Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]



	As of December 31, 2012¹
	Asset Derivatives					Liability Derivatives
(Dollars in millions)	Balance Sheet Classification	Notional Amounts		Fair Value		Balance Sheet Classification	Notional Amounts		Fair Value
Derivatives designated in cash flow hedging relationships ²
Interest rate contracts hedging:
Floating rate loans	Trading assets		$17,350		$771	Trading liabilities		$—		$—
Total		17,350		771			—		—
Derivatives designated in fair value hedging relationships ³
Interest rate contracts covering:
Fixed rate debt	Trading assets	1,000		61		Trading liabilities	—		—
Total		1,000		61			—		—
Derivatives not designated as hedging instruments ⁴
Interest rate contracts covering:
Fixed rate debt	Trading assets	—		—		Trading liabilities	60		10
MSRs	Other assets	6,185		150		Trading/Other liabilities	12,643		33
LHFS, IRLCs ⁵	Other assets	2,333		6		Other liabilities	7,076		15
Trading activity ⁶	Trading assets	81,930		6,044		Trading liabilities	86,037		5,777
Foreign exchange rate contracts covering:
Commercial loans	Trading assets	—		—		Trading liabilities	34		—
Trading activity	Trading assets	2,451		66		Trading liabilities	2,326		63
Credit contracts covering:
Loans	Trading/Other assets	—		—		Other liabilities	445		8
Trading activity ⁷	Trading assets	1,958		55		Trading liabilities	2,081		49
Equity contracts - Trading activity ⁶	Trading assets	15,748		1,342		Trading liabilities	22,184		1,529
Other contracts:
IRLCs and other ⁸	Trading/Other assets	6,783		132		Other liabilities	142		1
Trading activity	Trading assets	255		29		Trading liabilities	255		29
Total		117,643		7,824			133,283		7,514
Total derivatives			$135,993		$8,656			$133,283		$7,514

¹The Company offsets cash collateral paid to and received from derivative counterparties when the derivative contracts are subject to ISDA master netting arrangements and meet the derivative offsetting requirements. The effects of offsetting on the Company's Consolidated Balance Sheets as of December 31, 2012, are presented in Note 18, "Fair Value Election and Measurement." In some situations, trading derivatives are offset with derivatives used for risk management purposes that are recorded in other assets or other liabilities. As a result, the Company may reclass balances between trading assets or liabilities and other assets or other liabilities based on the predominant account.

² See “Cash Flow Hedges” in this Note for further discussion.

³ See “Fair Value Hedges” in this Note for further discussion.

⁴ See “Economic Hedging and Trading Activities” in this Note for further discussion.

⁵ Amount includes $1.7 billion of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative asset or liability associated with the one day lag is included in the fair value column of this table.

⁶ Amounts include $16.2 billion and $0.8 billion of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative assets/liabilities associated with the one day lag are included in the fair value column of this table.

⁷ Asset and liability amounts each include $3 million of notional from purchased and written credit risk participation agreements, respectively, whose notional is calculated as the notional of the derivative participated adjusted by the relevant RWA conversion factor.

⁸ Includes $1 million derivative liability recognized in other liabilities in the Consolidated Balance Sheets, related to a notional amount of $134 million. The notional amount is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009 as discussed in Note 17, “Reinsurance Arrangements and Guarantees.”



