Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Ineffectiveness Related to Derivatives and Hedging Relationships Recorded in Income

Ineffectiveness related to derivatives and hedging relationships was recorded in income as follows:

Ineffectiveness	Year ended Dec. 31,
(in millions)	2015			2014			2013
Fair value hedges of securities	$	4.1		$	(20.6	)	$	14.1
Fair value hedges of deposits and long-term debt	(6.3		)	(14.6		)	3.7
Cash flow hedges	—			0.1			(0.1		)
Other (a)	—			(0.1		)	0.1
Total	$	(2.2	)	$	(35.2	)	$	17.8

(a) Includes ineffectiveness recorded on foreign exchange hedges.

Impact of Derivative Instruments on Balance Sheet

The following table summarizes the notional amount and credit exposure of our total derivative portfolio at Dec. 31, 2015 and Dec. 31, 2014.

Impact of derivative instruments on the balance sheet	Notional value				Asset derivatives fair value						Liability derivatives fair value
(in millions)	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2015			Dec. 31, 2014			Dec. 31, 2015			Dec. 31, 2014
Derivatives designated as hedging instruments(a):
Interest rate contracts	$	25,768	$	23,145	$	497		$	477		$	372		$	385
Foreign exchange contracts	6,839		7,344		219			374			20			62
Total derivatives designated as hedging instruments					$	716		$	851		$	392		$	447
Derivatives not designated as hedging instruments (b):
Interest rate contracts	$	519,428	$	731,628	$	10,044		$	17,150		$	9,962		$	17,654
Foreign exchange contracts	576,253		528,401		4,905			6,280			4,682			6,367
Equity contracts	1,923		10,842		127			377			151			549
Credit contracts	319		—		8			—			1			—
Total derivatives not designated as hedging instruments					$	15,084		$	23,807		$	14,796		$	24,570
Total derivatives fair value (c)					$	15,800		$	24,658		$	15,188		$	25,017
Effect of master netting agreements (d)					(11,115		)	(18,347		)	(10,869		)	(17,797		)
Fair value after effect of master netting agreements					$	4,685		$	6,311		$	4,319		$	7,220

(a) The fair value of asset derivatives and liability derivatives designated as hedging instruments is recorded as other assets and other liabilities, respectively, on the balance sheet.

(b) The fair value of asset derivatives and liability derivatives not designated as hedging instruments is recorded as trading assets and trading liabilities, respectively, on the balance sheet.

(c) Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815.

(d) Effect of master netting agreements includes cash collateral received and paid of $792 million and $546 million, respectively, at Dec. 31, 2015, and $1,589 million and $1,039 million, respectively, at Dec. 31, 2014.

Impact of Derivative Instruments on Income Statement

Impact of derivative instruments on the income statement (in millions)
Derivatives in fair value hedging relationships	Location of gain or (loss) recognized in income on derivatives	Gain or (loss) recognized in income on derivatives Year ended Dec. 31,								Location of gain or(loss) recognized in income on hedged item	Gain or (loss) recognized in hedged item Year ended Dec. 31,
		2015			2014			2013			2015		2014		2013
Interest rate contracts	Net interest revenue	$	(85	)	$	(921	)	$	486	Net interest revenue	$	83	$	886	$	(468	)

Derivatives in cash flow hedging relationships	Gain or (loss) recognized in accumulated OCI on derivatives(effective portion) Year ended Dec. 31,									Location of gain or (loss) reclassified from accumulated OCI into income (effective portion)	Gain or (loss) reclassified from accumulated OCI into income (effective portion) Year ended Dec. 31,									Location of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) Year ended Dec. 31,
	2015			2014			2013				2015			2014			2013				2015		2014		2013
FX contracts	$	(1	)	$	(2	)	$	(27	)	Net interest revenue	$	(1	)	$	(2	)	$	(28	)	Net interest revenue	$	—	$	—	$	—
FX contracts	—			(6		)	(3		)	Other revenue	—			(3		)	(1		)	Other revenue	—		0.1		(0.1		)
FX contracts	9			36			154			Trading revenue	9			36			154			Trading revenue	—		—		—
FX contracts	(8		)	(6		)	7			Salary expense	(19		)	10			(1		)	Salary expense	—		—		—
Total	$	—		$	22		$	131			$	(11	)	$	41		$	124			$	—	$	0.1	$	(0.1	)

