Member]
Debt Instrument [Line Items]
Long-term debt 419 423
Subordinated borrowing interest rate 5.30%
Subordinated borrowing, due date Jan 1, 2016
Floating Rate Subordinated Notes Due 2015 [Member]
Debt Instrument [Line Items]
Long-term debt 200 200
Subordinated borrowing, due date Jan 1, 2015
Floating-Rate Notes Due 2011 [Member]
Debt Instrument [Line Items]
Long-term debt 1,450 [1]
Subordinated borrowing, due date Jan 1, 2011
1.85% Notes Due 2011 [Member]
Debt Instrument [Line Items]
Long-term debt 1,000 [1]
Subordinated borrowing interest rate 1.85%
Subordinated borrowing, due date Jan 1, 2011
Fair Value Hedges [Member]
Debt Instrument [Line Items]
Increase in carrying value of long-term debt $ 140 $ 81
[1] Notes are guaranteed by the FDIC under its Temporary Liquidity Guarantee Program, or TLGP.
[2] We have entered into interest-rate swap agreements, recorded as fair value hedges, to modify our interest expense on these subordinated notes from a fixed rate to a floating rate. As of December 31, 2011 and 2010, we recorded an increase of $140 million and $81 million, respectively, in the carrying value of long-term debt associated with fair value hedges. Refer to note 16 for additional information about derivatives.
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Commitments And Contingencies (Narrative) (Details)
3 Months Ended 12 Months Ended 84 Months Ended
Sep. 30, 2011
USD ($)
Dec. 31, 2011
USD ($)
Dec. 31, 2010
USD ($)
Dec. 31, 2009
USD ($)
Dec. 31, 2008
USD ($)
Dec. 31, 2007
USD ($)
Dec. 31, 2011
EUR (€)
Sep. 30, 2010
USD ($)
Aug. 31, 2009
USD ($)
Sep. 15, 2008
USD ($)
Cus
Dec. 31, 2011
Maximum [Member]
USD ($)
Dec. 31, 2011
Minimum [Member]
USD ($)
Unfunded commitments to extend credit, short term 77.00%
Percent of fair market value that must be maintained in collateral 100.00%
Compensation Received By Prudential $ 28,100,000
Actual damages asserted by attorney general 56,000,000
Litigation reserve 250,000,000 90,000,000 0
Estimated indirect foreign exchange revenue 331,000,000 336,000,000 369,000,000 462,000,000
Settlement, amount 400,000,000 12,000,000
Net assets of a fund held by Lehman 312,000,000
Number of customer not entered into settlement agreements 4
Settlements with Dutch customers 42,000,000
Investment in funds by customers not settled 143,000,000
Notional amount of contingencies accounted for as derivative financial instruments 40,960,000,000 46,760,000,000
Asserted damages by two participants in the agency securities lending program 120,000,000
Complaints seek relief including claimed damages 100,000,000
The difference between the amortized cost and market value of the in-kind distribution 28,500,000 49,000,000
Cash collateral provided for securities lending 5,210,000,000 2,720,000,000
Cash collateral received for securities lending $ 4,590,000,000 $ 1,210,000,000
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Commitments And Contingencies (Contractual Amounts Of Credit-Related Off-Balance Sheet Financial Instruments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Commitments And Contingencies [Abstract]
Indemnified securities financing $ 302,342 [1] $ 334,235 [1]
Unfunded commitments to extend credit 17,297 14,772
Asset purchase agreements 5,056 4,866
Standby letters of credit $ 3,938 $ 4,174
[1] Related collateral and other information is provided in the following "Securities Finance" section.
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Commitments And Contingencies (Schedule Of Repurchase Agreements) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Commitments And Contingencies [Abstract]
Aggregate fair value of indemnified securities financing $ 302,342 [1] $ 334,235 [1]
Aggregate fair value of cash and securities held as collateral for indemnified securities financing 312,598 343,410
Aggregate fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 88,656 [1] 89,069 [1]
Aggregate fair value of cash and securities held as collateral for indemnified repurchase agreements $ 93,039 $ 93,294
[1] Related collateral and other information is provided in the following "Securities Finance" section.
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Variable Interest Entities (Details) (USD $)
12 Months Ended
Dec. 31, 2011
years
Dec. 31, 2010
years
Dec. 31, 2009
Variable Interest Entities [Abstract]
Investment securities related to state and political subdivisions $ 2,810,000,000 $ 2,850,000,000
Variable interest entity, other short-term borrowings 2,290,000,000 2,480,000,000
Weighted-average life of trusts, years 7.4 7.7
Total standby bond-purchase agreement committed to trusts 2,350,000,000
Letters of credit 669,000,000
Number of standby purchase agreements utilized 0
Asset-backed securities, fair value 264,000,000 5,010,000,000
Receivable loans purchased 935,000,000 2,200,000,000
Commercial paper 2,380,000,000 2,800,000,000
Aggregate notional value of CDOs 400,000,000 1,000,000,000
Carrying value of the underlying collateral 166,000,000 323,000,000
Pre-tax extraordinary loss 6,100,000,000
After-tax extraordinary loss (3,684,000,000)
Accretion in interest revenue $ 220,000,000 $ 712,000,000 $ 621,000,000
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Shareholders' Equity (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
9 Months Ended 12 Months Ended
Dec. 31, 2011
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2008
Shareholders' Equity [Line Items]
Non-cumulative perpetual preferred stock, shares 5,001 5,001 5,001
Non-cumulative perpetual preferred stock $ 500 $ 500   
Series A, liquidation preference per share $ 100,000 $ 100,000
Common stock, approximate aggregate cost 675
Common stock purchased and held in trust, shares 406,000 420,000
Common stock purchase program, authorized amount 675
Common shares available for purchase 13,250,000
Common stock acquired,shares 16,300,000
Average historical cost per share $ 41.38
Realized (losses) gains from sales of investment securities 140 (55) 368
Unrealized pre-tax gains (losses) included in other comprehensive income 76 (728) 46
Deferred taxes related to unrealized pre-tax gains $ 30 $ 291 $ 18
Preferred stock dividend payment terms three-month LIBOR plus 4.99%
Debt instrument, variable interest rate 4.99% 4.99%
State Street Capital Trust III [Member]
Shareholders' Equity [Line Items]
Subordinated borrowing, interest rate 6.00%
Junior subordinated debentures, due date 2042
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Shareholders' Equity (Schedule Of Accumulated Other Comprehensive (Loss) Income) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Shareholders' Equity [Abstract]
Foreign currency translation $ 216 $ 281
Net unrealized loss on hedges of net investments in non-U.S. subsidiaries (14) (14) (14)
Net unrealized gain (loss) on available-for-sale securities portfolio 110 (90) (1,001)
Net unrealized loss related to reclassified available-for-sale securities (189) (317) (635)
Net unrealized gain (loss) on available-for-sale securities (79) (407) (1,636)
Net unrealized loss on available-for-sale securities designated in fair value hedges (210) (135) (113)
Expected losses from other-than-temporary impairment on available-for-sale securities related to factors other than credit (17) (17) (159)
Expected losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit (86) (111) (387)
Net unrealized loss on cash flow hedges (5) (11) (18)
Minimum pension liability (248) (210) (192)
Total $ (659) $ (689) $ (2,238)
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Fair Value (Schedule Of Fair Value Measurements On A Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets $ 707 $ 479
Quoted Market Prices In Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Direct obligations 1,727 6,529
Non-U.S. equity securities 1 7
Total investment securities available for sale 1,728 6,536
Other assets 110 168
Total assets carried at fair value 2,407 7,061
Other liabilities 110 168
Total liabilities carried at fair value 110 724
Pricing Methods With Significant Observable Market Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Direct obligations 1,109 1,048
Mortgage-backed securities 28,832 22,967
Student loans 15,685 13,181
Credit cards 10,396 7,560
Sub-prime 1,404 1,818
Other 667 569
Total asset-backed securities 28,152 23,128
Non-U.S. debt securities 16,378 10,872
State and political subdivisions 6,997 6,554
Collateralized mortgage obligations 3,753 1,502
Other U.S. debt securities 3,613 2,533
U.S. equity securities 640 1,115
Non-U.S. equity securities 117 119
Total investment securities available for sale 89,591 69,838
Total assets carried at fair value 103,570 77,931
Other liabilities 3
Total liabilities carried at fair value 14,162 8,557
Pricing Methods With Significant Unobservable Market Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities 1,189 673
Student loans 860 1,234
Credit cards 91 43
Other 2,798 2,000
Total asset-backed securities 3,749 3,277
Non-U.S. debt securities 3,296 1,145
State and political subdivisions 50 50
Collateralized mortgage obligations 227 359
Other U.S. debt securities 2 3
Total investment securities available for sale 8,513 5,507
Total assets carried at fair value 8,691 5,761
Other liabilities 20
Total liabilities carried at fair value 201 269
Impact Of Netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets carried at fair value (7,653) [1] (2,970) [1]
Total liabilities carried at fair value (7,653) [1] (2,970) [1]
Total Net Carrying Value In Consolidated Statement Of Condition [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Direct obligations 2,836 7,577
Mortgage-backed securities 30,021 23,640
Student loans 16,545 14,415
Credit cards 10,487 7,603
Sub-prime 1,404 1,818
Other 3,465 2,569
Total asset-backed securities 31,901 26,405
Non-U.S. debt securities 19,674 12,017
State and political subdivisions 7,047 6,604
Collateralized mortgage obligations 3,980 1,861
Other U.S. debt securities 3,615 2,536
U.S. equity securities 640 1,115
Non-U.S. equity securities 118 126
Total investment securities available for sale 99,832 81,881
Other assets 110 168
Total assets carried at fair value 107,015 87,783
Other liabilities 130 171
Total liabilities carried at fair value 6,820 6,580
Parent Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets 138 122
U.S. Government Securities [Member] | Quoted Market Prices In Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets 20 20
Accrued expenses and other liabilities 210
U.S. Government Securities [Member] | Total Net Carrying Value In Consolidated Statement Of Condition [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets 20 20
Accrued expenses and other liabilities 210
Non-U.S. Government Securities [Member] | Quoted Market Prices In Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets 498 297
Accrued expenses and other liabilities 345
Non-U.S. Government Securities [Member] | Total Net Carrying Value In Consolidated Statement Of Condition [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets 498 297
Accrued expenses and other liabilities 345
Asset-Backed Securities [Member] | Pricing Methods With Significant Observable Market Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-U.S. debt securities 2,535 1,046
Asset-Backed Securities [Member] | Pricing Methods With Significant Unobservable Market Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-U.S. debt securities 1,768 740
