Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Positions

	June 30, 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		$17,250		$555	Trading liabilities		$—		$—
Derivatives designated in fair value hedging relationships 3
Interest rate contracts covering:
Fixed rate debt	Trading assets	2,000		50		Trading liabilities	900		12
Derivatives not designated as hedging instruments 4
Interest rate contracts covering:
Fixed rate debt	Trading assets	—		—		Trading liabilities	60		7
MSRs	Other assets	7,382		57		Other liabilities	7,316		132
LHFS, IRLCs 5	Other assets	10,764		294		Other liabilities	6,494		65
Trading activity 6	Trading assets	79,726		3,705		Trading liabilities	76,436		3,503
Foreign exchange rate contracts covering:
Commercial loans	Trading assets	—		—		Trading liabilities	32		2
Trading activity	Trading assets	2,381		58		Trading liabilities	2,055		53
Credit contracts covering:
Loans	Other assets	—		—		Other liabilities	479		7
Trading activity 7	Trading assets	1,839		32		Trading liabilities	1,918		28
Equity contracts - Trading activity 6	Trading assets	17,781		1,832		Trading liabilities	25,107		2,039
Other contracts:
IRLCs and other 8	Other assets	2,151		23		Other liabilities	3,860		75
Commodities	Trading assets	203		15		Trading liabilities	203		15
Total		122,227		6,016			123,960		5,926
Total derivatives			$141,477		$6,621			$124,860		$5,938

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 June 30, 2013, are presented in Note 13, "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 $2.3 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 $15.3 billion and $0.2 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 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 12, “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		$—		$—
Derivatives designated in fair value hedging relationships 3
Interest rate contracts covering:
Fixed rate debt	Trading assets	1,000		61		Trading liabilities	—		—
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 at December 31, 2012, are presented in Note 13, "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 12, “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 June 30, 2013						Six Months Ended June 30, 2013
(Dollars in millions)	Amount of pre-tax loss recognized in OCI on Derivatives (Effective  Portion)			Classification of gain/(loss) reclassified from     AOCI into Income (Effective Portion)	Amount of pre-tax gain reclassified from AOCI into Income (Effective Portion)		Amount of pre-tax loss recognized in OCI on Derivatives (Effective  Portion)			Amount of pre-tax gain reclassified from AOCI into Income (Effective Portion)
Derivatives in cash flow hedging relationships:
Interest rate contracts hedging forecasted debt		($2	)	Interest on long-term debt		$—		($2	)		$—
Interest rate contracts hedging floating rate loans1	(43		)	Interest and fees on loans	79		(43		)	166
Total		($45	)			$79		($45	)		$166

¹ During the three and six months endedJune 30, 2013, the Company also reclassified$21 million and $48 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.

	Three Months Ended June 30, 2013							Six Months Ended June 30, 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/(loss) recognized in Income on Hedges (Ineffective Portion)		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		($18	)		$18		$—		($23	)		$24		$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 June 30, 2013			Amount of gain/(loss) recognized in Income on Derivatives for the Six Months Ended June 30, 2013
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
Fixed rate debt	Trading income		$2			$2
MSRs	Mortgage servicing related income	(158		)	(214		)
LHFS, IRLCs	Mortgage production related income	256			291
Trading activity	Trading income	18			26
Foreign exchange rate contracts covering:
Commercial loans	Trading income	(3		)	(1		)
Trading activity	Trading income	14			26
Credit contracts covering:
Loans	Other income	(1		)	(2		)
Trading activity	Trading income	5			10
Equity contracts - trading activity	Trading income	(16		)	(15		)
Other contracts:
IRLCs	Mortgage production related income	(75		)	27
Total			$42			$150

	Three Months Ended June 30, 2012						Six Months Ended June 30, 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 reclassified from AOCI into Income (Effective Portion)		Amount of pre-tax gain/(loss) recognized in OCI on Derivatives (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		($103	)			$—		($161	)		$—
Interest rate contracts hedging Floating rate loans1	117			Interest and fees on loans	83		167			166
Total		$14				$83		$6			$166

¹ During the three and six months endedJune 30, 2012, the Company also reclassified $37 millionand$105 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.

