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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2019
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, 2019 and December 31, 2018. The notional amounts in the table are presented on a gross basis at September 30, 2019 and December 31, 2018. 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, 2019
 
December 31, 2018
 
 
 
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

$15,225

 

$—

 

$1

 

$10,500

 

$1

 

$2

Subtotal
15,225

 
—

 
1

 
10,500

 
1

 
2

Fair value hedges: 2
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts hedging fixed rate debt
12,155

 
—

 
—

 
9,550

 
1

 
1

Interest rate contracts hedging brokered time deposits
—

 
—

 
—

 
59

 
—

 
—

Subtotal
12,155

 
—

 
—

 
9,609

 
1

 
1

 
 
 
 
 
 
 
 
 
 
 
 
Derivative instruments not designated as hedging instruments 3
 
 
 
 
 
 
 
 
 
 
Interest rate contracts hedging:
 
 
 
 
 
 
 
 
 
 
 
Residential MSRs 4
19,300

 
43

 
24

 
28,011

 
54

 
10

LHFS, IRLCs 5
6,688

 
10

 
12

 
4,891

 
18

 
38

LHFI
102

 
—

 
—

 
159

 
—

 
—

Trading activity 6
147,485

 
1,706

 
709

 
127,286

 
771

 
687

Foreign exchange rate contracts hedging loans and trading activity
11,954

 
185

 
182

 
9,824

 
129

 
119

Credit contracts hedging:
 
 
 
 
 
 
 
 
 
 
 
LHFI
918

 
—

 
28

 
830

 
—

 
14

Trading activity 7
5,136

 
38

 
34

 
4,058

 
97

 
95

Equity contracts hedging trading activity 6
36,181

 
1,774

 
1,939

 
34,471

 
1,447

 
1,644

Other contracts:
 
 
 
 
 
 
 
 
 
 
 
IRLCs and other 8
3,763

 
28

 
11

 
1,393

 
20

 
15

Commodity derivatives
2,491

 
94

 
91

 
2,020

 
93

 
91

Subtotal
234,018

 
3,878

 
3,030

 
212,943

 
2,629

 
2,713

 
 
 
 
 
 
 
 
 
 
 
 
Total derivative instruments

$261,398

 

$3,878

 

$3,031

 

$233,052

 

$2,631

 

$2,716

 
 
 
 
 
 
 
 
 
 
 
 
Total gross derivative instruments (before netting)
 
 

$3,878

 

$3,031

 
 
 

$2,631

 

$2,716

Less: Legally enforceable master netting agreements
 
 
(1,750
)
 
(1,750
)
 
 
 
(1,654
)
 
(1,654
)
Less: Cash collateral received/paid
 
 
(358
)
 
(1,007
)
 
 
 
(338
)
 
(652
)
Total derivative instruments (after netting)
 
 

$1,770

 

$274

 
 
 

$639

 

$410


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 $753 million and $921 million related to interest rate futures at September 30, 2019 and December 31, 2018, 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 $53 million and $116 million related to interest rate futures at September 30, 2019 and December 31, 2018, 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 $2.7 billion and $1.2 billion related to interest rate futures at September 30, 2019 and December 31, 2018, and $210 million and $136 million related to equity futures at September 30, 2019 and December 31, 2018, 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 $9 million and $6 million from purchased credit risk participation agreements at September 30, 2019 and December 31, 2018, and $41 million and $33 million from written credit risk participation agreements at September 30, 2019 and December 31, 2018, 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 related to the Visa derivative liability at both September 30, 2019 and December 31, 2018. See Note 15, "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, 2019 and December 31, 2018, 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, 2019
 
 
 
 
 
 
 
 
 
Derivative instrument assets:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$3,269

 

$1,973

 

$1,296

 

$15

 

$1,281

Derivatives not subject to master netting arrangement or similar arrangement
143

 
—

 
143

 
1

 
142

Exchange traded derivatives
466

 
135

 
331

 
—

 
331

Total derivative instrument assets

$3,878

 

$2,108

 

$1,770

1 

$16

 

$1,754

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

$2,787

 

$2,622

 

$165

 

$18

 

$147

Derivatives not subject to master netting arrangement or similar arrangement
109

 
—

 
109

 
13

 
96

Exchange traded derivatives
135

 
135

 
—

 
—

 
—

Total derivative instrument liabilities

$3,031

 

$2,757

 

$274

2 

$31

 

$243

 
 
 
 
 
 
 
 
 
 
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

1 At September 30, 2019, $1.8 billion, net of $358 million offsetting cash collateral, is recognized in Trading assets and derivative instruments within the Company's Consolidated Balance Sheets. 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.
2 At September 30, 2019, $274 million, net of $1.0 billion offsetting cash collateral, is recognized in Trading liabilities and derivative instruments within the Company's Consolidated Balance Sheets. 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.
Derivative Instruments, Gain (Loss) [Table Text Block]
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. The table does not disclose the financial impact of the activities that these derivative instruments are intended to hedge.
 