Asset-Backed Securities [Member] | Total Net Carrying Value In Consolidated Statement Of Condition [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-U.S. debt securities 4,303 1,786
Mortgage-Backed Securities [Member] | Pricing Methods With Significant Observable Market Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-U.S. debt securities 9,418 5,898
Mortgage-Backed Securities [Member] | Pricing Methods With Significant Unobservable Market Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-U.S. debt securities 1,457 396
Mortgage-Backed Securities [Member] | Total Net Carrying Value In Consolidated Statement Of Condition [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-U.S. debt securities 10,875 6,294
Government Securities [Member] | Pricing Methods With Significant Observable Market Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-U.S. debt securities 1,671 2,004
Government Securities [Member] | Pricing Methods With Significant Unobservable Market Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-U.S. debt securities 1
Government Securities [Member] | Total Net Carrying Value In Consolidated Statement Of Condition [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-U.S. debt securities 1,671 2,005
Other Trading Account Assets [Member] | Quoted Market Prices In Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets 51 40
Other Trading Account Assets [Member] | Pricing Methods With Significant Observable Market Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets 138 122
Other Trading Account Assets [Member] | Total Net Carrying Value In Consolidated Statement Of Condition [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets 189 162
Foreign Exchange Contracts [Member] | Pricing Methods With Significant Observable Market Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets 12,045 7,804
Derivative instruments liabilities 12,191 8,195
Foreign Exchange Contracts [Member] | Pricing Methods With Significant Unobservable Market Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets 168 254
Derivative instruments liabilities 161 260
Interest-Rate Contracts [Member] | Quoted Market Prices In Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments liabilities 1
Interest-Rate Contracts [Member] | Pricing Methods With Significant Observable Market Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets 1,795 165
Derivative instruments liabilities 1,970 358
Interest-Rate Contracts [Member] | Pricing Methods With Significant Unobservable Market Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets 10
Derivative instruments liabilities 11
Other [Member] | Pricing Methods With Significant Observable Market Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-U.S. debt securities 2,754 1,924
Derivative instruments, assets 1 2
Derivative instruments liabilities 1 1
Other [Member] | Pricing Methods With Significant Unobservable Market Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-U.S. debt securities 71 8
Derivative instruments liabilities 9 9
Other [Member] | Total Net Carrying Value In Consolidated Statement Of Condition [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-U.S. debt securities 2,825 1,932
Derivative Instruments [Member] | Quoted Market Prices In Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments liabilities 1
Derivative Instruments [Member] | Pricing Methods With Significant Observable Market Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets 13,841 7,971
Derivative instruments liabilities 14,162 8,554
Derivative Instruments [Member] | Pricing Methods With Significant Unobservable Market Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets 178 254
Derivative instruments liabilities 181 269
Derivative Instruments [Member] | Impact Of Netting [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets (7,653) [1] (2,970) [1]
Derivative instruments liabilities (7,653) [1] (2,970) [1]
Derivative Instruments [Member] | Total Net Carrying Value In Consolidated Statement Of Condition [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets 6,366 5,255
Derivative instruments liabilities $ 6,690 $ 5,854
[1] Represents counterparty netting against level 2 financial assets and liabilities, where a legally enforceable master netting agreement exists between State Street and the counterparty. This netting cannot be disaggregated by type of derivative instrument.
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Fair Value (Schedule Of Fair Value Measurements Using Significant Unobservable Inputs) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Other Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Liabilities   
Transfers in to Level 3, Liabilities   
Transfers out of Level 3, Liabilities   
Included in Revenue, Liabilities   
Included in Other Comprehensive Income, Liabilities   
Purchases, Liabilities   
Issuances, Liabilities 20
Sales, Liabilities   
Settlements, Liabilities   
Fair Value, ending balance, Liabilities 20
Change in Unrealized Gains (Losses) Related to Financial Instruments   
Assets Carried At Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 5,761 7,556
Transfers in to Level 3, Assets 115
Transfers out of Level 3, Assets (4,590)
Included in Revenue, Assets 437 86
Included in Other Comprehensive Income, Assets (22) 271
Purchases, Assets 8,212
Issuances, Assets   
Sales, Assets (59)
Settlements, Assets (1,163)
Purchases, Issuances and Settlements, Net, Assets 1,633
Transfers Into and/or Out of Level 3, Assets (3,785)
Fair Value, ending balance, Assets 8,691 5,761
Change in Unrealized Gains (Losses) Related to Financial Instruments (59) (41)
Liabilities Carried At Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Liabilities 269 147
Transfers in to Level 3, Liabilities   
Transfers out of Level 3, Liabilities   
Included in Revenue, Liabilities (111)
Included in Other Comprehensive Income, Liabilities      
Purchases, Liabilities (7)
Issuances, Liabilities 253 (72)
Sales, Liabilities (7)
Settlements, Liabilities (196)
Purchases, Issuances and Settlements, Net, Liabilities 194
Transfers Into and/or Out of Level 3, Liabilities   
Fair Value, ending balance, Liabilities 201 269
Change in Unrealized Gains (Losses) Related to Financial Instruments (50) (36)
Other [Member] | Accrued Expenses And Other Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Liabilities 9 9
Transfers in to Level 3, Liabilities   
Transfers out of Level 3, Liabilities   
Included in Revenue, Liabilities   
Included in Other Comprehensive Income, Liabilities      
Purchases, Liabilities   
Issuances, Liabilities      
Sales, Liabilities   
Settlements, Liabilities   
Purchases, Issuances and Settlements, Net, Liabilities   
Transfers Into and/or Out of Level 3, Liabilities   
Fair Value, ending balance, Liabilities 9 9
Change in Unrealized Gains (Losses) Related to Financial Instruments      
State And Political Subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 50 2
Transfers in to Level 3, Assets 1
Transfers out of Level 3, Assets (3)
Included in Revenue, Assets      
Included in Other Comprehensive Income, Assets      
Purchases, Assets 2
Issuances, Assets   
Sales, Assets   
Settlements, Assets   
Purchases, Issuances and Settlements, Net, Assets (1)
Transfers Into and/or Out of Level 3, Assets 49
Fair Value, ending balance, Assets 50 50
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Collateralized Mortgage Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 359 199
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets (519)
Included in Revenue, Assets 522 (35)
Included in Other Comprehensive Income, Assets (4) 6
Purchases, Assets 428
Issuances, Assets   
Sales, Assets   
Settlements, Assets (559)
Purchases, Issuances and Settlements, Net, Assets 362
Transfers Into and/or Out of Level 3, Assets (173)
Fair Value, ending balance, Assets 227 359
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Other U.S. Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 3 3
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets   
Included in Revenue, Assets      
Included in Other Comprehensive Income, Assets      
Purchases, Assets   
Issuances, Assets   
Sales, Assets   
Settlements, Assets (1)
Purchases, Issuances and Settlements, Net, Assets   
Transfers Into and/or Out of Level 3, Assets   
Fair Value, ending balance, Assets 2 3
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Investment Securities Available For Sale [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 5,507 7,428
Transfers in to Level 3, Assets 115
Transfers out of Level 3, Assets (4,590)
Included in Revenue, Assets 561 141
Included in Other Comprehensive Income, Assets (22) 271
Purchases, Assets 7,969
Issuances, Assets   
Sales, Assets (52)
Settlements, Assets (975)
Purchases, Issuances and Settlements, Net, Assets 1,452
Transfers Into and/or Out of Level 3, Assets (3,785)
Fair Value, ending balance, Assets 8,513 5,507
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Foreign Exchange Contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 254 128
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets   
Included in Revenue, Assets (134) (55)
Included in Other Comprehensive Income, Assets      
Purchases, Assets 236
Issuances, Assets   
Sales, Assets   
Settlements, Assets (188)
Purchases, Issuances and Settlements, Net, Assets 181
Transfers Into and/or Out of Level 3, Assets   
Fair Value, ending balance, Assets 168 254
Change in Unrealized Gains (Losses) Related to Financial Instruments (68) (41)
Foreign Exchange Contracts [Member] | Accrued Expenses And Other Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Liabilities 260 138
Transfers in to Level 3, Liabilities   
Transfers out of Level 3, Liabilities   
Included in Revenue, Liabilities (122)
Included in Other Comprehensive Income, Liabilities      
Purchases, Liabilities   
Issuances, Liabilities 219 (72)
Sales, Liabilities   
Settlements, Liabilities (196)
Purchases, Issuances and Settlements, Net, Liabilities 194
Transfers Into and/or Out of Level 3, Liabilities   
Fair Value, ending balance, Liabilities 161 260
Change in Unrealized Gains (Losses) Related to Financial Instruments (60) (36)
Interest-Rate Contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets   
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets   
Included in Revenue, Assets 10
Included in Other Comprehensive Income, Assets   
Purchases, Assets 7
Issuances, Assets   
Sales, Assets (7)
Settlements, Assets   
Fair Value, ending balance, Assets 10
Change in Unrealized Gains (Losses) Related to Financial Instruments 9
Interest-Rate Contracts [Member] | Accrued Expenses And Other Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Liabilities   
Transfers in to Level 3, Liabilities   
Transfers out of Level 3, Liabilities   
Included in Revenue, Liabilities 11
Included in Other Comprehensive Income, Liabilities   
Purchases, Liabilities (7)
Issuances, Liabilities 14
Sales, Liabilities (7)
Settlements, Liabilities   
Fair Value, ending balance, Liabilities 11
Change in Unrealized Gains (Losses) Related to Financial Instruments 10
Derivative Instruments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 254
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets   
Included in Revenue, Assets (124)
Included in Other Comprehensive Income, Assets   
Purchases, Assets 243
Issuances, Assets   
