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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The following table presents the fair value of derivative contracts by major product type on a gross basis. Gross fair values exclude the effects of both counterparty netting as well as collateral, and therefore are not representative of our exposure. The table below presents the amounts of counterparty netting and cash collateral that have been offset in the consolidated balance sheet, as well as cash and securities collateral posted and received under enforceable credit support agreements that do not meet the criteria for netting. Derivative assets and liabilities which are not subject to an enforceable master netting agreement, or are subject to a netting agreement that we have not yet determined to be enforceable, have not been netted in the table below. Where we have received or posted collateral under credit support agreements, but have not yet determined such agreements are enforceable, the related collateral also has not been netted in the table below.
 
June 30, 2015
 
December 31, 2014
 
Derivative assets
 
Derivative liabilities
 
Derivative assets
 
Derivative liabilities
 
(in millions)
Derivatives accounted for as fair value hedges(1)
 
 
 
 
 
 
 
OTC-cleared(2)
$
116

 
$
175

 
$
1

 
$
206

Bilateral OTC(2)
11

 
184

 
4

 
268

Interest rate contracts
127

 
359

 
5

 
474

 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges(1)
 
 
 
 
 
 
 
Foreign exchange contracts - bilateral OTC(2)
56

 
—

 
45

 
—

 
 
 
 
 
 
 
 
OTC-cleared(2)
3

 
12

 
8

 
6

Bilateral OTC(2)
—

 
114

 
—

 
161

Interest rate contracts
3

 
126

 
8

 
167

 
 
 
 
 
 
 
 
Total derivatives accounted for as hedges
186

 
485

 
58

 
641

 
 
 
 
 
 
 
 
Trading derivatives not accounted for as hedges(3)
 
 
 
 
 
 
 
Exchange-traded(2)
33

 
38

 
46

 
43

OTC-cleared(2)
16,323

 
15,908

 
16,862

 
17,557

Bilateral OTC(2)
21,703

 
22,208

 
28,370

 
28,398

Interest rate contracts
38,059

 
38,154

 
45,278

 
45,998

 
 
 
 
 
 
 
 
Exchange-traded(2)
7

 
—

 
—

 
13

Bilateral OTC(2)
20,897

 
19,322

 
22,219

 
20,826

Foreign exchange contracts
20,904

 
19,322

 
22,219

 
20,839

 
 
 
 
 
 
 
 
Equity contracts - bilateral OTC(2)
1,545

 
1,540

 
1,635

 
1,632

 
 
 
 
 
 
 
 
Exchange-traded(2)
52

 
32

 
59

 
18

Bilateral OTC(2)
717

 
466

 
1,013

 
591

Precious metals contracts
769

 
498

 
1,072

 
609

 
 
 
 
 
 
 
 
OTC-cleared(2)
667

 
828

 
604

 
730

Bilateral OTC(2)
2,794

 
2,587

 
3,518

 
3,288

Credit contracts
3,461

 
3,415

 
4,122

 
4,018

 
 
 
 
 
 
 
 
Other derivatives not accounted for as hedges(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts - bilateral OTC(2)
670

 
92

 
768

 
88

 
 
 
 
 
 
 
 
Foreign exchange contracts - bilateral OTC(2)
—

 
56

 
—

 
44

 
 
 
 
 
 
 
 
Equity contracts - bilateral OTC(2)
638

 
270

 
757

 
167

 
 
 
 
 
 
 
 
Precious metals contracts - bilateral OTC(2)
—

 
1

 
—

 
5

 
 
 
 
 
 
 
 
Credit contracts - bilateral OTC(2)
55

 
8

 
73

 
9

 
 
 
 
 
 
 
 
Total derivatives
66,287

 
63,841

 
75,982

 
74,050

 
 
 
 
 
 
 
 
Less: Gross amounts of receivable / payable subject to enforceable master netting agreements(4)(6)
56,129

 
56,129

 
63,913

 
63,913

Less: Gross amounts of cash collateral received / posted subject to enforceable master netting agreements(5)(6)
4,678

 
1,021

 
4,811

 
1,724

Net amounts of derivative assets / liabilities presented in the balance sheet
5,480

 
6,691

 
7,258

 
8,413

 
 
 
 
 
 
 
 
Less: Gross amounts of financial instrument collateral received / posted subject to enforceable master netting agreements but not offset in the consolidated balance sheet
1,363

