Derivative And Credit-Related Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table presents the composition of the Corporation’s derivative instruments held or issued for risk management purposes or in connection with customer-initiated and other activities at September 30, 2014 and December 31, 2013. The table excludes commitments, warrants accounted for as derivatives and a derivative related to the Corporation’s 2008 sale of its remaining ownership of Visa shares.



	September 30, 2014								December 31, 2013
			Fair Value								Fair Value
(in millions)	Notional/ Contract Amount (a)		Gross Derivative Assets			Gross Derivative Liabilities			Notional/ Contract Amount (a)		Gross Derivative Assets			Gross Derivative Liabilities
Risk management purposes
Derivatives designated as hedging instruments
Interest rate contracts:
Swaps - fair value - receive fixed/pay floating	$	1,800	$	164		$	2		$	1,450	$	198		$	—
Derivatives used as economic hedges
Foreign exchange contracts:
Spot, forwards and swaps	426		1			4			253		1			—
Total risk management purposes	2,226		165			6			1,703		199			—
Customer-initiated and other activities
Interest rate contracts:
Caps and floors written	277		—			—			277		—			1
Caps and floors purchased	277		—			—			277		1			—
Swaps	11,403		142			95			11,143		181			132
Total interest rate contracts	11,957		142			95			11,697		182			133
Energy contracts:
Caps and floors written	1,349		3			40			1,325		1			48
Caps and floors purchased	1,349		40			3			1,325		48			1
Swaps	2,483		43			42			2,724		56			53
Total energy contracts	5,181		86			85			5,374		105			102
Foreign exchange contracts:
Spot, forwards, options and swaps	2,032		27			24			1,764		14			14
Total customer-initiated and other activities	19,170		255			204			18,835		301			249
Total gross derivatives	$	21,396	420			210			$	20,538	500			249
Amounts offset in the consolidated balance sheets:
Netting adjustment - Offsetting derivative assets/liabilities			(123		)	(123		)			(187		)	(187		)
Netting adjustment - Cash collateral received/posted			(11		)	—					(2		)	(10		)
Net derivatives included in the consolidated balance sheets (b)			286			87					311			52
Amounts not offset in the consolidated balance sheets:
Marketable securities pledged under bilateral collateral agreements			(121		)	(1		)			(138		)	(10		)
Net derivatives after deducting amounts not offset in the consolidated balance sheets			$	165		$	86				$	173		$	42


(a)	Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the consolidated balance sheets.

(b)

Net derivative assets are included in “accrued income and other assets” and net derivative liabilities are included in “accrued expenses and other liabilities” on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and credit risk of the Corporation. The fair value of net derivative assets included credit valuation adjustments for counterparty credit risk of $2 million at both September 30, 2014 and December 31, 2013.

Schedule Of Weighted Average Maturity And Interest Rates On Risk Management Interest Rate Swaps

The following table summarizes the expected weighted average remaining maturity of the notional amount of risk management interest rate swaps and the weighted average interest rates associated with amounts expected to be received or paid on interest rate swap agreements as of September 30, 2014 and December 31, 2013.



			Weighted Average
(dollar amounts in millions)	Notional Amount		Remaining Maturity (in years)	Receive Rate		Pay Rate (a)
September 30, 2014
Swaps - fair value - receive fixed/pay floating rate
Medium- and long-term debt designation	$	1,800	4.8	4.54	%	0.49	%
December 31, 2013
Swaps - fair value - receive fixed/pay floating rate
Medium- and long-term debt designation	1,450		3.4	5.45		0.38


(a)	Variable rates paid on receive fixed swaps are based on six-month LIBOR rates in effect at September 30, 2014 and December 31, 2013.

Schedule Of Net Gains Recognized In Income On Customer-Initiated Derivatives

The net gains recognized in income on customer-initiated derivative instruments, net of the impact of offsetting positions, were as follows.



		Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	Location of Gain	2014		2013		2014		2013
Interest rate contracts	Other noninterest income	$	3	$	8	$	11	$	17
Energy contracts	Other noninterest income	1		—		1		2
Foreign exchange contracts	Foreign exchange income	9		8		29		26
Total		$	13	$	16	$	41	$	45

Schedule Of Financial Instruments With Off-Balance Sheet Credit Risk

The Corporation’s credit risk associated with these instruments is represented by the contractual amounts indicated in the following table.



(in millions)	September 30, 2014		December 31, 2013
Unused commitments to extend credit:
Commercial and other	$	28,158	$	27,728
Bankcard, revolving check credit and home equity loan commitments	2,138		1,889
Total unused commitments to extend credit	$	30,296	$	29,617
Standby letters of credit	$	3,942	$	4,297
Commercial letters of credit	65		103
Other credit-related financial instruments	3		2

Summary Of Criticized Letters Of Credit

The following table presents a summary of criticized standby and commercial letters of credit at September 30, 2014 and December 31, 2013. The Corporation's criticized list is generally consistent with the Special mention, Substandard and Doubtful categories defined by regulatory authorities. The Corporation manages credit risk through underwriting, periodically reviewing and approving its credit exposures using Board committee approved credit policies and guidelines.



(dollar amounts in millions)	September 30, 2014			December 31, 2013
Total criticized standby and commercial letters of credit	$	102		$	69
As a percentage of total outstanding standby and commercial letters of credit	2.5		%	1.6		%