Sales, Assets (7)
Settlements, Assets (188)
Fair Value, ending balance, Assets 178
Change in Unrealized Gains (Losses) Related to Financial Instruments (59)
Derivative Instruments [Member] | Accrued Expenses And Other Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Liabilities 269 147
Transfers in to Level 3, Liabilities   
Transfers out of Level 3, Liabilities   
Included in Revenue, Liabilities (111)
Included in Other Comprehensive Income, Liabilities      
Purchases, Liabilities (7)
Issuances, Liabilities 233 (72)
Sales, Liabilities (7)
Settlements, Liabilities (196)
Purchases, Issuances and Settlements, Net, Liabilities 194
Transfers Into and/or Out of Level 3, Liabilities   
Fair Value, ending balance, Liabilities 181 269
Change in Unrealized Gains (Losses) Related to Financial Instruments (50) (36)
U.S. Treasury And Federal Agencies [Member] | Direct Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets   
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets (40)
Included in Revenue, Assets   
Included in Other Comprehensive Income, Assets   
Purchases, Assets 40
Issuances, Assets   
Sales, Assets   
Settlements, Assets   
Fair Value, ending balance, Assets   
Change in Unrealized Gains (Losses) Related to Financial Instruments   
U.S. Treasury And Federal Agencies [Member] | Mortgage-Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 673 58
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets (936)
Included in Revenue, Assets    (1)
Included in Other Comprehensive Income, Assets 1 (1)
Purchases, Assets 1,540
Issuances, Assets   
Sales, Assets   
Settlements, Assets (89)
Purchases, Issuances and Settlements, Net, Assets 659
Transfers Into and/or Out of Level 3, Assets (42)
Fair Value, ending balance, Assets 1,189 673
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Asset-Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 3,277 5,997
Transfers in to Level 3, Assets 114
Transfers out of Level 3, Assets (1,315)
Included in Revenue, Assets 38 119
Included in Other Comprehensive Income, Assets (17) 225
Purchases, Assets 1,795
Issuances, Assets   
Sales, Assets (49)
Settlements, Assets (94)
Purchases, Issuances and Settlements, Net, Assets (792)
Transfers Into and/or Out of Level 3, Assets (2,272)
Fair Value, ending balance, Assets 3,749 3,277
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Asset-Backed Securities [Member] | Student Loans [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 1,234 3,175
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets (785)
Included in Revenue, Assets 3 9
Included in Other Comprehensive Income, Assets (21) 81
Purchases, Assets 421
Issuances, Assets   
Sales, Assets   
Settlements, Assets 8
Purchases, Issuances and Settlements, Net, Assets (317)
Transfers Into and/or Out of Level 3, Assets (1,714)
Fair Value, ending balance, Assets 860 1,234
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Asset-Backed Securities [Member] | Credit Cards [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 43 312
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets (285)
Included in Revenue, Assets 4 17
Included in Other Comprehensive Income, Assets (2) (16)
Purchases, Assets 301
Issuances, Assets   
Sales, Assets   
Settlements, Assets 30
Purchases, Issuances and Settlements, Net, Assets (31)
Transfers Into and/or Out of Level 3, Assets (239)
Fair Value, ending balance, Assets 91 43
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Asset-Backed Securities [Member] | Sub-Prime [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets    3
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets   
Included in Revenue, Assets    1
Included in Other Comprehensive Income, Assets      
Purchases, Assets   
Issuances, Assets   
Sales, Assets   
Settlements, Assets   
Purchases, Issuances and Settlements, Net, Assets   
Transfers Into and/or Out of Level 3, Assets (4)
Fair Value, ending balance, Assets      
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Asset-Backed Securities [Member] | Other Asset-Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 2,000 2,507
Transfers in to Level 3, Assets 114
Transfers out of Level 3, Assets (245)
Included in Revenue, Assets 31 92
Included in Other Comprehensive Income, Assets 6 160
Purchases, Assets 1,073
Issuances, Assets   
Sales, Assets (49)
Settlements, Assets (132)
Purchases, Issuances and Settlements, Net, Assets (444)
Transfers Into and/or Out of Level 3, Assets (315)
Fair Value, ending balance, Assets 2,798 2,000
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Non-U.S. Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 1,145 1,169
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets (1,777)
Included in Revenue, Assets 1 58
Included in Other Comprehensive Income, Assets (2) 41
Purchases, Assets 4,164
Issuances, Assets   
Sales, Assets (3)
Settlements, Assets (232)
Purchases, Issuances and Settlements, Net, Assets 1,224
Transfers Into and/or Out of Level 3, Assets (1,347)
Fair Value, ending balance, Assets 3,296 1,145
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Non-U.S. Debt Securities [Member] | Mortgage-Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 396 768
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets (838)
Included in Revenue, Assets    35
Included in Other Comprehensive Income, Assets (9) 7
Purchases, Assets 1,920
Issuances, Assets   
Sales, Assets   
Settlements, Assets (12)
Purchases, Issuances and Settlements, Net, Assets 576
Transfers Into and/or Out of Level 3, Assets (990)
Fair Value, ending balance, Assets 1,457 396
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Non-U.S. Debt Securities [Member] | Asset-Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 740 361
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets (939)
Included in Revenue, Assets 1 24
Included in Other Comprehensive Income, Assets 7 31
Purchases, Assets 2,179
Issuances, Assets   
Sales, Assets (3)
Settlements, Assets (217)
Purchases, Issuances and Settlements, Net, Assets 686
Transfers Into and/or Out of Level 3, Assets (362)
Fair Value, ending balance, Assets 1,768 740
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Non-U.S. Debt Securities [Member] | Government Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 1   
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets   
Included in Revenue, Assets      
Included in Other Comprehensive Income, Assets      
Purchases, Assets   
Issuances, Assets   
Sales, Assets   
Settlements, Assets (1)
Purchases, Issuances and Settlements, Net, Assets 1
Transfers Into and/or Out of Level 3, Assets   
Fair Value, ending balance, Assets    1
Change in Unrealized Gains (Losses) Related to Financial Instruments      
Non-U.S. Debt Securities [Member] | Other [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, beginning balance, Assets 8 40
Transfers in to Level 3, Assets   
Transfers out of Level 3, Assets   
Included in Revenue, Assets    (1)
Included in Other Comprehensive Income, Assets    3
Purchases, Assets 65
Issuances, Assets   
Sales, Assets   
Settlements, Assets (2)
Purchases, Issuances and Settlements, Net, Assets (39)
Transfers Into and/or Out of Level 3, Assets 5
Fair Value, ending balance, Assets 71 8
Change in Unrealized Gains (Losses) Related to Financial Instruments      
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Fair Value (Level 3 Total Realized And Unrealized Gains And Losses Recorded In Revenue) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Trading Services [Member]
Realized and Unrealized Gains and Losses [Line Items]
Total Realized and Unrealized Gains (Losses) Recorded in Revenue $ (13) $ 17 $ 38
Change in Unrealized Gains (Losses) Related to Financial Instruments Held (9) (5) (5)
Total Fee Revenue [Member]
Realized and Unrealized Gains and Losses [Line Items]
Total Realized and Unrealized Gains (Losses) Recorded in Revenue (13) 17 88
Change in Unrealized Gains (Losses) Related to Financial Instruments Held (9) (5) 45
Processing Fees And Other Revenue [Member]
Realized and Unrealized Gains and Losses [Line Items]
Total Realized and Unrealized Gains (Losses) Recorded in Revenue 50
Change in Unrealized Gains (Losses) Related to Financial Instruments Held 50
Net Interest Revenue [Member]
Realized and Unrealized Gains and Losses [Line Items]
Total Realized and Unrealized Gains (Losses) Recorded in Revenue 561 141 (101)
Total Revenue [Member]
Realized and Unrealized Gains and Losses [Line Items]
Total Realized and Unrealized Gains (Losses) Recorded in Revenue 548 158 (13)
Change in Unrealized Gains (Losses) Related to Financial Instruments Held $ (9) $ (5) $ 45
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Fair Value (Reported Amounts And Estimated Fair Values For Financial Instruments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Fair Value [Abstract]
Investment securities held to maturity, Reported Amount $ 9,321 $ 12,249
Investment securities held to maturity, Fair Value 9,362 12,576
Net loans (excluding leases), Reported Amount 8,777 10,387
Net loans (excluding leases), Fair Value 8,752 10,242
Long-term debt, Reported Amount 8,131 8,550
Long-term debt, Fair Value $ 8,206 $ 8,498
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Equity-Based Compensation (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2011
months
Dec. 31, 2010
Dec. 31, 2009
May 01, 2009
Original number of shares approved for issuance and stock-based awards 20
Shares of common stock approved for issuance for stock and stock-based awards 37
Shares awarded under the 2006 Plan 32.84 26.39 17.59
Shares available to issue due to cancellations and forfeitures 8
Compensation expense related to stock options, stock appreciation rights, restricted stock awards, deferred stock awards and performance awards $ 261 $ 229 $ 126
Expense associated with expense acceleration in connection with the restructuring plan 25 12
Aggregate income tax benefit related to compensation expense 103 95 50
Weighted-average grant date fair value of options granted $ 2.96
Total intrinsic value of options exercised 6 2 5
Unrecognized compensation cost, net of estimated forfeitures, period, months 7
Restricted Stock [Member]
Unrecognized compensation cost, net of estimated forfeitures 101
Unrecognized compensation cost, net of estimated forfeitures, period, years 2.1
Total fair value of awards vested 66 23 20
Weighted-average grant date fair value $ 44.49 $ 34.58
Deferred Stock Awards [Member]
Unrecognized compensation cost, net of estimated forfeitures 214
Unrecognized compensation cost, net of estimated forfeitures, period, years 2.6
Total fair value of awards vested 107 107 193
Weighted-average grant date fair value $ 41.92 $ 42.45 $ 25.51
Performance Awards [Member]
Unrecognized compensation cost, net of estimated forfeitures 29
Unrecognized compensation cost, net of estimated forfeitures, period, years 1.7
Total fair value of awards vested 10 12 23
Weighted-average grant date fair value $ 42.28 $ 43.33 $ 19.46
Maximum [Member]
Unrecognized compensation cost, net of estimated forfeitures $ 1
Maximum [Member] | Stock Options and Stock Appreciation Rights Granted Under the 1997 and 2006 Plans [Member]
Share-based compensation arrangement by share-based payment award, award vesting period, years ten
Maximum [Member] | Restricted Stock [Member]
Share-based compensation arrangement by share-based payment award, award vesting period, years four
