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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments [Table Text Block]
The following table presents the Company’s derivative positions at September 30, 2018 and December 31, 2017. The notional amounts in the table are presented on a gross basis at September 30, 2018 and December 31, 2017. 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.

 
September 30, 2018
 
December 31, 2017
 
 
 
Fair Value
 
 
 
Fair Value
(Dollars in millions)
Notional
 Amounts
 
Asset Derivatives
 
Liability Derivatives
 
Notional
Amounts
 
Asset Derivatives
 
Liability Derivatives
Derivative instruments designated in hedging relationships
 
 
 
 
 
 
 
 
 
 
Cash flow hedges: 1
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts hedging floating rate LHFI

$12,900

 

$2

 

$1

 

$14,200

 

$2

 

$252

Subtotal
12,900

 
2

 
1

 
14,200

 
2

 
252

Fair value hedges: 2
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts hedging fixed rate debt
7,705

 
2

 
—

 
5,920

 
1

 
58

Interest rate contracts hedging brokered time deposits
60

 
—

 
—

 
60

 
—

 
—

Subtotal
7,765

 
2

 
—

 
5,980

 
1

 
58

 
 
 
 
 
 
 
 
 
 
 
 
Derivative instruments not designated as hedging instruments 3
 
 
 
 
 
 
 
 
 
 
Interest rate contracts hedging:
 
 
 
 
 
 
 
 
 
 
 
Residential MSRs 4
25,690

 
18

 
20

 
42,021

 
119

 
119

LHFS, IRLCs 5
5,485

 
15

 
4

 
7,590

 
9

 
6

LHFI
183

 
—

 
—

 
175

 
2

 
2

Trading activity 6
127,059

 
595

 
894

 
126,366

 
1,066

 
946

Foreign exchange rate contracts hedging loans and trading activity
7,418

 
106

 
91

 
7,058

 
110

 
102

Credit contracts hedging:
 
 
 
 
 
 
 
 
 
 
 
LHFI
825

 
—

 
23

 
515

 
—

 
11

Trading activity 7
3,869

 
25

 
23

 
3,454

 
15

 
12

Equity contracts hedging trading activity 6
37,362

 
2,384

 
2,648

 
38,907

 
2,499

 
2,857

Other contracts:
 
 
 
 
 
 
 
 
 
 
 
IRLCs and other 8
1,886

 
13

 
9

 
2,017

 
18

 
16

Commodity derivatives
1,678

 
118

 
116

 
1,422

 
63

 
61

Subtotal
211,455

 
3,274

 
3,828

 
229,525

 
3,901

 
4,132

 
 
 
 
 
 
 
 
 
 
 
 
Total derivative instruments

$232,120

 

$3,278

 

$3,829

 

$249,705

 

$3,904

 

$4,442

 
 
 
 
 
 
 
 
 
 
 
 
Total gross derivative instruments (before netting)
 
 

$3,278

 

$3,829

 
 
 

$3,904

 

$4,442

Less: Legally enforceable master netting agreements
 
 
(2,185
)
 
(2,185
)
 
 
 
(2,731
)
 
(2,731
)
Less: Cash collateral received/paid
 
 
(471
)
 
(946
)
 
 
 
(371
)
 
(1,303
)
Total derivative instruments (after netting)
 
 

$622

 

$698

 
 
 

$802

 

$408


1 
See “Cash Flow Hedging” in this Note for further discussion.
2 
See “Fair Value Hedging” in this Note for further discussion.
3 
See “Economic Hedging Instruments and Trading Activities” in this Note for further discussion.
4 
Notional amounts include $5.6 billion and $16.6 billion related to interest rate futures at September 30, 2018 and December 31, 2017, 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.
5 
Notional amounts include $302 million and $190 million related to interest rate futures at September 30, 2018 and December 31, 2017, 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.
6 
Notional amounts include $4.9 billion and $9.8 billion related to interest rate futures at September 30, 2018 and December 31, 2017, and $274 million and $1.2 billion related to equity futures at September 30, 2018 and December 31, 2017, 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. Notional amounts also include amounts related to interest rate swaps hedging fixed rate debt.
7 
Notional amounts include $7 million and $4 million from purchased credit risk participation agreements at September 30, 2018 and December 31, 2017, and $33 million and $11 million from written credit risk participation agreements at September 30, 2018 and December 31, 2017, respectively. These notional amounts are calculated as the notional of the derivative participated adjusted by the relevant RWA conversion factor.
8 
Notional amounts include $41 million and $49 million related to the Visa derivative liability at September 30, 2018 and December 31, 2017, respectively. See Note 14, "Guarantees" for additional information.
Netting of Financial Instruments - Derivatives [Table Text Block]
The following tables present total gross derivative instrument assets and liabilities at September 30, 2018 and December 31, 2017, 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, 2018
 