Net Interest Income
 
 
(Dollars in millions)
Interest and fees on LHFI
 
Interest on Long-term Debt
 
Total
Three Months Ended September 30, 2019
 
 
 
 
 
Interest income/(expense), including the effects of fair value and cash flow hedges

$1,708

 

($150
)
 

$1,558

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

$—

 

($1
)
 

($1
)
Recognized on derivatives
—

 
43

 
43

Recognized on hedged items
—

 
(47
)
1 
(47
)
Net expense recognized on fair value hedges

$—

 

($5
)
 

($5
)
 
 
 
 
 
 
Loss on cash flow hedging relationships:
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
Amount of pre-tax loss reclassified from AOCI into income

($46
)
2 

$—

 

($46
)
Net expense recognized on cash flow hedges

($46
)
 

$—

 

($46
)
 
 
 
 
 
 
Nine Months Ended September 30, 2019
 
 
 
 
 
Interest income/(expense), including the effects of fair value and cash flow hedges

$5,125

 

($425
)
 

$4,700

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

$—

 

($10
)
 

($10
)
Recognized on derivatives
—

 
267

 
267

Recognized on hedged items
—

 
(282
)
1 
(282
)
Net expense recognized on fair value hedges

$—

 

($25
)
 

($25
)
 
 
 
 
 
 
Loss on cash flow hedging relationships:
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
Amount of pre-tax loss reclassified from AOCI into income

($129
)
2 

$—

 

($129
)
Net expense recognized on cash flow hedges

($129
)
 

$—

 

($129
)
 
 
 
 
 
 
Three Months Ended September 30, 2018
 
 
 
 
 
Interest income/(expense), including the effects of fair value and cash flow hedges

$1,549

 

($95
)
 

$1,454

 
 
 
 
 
 
(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
)
 

$4,172

 
 
 
 
 
 
(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
)
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, 2019
 
 
 
 
 
Long-term debt

$11,295

 

$180

 

($28
)
 
 
 
 
 
 
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 Gain/(Loss) Recognized in Income on Derivatives
 
Amount of Gain/(Loss) Recognized in Income on Derivatives During the Three Months Ended September 30
 
Amount of Gain/(Loss) Recognized in Income on Derivatives During the Nine Months Ended September 30
(Dollars in millions)
 
2019
 
2018
 
2019
 
2018
Derivative instruments not designated as hedging instruments:
 
 
 
 
 
 
 
 
Interest rate contracts hedging:
 
 
 
 
 
 
 
 
 
Residential MSRs
Mortgage-related income
 

$166

 

($54
)
 

$436

 

($210
)
LHFS, IRLCs
Mortgage-related income
 
(31
)
 
10

 
(76
)
 
57

LHFI
Other noninterest income
 
(1
)
 
1

 
(4
)
 
3

Trading activity
Trading income
 
1

 
18

 
22

 
48

Foreign exchange rate contracts hedging loans and trading activity
Trading income
 
39

 
9

 
46

 
49

Credit contracts hedging:
 
 
 
 
 
 
 
 
 
LHFI
Other noninterest income
 
(1
)
 
(5
)
 
(16
)
 
(5
)
Trading activity
Trading income
 
7

 
5

 
20

 
16

Equity contracts hedging trading activity
Trading income
 
6

 
6

 
34

 
8

Other contracts:
 
 
 
 
 
 
 
 
 
IRLCs and other
Mortgage-related income;
Commercial real estate-related income
 
58

 
19

 
144

 
39

Commodity derivatives
Trading income
 
1

 
—

 
2

 
—

Total
 
 

$245

 

$9

 

$608

 

$5
Credit Derivative Instruments - TRS Contracts [Table Text Block] The following table presents information related to the Company's outstanding TRS contracts.
(Dollars in millions)
September 30, 2019
 
December 31, 2018
Outstanding TRS notional balances

$2,543

 

$2,009

TRS assets at fair value
38

 
97

TRS liabilities at fair value
34

 
94

Cash collateral held for TRS contracts
635

 
601