Maximum [Member] | Deferred Stock Awards [Member]
Share-based compensation arrangement by share-based payment award, award vesting period, years four
Maximum [Member] | Performance Awards [Member]
Share-based compensation arrangement by share-based payment award, award vesting period, years four
Minimum [Member] | Stock Options and Stock Appreciation Rights Granted Under the 1997 and 2006 Plans [Member]
Share-based compensation arrangement by share-based payment award, award vesting period, years four
Minimum [Member] | Restricted Stock [Member]
Share-based compensation arrangement by share-based payment award, award vesting period, years three
Minimum [Member] | Deferred Stock Awards [Member]
Share-based compensation arrangement by share-based payment award, award vesting period, years two
Minimum [Member] | Performance Awards [Member]
Share-based compensation arrangement by share-based payment award, award vesting period, years one
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Equity-Based Compensation (Weighted-Average Assumptions Used In Connection With The Option-Pricing Model) (Details)
12 Months Ended
Dec. 31, 2009
Equity-Based Compensation [Abstract]
Dividend yield 4.82%
Expected volatility 26.70%
Risk-free interest rate 2.49%
Expected option lives (in years) 7.8
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Equity-Based Compensation (Stock Options And Stock Appreciation Rights Activity) (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Equity-Based Compensation [Abstract]
Outstanding at beginning, shares 7,709 10,983 13,167
Outstanding at beginning, weighted average remaining contractual term, years 3.2
Exercised, shares (1,028) (297)
Exercised, weighted average exercise price $ 40.52 $ 37.53
Forfeited or expired, shares (2,246) (1,887)
Forfeited or expired, weighted average exercise price $ 50.06 $ 54.76
Outstanding at end, shares 7,709 10,983 13,167
Outstanding at end, weighted average exercise price $ 53.37 $ 51.49 $ 51.64
Outstanding at end, weighted average remaining contractual term, years 3.2
Outstanding at end, aggregate intrinsic value $ 10
Exercisable, shares 7,221
Exercisable, weighted average exercise price $ 53.69
Exercisable, weighted average remaining contractual term, years 2.9
Exercisable, aggregate intrinsic value $ 4
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Equity-Based Compensation (Restricted Stock Awards Activity) (Details) (Restricted Stock [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning, shares 5,801 1,247
Outstanding at beginning, weighted-average grant date fair value $ 43.21 $ 41.87
Granted, shares 5,264
Granted, weighted-average grant date fair value $ 44.49 $ 34.58
Vested, shares (1,509) (489)
Vested, weighted-average grant date fair value $ 42.96 $ 52.87
Forfeited, shares (127) (221)
Forfeited, weighted-average grant date fair value $ 44.59 $ 44.95
Outstanding at end, shares 4,165 5,801 1,247
Outstanding at end, weighted-average grant date fair value $ 43.25 $ 43.21 $ 41.87
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Equity-Based Compensation (Deferred Stock Awards Activity) (Details) (Deferred Stock Awards [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Deferred Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning, shares 6,191 6,573
Outstanding at beginning, weighted-average grant date fair value $ 46.71 $ 51.88
Granted, shares 5,468 2,287
Granted, weighted-average grant date fair value $ 41.92 $ 42.45 $ 25.51
Vested, shares (2,361) (2,356)
Vested, weighted-average grant date fair value $ 52.86 $ 57.76
Forfeited, shares (345) (313)
Forfeited, weighted-average grant date fair value $ 41.99 $ 43.13
Outstanding at end, shares 8,953 6,191 6,573
Outstanding at end, weighted-average grant date fair value $ 42.34 $ 46.71 $ 51.88
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Equity-Based Compensation (Performance Awards Activity) (Details) (Performance Awards [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning, shares 1,120 430
Outstanding at beginning, weighted-average grant date fair value $ 43.89 $ 24.14
Granted, shares 1,906 1,421
Granted, weighted-average grant date fair value $ 42.28 $ 43.33 $ 19.46
Forfeited, shares (173) (716)
Forfeited, weighted-average grant date fair value $ 42.9 $ 25.72
Paid out, shares (224) (15)
Paid out, weighted-average grant date fair value $ 46.03 $ 64.57
Outstanding at end, shares 2,629 1,120 430
Outstanding at end, weighted-average grant date fair value $ 42.52 $ 43.89 $ 24.14
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Regulatory Matters (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2011
Regulatory Matters [Abstract]
Minimum tier 1 risk-based capital ratio to be considered "well-capitalized" 6.00%
Minimum total risk-based capital ratio to be considered "well-capitalized" 10.00%
Tier 1 leverage ratio to be considered "well-capitalized" 5.00%
Average aggregate cash balances to satisfy reserve requirements $ 3,600,000,000
Undistributed earnings 2,260,000,000
Maximum credit to any one affiliate as a percentage on its capital 10.00%
Maximum credit to all affiliates as a percentage on its capital 20.00%
Undistributed earnings of unconsolidated entities $ 442,000,000
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Regulatory Matters (Regulatory Capital Ratios And Related Amounts) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2008
Dec. 31, 2011
Statutory Minimum Requirement [Member]
Dec. 31, 2011
Standard Requirement Well Capitalized [Member]
Dec. 31, 2011
State Street [Member]
Dec. 31, 2010
State Street [Member]
Dec. 31, 2011
State Street Bank [Member]
Dec. 31, 2010
State Street Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 capital, ratio 4.00% [1] 6.00% [1] 18.80% 20.50% 17.60% 18.10%
Total capital, ratio 8.00% [1] 10.00% [1] 20.50% 22.00% 19.60% 19.90%
Tier 1 leverage ratio 4.00% [1] 5.00% [1] 7.30% 8.20% 6.70% 7.10%
Total shareholders' equity $ 19,398 $ 17,787 $ 14,491 $ 12,774 $ 19,398 $ 17,787 $ 18,494 $ 16,697
Trust preferred capital securities 950 1,450
Net unrealized loss on available-for-sale securities and cash flow hedges 395 680 398 682
Deferred tax liability, associated with acquisitions 757 748 737 748
Recognition of pension plan funded status 248 186 245 187
Goodwill 5,645 5,597 4,550 5,645 5,597 5,353 5,365
Other intangible assets 2,459 2,593 1,810 2,459 2,593 2,297 2,460
Other deductions 336 [2]
Tier 1 capital 13,644 12,325 12,224 10,489
Qualifying subordinated debt 1,339 959 1,343 959
Allowances for on- and off-balance sheet credit exposures 40 116 40 117
Unrealized gain on available-for-sale equity securities 1,471 1,126 2
Tier 2 capital 1,379 1,077 1,383 1,076
Deductions for investments in finance subsidiaries (181) (171)
Total capital 14,842 13,231 13,607 11,565
On-balance sheet 52,642 46,209 49,659 44,103
Off-balance sheet 19,115 13,177 19,109 13,177
Market-risk equivalents 661 791 611 750
Total 72,418 60,177 69,379 58,030
Adjusted quarterly average assets $ 186,336 $ 150,770 $ 183,086 $ 147,908
[1] State Street Bank must comply with the regulatory guideline for "well capitalized" in order for the parent company to maintain its status as a financial holding company, including maintaining a minimum tier 1 risk-based capital ratio of 6%, a minimum total risk- based capital ratio of 10%, and a tier 1 leverage ratio of 5%. The "well capitalized" guideline requires us to maintain a minimum tier 1 risk-based capital ratio of 6% and a minimum total risk-based capital ratio of 10%.
[2] Amounts included deferred tax assets not eligible for inclusion in regulatory capital.
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Derivative Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Derivative [Line Items]
Cash collateral received for derivative instruments 1,150 79
Cash collateral provided for derivative instruments 1,480 530
Derivative liability, fair value 911
Collateral already posted, aggregate fair value 276
Maximum additional amount of payments related to termination events 635
Fair Value Hedges [Member]
Derivative [Line Items]
Securities weighted-average life, years 7.4 7.7
Subordinated note matures 2018
Fair Value Hedges [Member] | 2.875% Senior Note [Member]
Derivative [Line Items]
Senior notes due 2016
Fixed interest rate 2.88%
Fair Value Hedges [Member] | 4.375% Senior Note [Member]
Derivative [Line Items]
Senior notes due 2021
Fixed interest rate 4.38%
Fair Value Hedges [Member] | 4.956% Subordinated Note [Member]
Derivative [Line Items]
Fixed interest rate 4.96%
Fair Value Hedges [Member] | 5.25% Subordinated Note [Member]
Derivative [Line Items]
Fixed interest rate 5.25%
Cash Flow Hedges [Member]
Derivative [Line Items]
Securities weighted-average life, years 2.8 3.8
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Derivative Financial Instruments (Schedule Of Outstanding Hedges: (Notional Amount)) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Derivatives $ 3,872 $ 1,886
Swap Agreements And Forwards [Member] | Interest-Rate Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Derivatives 238,008 52,383
Swap Agreements [Member] | Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Derivatives 3,872 1,886
Options And Caps Purchased [Member] | Interest-Rate Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Derivatives 1,431 140
Options And Caps Written [Member] | Interest-Rate Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Derivatives 1,324 130
Futures [Member] | Interest-Rate Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Derivatives 66,620 25,253
Forward, Swap And Spot [Member] | Foreign Exchange Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Derivatives 1,033,045 637,847
Forwards [Member] | Foreign Exchange Contracts [Member] | Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Derivatives 2,613
Options Purchased [Member] | Foreign Exchange Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Derivatives 11,215 14,299
Options Written [Member] | Foreign Exchange Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Derivatives 12,342 14,587
Credit Default Swap Agreements [Member] | Credit Derivative Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Derivatives 105 155
Stable Value Contracts [Member] | Other Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Derivatives $ 40,963 $ 46,758
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Derivative Financial Instruments (Notional Amount Of Interest Rate Swap Agreements Designated As Fair Value And Cash Flow Hedges) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Derivative [Line Items]
Notional Amount of Fair Value Hedges $ 3,748 $ 1,761
Notional Amount of Cash Flow Hedges 124 125
Notional Amount of Derivatives 3,872 1,886
Increase in carrying value of long-term debt 140 81
Investment Securities Available For Sale [Member]
Derivative [Line Items]
Notional Amount of Fair Value Hedges 1,298 1,561
Notional Amount of Cash Flow Hedges 124 125
Notional Amount of Derivatives 1,422 1,686
Long-Term Debt [Member]
Derivative [Line Items]
Notional Amount of Fair Value Hedges 2,450 [1] 200 [1]
Notional Amount of Derivatives $ 2,450 [1] $ 200 [1]
[1] As of December 31, 2011 and 2010, fair value hedges of long-term debt increased the carrying value of long-term debt presented in our consolidated statement of condition by $140 million and $81 million, respectively.
