Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Positions

	September 30, 2014
	Asset Derivatives						Liability Derivatives
(Dollars in millions)		Notional Amounts		Fair Value			Notional Amounts		Fair Value
Derivatives designated in cash flow hedging relationships 1
Interest rate contracts hedging floating rate loans			$16,900		$241			$5,750		$17
Derivatives designated in fair value hedging relationships 2
Interest rate contracts covering fixed rate debt		1,000		35			1,300		1
Interest rate contracts covering brokered CDs		—		—			30		—
Total		1,000		35			1,330		1
Derivatives not designated as hedging instruments 3
Interest rate contracts covering:
Fixed rate debt		—		—			60		6
MSRs		3,738		69			8,041		21
LHFS, IRLCs 4		1,876		4			3,081		5
Trading activity 5		61,577		2,172			61,727		1,997
Foreign exchange rate contracts covering trading activity		2,809		80			2,287		74
Credit contracts covering:
Loans		—		—			572		8
Trading activity 6		1,749		11			1,764		7
Equity contracts - Trading activity 5		21,079		2,703			27,872		2,872
Other contracts:
IRLCs and other 7		2,202		17			345		12
Commodities		273		8			263		7
Total		95,303		5,064			106,012		5,009
Total derivatives			$113,203		$5,340			$113,092		$5,027
Total gross derivatives, before netting					$5,340					$5,027
Less: Legally enforceable master netting agreements				(3,791		)			(3,791		)
Less: Cash collateral received/paid				(312		)			(876		)
Total derivatives, after netting					$1,237					$360

¹ See “Cash Flow Hedges” in this Note for further discussion.

² See “Fair Value Hedges” in this Note for further discussion.

³ See “Economic Hedging and Trading Activities” in this Note for further discussion.

⁴ Amount includes $1.1 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.

⁵ Amounts include $13.3 billion and $409 million 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.

⁶ Asset and liability amounts each include $4 million, respectively, 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.

⁷ Includes a notional amount that is based on the number of VisaClass 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 13, “Guarantees.” The fair value of the derivative liability, which relates to a notional amount of $55 million, is immaterial and is recognized in trading assets and derivatives in the Consolidated Balance Sheets.

	December 31, 2013
	Asset Derivatives						Liability Derivatives
(Dollars in millions)		Notional Amounts		Fair Value			Notional Amounts		Fair Value
Derivatives designated in cash flow hedging relationships 1
Interest rate contracts hedging floating rate loans			$17,250		$471			$—		$—
Derivatives designated in fair value hedging relationships 2
Interest rate contracts covering fixed rate debt		2,000		52			900		24
Derivatives not designated as hedging instruments 3
Interest rate contracts covering:
Fixed rate debt		—		—			60		7
MSRs		1,425		27			6,898		79
LHFS, IRLCs 4		4,561		30			1,317		5
Trading activity 5		70,615		2,917			65,299		2,742
Foreign exchange rate contracts covering trading activity		2,449		61			2,624		57
Credit contracts covering:
Loans		—		—			427		5
Trading activity 6		1,568		37			1,579		34
Equity contracts - Trading activity 5		19,595		2,504			24,712		2,702
Other contracts:
IRLCs and other 7		1,114		12			755		4
Commodities		241		14			228		14
Total		101,568		5,602			103,899		5,649
Total derivatives			$120,818		$6,125			$104,799		$5,673
Total gross derivatives, before netting					$6,125					$5,673
Less: Legally enforceable master netting agreements				(4,284		)			(4,284		)
Less: Cash collateral received/paid				(457		)			(864		)
Total derivatives, after netting					$1,384					$525

¹ See “Cash Flow Hedges” in this Note for further discussion.

² See “Fair Value Hedges” in this Note for further discussion.

³ See “Economic Hedging and Trading Activities” in this Note for further discussion.

⁴ Amount includes $885 million 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.

⁵ Amounts include $15.2 billion and $157 million 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.

⁶ Asset and liability amounts each include $4 million and $5 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.

⁷ Includes a notional amount that is based on the number of VisaClass 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 13, “Guarantees.” The fair value of the derivative liability, which relates to a notional amount of $55 million, is immaterial and is recognized in other liabilities in the Consolidated Balance Sheets.

