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Credit Card and Student Loan Securitization Activities (Tables)
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3 Months Ended |
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Mar. 31, 2015
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| Variable Interest Entities Disclosure [Abstract] |
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| Schedule of Restricted Credit Card Securitized Assets [Text Block] |
The carrying values of these restricted assets, which are presented on the Company’s condensed consolidated statements of financial condition as relating to securitization activities, are shown in the table below (dollars in millions): | | | | | | | | | | March 31,
2015 | | December 31,
2014 | Restricted cash | $ | 16 |
| | $ | 16 |
| Investors’ interests held by third-party investors | 15,900 |
| | 15,950 |
| Investors’ interests held by wholly-owned subsidiaries of Discover Bank | 5,782 |
| | 5,789 |
| Seller’s interest | 6,650 |
| | 8,596 |
| Loan receivables(1) | 28,332 |
| | 30,335 |
| Allowance for loan losses allocated to securitized loan receivables(1) | (798 | ) | | (805 | ) | Net loan receivables | 27,534 |
| | 29,530 |
| Other | 37 |
| | 37 |
| Carrying value of assets of consolidated variable interest entities | $ | 27,587 |
| | $ | 29,583 |
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| | (1) | The Company maintains its allowance for loan losses at an amount sufficient to absorb probable losses inherent in all loan receivables, which includes all loan receivables in the trusts. Therefore, credit risk associated with the transferred receivables is fully reflected on the Company’s balance sheet in accordance with GAAP. |
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| Schedule of Investors' Interests and Related Excess Spreads |
The table below provides information concerning investors’ interests and related excess spread (dollars in millions): | | | | | | | | | | | At March 31, 2015 | Investors’ Interests(1) | | # of Series Outstanding | | 3-Month Rolling Average Excess Spread | Discover Card Execution Note Trust (DiscoverSeries notes) | $ | 21,682 |
| | 39 |
| | 13.31 | % | | | | | | |
| | (1) | Investors’ interests include third-party interests and subordinated interests held by wholly-owned subsidiaries of Discover Bank. |
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| Schedule of Restricted Student Loan Securitized Assets [Text Block] |
The carrying values of these restricted assets, which are presented on the Company’s condensed consolidated statements of financial condition as relating to securitization activities, are shown in the table below (dollars in millions): | | | | | | | | | | March 31,
2015 | | December 31,
2014 | Restricted cash | $ | 88 |
| | $ | 86 |
| | | | | Student loan receivables(1) | 1,894 |
| | 1,969 |
| Allowance for loan losses allocated to securitized loan receivables(1) | (28 | ) | | (28 | ) | Net student loan receivables | 1,866 |
| | 1,941 |
| Carrying value of assets of consolidated variable interest entities | $ | 1,954 |
| | $ | 2,027 |
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| | (1) | The Company maintains its allowance for loan losses on PCI loans sufficient to absorb probable decreases in cash flows that were previously expected. Therefore, credit risk associated with the transferred receivables is fully reflected on the Company's balance sheet in accordance with GAAP. |
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