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Derivative Financial Instruments (Contractual And Weighted-Average Interest Rates, Which Include The Effects Of Hedges Related To Financial Instruments) (Details) (Long-Term Debt [Member])
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Long-Term Debt [Member]
Derivative [Line Items]
Contractual Rates 3.64% 3.70%
Rate Including Impact of Hedges 3.22% 3.30%
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Derivative Financial Instruments (Schedule Of The Fair Values Of Derivative Financial Instruments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value $ 911
Derivatives Not Designated As Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value 13,893 8,193
Derivative Liability, Fair Value 14,013 8,596
Derivatives Not Designated As Hedging Instruments [Member] | Foreign Exchange Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value 12,210 8,058
Derivative Liability, Fair Value 12,315 8,455
Derivatives Not Designated As Hedging Instruments [Member] | Interest-Rate Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value 1,682 133
Derivative Liability, Fair Value 1,688 131
Derivatives Not Designated As Hedging Instruments [Member] | Other Derivative Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value 1
Derivative Liability, Fair Value 10
Derivatives Not Designated As Hedging Instruments [Member] | Credit Derivative Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value 2
Derivative Liability, Fair Value 10
Designated As Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value 126 32
Derivative Liability, Fair Value 330 228
Designated As Hedging Instruments [Member] | Foreign Exchange Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value 3
Derivative Liability, Fair Value 37
Designated As Hedging Instruments [Member] | Interest-Rate Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value 123 32
Derivative Liability, Fair Value $ 293 $ 228
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Derivative Financial Instruments (Impact Of Derivatives On Consolidated Statement Of Income) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Derivative [Line Items]
Losses on written options recorded in other expense $ 5 $ 9
Derivatives Designated As Fair Value Hedges [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income (251) 14 148
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income 244 (9) (156)
Derivatives Designated As Fair Value Hedges [Member] | Processing Fees And Other Revenue [Member] | Deposits [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income 22
Derivatives Designated As Fair Value Hedges [Member] | Processing Fees And Other Revenue [Member] | Long-Term Debt [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income (70) (49) 30
Derivatives Designated As Fair Value Hedges [Member] | Processing Fees And Other Revenue [Member] | Investment Securities Available For Sale [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income 153 40 (208)
Derivatives Not Designated As Hedging Instruments [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income 669 [1] 631 [1] 674 [1]
Interest-Rate Contracts [Member] | Derivatives Designated As Fair Value Hedges [Member] | Processing Fees And Other Revenue [Member] | Contract One [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income (22)
Interest-Rate Contracts [Member] | Derivatives Designated As Fair Value Hedges [Member] | Processing Fees And Other Revenue [Member] | Contract Two [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income 75 57 (30)
Interest-Rate Contracts [Member] | Derivatives Designated As Fair Value Hedges [Member] | Processing Fees And Other Revenue [Member] | Contract Three [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income (165) (43) 200
Interest-Rate Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Processing Fees And Other Revenue [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income 10 [1] 5 [1]
Interest-Rate Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Trading Services Revenue [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income 21 [1] 7 [1]
Foreign Exchange Contracts [Member] | Derivatives Designated As Fair Value Hedges [Member] | Processing Fees And Other Revenue [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income (161)
Foreign Exchange Contracts [Member] | Derivatives Designated As Fair Value Hedges [Member] | Processing Fees And Other Revenue [Member] | Investment Securities [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income 161
Foreign Exchange Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Processing Fees And Other Revenue [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income 7 [1] (4) [1] (5) [1]
Foreign Exchange Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Trading Services Revenue [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income 641 [1] 618 [1] 677 [1]
Other Derivative Contracts [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Trading Services Revenue [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income $ (3) [1]
[1] Losses on derivatives related to book-value protection provided to stable value funds are recorded in other expenses, and totaled approximately $5 million, and $9 million, respectively, for the years ended December 31, 2010 and 2009. There were no losses related to stable value funds for the year ended December 31, 2011.
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Derivative Financial Instruments (Schedule Of Differences Between The Gains (Losses) On The Derivative And The Gains (Losses) On The Hedged Item) (Details) (Derivatives Designated as Cash Flow Value Hedges [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Derivative [Line Items]
Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income $ 9 $ 7 $ 14
Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income (7) (7)   
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income 3 5   
Net Interest Revenue [Member]
Derivative [Line Items]
Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income (7) (7)   
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income 3 5   
Interest-Rate Contracts [Member]
Derivative [Line Items]
Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income $ 9 $ 7 $ 14
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Net Interest Revenue (Components Of Interest Revenue And Interest Expenses) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Net Interest Revenue [Abstract]
Deposits with banks $ 149 $ 93 $ 156
U.S. Treasury and federal agencies 775 682 520
State and political subdivisions 221 222 225
Other investments 1,493 2,109 2,075
Securities purchased under resale agreements and federal funds sold 28 24 24
Loans and leases 278 [1] 329 [1] 239 [1]
Trading account assets 20
Interest revenue associated with AMLF 25 [2]
Other interest-earning assets 2 3 2
Total interest revenue 2,946 3,462 3,286
Deposits 220 213 195
Short-term borrowings 96 [1] 257 [1] 200 [1]
Long-term debt 289 286 304
Interest expense associated with AMLF 18 [2]
Other interest-bearing liabilities 8 7 5
Total interest expense 613 763 722
Net interest revenue 2,333 2,699 2,564
Interest expense included in short-term borrowings relating to third-party asset-backed securitization trusts $ 67
[1] Amounts for 2010 included $67 million of interest revenue and interest expense related to the third-party asset-backed securitization trusts consolidated into our financial statements on January 1, 2010 in connection with our adoption of new GAAP. These trusts were de-consolidated in June 2010.
[2] Refers to the Federal Reserve's Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, or AMLF, which expired in February 2010.
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Employee Benefits (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2011
Accumulated Defined Benefit Plans Adjustment [Member]
Dec. 31, 2010
Accumulated Defined Benefit Plans Adjustment [Member]
Dec. 31, 2011
U.S. Pension Plan [Member]
Dec. 31, 2010
U.S. Pension Plan [Member]
Dec. 31, 2012
Primary U.S. And Non-U.S. Defined Benefit Plans [Member]
Dec. 31, 2011
Primary U.S. And Non-U.S. Defined Benefit Plans [Member]
Dec. 31, 2010
Primary U.S. And Non-U.S. Defined Benefit Plans [Member]
Dec. 31, 2012
SERPs [Member]
Dec. 31, 2011
DC SERP [Member]
Dec. 31, 2010
DC SERP [Member]
Dec. 31, 2009
DC SERP [Member]
Dec. 31, 2012
Post-Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term rate of return on plan assets 7.25% 7.25% 7.25%
Expected employer contributions to U.S. and Non-U.S. defined benefit pension plans, SERPs and post-retirement plan $ 7 $ 27 $ 6
Accumulated benefit obligation 960 231 872 784
Plan assets 674 50 671 36
Projected benefit obligations 981 263 263
Health care cost trend rates increase 1.00%
Health care cost trend rates decrease 1.00%
Post-retirement benefit obligation increase 7.00%
Post-retirement benefit obligation decrease 6.00%
Aggregate expense for service and interest costs increase 10.00%
Aggregate expense for service and interest costs decrease 9.00%
Expenses related to pre-tax salary- U.S employees 77 71 73
Expenses related to pre-tax salary- Non-U.S employees 65 45 45
Recorded compensation and employee benefits expense $ 103 $ 95 $ 50 $ 10 $ 10 $ 10
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Employee Benefits (Combined Information For The U.S. And Non-U.S. Defined Benefit Plans And Post-Retirement Plan) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Primary U.S. And Non-U.S. Defined Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, benefit obligation, beginning balance $ 905 $ 808
Service cost 9 11 13
Interest cost 47 44 45
Employee contributions 1 1
Plan amendments (4)
Acquisitions and transfers 30 3
Actuarial gain (losses) 67 72
Benefits paid (28) (28)
Settlements (1) (2)
Foreign currency translation (8) (4)
Adjustment for rounding      
Defined benefit plan, benefit obligation, ending balance 1,017 905 808
Defined benefit plan, fair value of plan assets, beginning balance 884 828
Actual return on plan assets 50 84
Employer contributions 8 8
Acquisitions and transfers 21 (2)
Expenses paid (1)
Plan settlements (1) (2)
Foreign currency translation (5) (4)
Defined benefit plan, fair value of plan assets, ending balance 928 884 828
Funded status (plan assets less benefit obligations) (89) (21)
Net accrued benefit expense (89) (21)
Post-Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, benefit obligation, beginning balance 114 112
Service cost 6 5 4
Interest cost 6 6 6
Employee contributions      
Actuarial gain (losses) (5) (4)
Benefits paid (9) (7)
Settlements      
Foreign currency translation      
Adjustment for rounding 2