^[1]

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

	Three Months Ended September 30, 2014						Nine Months Ended September 30, 2014
(Dollars in millions)	Amount of  pre-tax  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)		Amount of  pre-tax gain 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 floating rate loans 1		($31	)	Interest and fees on loans		$76		$36		$225

¹ During the three and nine months endedSeptember 30, 2014, the Company also reclassified $23 million and $77 million, respectively, 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 September 30, 2014							Nine Months Ended September 30, 2014
(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 gain on Derivatives recognized in Income		Amount of loss 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 debt 1		($7	)		$7		$—		$10		($9	)		$1

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

(Dollars in millions)	Classification of (loss)/gain recognized in Income on Derivatives	Amount of gain recognized in Income on Derivatives during the Three Months Ended September 30, 2014		Amount of (loss)/gain recognized in Income on Derivatives during the Nine Months Ended September 30, 2014
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
Fixed rate debt	Trading income		$—		($1	)
MSRs	Mortgage servicing related income	17		138
LHFS, IRLCs	Mortgage production related income/(loss)	4		(92		)
Trading activity	Trading income	9		35
Foreign exchange rate contracts covering:
Trading activity	Trading income	44		43
Credit contracts covering:
Loans	Other noninterest income	1		—
Trading activity	Trading income	4		13
Equity contracts - trading activity	Trading income	1		4
Other contracts - IRLCs	Mortgage production related income/(loss)	52		190
Total			$132		$330

	Three Months Ended September 30, 2013					Nine Months Ended September 30, 2013
(Dollars in millions)	Amount of  pre-tax  gain 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)/gain 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		$—	Interest on long-term debt		$—		($2	)		$—
Interest rate contracts hedging floating rate loans 1	60		Interest and fees on loans	80		17			246
Total		$60			$80		$15			$246

¹ During the three and nine months endedSeptember 30, 2013, the Company also reclassified $21 millionand$69 million, respectively, 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 September 30, 2013								Nine Months Ended September 30, 2013
(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)			Amount of loss on Derivatives recognized in Income			Amount of gain 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 debt 1		$4		($6	)		($2	)		($19	)		$18		($1	)

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

(Dollars in millions)	Classification of (loss)/gain recognized in Income on Derivatives	Amount of (loss)/gain recognized in Income on Derivatives during the Three Months Ended September 30, 2013			Amount of gain/(loss) recognized in Income on Derivatives during the Nine Months Ended September 30, 2013
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
Fixed rate debt	Trading income		($1	)		$1
MSRs	Mortgage servicing related income	(18		)		($232	)
LHFS, IRLCs	Mortgage production related income/(loss)	(33		)	258
Trading activity	Trading income	20			46
Foreign exchange rate contracts covering:
Commercial loans	Trading income	2			1
Trading activity	Trading income	(9		)	17
Credit contracts covering:
Loans	Other noninterest income	(1		)	(3		)
Trading activity	Trading income	6			16
Equity contracts - trading activity	Trading income	1			(14		)
Other contracts - IRLCs	Mortgage production related income/(loss)	47			74
Total			$14			$164

^[2]

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
September 30, 2014
Derivative financial assets:
Derivatives subject to master netting arrangement or similar arrangement		$4,526		$3,613		$913			$58		$855
Derivatives not subject to master netting arrangement or similar arrangement	17		—		17			—		17
Exchange traded derivatives	797		490		307			—		307
Total derivative financial assets		$5,340		$4,103		$1,237	1		$58		$1,179
Derivative financial liabilities:
Derivatives subject to master netting arrangement or similar arrangement		$4,385		$4,177		$208			$19		$189
Derivatives not subject to master netting arrangement or similar arrangement	151		—		151			—		151
Exchange traded derivatives	491		490		1			—		1
Total derivative financial liabilities		$5,027		$4,667		$360	2		$19		$341
December 31, 2013
Derivative financial assets:
Derivatives subject to master netting arrangement or similar arrangement		$5,285		$4,239		$1,046			$51		$995
Derivatives not subject to master netting arrangement or similar arrangement	12		—		12			—		12
Exchange traded derivatives	828		502		326			—		326
Total derivative financial assets		$6,125		$4,741		$1,384	1		$51		$1,333
Derivative financial liabilities:
Derivatives subject to master netting arrangement or similar arrangement		$4,982		$4,646		$336			$13		$323
Derivatives not subject to master netting arrangement or similar arrangement	189		—		189			—		189
Exchange traded derivatives	502		502		—			—		—
Total derivative financial liabilities		$5,673		$5,148		$525	2		$13		$512

¹ At September 30, 2014, $1.2 billion, net of $312 million offsetting cash collateral, is recognized in trading assets and derivatives within the Company's Consolidated Balance Sheets. At December 31, 2013, $1.4 billion, net of $457 million offsetting cash collateral, is recognized in trading assets and derivatives within the Company's Consolidated Balance Sheets.

² At September 30, 2014, $360 million, net of $876 million offsetting cash collateral, is recognized in trading liabilities and derivatives within the Company's Consolidated Balance Sheets. At December 31, 2013, $525 million, net of $864 million offsetting cash collateral, is recognized in trading liabilities and derivatives 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 nine months ended September 30, 2013, the Company also reclassified $21 million and $69 million, respectively, 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.