Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2019

Summary of Derivative Instruments [Abstract]

Schedule of Derivative Instruments

	September 30, 2019						December 31, 2018
	Notional amount		Fair value				Notional amount		Fair value
(In millions)			Other assets		Other liabilities				Other assets		Other liabilities
Derivatives designated as hedging instruments:
Cash flow hedges:
Purchased interest rate floors	$	—	$	—	$	—	$	—	$	—	$	—
Receive-fixed interest rate swaps	3,613		—		—		687		—		—
Fair value hedges:
Receive-fixed interest rate swaps	1,000		—		—		500		—		—
Total derivatives designated as hedging instruments	4,613		—		—		1,187		—		—
Derivatives not designated as hedging instruments:
Customer-facing interest rate derivatives 1, 2	3,980		203		—		2,826		37		33
Offsetting interest rate derivatives 2	3,974		—		220		2,826		33		40
Other interest rate derivatives	812		4		1		300		1		1
Foreign exchange derivatives	298		3		2		389		4		2
Total derivatives not designated as hedging instruments	9,064		210		223		6,341		75		76
Total derivatives	$	13,677	$	210	$	223	$	7,528	$	75	$	76

¹ Customer-facing interest rate derivatives in an asset position include a $17 million and $3 million credit valuation adjustment reducing the fair value amounts as of September 30, 2019 and December 31, 2018, respectively.

² The fair value amounts for these derivatives do not include the settlement amounts for those trades that are cleared. Once the settlement amounts with the clearing houses are included the derivative fair values would be the following:

	September 30, 2019				December 31, 2018
(In millions)	Other assets		Other liabilities		Other assets		Other liabilities
Customer-facing interest rate derivatives	$	203	$	—	$	7	$	33
Offsetting interest rate derivatives	—		13		33		3

	Amount of derivative gain (loss) recognized/reclassified
	Three Months Ended September 30, 2019
(In millions)	Effective Portion of Derivatives Gain/(Loss) Deferred in OCI		Excluded Components Deferred in OCI (Amortization Approach)		Amount of Gain/(Loss) Reclassified From OCI into Income		Other Noninterest Income/(Expense)		Hedge Ineffectiveness / OCI Reclass due to Missed Forecast
Derivatives designated as hedging instruments:
Cash flow hedges of floating-rate assets1:
Purchased interest rate floors	$	(2)	$	10	$	1	$	—	$	—
Interest rate swaps	1		—		(2)		—		—
Fair value hedges of fixed-rate debt:
Receive-fixed interest rate swaps	—		—		—		—		—
Total derivatives designated as hedging instruments	(1)		10		(1)		—		—
Derivatives not designated as hedging instruments:
Customer-facing interest rate derivatives							68
Offsetting interest rate derivatives							(65)
Other interest rate derivatives							3
Foreign exchange derivatives							6
Total derivatives not designated as hedging instruments							12
Total derivatives	$	(1)	$	10	$	(1)	$	12	$	—

	Amount of derivative gain (loss) recognized/reclassified
	Nine Months Ended September 30, 2019
(In millions)	Effective Portion of Derivatives Gain/(Loss) Deferred in OCI		Excluded Components Deferred in OCI (Amortization Approach)		Amount of Gain/(Loss) Reclassified From OCI into Income		Other Noninterest Income/(Expense)		Hedge Ineffectiveness / OCI Reclass due to Missed Forecast
Derivatives designated as hedging instruments:
Cash flow hedges of floating-rate assets1:
Purchased interest rate floors	$	—	$	27	$	—	$	—	$	—
Interest rate swaps	33		—		(6)		—		—
Fair value hedges of fixed-rate debt:
Receive-fixed interest rate swaps	—		—		—		—		—
Total derivatives designated as hedging instruments	33		27		(6)		—		—
Derivatives not designated as hedging instruments:
Customer-facing interest rate derivatives							200
Offsetting interest rate derivatives							(195)
Other interest rate derivatives							3
Foreign exchange derivatives							16
Total derivatives not designated as hedging instruments							24
Total derivatives	$	33	$	27	$	(6)	$	24	$	—