	As of December 31, 2011¹
	Asset Derivatives					Liability Derivatives
(Dollars in millions)	Balance Sheet Classification	Notional Amounts		Fair Value		Balance Sheet Classification	Notional Amounts		Fair Value
Derivatives designated in cash flow hedging relationships ²
Equity contracts hedging:
Securities AFS	Trading assets		$1,547		$—	Trading liabilities		$1,547		$189
Interest rate contracts hedging:
Floating rate loans	Trading assets	14,850		1,057		Trading liabilities	—		—
Total		16,397		1,057			1,547		189
Derivatives designated in fair value hedging relationships ³
Interest rate contracts covering:
Securities AFS	Trading assets	—		—		Trading liabilities	450		1
Fixed rate debt	Trading assets	1,000		56		Trading liabilities	—		—
Total		1,000		56			450		1
Derivatives not designated as hedging instruments⁴
Interest rate contracts covering:
Fixed rate debt	Trading assets	437		13		Trading liabilities	60		9
MSRs	Other assets	28,800		472		Other liabilities	2,920		29
LHFS, IRLCs, LHFI-FV ⁵	Other assets	2,657		19		Other liabilities	6,228		54
Trading activity ⁶	Trading assets	113,420		6,226		Trading liabilities	101,042		5,847
Foreign exchange rate contracts covering:
Foreign-denominated debt and commercial loans	Trading assets	33		1		Trading liabilities	460		129
Trading activity	Trading assets	2,532		127		Trading liabilities	2,739		125
Credit contracts covering:
Loans	Trading assets	45		1		Trading liabilities	308		3
Trading activity ⁷	Trading assets	1,841		28		Trading liabilities	1,809		23
Equity contracts - Trading activity ⁶	Trading assets	10,168		1,013		Trading liabilities	10,445		1,045
Other contracts:
IRLCs and other ⁸	Other assets	4,909		84		Other liabilities	139		22
Trading activity	Trading assets	207		23		Trading liabilities	203		23
Total		165,049		8,007			126,353		7,309
Total derivatives			$182,446		$9,120			$128,350		$7,499

² See “Cash Flow Hedges” in this Note for further discussion.

³See "Fair Value Hedges" in this Note for further discussion.

⁴ See “Economic Hedging and Trading Activities” in this Note for further discussion.

⁵ Amount includes $1.2 billion of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative liability associated with the one day lag is included in the fair value column of this table unless immaterial.

⁶ Amounts include $16.7 billion and $0.6 billion of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative asset associated with the one day lag is included in the fair value column of this table unless immaterial.

⁷ Asset and liability amounts include $2 million and $6 million, respectively, of notional from purchased and written interest rate swap risk participation agreements, respectively, whose notional is calculated as the notional of the interest rate swap participated adjusted by the relevant RWA conversion factor.

⁸ Includes a $22 million derivative liability recognized in other liabilities in the Consolidated Balance Sheets, related to a notional amount of $134 million. The notional amount is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009 as discussed in Note 17, “Reinsurance Arrangements and Guarantees.”

^[1]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]




	Year Ended December 31, 2012
(Dollars in millions)	Amount of pre-tax gain/(loss) recognized in OCI on Derivatives (Effective Portion)			Classification of gain/(loss) reclassified from AOCI into Income (Effective Portion)	Amount of pre-tax gain/(loss) reclassified from AOCI into Income (Effective Portion)
Derivatives in cash flow hedging relationships:
Equity contracts hedging Securities AFS¹		($171	)	Net securities gains		($365	)
Interest rate contracts hedging Floating rate loans²	252			Interest and fees on loans	337
Total		$81				($28	)

¹ During the year ended December 31, 2012, the Company also recognized $60 million of pre-tax gains directly into net securities gains related to mark-to-market changes of the Coke hedging contracts when the cash flow hedging relationship failed to qualify for hedge accounting.

²During the year ended December 31, 2012, the Company also reclassified $171 million, respectively, in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.



	Year Ended December 31, 2012
(Dollars in millions)	Amount of gain on Derivatives recognized in Income		Amount of loss on related Hedged Items recognized in Income			Amount of gain/(loss) recognized in Income on Hedges (Ineffective Portion)
Derivatives in fair value hedging relationships:¹
Interest rate contracts hedging Fixed rate debt		$5		($5	)		$—
Interest rate contracts hedging Securities AFS	1		(1		)	—
Total		$6		($6	)		$—

¹Amounts are recognized in trading income in the Consolidated Statements of Income.



(Dollars in millions)	Classification of gain/(loss) recognized in Income on Derivatives	Amount of gain/(loss) recognized in Income on Derivatives for the Year Ended December 31, 2012
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
Fixed rate debt	Trading income		($2	)
MSRs	Mortgage servicing related income	284
LHFS, IRLCs	Mortgage production related income/(loss)	(331		)
Trading activity	Trading income	86
Foreign exchange rate contracts covering:
Commercial loans and foreign-denominated debt	Trading income	129
Trading activity	Trading income	14
Credit contracts covering:
Loans	Other income ¹	(8		)
Trading activity	Trading income	24
Equity contracts - trading activity	Trading income	8
Other contracts:
IRLCs ²	Mortgage production related income/(loss)	930
Total			$1,134

¹ Includes $3 million of losses that were recognized in trading income for the first six months of 2012.