Defined benefit plan, benefit obligation, ending balance 112 114 112
Defined benefit plan, fair value of plan assets, beginning balance   
Employer contributions 9 7
Plan settlements      
Foreign currency translation      
Defined benefit plan, fair value of plan assets, ending balance      
Funded status (plan assets less benefit obligations) (112) (114)
Net accrued benefit expense $ (112) $ (114)
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Employee Benefits (Amounts Recognized In The Consolidated Statement Of Condition) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2011
Primary U.S. And Non-U.S. Defined Benefit Plans [Member]
Dec. 31, 2010
Primary U.S. And Non-U.S. Defined Benefit Plans [Member]
Dec. 31, 2011
Post-Retirement Plan [Member]
Dec. 31, 2010
Post-Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Non-current assets $ 45 $ 26
Current liabilities (1) (2) (6) (9)
Noncurrent liabilities (133) (45) (106) (105)
Net accrued amount recognized in statement of condition (89) (21) (112) (114)
Prior service credit (4) 3 4
Net loss (307) (242) (36) (43)
Accumulated other comprehensive loss (659) (689) (2,238) (307) (246) (33) (39)
Cumulative employer contributions in excess of net periodic benefit cost 218 225 (79) (75)
Net obligation recognized in consolidated statement of condition (89) (21) (112) (114)
Accumulated benefit obligation $ 999 $ 887
Used to determine benefit obligations, Discount rate 4.50% 5.50% 4.50% 5.50%
Used to determine benefit obligations, Rate of increase for future compensation 4.50%
Used to determine periodic benefit cost, Discount rate 5.50% 6.00% 5.50% 6.00%
Used to determine periodic benefit cost, Rate of increase for future compensation 4.50% 4.50%
Used to determine periodic benefit cost, Expected long-term rate of return on plan assets 7.25% 7.25%
Assumed health care cost trend rates, Cost trend rate assumed for next year 7.80% 7.62%
Assumed health care cost trend rates, Rate to which the cost trend rate is assumed to decline 4.50% 4.50%
Assumed health care cost trend rates, Year that the rate reaches the ultimate trend rate 2029 2026
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Employee Benefits (Expected Benefit Payments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Primary U.S. And Non-U.S. Defined Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
2012 $ 33
2013 33
2014 34
2015 35
2016 27
2017-2021 169
Non-Qualified SERPs [Member]
Defined Benefit Plan Disclosure [Line Items]
2012 27
2013 13
2014 12
2015 14
2016 13
2017-2021 59
Post-Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
2012 6
2013 6
2014 7
2015 7
2016 7
2017-2021 $ 35
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Employee Benefits (Plan's Assets Measured At Fair Value On A Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
U.S. Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Domestic large cap equity $ 129 $ 120
Domestic small cap equity 14 15
Developed international equities 62 67
Emerging markets equity 28 38
Investment grade fixed-income 311 308
High yield fixed-income 26 31
Real estate investment trusts 23 21
Alternative investments (commingled fund) 5 5
Alternative investments (fund of funds) 14 14
Private equity 2 2
Cash 6 9
Total U.S. Pension Plan 620 630
U.K. Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Developed international equities 24 33
U.K. fixed-income 187 144
Emerging market index 8 8
Alternative investments 32 33
Total U.K. pension plan 251 218
Other Non-U.S. Pension Plans (Excluding U.K.) [Member]
Defined Benefit Plan Disclosure [Line Items]
Insurance group annuity contracts 57 36
Total Other Non-U.S. Pension Plans (Excluding U.K.) 57 36
Total assets carried at fair value 928 884
Quoted Market Prices In Active Markets (Level 1) [Member] | U.S. Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Domestic large cap equity   
Domestic small cap equity   
Developed international equities   
Emerging markets equity   
Investment grade fixed-income   
High yield fixed-income   
Real estate investment trusts   
Alternative investments (commingled fund)   
Alternative investments (fund of funds)   
Private equity   
Cash   
Total U.S. Pension Plan   
Quoted Market Prices In Active Markets (Level 1) [Member] | U.K. Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Developed international equities   
U.K. fixed-income   
Emerging market index   
Alternative investments   
Total U.K. pension plan   
Quoted Market Prices In Active Markets (Level 1) [Member] | Other Non-U.S. Pension Plans (Excluding U.K.) [Member]
Defined Benefit Plan Disclosure [Line Items]
Insurance group annuity contracts   
Total Other Non-U.S. Pension Plans (Excluding U.K.)   
Total assets carried at fair value   
Pricing Methods With Significant Observable Market Inputs (Level 2) [Member] | U.S. Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Domestic large cap equity 129 120
Domestic small cap equity 14 15
Developed international equities 62 67
Emerging markets equity 28 38
Investment grade fixed-income 311 308
High yield fixed-income 26 31
Real estate investment trusts 23 21
Cash 6 9
Total U.S. Pension Plan 599 609
Pricing Methods With Significant Observable Market Inputs (Level 2) [Member] | U.K. Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Developed international equities 24 33
U.K. fixed-income 187 144
Emerging market index 8 8
Total U.K. pension plan 219 185
Pricing Methods With Significant Observable Market Inputs (Level 2) [Member] | Other Non-U.S. Pension Plans (Excluding U.K.) [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets carried at fair value 818 794
Pricing Methods With Significant Unobservable Market Inputs (Level 3) [Member] | U.S. Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Alternative investments (commingled fund) 5 5
Alternative investments (fund of funds) 14 14
Private equity 2 2
Total U.S. Pension Plan 21 21
Pricing Methods With Significant Unobservable Market Inputs (Level 3) [Member] | U.K. Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Alternative investments 32 33
Total U.K. pension plan 32 33
Pricing Methods With Significant Unobservable Market Inputs (Level 3) [Member] | Other Non-U.S. Pension Plans (Excluding U.K.) [Member]
Defined Benefit Plan Disclosure [Line Items]
Insurance group annuity contracts 57 36
Total Other Non-U.S. Pension Plans (Excluding U.K.) 57 36
Total assets carried at fair value $ 110 $ 90
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Employee Benefits (Fair Value Measurements Using Significant Unobservable Inputs) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
U.S. Pension Plan [Member]
Private Equity [Member]
Dec. 31, 2010
U.S. Pension Plan [Member]
Private Equity [Member]
Dec. 31, 2009
U.S. Pension Plan [Member]
Private Equity [Member]
Dec. 31, 2010
U.S. Pension Plan [Member]
Alternative Investments [Member]
Dec. 31, 2011
U.S. Pension Plan [Member]
Alternative Investments [Member]
Dec. 31, 2011
U.K. Pension Plan [Member]
Alternative Investments [Member]
Dec. 31, 2010
U.K. Pension Plan [Member]
Alternative Investments [Member]
Dec. 31, 2011
Non-US Pension Plan (Excluding U.K.) [Member]
Insurance Group Annuity Contract [Member]
Dec. 31, 2010
Non-US Pension Plan (Excluding U.K.) [Member]
Insurance Group Annuity Contract [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair Value, beginning balance, Assets $ 2 $ 2 $ 2 $ 13 $ 19 $ 33 $ 24 $ 36 $ 31
Purchases and sales, net 4 (1) 7 24 1
Unrealized gains (losses) 2 2 (3) 4
Fair Value, ending balance, Assets $ 2 $ 2 $ 2 $ 19 $ 19 $ 32 $ 33 $ 57 $ 36
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Employee Benefits (Defined Pension Benefits In Excess Of Qualified Plan Limits, Information For The SERPs) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Non-Qualified SERPs [Member]
Defined Benefit Plan Disclosure [Line Items]
Beginning of year $ 173 $ 165 $ 182
Service cost 1 1 2
Interest cost 8 10 10
Actuarial gain (losses) 23 (2)
Benefits paid (2) (2)
Settlements (22) (24)
Defined benefit plan, benefit obligation, ending balance 173 165 182
Funded status (plan assets less benefit obligations) (173) (165)
Net accrued benefit expense (173) (165)
Current liabilities (27) (27)
Non-current liabilities (146) (138)
Net accrued amount recognized in consolidated statement of condition (173) (165)
Net loss (58) (45)
Accumulated other comprehensive loss (58) (45)
Cumulative employer contributions in excess of net periodic benefit cost (115) (120)
Net obligation recognized in consolidated statement of condition (173) (165)
Accumulated benefit obligation $ 173 $ 165
SERPs [Member]
Defined Benefit Plan Disclosure [Line Items]
Used to determine benefit obligations, Rate of increase for future compensation 4.75%
Executive SERPs [Member]
Defined Benefit Plan Disclosure [Line Items]
Used to determine benefit obligations, Rate of increase for future compensation 10.00% 10.00%
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Employee Benefits (The Actuarially Determined Expense For U.S. And Non-U.S. Defined Benefit Plans, Post-Retirement Plan And SERPs) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Primary U.S. And Non-U.S. Defined Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost $ 9 $ 11 $ 13
Interest cost 47 44 45
Assumed return on plan assets (58) (55) (56)
Amortization of net loss 12 7 6
Net periodic benefit cost 10 7 8
Settlements (1)
Curtailments (1)
Special termination benefits      
Total expense 10 7 6
Net loss (17) (13) (7)
Estimated amortization (17) (13) (7)
Post-Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost 6 5 4
Interest cost 6 6 6
Assumed return on plan assets         
Amortization of net loss 1 2 1
Net periodic benefit cost 13 13 11
Settlements         
Special termination benefits 1
Total expense 13 13 12
Net loss (1) (2) (2)
Estimated amortization (1) (2) (2)
Non-Qualified SERPs [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost 1 1 2
Interest cost 8 10 10
Amortization of net loss 3 5 3
Net periodic benefit cost 12 16 15
Total expense 19 24 19
Net loss (5) (3) (5)
Estimated amortization (5) (3) (5)
Other Pension Plans, Postretirement Or Supplemental Plans, Defined Benefit [Member] | Non-Qualified SERPs [Member]
Defined Benefit Plan Disclosure [Line Items]
Settlements $ 7 $ 8 $ 4
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Occupancy Expense And Information Systems And Communications Expense (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
sqft
years
Dec. 31, 2010
Dec. 31, 2009
Occupancy Expense And Information Systems And Communications Expense [Abstract]
Total depreciation expense $ 368 $ 373 $ 380
Leased Area, square feet 1,025,000
Underground parking garage, square feet 366,000
