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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Positions
 
September 30, 2015
 
Asset Derivatives
 
Liability Derivatives
(Dollars in millions)
Notional
Amounts
 
Fair
Value
 
Notional
Amounts
 
Fair
Value
Derivative instruments designated in cash flow hedging relationships 1
 
 
 
 
 
 
 
Interest rate contracts hedging floating rate loans

$15,500

 

$262

 

$—

 

$—

Derivative instruments designated in fair value hedging relationships 2
 
 
 
 
 
 
 
Interest rate contracts hedging fixed rate debt
1,700

 
27

 
600

 
—

Interest rate contracts hedging brokered CDs
30

 
—

 
—

 
—

Total
1,730

 
27

 
600

 
—

Derivative instruments not designated as hedging instruments 3
 
 
 
 
 
 
 
Interest rate contracts hedging:
 
 
 
 
 
 
 
MSRs
18,209

 
285

 
6,009

 
159

LHFS, IRLCs 4
2,638

 
13

 
4,478

 
40

Trading activity 5
69,745

 
2,449

 
63,113

 
2,237

Foreign exchange rate contracts hedging trading activity
3,634

 
127

 
3,303

 
123

Credit contracts hedging:
 
 
 
 
 
 
 
Loans
—

 
—

 
215

 
3

Trading activity 6
2,568

 
16

 
2,735

 
13

Equity contracts hedging trading activity 5
22,911

 
1,944

 
28,546

 
2,253

Other contracts:
 
 
 
 
 
 
 
IRLCs and other 7
2,672

 
38

 
81

 
6

Commodities
466

 
97

 
463

 
96

Total
122,843

 
4,969

 
108,943

 
4,930

Total derivative instruments

$140,073

 

$5,258

 

$109,543

 

$4,930

 
 
 
 
 
 
 
 
Total gross derivative instruments, before netting
 
 

$5,258

 
 
 

$4,930

Less: Legally enforceable master netting agreements
 
 
(3,268
)
 
 
 
(3,268
)
Less: Cash collateral received/paid
 
 
(541
)
 
 
 
(1,097
)
Total derivative instruments, after netting
 
 

$1,449

 
 
 

$565

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 $848 million 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 $12.7 billion and $536 million of notional amounts related to interest rate futures and equity futures, respectively. 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. Amounts also include notional amounts related to interest rate swaps hedging fixed rate debt.
6 Asset and liability amounts include $6 million and $9 million of notional amounts 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 $49 million 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. See Note 12, “Guarantees” for additional information.

 
December 31, 2014
 
Asset Derivatives
 
Liability Derivatives
(Dollars in millions)
Notional
Amounts
 
Fair
Value
 
Notional
Amounts
 
Fair
Value
Derivative instruments designated in cash flow hedging relationships 1
 
 
 
 
 
 
 
Interest rate contracts hedging floating rate loans

$18,150

 

$208

 

$2,850

 

$8

Derivative instruments designated in fair value hedging relationships 2
 
 
 
 
 
 
 
Interest rate contracts hedging fixed rate debt
2,700

 
30

 
2,600

 
1

Interest rate contracts hedging brokered CDs
30

 
—

 
—

 
—

Total
2,730

 
30

 
2,600

 
1

Derivative instruments not designated as hedging instruments 3
 
 
 
 
 
 
 
Interest rate contracts hedging:
 
 
 
 
 
 
 
MSRs
5,172

 
163

 
8,807

 
30

LHFS, IRLCs 4
1,840

 
4

 
4,923

 
23

Trading activity 5
61,049

 
2,405

 
61,065

 
2,225

Foreign exchange rate contracts hedging trading activity
2,429

 
104

 
2,414

 
100

Credit contracts hedging:
 
 
 
 
 
 
 
Loans
—

 
—

 
392

 
5

Trading activity 6
2,282

 
20

 
2,452

 
20

Equity contracts hedging trading activity 5
21,875

 
2,809

 
28,128

 
3,090

Other contracts:
 
 
 
 
 
 
 
IRLCs and other 7
2,231

 
25

 
139

 
5

Commodities
381

 
71

 
374

 
70

Total
97,259

 
5,601

 
108,694

 
5,568

Total derivative instruments

$118,139

 

$5,839

 

$114,144

 

$5,577

 
 
 
 
 
 
 
 
Total gross derivative instruments, before netting
 
 

$5,839

 
 
 

$5,577

Less: Legally enforceable master netting agreements
 
 
(4,083
)
 
 
 
(4,083
)
Less: Cash collateral received/paid
 
 
(449
)
 
 
 
(1,032
)
Total derivative instruments, after netting
 
 

$1,307

 
 
 

$462

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 $791 million 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 $10.3 billion and $563 million of notional amounts related to interest rate futures and equity futures, respectively. 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. Amounts also include notional amounts related to interest rate swaps hedging fixed rate debt.
6 Asset and liability amounts both include $4 million of notional amounts 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 $49 million 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. See Note 12, “Guarantees” for additional information.
 [1]
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
 
Three Months Ended September 30, 2015
 
Nine Months Ended September 30, 2015
 
 
(Dollars in millions)
Amount of 
Pre-tax Gain
Recognized
in OCI on Derivatives
(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)
 
Classification of Pre-tax Gain
Reclassified
from AOCI
into Income
(Effective Portion)
Derivative instruments in cash flow hedging relationships:
 
 
 
 
 
 
 
 
Interest rate contracts hedging floating rate loans 1

$204

 

$47

 

$338

 

$126

 
Interest and fees on loans
1 During the three and nine months ended September 30, 2015, the Company also reclassified $23 million and $61 million, respectively, of pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been terminated or de-designated and are reclassified into earnings consistent with the pattern of net cash flows expected to be recognized.

