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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments [Table Text Block]
The following tables present the Company’s derivative positions at September 30, 2017 and December 31, 2016. The notional amounts in the tables are presented on a gross basis and have been classified within derivative assets or derivative liabilities based on the estimated fair value of the individual contract at September 30, 2017 and December 31, 2016. Gross positive and gross negative fair value amounts associated with respective notional amounts are presented without consideration of any netting agreements, including collateral arrangements. Net fair value derivative amounts are adjusted on an aggregate basis, where applicable, to take into consideration the effects of legally enforceable master netting agreements, including any cash collateral received or paid, and are recognized in trading assets and derivative instruments or trading liabilities and derivative instruments on the Consolidated Balance Sheets. For contracts constituting a combination of options that contain a written option and a purchased option (such as a collar), the notional amount of each option is presented separately, with the purchased notional amount generally being presented as a derivative asset and the written notional amount being presented as a derivative liability. For contracts that contain a combination of options, the fair value is generally presented as a single value with the purchased notional amount if the combined fair value is positive, and with the written notional amount if the combined fair value is negative.

 
September 30, 2017
 
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 LHFI

$3,150

 

$3

 

$10,550

 

$187

 
 
 
 
 
 
 
 
Derivative instruments designated in fair value hedging relationships 2
 
 
 
 
 
 
 
Interest rate contracts hedging fixed rate debt
500

 
—

 
5,420

 
36

Interest rate contracts hedging brokered CDs
30

 
—

 
30

 
—

Total
530

 
—

 
5,450

 
36

 
 
 
 
 
 
 
 
Derivative instruments not designated as hedging instruments 3
 
 
 
 
 
 
 
Interest rate contracts hedging:
 
 
 
 
 
 
 
Residential MSRs 4
23,954

 
145

 
15,062

 
128

LHFS, IRLCs 5
5,628

 
13

 
4,218

 
13

LHFI
90

 
2

 
85

 
2

Trading activity 6
73,673

 
1,126

 
57,454

 
1,014

Foreign exchange rate contracts hedging trading activity
3,668

 
126

 
3,468

 
112

Credit contracts hedging:
 
 
 
 
 
 
 
LHFI
—

 
—

 
620

 
8

Trading activity 7
2,517

 
17

 
2,534

 
13

Equity contracts hedging trading activity 6
16,512

 
2,315

 
28,295

 
2,836

Other contracts:
 
 
 
 
 
 
 
IRLCs and other 8
1,786

 
26

 
820

 
22

Commodity derivatives
756

 
39

 
744

 
37

Total
128,584

 
3,809

 
113,300

 
4,185

Total derivative instruments

$132,264

 

$3,812

 

$129,300

 

$4,408

 
 
 
 
 
 
 
 
Total gross derivative instruments, before netting
 
 

$3,812

 
 
 

$4,408

Less: Legally enforceable master netting agreements
 
 
(2,611
)
 
 
 
(2,611
)
Less: Cash collateral received/paid
 
 
(303
)
 
 
 
(1,420
)
Total derivative instruments, after netting
 
 

$898

 
 
 

$377

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 $13.3 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.
5 Amount includes $497 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.
6 Amounts include $10.1 billion of notional amounts related to interest rate futures and $180 million of notional amounts related to equity 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. Amounts also include notional amounts related to interest rate swaps hedging fixed rate debt.
7 Asset and liability amounts include $5 million and $11 million, respectively, of notional amounts from purchased and written credit risk participation agreements, whose notional is calculated as the notional of the derivative participated adjusted by the relevant RWA conversion factor.
8 Includes $49 million notional amount that is based on the 3.2 million of Visa Class B shares, 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, 2016
 
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 LHFI

$6,400

 

$34

 

$11,050

 

$265

 
 
 
 
 
 
 
 
Derivative instruments designated in fair value hedging relationships 2
 
 
 
 
 
 
 
Interest rate contracts hedging fixed rate debt
600

 
2

 
4,510

 
81

Interest rate contracts hedging brokered CDs
60

 
—

 
30

 
—

Total
660

 
2

 
4,540

 
81

 
 
 
 
 
 
 
 
Derivative instruments not designated as hedging instruments 3
 
 
 
 
 
 
 
Interest rate contracts hedging:
 
 
 
 
 
 
 
Residential MSRs 4
12,165

 
413

 
18,774

 
335

LHFS, IRLCs 5
11,774

 
134

 
8,306

 
58

LHFI
100

 
2

 
36

 
1

Trading activity 6
70,599

 
1,536

 
67,477

 
1,401

Foreign exchange rate contracts hedging trading activity
3,231

 
161

 
3,360

 
148

Credit contracts hedging:
 
