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Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2020
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, 2020
                      
Fair value hedges
                      
Interest rate contracts
                      
Receive fixed/pay floating swaps
   $ 24,200      $ –        3.61           $ –      $ –        –  
Cash flow hedges
                      
Interest rate contracts
                      
Pay fixed/receive floating swaps
     –        –        –             8,682        45        2.55  
Net investment hedges
                      
Foreign exchange forward contracts
     58        –        .04             214        1        .04  
Other economic hedges
                      
Interest rate contracts
                      
Futures and forwards
                      
Buy
     21,970        484        .05             15,091        339        .04  
Sell
     3,542        75        .03             29,313        316        .60  
Options
                      
Purchased
     3,830        87        5.24             200        –        .51  
Written
     4,201        140        .16             5,873        161        2.36  
Receive fixed/pay floating swaps
     16,135        –        8.63             2,032        –        7.09  
Pay fixed/receive floating swaps
     1,827        –        13.48             10,044        –        6.03  
Foreign exchange forward contracts
     355        10        .03             350        4        .05  
Equity contracts
     92        4        .28             19        4        .14  
Other (a)
     1,031        29        .01             2,820        181        1.43  
Total
   $ 77,241      $ 829              $ 74,638      $ 1,051     
December 31, 2019
                      
Fair value hedges
                      
Interest rate contracts
                      
Receive fixed/pay floating swaps
   $ 18,300      $ –        3.89           $ 4,900      $ –        3.49  
Cash flow hedges
                      
Interest rate contracts
                      
Pay fixed/receive floating swaps
     1,532        –        6.06             7,150        10        2.11  
Net investment hedges
                      
Foreign exchange forward contracts
     –        –        –             287        3        .04  
Other economic hedges
                      
Interest rate contracts
                      
Futures and forwards
                      
Buy
     5,409        17        .08             5,477        11        .07  
Sell
     16,333        13        .81             8,113        25        .03  
Options
                      
Purchased
     10,180        79        2.97             –        –        –  
Written
     1,270        30        .08             4,238        81        2.07  
Receive fixed/pay floating swaps
     4,408        –        5.99             5,316        –        13.04  
Pay fixed/receive floating swaps
     1,259        –        5.67             4,497        –        6.03  
Foreign exchange forward contracts
     113        1        .05             467        6        .04  
Equity contracts
     128        2        .45             20        –        1.06  
Other (a)
     34        –        .01             1,823        165        2.45  
Total
   $ 58,966      $ 142                        $ 42,288      $ 301           
 
 
 
 
 
 
 
 
(a)
Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common and preferred shares of Visa Inc. The Visa swap agreements had a total notional value, fair value and weighted-average remaining maturity of $1.8 billion, $153 million and 2.25 years at March 31, 2020, respectively, compared to $1.8 billion, $165 million and 2.50 years at December 31, 2019, respectively. In addition, includes short-term underwriting purchase and sale commitments with total asset and liability notional values of $1.0 
b
illion at March 31, 2020, and $34 million at December 31, 2019.
 
 
 
 
 
 
 
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, 2020
                      
Interest rate contracts
                      
Receive fixed/pay floating swaps
   $ 143,179      $ 4,551        5.29           $ 1,947      $ 5        9.45  
Pay fixed/receive floating swaps
     2,121        –        8.39             137,866        1,515        5.08  
Other (a)
     6,641        2        3.82             8,423        3        3.42  
Options
                      
Purchased
     59,554        94        1.47             3,624        347        11.56  
Written
     3,722        348        11.41             53,430        67        1.35  
Futures
                      
Buy
     4,324        1        .49             –        –        –  
Sell
     –        –        –             5,518        15        1.05  
Foreign exchange rate contracts
                      
Forwards, spots and swaps
     36,781        1,516        .90             36,703        1,497        1.07  
Options
                      
Purchased
     1,345        43        .64             –        –        –  
Written
     –        –        –             1,345        43        .64  
Credit contracts
     4,154        12        3.79             6,898        18        4.22  
Total
   $ 261,821      $ 6,567              $ 255,754      $ 3,510     
December 31, 2019
                      