Derivatives in net investment hedging relationships	Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) Year ended Dec. 31,								Location of gain or (loss) reclassified from accumulated OCI into income (effective portion)	Gain or (loss) reclassified from accumulated OCI into income (effective portion) Year ended Dec. 31,							Location of gain or (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)	Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) Year ended Dec. 31,
	2015		2014			2013				2015		2014			2013			2015		2014			2013
FX contracts	$	474	$	(367	)	$	(50	)	Net interest revenue	$	1	$	(1	)	$	2	Other revenue	$	—	$	(0.1	)	$	0.1

Revenue from Foreign Exchange and Other Trading

Revenue from foreign exchange and other trading included the following:

Foreign exchange and other trading revenue	Year ended Dec. 31,
(in millions)	2015		2014			2013
Foreign exchange	$	743	$	578		$	608
Other trading revenue (loss)	25		(8		)	66
Total foreign exchange and other trading revenue	$	768	$	570		$	674

Fair Value of Derivative Contracts Falling under Early Termination Provisions that were in Net Liability Position

The following table shows the fair value of contracts falling under early termination provisions that were in net liability positions as of Dec. 31, 2015 for three key ratings triggers:

If The Bank of New York Mellon’s rating was changed to (Moody’s/S&P)	Potential close-out exposures (fair value) (a)
A3/A-		$	117	million
Baa2/BBB		$	1,076	million
Ba1/BB+		$	2,061	million

(a) The amounts represent potential total close-out values if The Bank of New York Mellon’s rating were to immediately drop to the indicated levels.

Offsetting Assets

The following tables present derivative instruments and financial instruments that are either subject to an enforceable netting agreement or offset by collateral arrangements. There were no derivative instruments or financial instruments subject to a netting agreement for which we are not currently netting.

Offsetting of derivative assets and financial assets at Dec. 31, 2015
	Gross assets recognized		Gross amounts offset in the balance sheet			Net assets recognized on the balance sheet		Gross amounts not offset in the balance sheet
(in millions)					(a)			Financial instruments		Cash collateral received		Net amount
Derivatives subject to netting arrangements:
Interest rate contracts	$	9,554	$	8,071		$	1,483	$	432	$	—	$	1,051
Foreign exchange contracts	3,981		2,981			1,000		63		—		937
Equity and other contracts	123		63			60		—		—		60
Total derivatives subject to netting arrangements	13,658		11,115			2,543		495		—		2,048
Total derivatives not subject to netting arrangements	2,142		—			2,142		—		—		2,142
Total derivatives	15,800		11,115			4,685		495		—		4,190
Reverse repurchase agreements	17,088		357		(b)	16,731		16,726		—		5
Securities borrowing	7,630		—			7,630		7,373		—		257
Total	$	40,518	$	11,472		$	29,046	$	24,594	$	—	$	4,452

(a) Includes the effect of netting agreements and net cash collateral received. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions.

(b) Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system.

Offsetting of derivative assets and financial assets at Dec. 31, 2014
	Gross assets recognized		Gross amounts offset in the balance sheet			Net assets recognized on the balance sheet		Gross amounts not offset in the balance sheet
(in millions)					(a)			Financial instruments		Cash collateral received		Net amount
Derivatives subject to netting arrangements:
Interest rate contracts	$	15,457	$	13,942		$	1,515	$	408	$	—	$	1,107
Foreign exchange contracts	5,291		4,246			1,045		176		—		869
Equity contracts	303		159			144		6		—		138
Total derivatives subject to netting arrangements	21,051		18,347			2,704		590		—		2,114
Total derivatives not subject to netting arrangements	3,607		—			3,607		—		—		3,607
Total derivatives	24,658		18,347			6,311		590		—		5,721
Reverse repurchase agreements	11,634		434		(b)	11,200		11,198		—		2
Securities borrowing	9,033		—			9,033		8,733		—		300
Total	$	45,325	$	18,781		$	26,544	$	20,521	$	—	$	6,023

(a) Includes the effect of netting agreements and net cash collateral received. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions.

