Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Asset and Liability Management Derivative Positions of Company

The following table summarizes the asset and liability management 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
September 30, 2013
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	500	$	21		2.34	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		272		17		9.02		4,288		548		2.71
Receive fixed/pay floating swaps		7,000		31		1.10		–		–		–
Net investment hedges
Foreign exchange forward contracts		–		–		–		925		11		.05
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		4,418		88		.09		34		8		.08
Sell		41		2		.20		6,203		122		.09
Options
Purchased		2,325		–		.07		–		–		–
Written		1,800		34		.09		9		–		.02
Receive fixed/pay floating swaps		3,220		83		10.23		–		–		–
Foreign exchange forward contracts		1,980		4		.02		2,695		6		.02
Equity contracts		8		–		1.72		66		–		1.89
Credit contracts		1,177		4		4.12		2,495		11		4.91
Total	$	22,741	$	284			$	16,715	$	706
December 31, 2012
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	500	$	30		3.09	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		32		–		9.88		4,528		718		3.79
Receive fixed/pay floating swaps		7,000		45		1.84		–		–		–
Net investment hedges
Foreign exchange forward contracts		758		1		.07		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		11,164		138		.07		2,921		13		.04
Sell		6,299		18		.11		12,223		57		.09
Options
Purchased		2,435		–		.07		–		–		–
Written		4,991		123		.12		4		–		.06
Receive fixed/pay floating swaps		350		1		10.21		3,775		14		10.21
Foreign exchange forward contracts		618		4		.03		1,383		6		.01
Equity contracts		31		–		2.80		27		–		2.46
Credit contracts		1,056		3		4.56		1,947		10		3.11
Total	$	35,234	$	363			$	26,808	$	818

Customer-Related Derivative Positions of Company

The following table summarizes the 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
September 30, 2013
Interest rate contracts
Receive fixed/pay floating swaps	$	13,562	$	736		5.30	$	5,138	$	70		4.98
Pay fixed/receive floating swaps		4,700		76		5.15		14,089		691		5.26
Options
Purchased		3,681		28		4.46		107		1		1.12
Written		107		1		1.12		3,681		28		4.46
Foreign exchange rate contracts
Forwards, spots and swaps		10,392		411		.71		9,688		375		.68
Options
Purchased		367		9		.64		–		–		–
Written		–		–		–		367		9		.64
Total	$	32,809	$	1,261			$	33,070	$	1,174
December 31, 2012
Interest rate contracts
Receive fixed/pay floating swaps	$	16,671	$	1,085		4.78	$	1,090	$	15		9.30
Pay fixed/receive floating swaps		928		14		11.12		16,923		1,042		4.74
Options
Purchased		3,046		16		5.24		28		–		4.42
Written		286		–		.75		2,788		16		5.68
Foreign exchange rate contracts
Forwards, spots and swaps		12,186		322		.43		11,861		286		.44
Options
Purchased		323		6		.55		–		–		–
Written		–		–		–		323		6		.55
Total	$	33,440	$	1,443			$	33,013	$	1,365

Summary of Effective Portion of Gains (Losses) Recognized in Other Comprehensive Income (Loss) and Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings

The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax):

	Three Months Ended September 30,												Nine Months Ended September 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)	2013			2012			2013			2012			2013			2012			2013			2012
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts (a)	$	(11	)	$	(19	)	$	(30	)	$	(33	)	$	22		$	(42	)	$	(88	)	$	(98	)
Net investment hedges
Foreign exchange forward contracts		(29	)		–			–			–			(23	)		(6	)		–			–
Non-derivative debt instruments		–			(11	)		–			–			–			26			–			–

Note: Ineffectiveness on cash flow and net investment hedges was not material for the three and nine months ended September 30, 2013 and 2012.

(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

The table below shows the gains (losses) recognized in earnings for fair value hedges, other economic hedges and the customer-related positions:

	Location of Gains (Losses) Recognized in Earnings		Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)			2013			2012			2013			2012
Asset and Liability Management Positions
Fair value hedges (a)
Interest rate contracts		Other noninterest income	$	–		$	2		$	(7	)	$	5
Foreign exchange cross-currency swaps		Other noninterest income		–			–			–			42
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue		33			(44	)		569			67
Purchased and written options		Mortgage banking revenue		54			290			200			689
Receive fixed/pay floating swaps		Mortgage banking revenue		(5	)		48			(264	)		186
Foreign exchange forward contracts		Commercial products revenue		(16	)		(25	)		18			(62	)
Equity contracts		Compensation expense		–			1			1			2
Credit contracts		Other noninterest income/expense		2			(2	)		1			(8	)
Customer-Related Positions
Interest rate contracts
Receive fixed/pay floating swaps		Other noninterest income		13			(16	)		(288	)		(10	)
Pay fixed/receive floating swaps		Other noninterest income		(10	)		19			298			15
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		15			13			36			36

(a) Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were both zero for the three months ended September 30, 2013, and $(2) million and zero for the three months ended September 30, 2012, respectively. Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $7 million and zero for the nine months ended September 30, 2013, respectively, and $(5) million and $(44) million for the nine months ended September 30, 2012, respectively. The ineffective portion was immaterial for the three and nine months ended September 30, 2013 and 2012.