Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2012

Derivative Instruments [Abstract]

Derivative Position of the company

	June 30, 2012						December 31, 2011
(Dollars in Millions)	Asset Derivatives			Liability Derivatives			Asset Derivatives			Liability Derivatives
Total fair value of derivative positions	$	1,941		$	2,387		$	1,913		$	2,554
Netting (a)		(321	)		(875	)		(294	)		(1,889	)
Total	$	1,620		$	1,512		$	1,619		$	665

(a) Represents netting of derivative asset and liability balances, and related collateral, with the same counterparty subject to master netting agreements. At June 30, 2012, the amount of collateral posted by counterparties that was netted against derivative assets was $88 million and the amount of cash collateral posted by the Company that was netted against derivative liabilities was $634 million, compared with $88 million and $1.7 billion, respectively, at December 31, 2011.

Asset and liability management derivative positions of company

	Asset Derivatives						Liability Derivatives
(Dollars in Millions)	Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years		Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years
June 30, 2012
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	500	$	30		3.59	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		–		–		–		4,288		775		3.96
Receive fixed/pay floating swaps		7,000		33		2.35		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		15,194		189		.10		31		–		.12
Sell		1,465		2		.09		18,263		135		.11
Options
Purchased		1,500		–		.07		–		–		–
Written		6,165		145		.13		12		1		.17
Receive fixed/pay floating swaps		3,775		4		10.23		–		–		–
Foreign exchange forward contracts		1,724		15		.08		636		5		.08
Equity contracts		60		3		1.87		–		–		–
Credit contracts		737		2		4.24		1,968		8		3.37
December 31, 2011
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps		500		27		4.09		–		–		–
Foreign exchange cross-currency swaps		688		17		5.17		432		23		5.17
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		–		–		–		4,788		803		4.03
Receive fixed/pay floating swaps		750		–		2.75		6,250		6		2.86
Net investment hedges
Foreign exchange forward contracts		708		4		.08		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		14,270		150		.07		29		–		.12
Sell		231		1		.15		14,415		134		.11
Options
Purchased		1,250		–		.07		–		–		–
Written		4,421		80		.10		11		1		.13
Receive fixed/pay floating swaps		2,625		9		10.21		–		–		–
Foreign exchange forward contracts		307		1		.08		1,414		11		.08
Equity contracts		54		1		1.05		10		–		.64
Credit contracts		800		7		3.71		1,600		8		3.59

Customer-related derivative positions of the company

	Asset Derivatives						Liability Derivatives
(Dollars in Millions)	Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years		Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years
June 30, 2012
Interest rate contracts
Receive fixed/pay floating swaps	$	16,547	$	1,204		4.86	$	603	$	1		4.76
Pay fixed/receive floating swaps		131		1		14.03		17,090		1,169		4.81
Options
Purchased		2,789		17		5.67		28		–		4.92
Written		28		–		4.92		2,789		17		5.67
Foreign exchange rate contracts
Forwards, spots and swaps (a)		9,611		286		.42		9,574		266		.45
Options
Purchased		305		10		.57		–		–		–
Written		–		–		–		305		10		.57
December 31, 2011
Interest rate contracts
Receive fixed/pay floating swaps		16,230		1,216		4.98		523		1		2.52
Pay fixed/receive floating swaps		99		–		1.81		16,206		1,182		5.10
Options
Purchased		2,660		26		6.11		–		–		–
Written		–		–		–		2,660		26		6.11
Foreign exchange rate contracts
Forwards, spots and swaps (a)		7,936		369		.54		7,731		354		.54
Options
Purchased		127		5		.41		–		–		–
Written		–		–		–		127		5		.41

(a) Reflects the net of long and short positions.

Summary of effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (Loss) into earnings

	Three Months Ended June 30,												Six Months Ended June 30,
	Gains (Losses) Recognized in Other Comprehensive Income (Loss)						Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings						Gains (Losses) Recognized in Other Comprehensive Income (Loss)						Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2012			2011			2012			2011			2012			2011			2012			2011
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts (a)	$	(24	)	$	(84	)	$	(32	)	$	(35	)	$	(23	)	$	(79	)	$	(65	)	$	(69	)
Net investment hedges
Foreign exchange forward contracts		—			(15	)		—			—			(6	)		(47	)		—			—
Non-derivative debt instruments		37			—			—			—			37			—			—			—

Note: Ineffectiveness on cash flow and net investment hedges was not material for the three and six months ended June 30, 2012 and 2011.

(a) Gains (Losses) reclassified from other comprehensive income (loss) into interest income on loans and interest expense on long-term debt.

Summary of gains (losses) recognized in earnings for fair value hedges, other economic hedges and customer-related positions

	Location of Gains (Losses) Recognized in Earnings		Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in Millions)			2012			2011			2012			2011
Asset and Liability Management Positions
Fair value hedges (a)
Interest rate contracts		Other noninterest income	$	3		$	10		$	3		$	24
Foreign exchange cross-currency swaps		Other noninterest income		–			25			42			98
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue		(58	)		(10	)		111			(24	)
Purchased and written options		Mortgage banking revenue		245			93			399			142
Receive fixed/pay floating swaps		Mortgage banking revenue		195			–			138			–
Foreign exchange forward contracts		Commercial products revenue		(30	)		(4	)		(37	)		(18	)
Equity contracts		Compensation expense		–			–			(1	)		1
Credit contracts		Other noninterest income/expense		–			(1	)		(6	)		(2	)
Customer-Related Positions
Interest rate contracts
Receive fixed/pay floating swaps		Other noninterest income		146			133			6			(14	)
Pay fixed/receive floating swaps		Other noninterest income		(143	)		(129	)		(4	)		11
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		12			13			23			27

(a) Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $(3) million and less than $1 million for the three months ended June 30, 2012, respectively, and $(10) million and $(25) million for the three months ended June 30, 2011, respectively. Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $(3) million and $(44) million for the six months ended June 30, 2012, respectively, and $(24) million and $(97) million for the six months ended June 30, 2011, respectively. The ineffective portion was immaterial for the three and six months ended June 30, 2012 and 2011.