(b) Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system.

Offsetting Liabilities

Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2015
	Gross liabilities recognized		Gross amounts offset in the balance sheet			Net liabilities recognized on the balance sheet		Gross amounts not offset in the balance sheet
(in millions)					(a)			Financial instruments		Cash collateral pledged		Net amount
Derivatives subject to netting arrangements:
Interest rate contracts	$	10,188	$	8,235		$	1,953	$	1,795	$	—	$	158
Foreign exchange contracts	3,409		2,567			842		274		—		568
Equity and other contracts	145		67			78		71		—		7
Total derivatives subject to netting arrangements	13,742		10,869			2,873		2,140		—		733
Total derivatives not subject to netting arrangements	1,446		—			1,446		—		—		1,446
Total derivatives	15,188		10,869			4,319		2,140		—		2,179
Repurchase agreements	7,737		357		(b)	7,380		7,380		—		—
Securities lending	1,801		—			1,801		1,727		—		74
Total	$	24,726	$	11,226		$	13,500	$	11,247	$	—	$	2,253

(a) Includes the effect of netting agreements and net cash collateral paid. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions.

(b) Offsetting of repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system.

Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2014
	Gross liabilities recognized		Gross amounts offset in the balance sheet			Net liabilities recognized on the balance sheet		Gross amounts not offset in the balance sheet
(in millions)					(a)			Financial instruments		Cash collateral pledged		Net amount
Derivatives subject to netting arrangements:
Interest rate contracts	$	16,884	$	14,467		$	2,417	$	1,815	$	—	$	602
Foreign exchange contracts	4,241		3,149			1,092		399		—		693
Equity contracts	481		181			300		250		—		50
Total derivatives subject to netting arrangements	21,606		17,797			3,809		2,464		—		1,345
Total derivatives not subject to netting arrangements	3,411		—			3,411		—		—		3,411
Total derivatives	25,017		17,797			7,220		2,464		—		4,756
Repurchase agreements	9,160		434		(b)	8,726		8,722		—		4
Securities lending	2,571		—			2,571		2,494		—		77
Total	$	36,748	$	18,231		$	18,517	$	13,680	$	—	$	4,837

(a) Includes the effect of netting agreements and net cash collateral paid. The offset related to the over-the-counter derivatives was allocated to the various types of derivatives based on the net positions.

(b) Offsetting of repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system.

Transfer of Certain Financial Assets Accounted for as Secured Borrowings

The following table presents the contract value of repurchase agreements and securities lending transactions accounted for as secured borrowings by the type of collateral provided to counterparties.

Repurchase agreements and securities lending transactions accounted for as secured borrowings at Dec. 31, 2015
	Remaining contractual maturity of the agreements
(in millions)	Overnight and continuous		Up to 30 days		30 days or more		Total
Repurchase agreements:
U.S. Treasury	$	2,226	$	—	$	—	$	2,226
U.S. Government agencies	319		42		5		366
Agency RMBS	3,158		—		—		3,158
Corporate bonds	372		—		665		1,037
Other debt securities	106		—		149		255
Equity securities	664		—		31		695
Total	$	6,845	$	42	$	850	$	7,737
Securities lending:
U.S. Government agencies	$	35	$	—	$	—	$	35
Other debt securities	254		—		—		254
Equity securities	1,512		—		—		1,512
Total	$	1,801	$	—	$	—	$	1,801
Total borrowings	$	8,646	$	42	$	850	$	9,538