Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Positions

	March 31, 20131
	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		$720	Trading liabilities		$—		$—
Total		17,350		720			—		—
Derivatives designated in fair value hedging relationships 3
Interest rate contracts covering:
Fixed rate debt	Trading assets	1,000		62		Trading liabilities	—		—
Total		1,000		62			—		—
Derivatives not designated as hedging instruments 4
Interest rate contracts covering:
Fixed rate debt	Trading assets	—		—		Trading liabilities	60		10
MSRs	Other assets	3,330		89		Trading/Other liabilities	13,093		47
LHFS, IRLCs 5	Other assets	5,767		10		Other liabilities	7,151		32
Trading activity 6	Trading assets	80,747		4,966		Trading liabilities	85,887		4,732
Foreign exchange rate contracts covering:
Commercial loans	Trading assets	32		2		Trading liabilities	—		—
Trading activity	Trading assets	2,309		65		Trading liabilities	2,094		63
Credit contracts covering:
Loans	Trading/Other assets	—		—		Other liabilities	477		8
Trading activity 7	Trading assets	1,819		58		Trading liabilities	1,827		52
Equity contracts - Trading activity 6	Trading assets	19,350		1,467		Trading liabilities	26,577		1,820
Other contracts:
IRLCs and other 8	Trading/Other assets	6,508		99		Other liabilities	347		1
Commodities	Trading assets	239		30		Trading liabilities	239		30
Total		120,101		6,786			137,752		6,795
Total derivatives			$138,451		$7,568			$137,752		$6,795

¹ The Company offsets cash collateral paid to and received from derivative counterparties when the derivative contracts are subject to master netting arrangements and meet the derivative offsetting requirements. The effects of offsetting on the Company's Consolidated Balance Sheets at March 31, 2013, are presented in Note 12, "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 $1.3 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 $19.4 billion and $1.8 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 include $3 million and $4 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 a notional amount that 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 11, “Reinsurance Arrangements and Guarantees.” The fair value of the derivative liability, which relates to a notional amount of $134 million, is immaterial and is recognized in other liabilities in the Consolidated Balance Sheets.

	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, LHFI-FV 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:
Foreign-denominated debt and 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
Commodities	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

¹ The Company offsets cash collateral paid to and received from derivative counterparties when the derivative contracts are subject to master netting arrangements and meet the derivative offsetting requirements. The effects of offsetting on the Company's Consolidated Balance Sheets as of December 31, 2011, are presented in Note 12, "Fair Value Election and Measurement."

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 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 asset associated with the one day lag is included in the fair value column of this table.

⁷ Asset and liability amounts each include $3 million 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 notional amount that 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 11, “Reinsurance Arrangements and Guarantees.” The fair value of the derivative liability, which relates to a notional amount of $134 million, is immaterial and is recognized in other liabilities in the Consolidated Balance Sheets.

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

	Three Months Ended March 31, 2013
(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:
Interest rate contracts hedging floating rate loans1		$1	Interest and fees on loans		$87

¹ During the three months endedMarch 31, 2013, the Company reclassified $27 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.

	Three Months Ended March 31, 2013
(Dollars in millions)	Amount of loss on Derivatives recognized in Income			Amount of gain on related Hedged Items recognized in Income		Amount of gain recognized in Income on Hedges (Ineffective Portion)
Derivatives in fair value hedging relationships:
Interest rate contracts hedging fixed rate debt1		($5	)		$6		$1

¹ Amounts 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 Three Months Ended March 31, 2013
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
MSRs	Mortgage servicing related income		($56	)
LHFS, IRLCs	Mortgage production related income	35
Trading activity	Trading income	8
Foreign exchange rate contracts covering:
Commercial loans	Trading income	2
Trading activity	Trading income	12
Credit contracts covering:
Loans	Other income	(1		)
Trading activity	Trading income	5
Equity contracts - trading activity	Trading income	1
Other contracts:
IRLCs	Mortgage production related income	102
Total			$108

The impacts of derivatives on the Consolidated Statements of Income and the Consolidated Statements of Shareholders’ Equity for the three months ended March 31, 2012, are presented below:

	Three Months Ended March 31, 2012
(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		($58	)			$—
Interest rate contracts hedging Floating rate loans1	50			Interest and fees on loans	83
Total		($8	)			$83

¹ During the three months endedMarch 31, 2012, the Company also reclassified $69 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.

	Three Months Ended March 31, 2012
(Dollars in millions)	Amount of gain/(loss) on Derivatives recognized in Income			Amount of gain/(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:
Interest rate contracts hedging Fixed rate debt1		($1	)		$1			$—
Interest rate contracts hedging Securities AFS	1			(1		)	—
Total		$—			$—			$—

¹ Amounts 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 Three Months Ended March 31, 2012
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
MSRs	Mortgage servicing related income		($73	)
LHFS, IRLCs, LHFI-FV	Mortgage production related income	(35		)
Trading activity	Trading income	27
Foreign exchange rate contracts covering:
Commercial loans	Trading income	15
Trading activity	Trading income	3
Credit contracts covering:
Loans	Trading income	(3		)
Trading activity	Trading income	6
Equity contracts - trading activity	Trading income	4
Other contracts:
IRLCs	Mortgage production related income	184
Total			$128

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

[2] During the three months ended March 31, 2012, the Company also reclassified $69 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.