Non-cancelable capital leases Period 20
Subleased building, square feet 153,390
Non-cancelable lease maturity date September 2023
Leased area of office building, square feet 362,000
Capital lease period 20
Capital lease maturity date December 2028
Period for cancellation of capital lease 15
Net book value of capital leases with the related liability recorded in long term debt 565 606
Interest expense related to capital lease obligations 43 44 47
Accumulated amortization of assets related to capital leases 273 230
Rental expense, net of sublease revenue 232 241 230
Sublease revenue 12 12 17
Future minimum sublease rental commitments for capital lease 32
Future minimum sublease rental commitments for operating lease $ 19
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Occupancy Expense And Information Systems And Communications Expense (Summary of Future Minimum Lease Payments Under Non-Cancelable Capital and Operating Leases) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Occupancy Expense And Information Systems And Communications Expense [Abstract]
2012, Capital Leases $ 68
2013, Capital Leases 68
2014, Capital Leases 68
2015, Capital Leases 67
2016, Capital Leases 71
Thereafter, Capital Leases 647
Total minimum lease payments, Capital Leases 989
Less amount representing interest payments, Capital Leases (327)
Present value of minimum lease payments, Capital Leases 662
2012, Operating Leases 237
2013, Operating Leases 207
2014, Operating Leases 182
2015, Operating Leases 132
2016, Operating Leases 96
Thereafter, Operating Leases 275
Total minimum lease payments, Operating Leases 1,129
2012, Total 305
2013, Total 275
2014, Total 250
2015, Total 199
2016, Total 167
Thereafter, Total 922
Total minimum lease payments, Total $ 2,118
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Acquisition And Restructuring Costs (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2011
employees
Dec. 31, 2011
Dec. 31, 2010
employees
Dec. 31, 2009
Business Acquisition [Line Items]
Acquisition and restructuring costs $ 16 $ 89 $ 49
Additional restructuring-related accruals 133 156
Number of employees involuntarily terminated 442 782 1,400
Percentage of global workforce 5.00%
Tax benefit related to acquisition 55
Restructuring charges 120 253 156
Intesa, Mourant International Finance Administration And BIAM [Member]
Business Acquisition [Line Items]
Acquisition and restructuring costs 71
Business Operations And Information Technology Transformation Program [Member]
Business Acquisition [Line Items]
Number of employees involuntarily terminated 530
Restructuring charges 133
Employee Severance [Member]
Business Acquisition [Line Items]
Number of employees involuntarily terminated 1,930
Involuntarily Terminated [Member]
Business Acquisition [Line Items]
Number of employees involuntarily terminated 1,332
Pre-Tax Restructuring Charges [Member]
Business Acquisition [Line Items]
Additional restructuring-related accruals 289
Withdrawal From Fixed-Income Trading Initiative [Member]
Business Acquisition [Line Items]
Restructuring charges $ 120
Expenses Control Measures [Member]
Business Acquisition [Line Items]
Number of employees involuntarily terminated 15
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Acquisition And Restructuring Costs (Costs Related To Acquisition And Restructuring) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2011
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Acquisition And Restructuring Costs [Abstract]
Acquisition costs $ 16 $ 89 $ 49
Restructuring charges 120 253 156
Total $ 269 $ 245 $ 49
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Acquisition And Restructuring Costs (Activity Related To Restructuring-Related Accruals) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Business Acquisition [Line Items]
Beginning balance $ 137
Additional restructuring-related accruals 133 156
Accruals for expense control measures 120
Payments (103) (19)
Ending balance 287 137
Employee-Related Costs [Member]
Business Acquisition [Line Items]
Beginning balance 90
Additional restructuring-related accruals 85 105
Accruals for expense control measures 62
Payments (75) (15)
Ending balance 162 90
Real Estate Consolidation [Member]
Business Acquisition [Line Items]
Beginning balance 47
Additional restructuring-related accruals 7 51
Payments (15) (4)
Ending balance 39 47
Information Technology Costs [Member]
Business Acquisition [Line Items]
Additional restructuring-related accruals 41
Payments (8)
Ending balance 33
Trading Portfolio [Member]
Business Acquisition [Line Items]
Accruals for expense control measures 38
Ending balance 38
Asset And Other Write-Offs [Member]
Business Acquisition [Line Items]
Accruals for expense control measures 20
Payments (5)
Ending balance $ 15
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Other Expenses (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Jun. 30, 2010
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2007
Other Expenses [Abstract]
Aggregate pre-tax securities lending charge $ 414
Legal costs 9 250
Net asset value per underlying cash collateral pools $ 1
One-time cash contribution to the SSgA lending funds 330
Increase in litigation reserve 250
Provision for legal fees 250
Reserve for decline in market value of collateral securities $ 75
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Income Taxes (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Income Tax Contingency [Line Items]
Income tax benefit associated with the extraordinary loss $ 2,410,000,000
Income tax expense (benefit) related to net gains (losses) from sales of investment securities 55,000,000 (98,000,000) 147,000,000
Income (loss) from continuing operations before income taxes, foreign 1,700,000,000 1,340,000,000 801,000,000
Investment of retained earnings 2,200,000,000
Deferred tax assets, operating loss carryforwards 34,000,000 26,000,000
Tax positions for which the ultimate deductibility is highly certain but time is uncertain 112,000,000
Interest and penalties expense 3,000,000
Interest expense 10,000,000
Interest accrued 8,000,000 65,000,000
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities 1,000,000 33,000,000
IRS Audit Of The Tax Years 2000 - 2006 [Member]
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities $ 44,000,000
Maximum [Member]
Income Tax Contingency [Line Items]
Operating loss carryforwards expiration dates 2031
Minimum [Member]
Income Tax Contingency [Line Items]
Operating loss carryforwards expiration dates 2012
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Income Taxes (Schedule Of Components Of Income Tax Expense) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Income Taxes [Abstract]
Federal $ 49 $ (885) $ 75
State 54 15 39
Non-U.S. 295 156 157
Total current expense (benefit) 398 (714) 271
Federal 134 745 383
State 8 141 28
Non-U.S. 76 358 40
Total deferred expense (benefit) 218 1,244 451
Total income tax expense $ 616 $ 530 $ 722
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Income Taxes (Schedule Of Components Of Deferred Tax Liabilities and Assets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Income Taxes [Abstract]
Lease financing transactions $ 397 $ 463
Fixed and intangible assets 1,067 1,029
Other 21 122
Total deferred tax liabilities 1,485 1,614
Foreign currency translation 2 70
Unrealized losses on securities, net 651 1,083
Deferred compensation 162 183
Defined benefit pension plan 180 121
Expenses 141 177
Real estate 28 33
Other 104 137
Total deferred tax assets 1,268 1,804
Valuation allowance for deferred tax assets (19) (18)
Deferred tax assets, net of valuation allowance $ 1,249 $ 1,786
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Income Taxes (Schedule Of Reconciliation Of The U.S. Statutory Income Tax Rate To The Effective Tax Rate) (Details)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Income Taxes [Abstract]
U.S. federal income tax rate 35.00% 35.00% 35.00%
State taxes, net of federal benefit 2.00% 1.20% 1.70%
Tax-exempt income (2.90%) (3.60%) (3.10%)
Tax credits (1.50%) (1.30%) (1.60%)
Foreign tax differential (4.30%) (3.60%) (5.00%)
Transactions related to investment securities (4.10%) [1] (2.30%) [1]
Non-deductible penalty 1.00%
Other, net 0.10% 0.60%
Effective tax rate 24.30% 25.40% 28.60%
[1] Amounts for both years represented the effect of discrete tax benefits related to the cost to terminate funding obligations that supported former conduit asset structures; the amount for 2010 also included the partial write-off of a deferred tax asset associated with certain of the investment securities sold in connection with our December 2010 investment portfolio repositioning.
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Income Taxes (Summary Of Activity Related To Unrecognized Tax Benefits) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Income Taxes [Abstract]
Unrecognized tax benefits, beginning balance $ 446 $ 386
Increase (Decrease) related to agreements with tax authorities (322) 27
Increase related to tax positions taken during current year 1 33
Unrecognized tax benefits, ending balance $ 125 $ 446
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Earnings Per Common Share (Computation Of Basic And Diluted Earnings Per Share) (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Earnings Per Common Share [Abstract]
Net income before extraordinary loss $ 1,920 $ 1,556 $ 1,803
Less: Prepayment and accretion of preferred stock discount (117)
Less: Preferred stock dividends (20) (46)
Less: Dividends and undistributed earnings allocated to participating securities (18) [1] (16) [1]
Net income before extraordinary loss available to common shareholders $ 1,882 $ 1,540 $ 1,640
Basic average shares 492,598 495,394 470,602
Effect of dilutive securities: stock options and stock awards 3,474 2,530 3,401
Diluted average shares 496,072 497,924 474,003
Anti-dilutive securities 2,382 [2] 10,316 [2] 12,904 [2]
Earnings per share: Basic $ 3.82 $ 3.11 $ 3.5
Earnings per share: Diluted $ 3.79 [3] $ 3.09 [3] $ 3.46 [3]
[1] Represented the portion of net income available to common equity allocated to participating securities; participating securities, composed of unvested restricted stock and director stock, have non-forfeitable rights to dividends during the vesting period on a basis equivalent to dividends paid to common shareholders.
[2] Represented stock options, restricted stock and other securities outstanding but not included in the computation of diluted average shares because their effect was anti-dilutive.
[3] Calculations for 2011 and 2010 reflected the allocation of earnings to participating securities using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.