 
 
 
 
 
 
 
 
Derivative instrument assets:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$2,940

 

$2,525

 

$415

 

$14

 

$401

Derivatives not subject to master netting arrangement or similar arrangement
14

 
—

 
14

 
—

 
14

Exchange traded derivatives
324

 
131

 
193

 
—

 
193

Total derivative instrument assets

$3,278

 

$2,656

 

$622

1 

$14

 

$608

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

$3,587

 

$3,000

 

$587

 

$58

 

$529

Derivatives not subject to master netting arrangement or similar arrangement
111

 
—

 
111

 
—

 
111

Exchange traded derivatives
131

 
131

 
—

 
—

 
—

Total derivative instrument liabilities

$3,829

 

$3,131

 

$698

2 

$58

 

$640

 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
Derivative instrument assets:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$3,491

 

$2,923

 

$568

 

$28

 

$540

Derivatives not subject to master netting arrangement or similar arrangement
18

 
—

 
18

 
—

 
18

Exchange traded derivatives
395

 
179

 
216

 
—

 
216

Total derivative instrument assets

$3,904

 

$3,102

 

$802

1 

$28

 

$774

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

$4,128

 

$3,855

 

$273

 

$27

 

$246

Derivatives not subject to master netting arrangement or similar arrangement
130

 
—

 
130

 
—

 
130

Exchange traded derivatives
184

 
179

 
5

 
—

 
5

Total derivative instrument liabilities

$4,442

 

$4,034

 

$408

2 

$27

 

$381

1 At September 30, 2018, $622 million, net of $471 million offsetting cash collateral, is recognized in Trading assets and derivative instruments within the Company's Consolidated Balance Sheets. At December 31, 2017, $802 million, net of $371 million offsetting cash collateral, is recognized in Trading assets and derivative instruments within the Company's Consolidated Balance Sheets.
2 At September 30, 2018, $698 million, net of $946 million offsetting cash collateral, is recognized in Trading liabilities and derivative instruments within the Company's Consolidated Balance Sheets. At December 31, 2017, $408 million, net of $1.3 billion offsetting cash collateral, is recognized in Trading liabilities and derivative instruments within the Company's Consolidated Balance Sheets.
Derivative Instruments, Gain (Loss) [Table Text Block]
Pursuant to the adoption of ASU 2017-12, the following table presents gains and losses on derivatives in fair value and cash flow hedging relationships by contract type and by income statement line item for the three and nine months ended September 30, 2018. For the three and nine months ended September 30, 2017 the amounts presented below were not conformed to the new hedge accounting guidance. The table does not disclose the financial impact of the activities that these derivative instruments are intended to hedge.
 
Net Interest Income
 
Noninterest
Income
 
 
(Dollars in millions)
Interest and fees on LHFI
 
Interest on Long-term Debt
 
Interest on Deposits
 
Trading Income
 
Total
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
Interest income/(expense), including the effects of fair value and cash flow hedges

$1,549

 

($95
)
 

($193
)
 

$42

 

$1,303

 
 
 
 
 
 
 
 
 
 
(Loss)/gain on fair value hedging relationships:
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
Amounts related to interest settlements on derivatives

$—

 

($2
)
 

$—

 

$—

 

($2
)
Recognized on derivatives
—

 
(33
)
 
—

 
—

 
(33
)
Recognized on hedged items
—

 
31

1 
—

 
—

 
31

Net expense recognized on fair value hedges

$—

 

($4
)
 

$—

 

$—

 

($4
)
 
 
 
 
 
 
 
 
 
 
Loss on cash flow hedging relationships:
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
Amount of pre-tax loss reclassified from AOCI into income

($22
)
2 

$—

 

$—

 

$—

 

($22
)
Net expense recognized on cash flow hedges

($22
)
 

$—

 

$—

 

$—

 

($22
)
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
Interest income/(expense), including the effects of fair value and cash flow hedges

$4,424

 

($252
)
 

($484
)
 

$137

 

$3,825

 
 
 
 
 
 
 
 
 
 
(Loss)/gain on fair value hedging relationships:
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
Amounts related to interest settlements on derivatives

$—

 

($1
)
 

$—

 

$—

 

($1
)
Recognized on derivatives
—

 
(130
)
 
—

 
—

 
(130
)
Recognized on hedged items
—

 
124

1 
—

 
—

 
124

Net expense recognized on fair value hedges

$—

 

($7
)
 

$—

 

$—

 

($7
)
 
 
 
 
 
 
 
 
 