 
3,324

 
1,837

 
4,398

Net amounts of derivative assets / liabilities
$
4,117

 
$
3,367

 
$
5,421

 
$
4,015

 
(1) 
Derivative assets / liabilities related to cash flow hedges, fair value hedges and derivative instruments held for purposes other than for trading are recorded in other assets / interest, taxes and other liabilities on the consolidated balance sheet.
(2) 
Over-the-counter (OTC) derivatives include derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. The credit risk associated with bilateral OTC derivatives is managed through master netting agreements and obtaining collateral. OTC-cleared derivatives are executed bilaterally in the OTC market but then novated to a central clearing counterparty, whereby the central clearing counterparty becomes the counterparty to both of the original counterparties. Exchange traded derivatives are executed directly on an organized exchange that provides pre-trade price transparency. Credit risk is minimized for OTC-cleared derivatives and exchange traded derivatives through daily margining required by central clearing counterparties.
(3) 
Trading related derivative assets/liabilities are recorded in trading assets/trading liabilities on the consolidated balance sheet.
(4) 
Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable netting agreements.
(5) 
Represents the netting of cash collateral posted and received by counterparty under enforceable credit support agreements.
(6) 
Netting is performed at a counterparty level in cases where enforceable master netting and credit support agreements are in place, regardless of the type of derivative instrument. Therefore, we have not attempted to allocate netting to the different types of derivative instruments shown in the table above.
Derivative Instruments, Gain (Loss)
The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments in fair value hedges and the hedged items in fair value hedges and their location on the consolidated statement of income:
 
Gain (Loss) on Derivative
 
Gain (Loss) on Hedged Items
 
Net Ineffective Gain (Loss) Recognized
  
Interest Income
(Expense)
 
Other Income
 
Interest Income
(Expense)
 
Other Income
 
Other Income
 
(in millions)
Three Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
Interest rate contracts/AFS Securities
$
(49
)
 
$
453

 
$
93

 
$
(437
)
 
$
16

Interest rate contracts/subordinated debt
6

 
(12
)
 
(22
)
 
12

 
—

Total
$
(43
)
 
$
441

 
$
71

 
$
(425
)
 
$
16

 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
Interest rate contracts/AFS Securities
$
(64
)
 
$
(188
)
 
$
96

 
$
189

 
$
1

Interest rate contracts/subordinated debt
2

 
—

 
(1
)
 
—

 
—

Total
$
(62
)
 
$
(188
)
 
$
95

 
$
189

 
$
1

 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
Interest rate contracts/AFS Securities
$
(103
)
 
$
205

 
$
181

 
$
(197
)
 
$
8

Interest rate contracts/subordinated debt
9

 
(12
)
 
(33
)
 
12

 
—

Total
$
(94
)
 
$
193

 
$
148

 
$
(185
)
 
$
8

 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
Interest rate contracts/AFS Securities
$
(127
)
 
$
(407
)
 
$
198

 
$
401

 
$
(6
)
Interest rate contracts/subordinated debt
6

 
(1
)
 
(16
)
 
1

 
—

Total
$
(121
)
 
$
(408
)
 
$
182

 
$
402

 
$
(6
)
The following table presents information on gains and losses on derivative instruments held for non-qualifying hedging activities and their locations on the consolidated statement of income:
 
Location of Gain (Loss)
Recognized in Income on Derivatives
Amount of Gain (Loss) Recognized in Income on Derivatives
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
(in millions)
Interest rate contracts
Gain (loss) on instruments designated at fair value and related derivatives
$
(142
)
 
$
111

 
$
(33
)
 
$
227

Interest rate contracts
Residential mortgage banking revenue
1

 
—

 
1

 
—

Foreign exchange contracts
Gain (loss) on instruments designated at fair value and related derivatives
6

 
9

 
5

 
13

Equity contracts
Gain (loss) on instruments designated at fair value and related derivatives
(125
)
 
258

 
132

 
339

Precious metals contracts
Gain (loss) on instruments designated at fair value and related derivatives
—

 
8

 
1

 
24

Credit contracts
Gain (loss) on instruments designated at fair value and related derivatives
(3
)
 
—

 
(3
)
 
1

Credit contracts
Other income
(45
)
 
(7
)
 
(23
)
 
(11
)
Total
 
$
(308
)
 
