Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2018 and 2017. The notional amounts in the table are presented on a gross basis at December 31, 2018 and 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.

	December 31, 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		$10,500		$1			$2			$14,200		$2			$252
Subtotal	10,500		1			2			14,200		2			252
Fair value hedges: 2
Interest rate contracts hedging fixed rate debt	9,550		1			1			5,920		1			58
Interest rate contracts hedging brokered time deposits	59		—			—			60		—			—
Subtotal	9,609		1			1			5,980		1			58
Derivative instruments not designated as hedging instruments 3
Interest rate contracts hedging:
Residential MSRs 4	28,011		54			10			42,021		119			119
LHFS, IRLCs 5	4,891		18			38			7,590		9			6
LHFI	159		—			—			175		2			2
Trading activity 6	127,286		771			687			126,366		1,066			946
Foreign exchange rate contracts hedging loans and trading activity	9,824		129			119			7,058		110			102
Credit contracts hedging:
LHFI	830		—			14			515		—			11
Trading activity 7	4,058		97			95			3,454		15			12
Equity contracts hedging trading activity 6	34,471		1,447			1,644			38,907		2,499			2,857
Other contracts:
IRLCs and other 8	1,393		20			15			2,017		18			16
Commodity derivatives	2,020		93			91			1,422		63			61
Subtotal	212,943		2,629			2,713			229,525		3,901			4,132
Total derivative instruments		$233,052		$2,631			$2,716			$249,705		$3,904			$4,442
Total gross derivative instruments (before netting)				$2,631			$2,716					$3,904			$4,442
Less: Legally enforceable master netting agreements			(1,654		)	(1,654		)			(2,731		)	(2,731		)
Less: Cash collateral received/paid			(338		)	(652		)			(371		)	(1,303		)
Total derivative instruments (after netting)				$639			$410					$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 $921 million and $16.6 billion related to interest rate futures at December 31, 2018 and 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 $116 million and $190 million related to interest rate futures at December 31, 2018 and 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 $1.2 billion and $9.8 billion related to interest rate futures at December 31, 2018 and 2017, and $136 million and $1.2 billion related to equity futures at December 31, 2018 and 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 $6 million and $4 million from purchased credit risk participation agreements at December 31, 2018 and December 31, 2017, and $33 million and $11 million from written credit risk participation agreements at December 31, 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 December 31, 2018 and December 31, 2017, respectively. See Note 18, "Guarantees" for additional information.

Netting of Financial Instruments - Derivatives [Table Text Block]

The following tables present total gross derivative instrument assets and liabilities at December 31, 2018 and 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
December 31, 2018
Derivative instrument assets:
Derivatives subject to master netting arrangement or similar arrangement		$2,425		$1,873		$552			$12		$540
Derivatives not subject to master netting arrangement or similar arrangement	20		—		20			—		20
Exchange traded derivatives	186		119		67			—		67
Total derivative instrument assets		$2,631		$1,992		$639	1		$12		$627
Derivative instrument liabilities:
Derivatives subject to master netting arrangement or similar arrangement		$2,521		$2,187		$334			$14		$320
Derivatives not subject to master netting arrangement or similar arrangement	76		—		76			—		76
Exchange traded derivatives	119		119		—			—		—
Total derivative instrument liabilities		$2,716		$2,306		$410	2		$14		$396
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 December 31, 2018, $639 million, net of $338 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 December 31, 2018, $410 million, net of $652 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 year ended December 31, 2018. For the years ended December 31, 2017 and 2016, 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
Year Ended December 31, 2018
Interest income/(expense), including the effects of fair value and cash flow hedges		$6,058				($375	)			($711	)		$161			$5,133
(Loss)/gain on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives		$—				($1	)			$—			$—			($1	)
Recognized on derivatives	—				(24		)		—			—			(24		)
Recognized on hedged items	—				11			1	—			—			11
Net expense recognized on fair value hedges		$—				($14	)			$—			$—			($14	)
Loss on cash flow hedging relationships:
Interest rate contracts:
Amount of pre-tax loss reclassified from AOCI into income		($72	)	2		$—				$—			$—			($72	)
Net expense recognized on cash flow hedges		($72	)			$—				$—			$—			($72	)
Year Ended December 31, 2017
Interest income/(expense), including the effects of fair value and cash flow hedges		$5,385				($288	)			($404	)		$189			$4,882
Gain/(loss) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives		$—				$15				$—			$—			$15
Recognized on derivatives	—				—				—			(38		)	(38		)
Recognized on hedged items	—				—				—			40			40
Net income recognized on fair value hedges		$—				$15				$—			$2			$17
Gain on cash flow hedging relationships:
Interest rate contracts:
Amount of pre-tax gain reclassified from AOCI into income		$89		2		$—				$—			$—			$89
Net income recognized on cash flow hedges		$89				$—				$—			$—			$89
Year Ended December 31, 2016
Interest income/(expense), including the effects of fair value and cash flow hedges		$4,939				($260	)			($259	)		$211			$4,631
Gain/(loss) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives		$—				$17				$—			$—			$17
Recognized on derivatives	—				—				—			(87		)	(87		)
Recognized on hedged items	—				—				—			89			89
Net income recognized on fair value hedges		$—				$17				$—			$2			$19
Gain on cash flow hedging relationships:
Interest rate contracts:
Amount of pre-tax gain reclassified from AOCI into income		$244		2		$—				$—			$—			$244
Net income recognized on cash flow hedges		$244				$—				$—			$—			$244

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
December 31, 2018
Long-term debt		$8,411		($10	)		($120	)
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 Year Ended December 31
(Dollars in millions)		2018			2017			2016
Derivative instruments not designated as hedging instruments:
Interest rate contracts hedging:
Residential MSRs	Mortgage related income		($110	)		$35			$45
LHFS, IRLCs	Mortgage related income	45			(54		)	(6		)
LHFI	Other noninterest income	1			—			(1		)
Trading activity	Trading income	69			42			51
Foreign exchange rate contracts hedging loans and trading activity	Trading income	48			(37		)	101
Credit contracts hedging:
LHFI	Other noninterest income	—			(4		)	(3		)
Trading activity	Trading income	22			26			19
Equity contracts hedging trading activity	Trading income	(12		)	—			4
Other contracts:
IRLCs and other	Mortgage related income, Commercial real estate related income	63			185			210
Commodity derivatives	Trading income	1			1			3
Total			$127			$194			$423