 
Loss on cash flow hedging relationships:
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
Amount of pre-tax loss reclassified from AOCI into income

($39
)
2 

$—

 

$—

 

$—

 

($39
)
Net expense recognized on cash flow hedges

($39
)
 

$—

 

$—

 

$—

 

($39
)
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
Interest income/(expense), including the effects of fair value and cash flow hedges

$1,382

 

($76
)
 

($111
)
 

$51

 

$1,246

 
 
 
 
 
 
 
 
 
 
Gain/(loss) on fair value hedging relationships:
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
Amounts related to interest settlements on derivatives

$—

 

$3

 

$—

 

$—

 

$3

Recognized on derivatives
—

 
—

 
—

 
(3
)
 
(3
)
Recognized on hedged items
—

 
—

 
—

 
3

 
3

Net income recognized on fair value hedges

$—

 

$3

 

$—

 

$—

 

$3

 
 
 
 
 
 
 
 
 
 
Gain on cash flow hedging relationships:
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
Amount of pre-tax gain reclassified from AOCI into income

$13

2 

$—

 

$—

 

$—

 

$13

Net income recognized on cash flow hedges

$13

 

$—

 

$—

 

$—

 

$13

 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
Interest income/(expense), including the effects of fair value and cash flow hedges

$4,009

 

($216
)
 

($286
)
 

$148

 

$3,655

 
 
 
 
 
 
 
 
 
 
Gain/(loss) on fair value hedging relationships:
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
Amounts related to interest settlements on derivatives

$—

 

$12

 

$—

 

$—

 

$12

Recognized on derivatives
—

 
—

 
—

 
5

 
5

Recognized on hedged items
—

 
—

 
—

 
(4
)
 
(4
)
Net income recognized on fair value hedges

$—

 

$12

 

$—

 

$1

 

$13

 
 
 
 
 
 
 
 
 
 
Gain on cash flow hedging relationships:
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
Amount of pre-tax gain reclassified from AOCI into income

$81

2 

$—

 

$—

 

$—

 

$81

Net income recognized on cash flow hedges

$81

 

$—

 

$—

 

$—

 

$81

1 Includes amortization from de-designated fair value hedging relationships.
2 These amounts include pre-tax gains/(losses) related to cash flow hedging relationships that have been terminated and were reclassified into earnings consistent with the pattern of net cash flows expected to be recognized.
Hedged Items in Fair Value Hedging Relationships [Table Text Block]
The following table presents the carrying amount of hedged liabilities on the Consolidated Balance Sheets in fair value hedging relationships and the associated cumulative basis adjustment related to the application of hedge accounting:
 
 
 
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Liabilities
(Dollars in millions)
Carrying Amount of Hedged Liabilities
 
Hedged Items Currently Designated
 
Hedged Items No Longer Designated
September 30, 2018
 
 
 
 
 
Long-term debt

$6,495

 

($170
)
 

($73
)
Brokered time deposits
29

 
—

 
—
Derivative Instruments not Designated as Hedging Instruments, Gain (Loss) [Table Text Block]
The impacts of derivative instruments used for economic hedging or trading purposes on the Consolidated Statements of Income are presented in the following table:
 
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
 
Amount of (Loss)/Gain Recognized in Income on Derivatives During the Nine Months Ended September 30
(Dollars in millions)
 
2018
 
2017
 
2018
 
2017
Derivative instruments not designated as hedging instruments:
 
 
 
 
 
 
 
 
Interest rate contracts hedging:
 
 
 
 
 
 
 
 
 
Residential MSRs
Mortgage servicing related income
 

($54
)
 

$17

 

($210
)
 

$41

LHFS, IRLCs
Mortgage production related income
 
10

 
(20
)
 
57

 
(57
)
LHFI
Other noninterest income
 
1

 
—

 
3

 
(1
)
Trading activity
Trading income
 
18

 
11

 
48

 
33

Foreign exchange rate contracts hedging loans and trading activity
Trading income
 
9

 
(10
)
 
49

 
(43
)
Credit contracts hedging:
 
 
 
 
 
 
 
 
 
LHFI
Other noninterest income
 
(5
)
 
(1
)
 
(5
)
 
(3
)
Trading activity
Trading income
 
5

 
8

 
16

 
19

Equity contracts hedging trading activity
Trading income
 
6

 
(1
)
 
8

 
(1
)
Other contracts:
 
 
 
 
 
 
 
 
 
IRLCs and other
Mortgage production related income,
Commercial real estate related income
 
19

 
49

 
39

 
154

Commodity derivatives
Trading income
 
—

 
—

 
—

 
1

Total
 
 

$9

 

$53

 

$5

 

$143