Morgan Stanley 2015 Annual Report Download - page 196

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Corporate Consumer
Residential
Real Estate
Wholesale
Real Estate Total
(dollars in millions)
Allowance for Loan Losses.
Balance at December 31, 2013 ....................... $ 137 $ 1 $ 4 $ 14 $ 156
Gross charge-offs ................................. (3) — — (3) (6)
Gross recoveries ..................................——— 1 1
Net recoveries/(charge-offs) ....................... (3) — — (2) (5)
Provision (release) for loan losses .................... (13) 1491
Other(1) ........................................ (3) — — — (3)
Balance at December 31, 2014 ....................... $ 118 $ 2 $ 8 $ 21 $ 149
Allowance for Loan Losses by Impairment Methodology.
Inherent ......................................... $ 118 $ 2 $ 8 $ 21 $ 149
Specific .........................................—————
Total allowance for loan losses at December 31, 2014 . . $ 118 $ 2 $ 8 $ 21 $ 149
Loans Evaluated by Impairment Methodology(2).
Inherent ......................................... $ 19,657 $ 16,576 $ 15,718 $ 5,298 $ 57,249
Specific ......................................... 2 — 17 — 19
Total loan evaluated at December 31, 2014 ........... $ 19,659 $ 16,576 $ 15,735 $ 5,298 $ 57,268
Allowance for Lending Commitments.
Balance at December 31, 2013 ....................... $ 125 $ — $ — $ 2 $ 127
Provision for lending commitments ................... 22———22
Balance at December 31, 2014 ....................... $ 147 $ — $ — $ 2 $ 149
Allowance for Lending Commitments by Impairment
Methodology.
Inherent ......................................... $ 147 $ — $ — $ 2 $ 149
Specific .........................................—————
Total allowance for lending commitments at
December 31, 2014 ............................ $ 147 $ — $ — $ 2 $ 149
Lending Commitments Evaluated by Impairment
Methodology(2).
Inherent ......................................... $ 65,987 $ 3,484 $ 283 $ 367 $ 70,121
Specific ......................................... 26———26
Total lending commitments evaluated at December 31,
2014 ....................................... $ 66,013 $ 3,484 $ 283 $ 367 $ 70,147
(1) Amount includes the impact related to the transfer to loans held for sale and foreign currency translation adjustments.
(2) Loan balances are gross of the allowance for loan losses, and lending commitments are gross of the allowance for lending commitments.
Employee Loans.
Employee loans are granted primarily in conjunction with a program established in the Wealth Management business
segment to retain and recruit certain employees. These loans are recorded in Customer and other receivables in the
consolidated statements of financial condition. These loans are full recourse, generally require periodic payments and have
repayment terms ranging from 2 to 12 years. The Company establishes an allowance for loan amounts it does not consider
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