 
Three Months Ended September 30, 2015
 
Nine Months Ended September 30, 2015
(Dollars in millions)
Amount of Gain/(Loss) 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
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)
Derivative instruments in fair value hedging relationships:
 
 
 
 
 
 
Interest rate contracts hedging fixed rate debt 1

$—

 

($1
)
 

($1
)
 

$7

 

($8
)
 

($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
During the Three Months Ended
September 30, 2015
 
Amount of Gain/(Loss) Recognized in Income on Derivatives
During the Nine Months Ended
September 30, 2015
Derivative instruments not designated as hedging instruments:
 
 
 
 
Interest rate contracts hedging:
 
 
 
 
 
MSRs
Mortgage servicing related income
 

$298

 

$223

LHFS, IRLCs
Mortgage production related income
 
(69
)
 
(60
)
LHFI
Other noninterest income
 
(2
)
 
(2
)
Trading activity
Trading income
 
5

 
46

Foreign exchange rate contracts hedging trading activity
Trading income
 
21

 
57

Credit contracts hedging:
 
 
 
 
 
Loans
Other noninterest income
 
—

 
(1
)
Trading activity
Trading income
 
6

 
19

Equity contracts hedging trading activity
Trading income
 
—

 
3

Other contracts hedging:
 
 
 
 
 
IRLCs
Mortgage production related income
 
58

 
151

Commodities
Trading income
 
1

 
2

Total
 
 

$318

 

$438




 
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)
 
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)
 
Classification of Pre-tax Gain
Reclassified
from AOCI
into Income
(Effective Portion)
Derivative instruments in cash flow hedging relationships:
 
 
 
 
 
 
 
 
Interest rate contracts hedging floating rate loans 1

($31
)
 

$76

 

$36

 

$225

 
Interest and fees on loans
1 During the three and nine months ended September 30, 2014, the Company also reclassified $23 million and $77 million, respectively, of pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been terminated or de-designated and are reclassified into earnings consistent with the pattern of net cash flows expected to be recognized.

 
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)
Derivative instruments 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 Gain/(Loss) Recognized
in Income on Derivatives
 
Amount of Gain
Recognized in Income
on Derivatives
During the Three Months Ended
September 30, 2014
 
Amount of Gain/(Loss)
Recognized in Income
on Derivatives
During the Nine
Months Ended
September 30, 2014
Derivative instruments not designated as hedging instruments:
 
 
 
 
Interest rate contracts hedging:
 
 
 
 
 
MSRs
Mortgage servicing related income
 

$17

 

$138

LHFS, IRLCs
Mortgage production related income
 
4

 
(92
)
Trading activity
Trading income
 
9

 
34

Foreign exchange rate contracts hedging trading activity
Trading income
 
44

 
43

Credit contracts hedging:
 
 

 

Loans
Other noninterest income
 
1

 
—

Trading activity
Trading income
 
4

 
13

Equity contracts hedging trading activity
Trading income
 
1

 
4

Other contracts - IRLCs
Mortgage production related income
 
52

 
190

Total
 
 

$132

 

$330





 [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, 2015
 
 
 
 
 
 
 
 
 
Derivative instrument assets:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$4,748

 

$3,455

 

$1,293

 

$51

 

$1,242

Derivatives not subject to master netting arrangement or similar arrangement
38

 
—

 
38

 
—

 
38

Exchange traded derivatives
472

 
354

 
118

 
—

 
118

Total derivative instrument assets

$5,258

 

$3,809

 

$1,449

1 

$51

 

$1,398

 
 
 
 
 
 
 
 
 
 
Derivative instrument liabilities:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$4,488

 

$4,011

 

$477

 

$20

 

$457

Derivatives not subject to master netting arrangement or similar arrangement
88

 
—

 
88

 
—

 
88

Exchange traded derivatives
354

 
354

 
—

 
—

 
—

Total derivative instrument liabilities

$4,930

 

$4,365

 

$565

2 

$20

 

$545

 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
Derivative instrument assets:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$5,127

 

$4,095

 

$1,032

 

$63

 

$969

Derivatives not subject to master netting arrangement or similar arrangement
25

 
—

 
25

 
—

 
25

Exchange traded derivatives
687

 
437

 
250

 
—

 
250

Total derivative instrument assets

$5,839

 

$4,532

 

$1,307

1 

$63

 

$1,244

 
 
 
 
 
 
 
 
 
 
Derivative instrument liabilities:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$5,001

 

$4,678

 

$323

 

$12

 

$311

Derivatives not subject to master netting arrangement or similar arrangement
133

 
—

 
133

 
—

 
133

Exchange traded derivatives
443

 
437

 
6

 
—

 
6

Total derivative instrument liabilities

$5,577

 

$5,115

 

$462

2 

$12

 

$450

1 At September 30, 2015, $1.4 billion, net of $541 million offsetting cash collateral, is recognized in trading assets and derivative instruments within the Company's Consolidated Balance Sheets. At December 31, 2014, $1.3 billion, net of $449 million offsetting cash collateral, is recognized in trading assets and derivative instruments within the Company's Consolidated Balance Sheets.
2 At September 30, 2015, $565 million, net of $1.1 billion offsetting cash collateral, is recognized in trading liabilities and derivative instruments within the Company's Consolidated Balance Sheets. At December 31, 2014, $462 million, net of $1.0 billion offsetting cash collateral, is recognized in trading liabilities and derivative instruments 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, 2014, the Company also reclassified $23 million and $77 million, respectively, of pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been terminated or de-designated and are reclassified into earnings consistent with the pattern of net cash flows expected to be recognized.