² Substantially all of this amount is included in the fair value gain/(loss) for LHFS measured at fair value pursuant to election of the FVO, as shown in Note 18, "Fair Value Election and Measurement".

The impacts of derivatives on the Consolidated Statements of Income and the Consolidated Statements of Shareholders’ Equity for the year ended December 31, 2011, are presented below:



	Year Ended December 31, 2011
(Dollars in millions)	Amount of pre-tax gain/(loss) recognized in OCI on Derivatives (Effective Portion)			Classification of gain reclassified from AOCI into Income (Effective Portion)	Amount of pre-tax gain reclassified from AOCI into Income (Effective Portion)
Derivatives in cash flow hedging relationships:
Equity contracts hedging Securities AFS		($46	)			$—
Interest rate contracts hedging Floating rate loans¹	730			Interest and fees on loans	423
Total		$684				$423

¹During the year ended December 31, 2011, the Company also reclassified $202 million in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.



	Year Ended December 31, 2011
(Dollars in millions)	Amount of gain on Derivatives recognized in Income		Amount of loss on related Hedged Items recognized in Income			Amount of loss recognized in Income on Hedges (Ineffective Portion)
Derivatives in fair value hedging relationships:
Interest rate contracts hedging Fixed rate debt¹		$51		($52	)		($1	)

¹Amounts are recognized in trading income in the Consolidated Statements of Income.



(Dollars in millions)	Classification of gain/(loss) recognized in Income on Derivatives	Amount of gain/(loss) recognized in Income on Derivatives for the Year Ended December 31, 2011
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
Fixed rate debt	Trading income		($5	)
MSRs	Mortgage servicing related income	572
LHFS, IRLCs, LHFI-FV	Mortgage production related income/(loss)	(281		)
Trading activity	Trading income	113
Foreign exchange rate contracts covering:
Commercial loans and foreign-denominated debt	Trading income	(4		)
Trading activity	Trading income	18
Credit contracts covering:
Loans	Trading income	(1		)
Trading activity	Trading income	15
Equity contracts - trading activity	Trading income	(3		)
Other contracts:
IRLCs ¹	Mortgage production related income/(loss)	355
Total			$779

¹ The majority of this amount is included in the fair value gain/(loss) for LHFS measured at fair value pursuant to election of the FVO, as shown in Note 18, "Fair Value Election and Measurement".

The impacts of derivatives on the Consolidated Statements of Income and the Consolidated Statements of Shareholders’ Equity for the year ended December 31, 2010, are presented below:



	Year Ended December 31, 2010
(Dollars in millions)	Amount of pre-tax gain/(loss) recognized in OCI on Derivatives (Effective Portion)			Classification of gain reclassified from AOCI into Income (Effective Portion)	Amount of pre-tax gain reclassified from AOCI into Income (Effective Portion)
Derivatives in cash flow hedging relationships:
Equity contracts hedging Securities AFS		($101	)			$—
Interest rate contracts hedging Floating rate loans¹	903			Interest and fees on loans	487
Total		$802				$487

¹During the year ended December 31, 2010, the Company also reclassified $130 million in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.



(Dollars in millions)	Classification of gain/(loss) recognized in Income on Derivatives	Amount of gain/(loss) recognized in Income on Derivatives for the Year Ended December 31, 2010
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
Fixed rate debt	Trading income		($64	)
Corporate bonds and loans	Trading income	(1		)
MSRs	Mortgage servicing related income	444
LHFS, IRLCs, LHFI-FV	Mortgage production related income/(loss)	(176		)
Trading activity	Trading income	304
Foreign exchange rate contracts covering:
Foreign-denominated debt and commercial loans	Trading income	(94		)
Trading activity	Trading income	7
Credit contracts covering:
Loans	Trading income	(2		)
Trading activity	Trading income	10
Equity contracts - trading activity	Trading income	(53		)
Other contracts:
IRLCs ¹	Mortgage production related income/(loss)	392
Total			$767

¹ Amount is included in the fair value gain/(loss) for LHFS measured at fair value pursuant to election of the FVO, as shown in Note 18, "Fair Value Election and Measurement".

^[2]

[1]	Amounts are recognized in trading income in the Consolidated Statements of Income.
[2]	During the year ended December 31, 2011, the Company also reclassified $202 million in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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