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Derivative Instruments (Tables)
 6 Months Ended
Jun. 30, 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
  
June 30, 2020
                      
Fair value hedges
                      
Interest rate contracts
                      
Receive fixed/pay floating swaps
   $ 8,400      $ –        2.27           $ –      $ –        –  
Cash flow hedges
                      
Interest rate contracts
                      
Pay fixed/receive floating swaps
     –        –        –             3,250        7        5.09  
Net investment hedges
                      
Foreign exchange forward contracts
     231        1        .05             –        –        –  
Other economic hedges
                      
Interest rate contracts
                      
Futures and forwards
                      
Buy
     17,443        153        .32             4,156        29        .07  
Sell
     10,813        47        .04             27,043        143        .06  
Options
                      
Purchased
     2,530        50        5.41             –        –        –  
Written
     7,219        237        .38             5,800        178        3.60  
Receive fixed/pay floating swaps
     12,632        –        7.28             610        –        20.15  
Pay fixed/receive floating swaps
     1,474        –        6.00             8,277        –        5.12  
Foreign exchange forward contracts
     317        2        .08             248        2        .37  
Equity contracts
     49        1        .94             87        1        .90  
Other (a)
     470        4        .02             2,258        144        1.59  
Total
   $ 61,578      $ 495              $ 51,729      $ 504     
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, $
140
million and 2.00 years at June 30, 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 $470
m
illion at June 30, 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		  
June 30, 2020
                      
Interest rate contracts
                      
Receive fixed/pay floating swaps
   $ 154,746      $ 4,788        5.06           $ 949      $ 11        20.16  
Pay fixed/receive floating swaps
     1,115        –        18.40             148,543        1,501        4.88  
Other (a)
     8,264        2        3.65             8,538        5        3.56  
Options
                      
Purchased
     61,304        113        1.40             3,878        210        1.79  
Written
     2,806        213        2.03             57,736        82        1.25  
Futures
                      
Buy
     2,439        –        .35             –        –        –  
Sell
     –        –        –             6,496        –        1.00  
Foreign exchange rate contracts
                      
Forwards, spots and swaps
     33,851        976        1.19             34,087        945        1.29  
Options
                      
Purchased
     1,021        32        .61             –        –        –  
Written
     –        –        –             1,021        32        .61  
Credit contracts
     3,648        7        3.39             7,514        15        3.86  
Total
   $ 269,194      $ 6,131              $ 268,762      $ 2,801     
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):
 
    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)   2020     2019     2020      2019              2020     2019     2020      2019  
Asset and Liability Management Positions
                        
Cash flow hedges
                        
Interest rate contracts
   $ –     $ (101 )    $ 7      $ 5           $ (192 )    $ (156 )    $ (3 )     $ 11  
Net investment hedges
                        
Foreign exchange forward contracts
     (6 )      (4 )      –        –             10       (2 )      –        –  
Non-derivative
debt instruments
     (21 )      (11 )      –        –                 4       5       –        –  
 
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:
 
    Three Months Ended
June 30		             Six Months Ended
June 30		  
(Dollars in Millions)           2020     2019             2020     2019  
Total amount of interest expense presented in the Consolidated Statement of Income
   $ 472     $ 1,146          $ 1,365     $ 2,238  
 
Asset and Liability Management Positions
             
Fair value hedges
             
Interest rate contract derivatives
     841       (30 )           (194 )      (51 ) 
Hedged items
     (834 )      30            194       51  
Cash Flow hedges
             
Interest rate contract derivatives
     (9 )      (6 )               4       (14 ) 
 
Note:
The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $6 million into earnings during the three and six months ended June 30, 2020 as a result of the discontinuance of 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 and six months ended June 30, 2019.
Summary of Cumulative Hedging Adjustments and the Carrying Amount of Assets and Liabilities Designated in Fair Value Hedges
The table below shows cumulative hedging adjustments and the carrying amount of assets and liabilities designated in fair value hedges:
 
    Carrying Amount of the Hedged Assets
and
Liabilities		              Cumulative Hedging Adjustment (a)  
(Dollars in Millions)   June 30, 2020      December 31, 2019              June 30, 2020      December 31, 2019  
Line Item in the Consolidated Balance Sheet
                
Long-term Debt
   $ 8,625      $ 23,195               $ 1,070      $ 35  
 
(a)
The cumulative hedging adjustment related to discontinued hedging relationships was $833 million and $(7) million at June 30, 2020 and December 31, 2019, respectively.
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:
 
     Location of Gains (Losses)
Recognized in Earnings		     
Three Months Ended
June 30
             Six Months Ended
June 30		  
(Dollars in Millions)    2020     2019             2020     2019  
Asset and Liability Management Positions
                 
Other economic hedges
                 
Interest rate contracts
                 
Futures and forwards
      Mortgage banking revenue/
other noninterest income
 		    $ 82     $ (23 )         $ 7     $ (40 ) 
Purchased and written options
      Mortgage banking revenue        465       126            745       193  
Swaps
      Mortgage banking revenue        46       187            775       298  
Foreign exchange forward contracts
      Other noninterest income        (6 )      (9 )           11       (15 ) 
Equity contracts
      Compensation expense        1       (1 )           (3 )      (2 ) 
Other
      Other noninterest income        –       (1 )           (1 )      –  
Customer-Related Positions
                 
Interest rate contracts
                 
Swaps
      Commercial products revenue        66       15            44       35  
Purchased and written options
      Commercial products revenue        –       5            17       9  
Futures
      Commercial products revenue        –       (3 )           (18 )      (4 ) 
Foreign exchange rate contracts
                 
Forwards, spots and swaps
      Commercial products revenue        17       21            34       39  
Credit contracts
      Commercial products revenue        (23 )      (5 )               (5 )      (8 )