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Line Of Business Information (Details) (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Line Of Business Information [Line Items]
Lines of business 2
Servicing fees $ 4,382,000,000 $ 3,938,000,000 $ 3,334,000,000
Management fees 917,000,000 829,000,000 766,000,000
Trading services 1,220,000,000 1,106,000,000 1,094,000,000
Securities finance 378,000,000 318,000,000 570,000,000
Processing fees and other 297,000,000 349,000,000 171,000,000
Total fee revenue 7,194,000,000 6,540,000,000 5,935,000,000
Net interest revenue 2,333,000,000 2,699,000,000 2,564,000,000
Gains (Losses) related to investment securities, net 67,000,000 (286,000,000) 141,000,000
Total revenue 9,594,000,000 8,953,000,000 8,640,000,000
Provision for loan losses 25,000,000 149,000,000
Expenses from operations 6,789,000,000 6,183,000,000 5,667,000,000
Securities lending charge 414,000,000
Provision for fixed-income litigation exposure 250,000,000
Acquisition costs 16,000,000 89,000,000 49,000,000
Restructuring charges 253,000,000 156,000,000
Total expenses 7,058,000,000 6,842,000,000 5,966,000,000
Income from continuing operations before income taxes 2,536,000,000 2,086,000,000 2,525,000,000
Pre-tax margin 26.00% 23.00% 29.00%
Average assets 174,800,000,000 152,000,000,000 146,800,000,000
Percentage of affiliate owned 50.00%
Restructuring Accruals Other 133,000,000 156,000,000
Restructuring Reserve, Accrual Adjustment 120,000,000
Investment Servicing [Member]
Line Of Business Information [Line Items]
Servicing fees 4,382,000,000 3,938,000,000 3,334,000,000
Trading services 1,220,000,000 1,106,000,000 1,094,000,000
Securities finance 333,000,000 265,000,000 387,000,000
Processing fees and other 195,000,000 225,000,000 72,000,000
Total fee revenue 6,130,000,000 5,534,000,000 4,887,000,000
Net interest revenue 2,181,000,000 2,553,000,000 2,489,000,000
Gains (Losses) related to investment securities, net 67,000,000 58,000,000 141,000,000
Total revenue 8,378,000,000 8,145,000,000 7,517,000,000
Provision for loan losses 25,000,000 148,000,000
Expenses from operations 5,889,000,000 5,430,000,000 4,920,000,000
Securities lending charge 75,000,000
Total expenses 5,889,000,000 5,505,000,000 4,920,000,000
Income from continuing operations before income taxes 2,489,000,000 2,615,000,000 2,449,000,000
Pre-tax margin 30.00% 32.00% 33.00%
Average assets 169,400,000,000 146,900,000,000 143,700,000,000
Investment Management [Member]
Line Of Business Information [Line Items]
Management fees 917,000,000 829,000,000 766,000,000
Securities finance 45,000,000 53,000,000 183,000,000
Processing fees and other 102,000,000 124,000,000 99,000,000
Total fee revenue 1,064,000,000 1,006,000,000 1,048,000,000
Net interest revenue 152,000,000 146,000,000 68,000,000
Total revenue 1,216,000,000 1,152,000,000 1,116,000,000
Provision for loan losses 1,000,000
Expenses from operations 900,000,000 753,000,000 747,000,000
Securities lending charge 339,000,000
Provision for fixed-income litigation exposure 250,000,000
Total expenses 900,000,000 1,092,000,000 997,000,000
Income from continuing operations before income taxes 316,000,000 60,000,000 118,000,000
Pre-tax margin 26.00% 5.00% 11.00%
Average assets 5,400,000,000 5,100,000,000 3,100,000,000
Other [Member]
Line Of Business Information [Line Items]
Net interest revenue 7,000,000
Gains (Losses) related to investment securities, net (344,000,000)
Total revenue (344,000,000) 7,000,000
Acquisition costs 16,000,000 89,000,000 49,000,000
Restructuring charges 253,000,000 156,000,000
Total expenses 269,000,000 245,000,000 49,000,000
Income from continuing operations before income taxes $ (269,000,000) $ (589,000,000) $ (42,000,000)
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Non-U.S. Activities (Schedule Of Results From Non-U.S. Operations) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Segment Reporting Information [Line Items]
Total fee revenue $ 7,194 $ 6,540 $ 5,935
Net interest revenue 2,333 2,699 2,564
Gains (Losses) related to investment securities, net 67 (286) 141
Total revenue 9,594 8,953 8,640
Expenses 7,058 6,842 5,966
Income before income taxes 2,536 2,086 2,525
Income tax expense 616 530 722
Net income (loss) 1,920 1,556 (1,881)
Non- U.S. [Member]
Segment Reporting Information [Line Items]
Total fee revenue 3,004 2,661 2,291
Net interest revenue 1,104 725 422
Gains (Losses) related to investment securities, net (25) 449 (37)
Total revenue 4,083 3,835 2,676
Expenses 3,415 2,962 2,457
Income before income taxes 668 873 219
Income tax expense 172 327 84
Net income (loss) 496 546 135
United Kingdom [Member]
Segment Reporting Information [Line Items]
Total revenue $ 1,040 $ 1,180
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Non-U.S. Activities (Summary Of Non-U.S. Assets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Jun. 30, 2010
Segment Reporting Information [Line Items]
Interest-bearing deposits with banks $ 58,886 $ 22,234
Other assets 17,139 13,841 564,000
Total assets 216,827 160,505
Non-U.S. Assets [Member]
Segment Reporting Information [Line Items]
Interest-bearing deposits with banks 10,772 9,443
Non-U.S. investment securities 25,376 19,329
Other assets 15,518 13,994
Total assets $ 51,666 $ 42,766
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Parent Company Financial Statements (Parent Company Statement Of Income) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Total revenue $ 9,594 $ 8,953 $ 8,640
Other Expense 459 374 516
Total expenses 7,058 6,842 5,966
Income tax benefit 616 530 722
Extraordinary loss, net of taxes (3,684)
Net income (loss) 1,920 1,556 (1,881)
Parent Company [Member]
Cash dividends from consolidated banking subsidiary    1,400 250
Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities 60 100 25
Other, net 34 9 (11)
Total revenue 94 1,509 264
Interest expense 203 162 178
Other Expense 60 421 53
Total expenses 263 583 231
Income tax benefit (125) (93) (38)
Income (Loss) before equity in undistributed income of consolidated subsidiaries and unconsolidated entities (44) 1,019 71
Extraordinary loss, net of taxes    (20)
Consolidated banking subsidiary 1,773 484 (1,987)
Consolidated non-banking subsidiaries and unconsolidated entities 191 53 55
Net income (loss) $ 1,920 $ 1,556 $ (1,881)
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Parent Company Financial Statements (Parent Company Statement Of Condition) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2011
Dec. 31, 2010
Jun. 30, 2010
Dec. 31, 2009
Dec. 31, 2008
Assets
Interest-bearing deposits with consolidated banking subsidiary $ 58,886 $ 22,234
Trading account assets 707 479
Investment securities available for sale 99,832 81,881
Other assets 17,139 13,841 564,000
Total assets 216,827 160,505
Commercial paper 2,380 2,800
Long-term debt 8,131 8,550
Total liabilities 197,429 142,718
Total shareholders' equity 19,398 17,787 14,491 12,774
Total liabilities and shareholders' equity 216,827 160,505
Parent Company [Member]
Assets
Interest-bearing deposits with consolidated banking subsidiary 4,914 5,058
Trading account assets 138 122
Investment securities available for sale 25 24
Investments in subsidiaries, Consolidated banking subsidiary 18,724 16,697
Investments in subsidiaries, Consolidated non-banking subsidiaries 2,340 2,299
Investments in subsidiaries, Unconsolidated entities 326 297
Notes and other receivables, Consolidated banking subsidiary 618
Notes and other receivables, Consolidated non-banking subsidiaries and unconsolidated entities 302 283
Other assets 994 850
Total assets 28,381 25,630
Commercial paper 2,384 2,799
Accrued taxes, expenses and other liabilities due to Consolidated banking subsidiary    561
Accrued taxes, expenses and other liabilities due to Third parties 276 161
Long-term debt 6,323 4,322
Total liabilities 8,983 7,843
Total shareholders' equity 19,398 17,787
Total liabilities and shareholders' equity $ 28,381 $ 25,630
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Parent Company Financial Statements (Parent Company Statement Of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Net cash (used in) provided by operating activities $ 3,374 $ 823 $ (4,231)
Net (increase) decrease in interest-bearing deposits with banking subsidiary (36,652) 4,398 29,222
Proceeds from sales and maturities of available-for-sale securities 44,810 34,250 43,995
Net decrease in securities related to AMLF 6,111
Business acquisitions (214) (2,332)
Net cash (used in) provided by investing activities (53,895) 3,192 31,632
Net decrease in short-term borrowings related to AMLF (6,042)
Proceeds from issuance of long-term debt, net of issuance costs 1,986 4,435
Payments for long-term debt (2,486) (341) (29)
Proceeds from issuance of preferred stock 500
Proceeds from public offering of common stock, net of issuance costs 2,231
Repurchase of TARP common stock warrant (60)
Purchases of common stock (675)
Proceeds from exercises of common stock options 40 10 34
Repurchases of common stock for employee tax withholding (63) (44) (38)
Proceeds from issuances of treasury stock for common stock awards and option exercises 9
Payments for cash dividends (295) (20) (168)
Net cash (used in) provided by financing activities 49,403 (3,345) (27,941)
Net increase (decrease) (1,118) 670 (540)
Cash and due from banks at beginning of year 3,311 2,641 3,181
Cash and due from banks at end of year 2,193 3,311 2,641
Parent Company [Member]
Net cash (used in) provided by operating activities (571) 1,453 (24)
Net (increase) decrease in interest-bearing deposits with banking subsidiary 144 (831) (1,457)
Proceeds from sales and maturities of available-for-sale securities    1 36
Net decrease in securities related to AMLF    3,104
Investments in non-banking subsidiaries and unconsolidated entities (648) (277) (776)
Sale of investment in non-banking subsidiaries and unconsolidated entities 39 127
Business acquisitions (51) (141)
Net cash (used in) provided by investing activities (516) (1,121) 907
Net decrease in short-term borrowings related to AMLF    (3,063)
Net (decrease) increase in commercial paper (415) 22 189
Proceeds from issuance of long-term debt, net of issuance costs 1,986 1,992
Payments for long-term debt    (300)
Proceeds from issuance of preferred stock 500
Redemption of TARP preferred stock    (2,000)
Proceeds from public offering of common stock, net of issuance costs    2,231
Repurchase of TARP common stock warrant    (60)
Purchases of common stock (675)
Proceeds from exercises of common stock options 40 10 34
Repurchases of common stock for employee tax withholding (63) (44) (38)
Proceeds from issuances of treasury stock for common stock awards and option exercises 9
Payments for cash dividends (295) (20) (168)
Net cash (used in) provided by financing activities 1,087 (332) (883)
Net increase (decrease)         
Cash and due from banks at beginning of year         
Cash and due from banks at end of year         
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