	Amount of derivative gain (loss) recognized/reclassified
	Three Months Ended September 30, 2018
(In millions)	Effective Portion of Derivatives Gain/(Loss) Deferred in OCI		Excluded Components Deferred in OCI (Amortization Approach)		Amount of Gain/(Loss) Reclassified From OCI into Income		Other Noninterest Income/(Expense)		Hedge Ineffectiveness / OCI Reclass due to Missed Forecast
Derivatives designated as hedging instruments:
Cash flow hedges of floating-rate assets1:
Purchased interest rate floors	$	—	$	—	$	—	$	—	$	—
Interest rate swaps	(1)		—		1		—		—
Fair value hedges of fixed-rate debt:
Receive-fixed interest rate swaps	—		—		—		—		—
Total derivatives designated as hedging instruments	(1)		—		1		—		—
Derivatives not designated as hedging instruments:
Customer-facing interest rate derivatives							(14)
Offsetting interest rate derivatives							17
Other interest rate derivatives							—
Foreign exchange derivatives							4
Total derivatives not designated as hedging instruments							7
Total derivatives	$	(1)	$	—	$	1	$	7	$	—

	Amount of derivative gain (loss) recognized/reclassified
	Nine Months Ended September 30, 2018
(In millions)	Effective Portion of Derivatives Gain/(Loss) Deferred in OCI		Excluded Components Deferred in OCI (Amortization Approach)		Amount of Gain/(Loss) Reclassified From OCI into Income		Other Noninterest Income/(Expense)		Hedge Ineffectiveness / OCI Reclass due to Missed Forecast
Derivatives designated as hedging instruments:
Cash flow hedges of floating-rate assets1:
Purchased interest rate floors	$	—	$	—	$	—	$	—	$	—
Interest rate swaps	(8)		—		(1)		—		—
Fair value hedges of fixed-rate debt:
Receive-fixed interest rate swaps	—		—		—		—		—
Total derivatives designated as hedging instruments	(8)		—		(1)		—		—
Derivatives not designated as hedging instruments:
Customer-facing interest rate derivatives							(57)
Offsetting interest rate derivatives							74
Other interest rate derivatives							(1)
Foreign exchange derivatives							14
Total derivatives not designated as hedging instruments							30
Total derivatives	$	(8)	$	—	$	(1)	$	30	$	—

Schedule Of Gain (Loss) Of Derivative Instruments

	Amount of derivative gain (loss) recognized/reclassified
	Three Months Ended September 30, 2019
(In millions)	Effective Portion of Derivatives Gain/(Loss) Deferred in OCI		Excluded Components Deferred in OCI (Amortization Approach)		Amount of Gain/(Loss) Reclassified From OCI into Income		Other Noninterest Income/(Expense)		Hedge Ineffectiveness / OCI Reclass due to Missed Forecast
Derivatives designated as hedging instruments:
Cash flow hedges of floating-rate assets1:
Purchased interest rate floors	$	(2)	$	10	$	1	$	—	$	—
Interest rate swaps	1		—		(2)		—		—
Fair value hedges of fixed-rate debt:
Receive-fixed interest rate swaps	—		—		—		—		—
Total derivatives designated as hedging instruments	(1)		10		(1)		—		—
Derivatives not designated as hedging instruments:
Customer-facing interest rate derivatives							68
Offsetting interest rate derivatives							(65)
Other interest rate derivatives							3
Foreign exchange derivatives							6
Total derivatives not designated as hedging instruments							12
Total derivatives	$	(1)	$	10	$	(1)	$	12	$	—

	Amount of derivative gain (loss) recognized/reclassified
	Nine Months Ended September 30, 2019
(In millions)	Effective Portion of Derivatives Gain/(Loss) Deferred in OCI		Excluded Components Deferred in OCI (Amortization Approach)		Amount of Gain/(Loss) Reclassified From OCI into Income		Other Noninterest Income/(Expense)		Hedge Ineffectiveness / OCI Reclass due to Missed Forecast
Derivatives designated as hedging instruments:
Cash flow hedges of floating-rate assets1:
Purchased interest rate floors	$	—	$	27	$	—	$	—	$	—
Interest rate swaps	33		—		(6)		—		—
Fair value hedges of fixed-rate debt:
Receive-fixed interest rate swaps	—		—		—		—		—
Total derivatives designated as hedging instruments	33		27		(6)		—		—
Derivatives not designated as hedging instruments:
Customer-facing interest rate derivatives							200
Offsetting interest rate derivatives							(195)
Other interest rate derivatives							3
Foreign exchange derivatives							16
Total derivatives not designated as hedging instruments							24
Total derivatives	$	33	$	27	$	(6)	$	24	$	—

