Derivative Instruments and Other Financial Instruments Used For Hedging (Tables)

9 Months Ended

Sep. 30, 2012

Notional Amounts, Balance Sheet Location, and Fair Value Amounts of Derivative Instruments

Asset and liability values are presented gross, excluding the impact of legally enforceable master netting and CSA agreements.


	September 30, 2012
			Asset Derivatives				Liability Derivatives
(Dollars in millions)	Notional Amount		Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value
Total derivatives designated as hedging instruments:
Interest rate contracts	$	11,500		Other assets	$	53		Other liabilities	$	—

Derivatives not designated as hedging instruments:
Interest rate contracts	$	37,177		Trading account assets	$	1,084		Trading account liabilities	$	1,027
Commodity contracts		5,761		Trading account assets		201		Trading account liabilities		170
Foreign exchange contracts		5,237		Trading account assets		94		Trading account liabilities		95
Equity contracts		3,491		Trading account assets		115		Trading account liabilities		115
Other contracts		35		Trading account assets		1		Trading account liabilities		—

Total derivatives not designated as hedging instruments	$	51,701			$	1,495			$	1,407

Total derivative instruments	$	63,201			$	1,548			$	1,407


	December 31, 2011
			Asset Derivatives				Liability Derivatives
(Dollars in millions)	Notional Amount		Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value
Total derivatives designated as hedging instruments:
Interest rate contracts	$	7,400		Other assets	$	3		Other liabilities	$	10

Derivatives not designated as hedging instruments:
Interest rate contracts	$	33,903		Trading account assets	$	922		Trading account liabilities	$	869
Commodity contracts		5,136		Trading account assets		250		Trading account liabilities		247
Foreign exchange contracts		4,152		Trading account assets		88		Trading account liabilities		95
Equity contracts		3,037		Trading account assets		87		Trading account liabilities		87

Total derivatives not designated as hedging instruments	$	46,228			$	1,347			$	1,298

Total derivative instruments	$	53,628			$	1,350			$	1,308

Schedule of Derivatives Designated as Cash Flow Hedges

The following tables present the amount and location of the net gains and losses recorded in the Company’s consolidated statements of income and changes in stockholder’s equity for derivatives designated as cash flow hedges for the three and nine months ended September 30, 2012 and 2011:


	Amount of Gain or (Loss) Recognized in OCI on Derivative Instruments (Effective Portion)					Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)						Gain or (Loss) Recognized in Income on Derivative Instruments (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	For the Three Months Ended September 30,						For the Three Months Ended September 30,						For the Three Months Ended September 30,
(Dollars in millions)	2012		2011			Location	2012		2011			Location	2012		2011
Derivatives in cash flow hedging relationships
						Interest income		5		(3	)	Noninterest
Interest rate contracts	$	39	$	(8	)	Interest expense⁽¹⁾	$	—	$	(1	)	expense⁽¹⁾	$	—	$	(1	)

Total	$	39	$	(8	)		$	5	$	(4	)		$	—	$	(1	)


	Amount of Gain or (Loss) Recognized in OCI on Derivative Instruments (Effective Portion)					Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)							Gain or (Loss) Recognized in Income on Derivative Instruments (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	For the Nine Months Ended September 30,						For the Nine Months Ended September 30,							For the Nine Months Ended September 30,
(Dollars in millions)	2012		2011			Location	2012			2011			Location	2012		2011
Derivatives in cash flow hedging relationships
						Interest income		11			(7	)	Noninterest
Interest rate contracts	$	77	$	(15	)	Interest expense	$	(1	)	$	(3	)	expense⁽¹⁾	$	—	$	(1	)

Total	$	77	$	(15	)		$	10		$	(10	)		$	—	$	(1	)

Gain or (Loss) Recognized in Income on Derivative Instruments

The following table presents the amount of the net gains and losses reported in the consolidated statement of income under the heading trading account activities for derivative instruments classified as trading for the three and nine months ended September 30, 2012 and 2011:


	Gain or (Loss) Recognized in Income on Derivative Instruments						Gain or (Loss) Recognized in Income on Derivative Instruments
	For the Three Months Ended						For the Nine Months Ended
(Dollars in millions)	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Trading derivatives:
Interest rate contracts	$	17		$	12		$	39		$	31
Equity contracts		3			8			11			21
Foreign exchange contracts		4			7			17			20
Commodity contracts		(1	)		—			3			2
Other contracts		(2	)		(1	)		(2	)		5

Total	$	21		$	26		$	68		$	79

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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