 
 
 
 
 
 
LHFI
15

 
—

 
620

 
8

Trading activity 7
2,128

 
34

 
2,271

 
33

Equity contracts hedging trading activity 6
17,225

 
2,095

 
28,658

 
2,477

Other contracts:
 
 
 
 
 
 
 
IRLCs and other 8
2,412

 
28

 
668

 
22

Commodity derivatives
747

 
75

 
746

 
73

Total
120,396

 
4,478

 
130,916

 
4,556

Total derivative instruments

$127,456

 

$4,514

 

$146,506

 

$4,902

 
 
 
 
 
 
 
 
Total gross derivative instruments, before netting
 
 

$4,514

 
 
 

$4,902

Less: Legally enforceable master netting agreements
 
 
(3,239
)
 
 
 
(3,239
)
Less: Cash collateral received/paid
 
 
(291
)
 
 
 
(1,265
)
Total derivative instruments, after netting
 
 

$984

 
 
 

$398

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 $6.7 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.
5 Amount includes $720 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.
6 Amounts include $12.3 billion of notional amounts related to interest rate futures and $629 million of notional amounts related to equity 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. Amounts also include notional amounts related to interest rate swaps hedging fixed rate debt.
7 Asset and liability amounts include $5 million and $13 million, respectively, of notional amounts from purchased and written credit risk participation agreements, whose notional is calculated as the notional of the derivative participated adjusted by the relevant RWA conversion factor.
8 Includes $49 million notional amount that is based on the 3.2 million of Visa Class B shares, 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.
Derivative Instruments, Gain (Loss) [Table Text Block]
The impacts of derivative instruments on the Consolidated Statements of Income and the Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2017 and 2016 are presented in the following tables. The impacts are segregated between derivatives that are designated in hedge accounting relationships and those that are used for economic hedging or trading purposes, with further identification of the underlying risks in the derivatives and the hedged items, where appropriate. The tables do not disclose the financial impact of the activities that these derivative instruments are intended to hedge.

 
Three Months Ended September 30, 2017
 
Nine Months Ended September 30, 2017
 
Classification of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion)
(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)
 
Derivative instruments in cash flow hedging relationships:
 
 
 
 
 
 
 
 
Interest rate contracts hedging floating rate LHFI 1

$10

 

$3

 

$61

 

$37

 
Interest and fees on loans
1 During the three and nine months ended September 30, 2017, the Company also reclassified $10 million and $44 million of pre-tax gains from AOCI into net interest income, respectively. These gains related to hedging relationships that have been terminated and are reclassified into earnings consistent with the pattern of net cash flows expected to be recognized.

 
Three Months Ended September 30, 2017
 
Nine Months Ended September 30, 2017
(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

($3
)
 

$3

 

$—

 

$5

 

($4
)
 

$1

Interest rate contracts hedging brokered CDs 1
—

 
—

 
—

 
—

 
—

 
—

Total

($3
)
 

$3

 

$—

 

$5

 

($4
)
 

$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, 2017
 
Amount of Gain/(Loss)
Recognized in Income
on Derivatives During
the Nine Months Ended
September 30, 2017
Derivative instruments not designated as hedging instruments:
 
 
 
 
Interest rate contracts hedging:
 
 
 
 
 
Residential MSRs
Mortgage servicing related income
 

$14

 

$34

LHFS, IRLCs
Mortgage production related income
 
(20
)
 
(57
)
LHFI
Other noninterest income
 
—

 
(1
)
Trading activity
Trading income
 
11

 
33

Foreign exchange rate contracts hedging trading activity
Trading income
 
(10
)
 
(43
)
Credit contracts hedging:
 
 
 
 
 
LHFI
Other noninterest income
 
(1
)
 
(3
)
Trading activity
Trading income
 
8

 
19

Equity contracts hedging trading activity
Trading income
 
(1
)
 
(1
)
Other contracts:
 
 
 
 
 
IRLCs and other
Mortgage production related income,
Commercial real estate related income
 
49

 
154

Commodity derivatives
Trading income
 
—

 
1

Total
 
 

$50

 

$136




 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2016
 
Classification of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion)
(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)
 
Derivative instruments in cash flow hedging relationships:
 
 
 
 

 
 
 
Interest rate contracts hedging floating rate LHFI 1

($78
)
 

$36

 

$408

 

$113

 
Interest and fees on loans
1 During the three and nine months ended September 30, 2016, the Company also reclassified $23 million and $77 million of pre-tax gains from AOCI into net interest income, respectively. These gains related to hedging relationships that have been terminated and are reclassified into earnings consistent with the pattern of net cash flows expected to be recognized.