	Three Months Ended June 30, 2012							Six Months Ended June 30, 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)		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 relationships1:
Interest rate contracts hedging Fixed rate debt		$8		($8	)		$—		$7		($7	)		$—
Interest rate contracts hedging Securities AFS	—		—			—		1		(1		)	—
Total		$8		($8	)		$—		$8		($8	)		$—

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 June 30, 2012			Amount of gain/(loss) recognized in Income on Derivatives for the Six Months Ended June 30, 2012
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
Fixed rate debt	Trading income		($2	)		($1	)
MSRs	Mortgage servicing related income	269				$196
LHFS, IRLCs, LHFI-FV	Mortgage production related income	(135		)	(170		)
Trading activity	Trading income	27			54
Foreign exchange rate contracts covering:
Commercial loans and foreign-denominated debt	Trading income	115			130
Trading activity	Trading income	11			14
Credit contracts covering:
Loans 1	Other income	(1		)	(4		)
Trading activity	Trading income	6			12
Equity contracts - trading activity	Trading income	10			13
Other contracts:
IRLCs	Mortgage production related income	257			442
Total			$557			$686

¹For the six months ended June 30, 2012, losses of $3 million were recorded in trading income.

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Netting of financial instruments - derivatives [Table Text Block]

(Dollars in millions)	Gross Amount		Amount Offset		Net Amount Presented in Consolidated Balance Sheets			Held/Pledged Financial Instruments		Net Amount
June 30, 2013
Derivative financial assets:
Derivatives subject to master netting arrangement or similar arrangement		$6,015		$4,722		$1,293			$68		$1,225
Derivatives not subject to master netting arrangement or similar arrangement	23		—		23			—		23
Exchange traded derivatives	583		351		232			—		232
Total derivative financial assets		$6,621		$5,073		$1,548	1		$68		$1,480
Derivative financial liabilities:
Derivatives subject to master netting arrangement or similar arrangement		$5,350		$4,992		$358			$20		$338
Derivatives not subject to master netting arrangement or similar arrangement	235		—		235			—		235
Exchange traded derivatives	353		351		2			—		2
Total derivative financial liabilities		$5,938		$5,343		$595	2		$20		$575
(Dollars in millions)
December 31, 2012
Derivative financial assets:
Derivatives subject to master netting arrangement or similar arrangement		$8,041		$6,273		$1,768			$94		$1,674
Derivatives not subject to master netting arrangement or similar arrangement	132		—		132			—		132
Exchange traded derivatives	483		300		183			—		183
Total derivative financial assets		$8,656		$6,573		$2,083	1		$94		$1,989
Derivative financial liabilities:
Derivatives subject to master netting arrangement or similar arrangement		$7,051		$6,802		$249			$37		$212
Derivatives not subject to master netting arrangement or similar arrangement	163		—		163			—		163
Exchange traded derivatives	300		300		—			—		—
Total derivative financial liabilities		$7,514		$7,102		$412	2		$37		$375

¹ At June 30, 2013, $1.4 billion, net of $530 million offsetting collateral, is recognized in trading assets and $101 million, net of $151 million offsetting collateral, is recognized in other assets within the Company's Consolidated Balance Sheets. At December 31, 2012, $1.9 billion, net of $730 million offsetting collateral, is recognized in trading assets and $178 million is recognized in other assets within the Company's Consolidated Balance Sheets.

² At June 30, 2013, $460 million, net of $1.0 billion offsetting collateral, is recognized in trading liabilities and $135 million is recognized in other liabilities within the Company's Consolidated Balance Sheets. At December 31, 2012, $397 million, net of $1.3 billion offsetting collateral, is recognized in trading liabilities and $15 million is recognized in other liabilities within the Company's Consolidated Balance Sheets.

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

[2] During the three and six months ended June 30, 2012, the Company also reclassified $37 million and $105 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.