Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2016

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
March 31, 2016
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	2,550	$	128		5.03	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		1,500		6		9.88		6,439		193		3.31
Net investment hedges
Foreign exchange forward contracts		–		–		–		1,170		30		.04
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		5,650		54		.08		21		2		.05
Sell		455		5		.17		5,982		48		.10
Options
Purchased		2,000		–		.06		–		–		–
Written		3,532		47		.12		9		1		.10
Receive fixed/pay floating swaps		9,656		290		10.00		–		–		–
Pay fixed/receive floating swaps		–		–		–		4,381		277		9.71
Foreign exchange forward contracts		4,735		56		.01		1,139		13		.03
Equity contracts		62		2		.22		23		1		.58
Credit contracts		1,206		1		2.84		3,175		4		3.16
Other (a)		597		9		.02		1,278		73		1.34
Total	$	31,943	$	598			$	23,617	$	642
December 31, 2015
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	3,050	$	73		4.43	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		1,772		7		9.22		5,009		146		1.13
Net investment hedges
Foreign exchange forward contracts		1,140		4		.04		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		3,812		17		.07		452		1		.06
Sell		3,201		12		.09		2,559		7		.12
Options
Purchased		2,935		–		.06		–		–		–
Written		3,199		29		.10		5		1		.08
Receive fixed/pay floating swaps		3,733		42		9.98		4,748		18		10.18
Pay fixed/receive floating swaps		287		2		9.82		4,158		35		9.97
Foreign exchange forward contracts		3,023		13		.01		2,380		10		.03
Equity contracts		62		–		.47		24		1		.82
Credit contracts		1,192		2		2.58		2,821		3		2.99
Other (a)		36		–		.04		662		64		2.60
Total	$	27,442	$	201			$	22,818	$	286

(a) Includes short-term underwriting purchase and sale commitments with total asset and liability notional values of $597 million and $36 million at March 31, 2016 and December 31, 2015, respectively, and derivative liability swap agreements related to the sale of a portion of the Company’s Class B common shares of Visa Inc. The Visa swap agreements had a total notional value, fair value and weighted average remaining maturity of $681 million, $64 million and 2.50 years at March 31, 2016, respectively, compared to $626 million, $64 million and 2.75 years at December 31, 2015, respectively.

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
March 31, 2016
Interest rate contracts
Receive fixed/pay floating swaps	$	51,354	$	2,000		5.24	$	5,011	$	8		3.25
Pay fixed/receive floating swaps		5,224		8		4.08		50,201		2,056		5.27
Options
Purchased		8,676		7		2.33		321		13		1.24
Written		321		14		1.24		8,256		5		2.24
Futures
Buy		3,870		2		1.02		–		–		–
Foreign exchange rate contracts
Forwards, spots and swaps		24,917		938		.49		23,476		896		.51
Options
Purchased		1,708		49		1.29		–		–		–
Written		–		–		–		1,708		49		1.29
Total	$	96,070	$	3,018			$	88,973	$	3,027
December 31, 2015
Interest rate contracts
Receive fixed/pay floating swaps	$	32,647	$	1,097		5.69	$	14,068	$	54		4.71
Pay fixed/receive floating swaps		10,685		43		4.55		35,045		1,160		5.74
Options
Purchased		8,705		10		2.61		146		1		2.23
Written		146		2		2.23		8,482		9		2.57
Futures
Buy		–		–		–		2,859		2		.84
Sell		45		–		.97		–		–		–
Foreign exchange rate contracts
Forwards, spots and swaps		18,399		851		.59		17,959		830		.58
Options
Purchased		1,485		43		1.19		–		–		–
Written		–		–		–		1,485		43		1.19
Total	$	72,112	$	2,046			$	80,044	$	2,099

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) for the three months ended March 31:

	Gains (Losses) Recognized in Other Comprehensive Income (Loss)						Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2016			2015			2016			2015
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts (a)	$	(59	)	$	(17	)	$	(27	)	$	(31	)
Net investment hedges
Foreign exchange forward contracts		(32	)		115			–			–

Note: Ineffectiveness on cash flow and net investment hedges was not material for the three months ended March 31, 2016 and 2015.

(a) Gains (Losses) reclassified from other comprehensive income (loss) into interest expense.

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 for the three months ended March 31:

(Dollars in Millions)	Location of Gains (Losses) Recognized in Earnings	2016			2015
Asset and Liability Management Positions
Fair value hedges (a)
Interest rate contracts	Other noninterest income	$	62		$	34
Other economic hedges
Interest rate contracts
Futures and forwards	Mortgage banking revenue		(47	)		41
Purchased and written options	Mortgage banking revenue		93			59
Receive fixed/pay floating swaps	Mortgage banking revenue		242			115
Pay fixed/receive floating swaps	Mortgage banking revenue		9			–
Foreign exchange forward contracts	Commercial products revenue		25			20
Equity contracts	Compensation expense		(2	)		–
Customer-Related Positions
Interest rate contracts
Receive fixed/pay floating swaps	Other noninterest income		1,005			358
Pay fixed/receive floating swaps	Other noninterest income		(1,004	)		(350	)
Purchased and written options	Other noninterest income		2			–
Futures	Other noninterest income		4			–
Foreign exchange rate contracts
Forwards, spots and swaps	Commercial products revenue		17			20
Purchased and written options	Commercial products revenue		1			1

(a) Gains (Losses) on items hedged by interest rate contracts included in noninterest income (expense), were $(61) million and $(33) million for the three months ended March 31, 2016 and 2015, respectively. The ineffective portion was immaterial for the three months ended March 31, 2016 and 2015.