	Amount of derivative gain (loss) recognized/reclassified
	Three Months Ended September 30, 2018
(In millions)	Effective Portion of Derivatives Gain/(Loss) Deferred in OCI		Excluded Components Deferred in OCI (Amortization Approach)		Amount of Gain/(Loss) Reclassified From OCI into Income		Other Noninterest Income/(Expense)		Hedge Ineffectiveness / OCI Reclass due to Missed Forecast
Derivatives designated as hedging instruments:
Cash flow hedges of floating-rate assets1:
Purchased interest rate floors	$	—	$	—	$	—	$	—	$	—
Interest rate swaps	(1)		—		1		—		—
Fair value hedges of fixed-rate debt:
Receive-fixed interest rate swaps	—		—		—		—		—
Total derivatives designated as hedging instruments	(1)		—		1		—		—
Derivatives not designated as hedging instruments:
Customer-facing interest rate derivatives							(14)
Offsetting interest rate derivatives							17
Other interest rate derivatives							—
Foreign exchange derivatives							4
Total derivatives not designated as hedging instruments							7
Total derivatives	$	(1)	$	—	$	1	$	7	$	—

	Amount of derivative gain (loss) recognized/reclassified
	Nine Months Ended September 30, 2018
(In millions)	Effective Portion of Derivatives Gain/(Loss) Deferred in OCI		Excluded Components Deferred in OCI (Amortization Approach)		Amount of Gain/(Loss) Reclassified From OCI into Income		Other Noninterest Income/(Expense)		Hedge Ineffectiveness / OCI Reclass due to Missed Forecast
Derivatives designated as hedging instruments:
Cash flow hedges of floating-rate assets1:
Purchased interest rate floors	$	—	$	—	$	—	$	—	$	—
Interest rate swaps	(8)		—		(1)		—		—
Fair value hedges of fixed-rate debt:
Receive-fixed interest rate swaps	—		—		—		—		—
Total derivatives designated as hedging instruments	(8)		—		(1)		—		—
Derivatives not designated as hedging instruments:
Customer-facing interest rate derivatives							(57)
Offsetting interest rate derivatives							74
Other interest rate derivatives							(1)
Foreign exchange derivatives							14
Total derivatives not designated as hedging instruments							30
Total derivatives	$	(8)	$	—	$	(1)	$	30	$	—

Note: These schedules are not intended to present at any given time the Bank’s long/short position with respect to its derivative contracts.

¹ Amounts recognized in OCI and reclassified from AOCI represent the effective portion of the derivative gain (loss). For the 12 months following September 30, 2019, we estimate that $12 million will be reclassified from AOCI into interest income

Schedule of Derivative Instruments

	Gain/(loss) recorded in income
	Three Months Ended September 30, 2019						Three Months Ended September 30, 2018
(In millions)	Derivatives2		Hedged items		Total income statement impact		Derivatives2		Hedged items		Total income statement impact
Interest rate swaps1	$	1	$	(1)	$	—	$	—	$	—	$	—

	Gain/(loss) recorded in income
	Nine Months Ended September 30, 2019						Nine Months Ended September 30, 2018
(In millions)	Derivatives2		Hedged items		Total income statement impact		Derivatives2		Hedged items		Total income statement impact
Interest rate swaps1	$	19	$	(19)	$	—	$	—	$	—	$	—

¹ Consists of hedges of benchmark interest rate risk of fixed-rate long-term debt. Gains and losses were recorded in net interest income.

² The income for derivatives does not reflect interest income/expense to be consistent with the presentation of the gains/ (losses) on the hedged items.

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

	Carrying amount of the hedged assets/(liabilities)				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities)
(In millions)	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Long-term debt	$	(1,024)	$	(505)	$	(24)	$	(5)