 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2016
(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)
 
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

($10
)
 

$11

 

$1

 

$20

 

($19
)
 

$1

Interest rate contracts hedging brokered CDs 1
—

 
—

 
—

 
—

 
—

 
—

Total

($10
)
 

$11

 

$1

 

$20

 

($19
)
 

$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, 2016
 
Amount of Gain/(Loss)
Recognized in Income
on Derivatives During
the Nine Months Ended
September 30, 2016
Derivative instruments not designated as hedging instruments:
 
 
 
 
Interest rate contracts hedging:
 
 
 
 
 
Residential MSRs
Mortgage servicing related income
 

$15

 

$306

LHFS, IRLCs
Mortgage production related income
 
(35
)
 
(162
)
LHFI
Other noninterest income
 
—

 
(3
)
Trading activity
Trading income
 
11

 
24

Foreign exchange rate contracts hedging trading activity
Trading income
 
36

 
52

Credit contracts hedging:
 
 
 
 
 
LHFI
Other noninterest income
 
(1
)
 
(3
)
Trading activity
Trading income
 
5

 
14

Equity contracts hedging trading activity
Trading income
 
1

 
5

Other contracts:
 
 

 

IRLCs
Mortgage production related income
 
122

 
291

Commodity derivatives
Trading income
 
1

 
2

Total
 
 

$155

 

$526
Netting of Financial Instruments - Derivatives [Table Text Block]
The following tables present total gross derivative instrument assets and liabilities at September 30, 2017 and December 31, 2016, which are adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid when calculating the net amount reported in the Consolidated Balance Sheets. Also included in the tables are financial instrument collateral related to legally enforceable master netting agreements that represents securities collateral received or pledged and customer cash collateral held at third party custodians. These amounts are not offset on the Consolidated Balance Sheets but are shown as a reduction to total derivative instrument assets and liabilities to derive net derivative assets and liabilities. These amounts are limited to the derivative asset/liability balance, and accordingly, do not include excess collateral received/pledged.
(Dollars in millions)
Gross
Amount
 
Amount
Offset
 
Net Amount
Presented in
Consolidated
Balance Sheets
 
Held/Pledged
Financial
Instruments
 
Net
Amount
September 30, 2017
 
 
 
 
 
 
 
 
 
Derivative instrument assets:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$3,436

 

$2,768

 

$668

 

$35

 

$633

Derivatives not subject to master netting arrangement or similar arrangement
26

 
—

 
26

 
—

 
26

Exchange traded derivatives
350

 
146

 
204

 
—

 
204

Total derivative instrument assets

$3,812

 

$2,914

 

$898

1 

$35

 

$863

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

$4,146

 

$3,885

 

$261

 

$54

 

$207

Derivatives not subject to master netting arrangement or similar arrangement
115

 
—

 
115

 
—

 
115

Exchange traded derivatives
147

 
146

 
1

 
—

 
1

Total derivative instrument liabilities

$4,408

 

$4,031

 

$377

2 

$54

 

$323

 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
Derivative instrument assets:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$4,193

 

$3,384

 

$809

 

$48

 

$761

Derivatives not subject to master netting arrangement or similar arrangement
27

 
—

 
27

 
—

 
27

Exchange traded derivatives
294

 
146

 
148

 
—

 
148

Total derivative instrument assets

$4,514

 

$3,530

 

$984

1 

$48

 

$936

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

$4,649

 

$4,358

 

$291

 

$33

 

$258

Derivatives not subject to master netting arrangement or similar arrangement
105

 
—

 
105

 
—

 
105

Exchange traded derivatives
148

 
146

 
2

 
—

 
2

Total derivative instrument liabilities

$4,902

 

$4,504

 

$398

2 

$33

 

$365

1 At September 30, 2017, $898 million, net of $303 million offsetting cash collateral, is recognized in trading assets and derivative instruments within the Company's Consolidated Balance Sheets. At December 31, 2016, $984 million, net of $291 million offsetting cash collateral, is recognized in trading assets and derivative instruments within the Company's Consolidated Balance Sheets.
2 At September 30, 2017, $377 million, net of $1.4 billion offsetting cash collateral, is recognized in trading liabilities and derivative instruments within the Company's Consolidated Balance Sheets. At December 31, 2016, $398 million, net of $1.3 billion offsetting cash collateral, is recognized in trading liabilities and derivative instruments within the Company's Consolidated Balance Sheets.