$
379

 
$
80

 
$
593
Gains and Losses on Derivative Instruments Designated and Qualifying as Hedging Instruments in Cash Flow Hedges
The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments in cash flow hedges (including amounts recognized in AOCI from all terminated cash flow hedges) and their locations on the consolidated statement of income:
 
Gain (Loss)
Recognized
in AOCI on
Derivative
(Effective
Portion)
 
Location of Gain
(Loss) Reclassified
from AOCI into Income 
(Effective Portion)
 
Gain (Loss)
Reclassed
From AOCI
into Income
(Effective
Portion)
 
Location of Gain
(Loss) Recognized
in Income on the Derivative
(Ineffective Portion and
Amount Excluded from Effectiveness Testing)
 
Gain (Loss)
Recognized
in Income
on the
Derivative
(Ineffective
Portion)
 
2015
 
2014
 
 
2015
 
2014
 
 
2015
 
2014
 
(in millions)
Three Months Ended June 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
$
1

 
$
—

 
Interest income (expense)
 
$
—

 
$
—

 
Other income
 
$
—

 
$
—

Interest rate contracts
48

 
(25
)
 
Interest income (expense)
 
(2
)
 
(2
)
 
Other income
 
—

 
—

Total
$
49

 
$
(25
)
 
 
 
$
(2
)
 
$
(2
)
 
 
 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
$
1

 
$
1

 
Interest income (expense)
 
$
—

 
$
—

 
Other income
 
$
—

 
$
—

Interest rate contracts
15

 
(61
)
 
Interest income (expense)
 
(5
)
 
(3
)
 
Other income
 
—

 
—

Total
$
16

 
$
(60
)
 
 
 
$
(5
)
 
$
(3
)
 
 
 
$
—

 
$
—
Gains and Losses on Derivative Instruments Held for other Purposes
The following table presents information on gains and losses on derivative instruments held for trading purposes and their locations on the consolidated statement of income:
 
Location of Gain (Loss)
Recognized in Income on Derivatives
Amount of Gain (Loss) Recognized in Income on Derivatives
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
 
 
(in millions)
Interest rate contracts
Trading revenue
$
71

 
$
(89
)
 
$
541

 
$
(32
)
Interest rate contracts
Residential mortgage banking revenue
(18
)
 
22

 
6

 
37

Foreign exchange contracts
Trading revenue
207

 
58

 
(149
)
 
83

Equity contracts
Trading revenue
4

 
—

 
3

 
—

Precious metals contracts
Trading revenue
(27
)
 
10

 
19

 
18

Credit contracts
Trading revenue
4

 
(108
)
 
(17
)
 
(115
)
Total
 
$
241

 
$
(107
)
 
$
403

 
$
(9
)
Credit-Risk Related Contingent Features
The following tables summarize our obligation to post additional collateral (from the current collateral level) in certain hypothetical commercially reasonable downgrade scenarios of our long term ratings. It is not appropriate to accumulate or extrapolate information presented in the tables below to determine our total obligation because the information presented to determine the obligation in hypothetical rating scenarios is not mutually exclusive.
 
Single-notch downgrade
 
Two-notch downgrade
Moody’s
Aa3
 
A1
 
(in millions)
Amount of additional collateral to be posted upon downgrade
$
—

 
$
59


 
Single-notch downgrade
 
Two-notch downgrade
Standard & Poor's ("S&P")
A+
 
A
 
(in millions)
Amount of additional collateral to be posted upon downgrade
$
59

 
$
97
Notional Value of Derivative Contracts
The following table summarizes the notional values of derivative contracts:

June 30, 2015
 
December 31, 2014
 
(in millions)
Interest rate:
 
 
 
Futures and forwards
$
166,415

 
$
87,406

Swaps
2,733,613

 
3,096,382

Options written
79,440

 
70,903

Options purchased
92,279

 
83,524

 
3,071,747

 
3,338,215

Foreign Exchange:
 
 
 
Swaps, futures and forwards
1,006,234

 
866,835

Options written
95,635

 
117,088

Options purchased
92,147

 
118,350

Spot
65,164

 
58,700

 
1,259,180

 
1,160,973

Commodities, equities and precious metals:
 
 
 
Swaps, futures and forwards
44,811

 
48,263

Options written
15,821

 
18,015

Options purchased
26,794

 
23,452

 
87,426

 
89,730

Credit derivatives
216,805

 
240,737

Total
$
4,635,158

 
$
4,829,655