Interest rate contracts
                      
Receive fixed/pay floating swaps
   $ 108,560      $ 1,865        4.83           $ 31,544      $ 88        3.83  
Pay fixed/receive floating swaps
     28,150        30        3.83             101,078        753        4.55  
Other (a)
     6,895        1        3.45             6,218        2        2.98  
Options
                      
Purchased
     46,406        43        2.06             12,804        47        1.25  
Written
     6,901        49        1.93             49,741        41        1.82  
Futures
                      
Buy
     894        –        .21             –        –        –  
Sell
     3,874        1        1.18             1,995        –        1.04  
Foreign exchange rate contracts
                      
Forwards, spots and swaps
     36,350        748        .97             36,671        729        1.07  
Options
                      
Purchased
     1,354        17        .54             –        –        –  
Written
     –        –        –             1,354        17        .54  
Credit contracts
     2,879        1        3.28             7,488        5        4.33  
Total
   $ 242,263      $ 2,755                        $ 248,893      $ 1,682           
 
 
 
 
 
 
 
 
(a)
Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes.
 
 
 
 
 
 
 
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)   2020     2019             2020     2019  
Asset and Liability Management Positions
               
Cash flow hedges
               
Interest rate contracts
   $ (192 )     $ (55 )         $ (10 )     $ 6  
Net investment hedges
               
Foreign exchange forward contracts
     16        2            –        –  
Non-derivative
debt instruments
     25        16                –        –  
 
 
 
 
 
 
 
 
Note:
The Company does not exclude components from effectiveness testing for cash flow and net investment hedges.
 
 
 
 
 
 
 
Effect of Fair Value and Cash Flow Hedge Accounting Included in Interest Expense on Consolidated Statement of Income
The table below shows the effect of fair value and cash flow hedge accounting included in interest expense on the Consolidated Statement of Income for the three months ended March 31:
 
                 
(Dollars in Millions)   2020     2019  
Total amount of interest expense presented in the Consolidated Statement of Income
    $ 893      $ 1,092  
Asset and Liability Management Positions
      
Fair value hedges
      
Interest rate contract derivatives
      (1,035 )       (21 ) 
Hedged items
      1,028        21  
Cash Flow hedges
      
Interest rate contract derivatives
      13        (8 ) 
 
 
 
 
 
 
 
 
Note:
The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company did not reclassify gains or losses into earnings as a result of the discontinuance of cash flow hedges during the three months ended March 31, 2020 and 2019.
 
 
 
 
 
 
 
Summary of Cumulative Hedging Adjustments and the Carrying Amount of Assets (Liabilities) Designated in Fair Value Hedges
The table below shows cumulative hedging adjustments and the carrying amount of assets (liabilities) designated in fair value hedges:
 
                                         
    Carrying Amount of the Hedged Assets
(Liabilities)		              Cumulative Hedging Adjustment (a)  
(Dollars in Millions)   March 31, 2020      December 31, 2019              March 31, 2020      December 31, 2019  
Line Item in the Consolidated Balance Sheet
                
Long-term Debt
   $ 25,223      $ 23,195               $ 1,064      $ 35  
 
 
 
 
 
 
 
 
(a)
The cumulative hedging adjustment related to discontinued hedging relationships was $(7) million at March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
Summary of Gains (Losses) Recognized in Earnings for Other Economic Hedges and Customer-Related Positions
The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions for the three months
 
e
nded March 31:
 
                         
(Dollars in Millions)    Location of Gains (Losses)
Recognized in Earnings		      2020     2019  
Asset and Liability Management Positions
        
Other economic hedges
        
Interest rate contracts
        
Futures and forwards
    
Mortgage banking revenue/
Other noninterest income
      $ (75 )     $ (17 ) 
Purchased and written options
     Mortgage banking revenue        280        67  
Swaps
     Mortgage banking revenue        729        111  
Foreign exchange forward contracts
     Other noninterest income        17        (6 ) 
Equity contracts
     Compensation expense        (4 )       (1 ) 
Other
     Other noninterest income        (1 )       1  
Customer-Related Positions
        
Interest rate contracts
        
Swaps
     Commercial products revenue        (22 )       20  
Purchased and written options
     Commercial products revenue        17        4  
Futures
     Commercial products revenue        (18 )       (1 ) 
Foreign exchange rate contracts
        
Forwards, spots and swaps
     Commercial products revenue        17        18  
Credit contracts
     Commercial products revenue        18        (3 )