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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
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 master netting 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 where an appropriate legal opinion to determine such agreements are enforceable has not been either sought or obtained, have not been netted in the table below. Where we have received or posted collateral under netting agreements where an appropriate legal opinion to determine such agreements are enforceable has not been either sought or obtained, the related collateral also has not been netted in the table below.
 
September 30, 2017
 
December 31, 2016
 
Derivative Assets
 
Derivative Liabilities
 
Derivative Assets
 
Derivative Liabilities
 
(in millions)
Derivatives accounted for as fair value hedges(1)
 
 
 
 
 
 
 
OTC-cleared(2)
$
98

 
$
401

 
$
142

 
$
341

Bilateral OTC(2)
—

 
141

 
—

 
196

Interest rate contracts
98

 
542

 
142

 
537

Derivatives accounted for as cash flow hedges(1)
 
 
 
 
 
 
 
Foreign exchange contracts - bilateral OTC(2)
16

 
—

 
12

 
—

OTC-cleared(2)
—

 
61

 
6

 
57

Bilateral OTC(2)
—

 
24

 
—

 
94

Interest rate contracts
—

 
85

 
6

 
151

Total derivatives accounted for as hedges
114

 
627

 
160

 
688

Trading derivatives not accounted for as hedges(3)
 
 
 
 
 
 
 
Exchange-traded(2)
62

 
105

 
35

 
84

OTC-cleared(2)
10,280

 
8,941

 
15,248

 
14,189

Bilateral OTC(2)
12,204

 
13,445

 
16,045

 
17,480

Interest rate contracts
22,546

 
22,491

 
31,328

 
31,753

Exchange-traded(2)
43

 
36

 
24

 
6

Bilateral OTC(2)
15,568

 
14,749

 
24,020

 
22,645

Foreign exchange contracts
15,611

 
14,785

 
24,044

 
22,651

Equity contracts - bilateral OTC(2)
2,289

 
2,277

 
1,658

 
1,653

Exchange-traded(2)
99

 
33

 
81

 
13

Bilateral OTC(2)
980

 
481

 
1,038

 
867

Precious metals contracts
1,079

 
514

 
1,119

 
880

OTC-cleared(2)
44

 
247

 
227

 
289

Bilateral OTC(2)
946

 
703

 
1,291

 
1,076

Credit contracts
990

 
950

 
1,518

 
1,365

Other non-qualifying derivatives not accounted for as hedges(1)
 
 
 
 
 
 
 
OTC-cleared(2)
338

 
66

 
287

 
41

Bilateral OTC(2)
378

 
140

 
437

 
170

Interest rate contracts
716

 
206

 
724

 
211

Foreign exchange contracts - bilateral OTC(2)
3

 
8

 
—

 
31

Equity contracts - bilateral OTC(2)
1,117

 
115

 
672

 
222

Precious metals contracts - bilateral OTC(2)
—

 
2

 
—

 
—

Credit contracts - bilateral OTC(2)
—

 
18

 
32

 
4

Other contracts - bilateral OTC(2)(4)
7

 
52

 
5

 
14

Total derivatives
44,472

 
42,045

 
61,260

 
59,472

Less: Gross amounts of receivable / payable subject to enforceable master netting agreements(5)(7)
35,791

 
35,791

 
51,111

 
51,111

Less: Gross amounts of cash collateral received / posted subject to enforceable master netting agreements(6)(7)
4,808

 
3,195

 
5,145

 
3,826

Net amounts of derivative assets / liabilities presented in the balance sheet
3,873

 
3,059

 
5,004

 
4,535

Less: Gross amounts of financial instrument collateral received / posted subject to enforceable master netting agreements but not offset in the consolidated balance sheet
710

 
367

 
787

 
1,050

Net amounts of derivative assets / liabilities
$
3,163

 
$
2,692

 
$
4,217

 
$
3,485

 
(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) 
Consists of swap agreements entered into in conjunction with the sales of certain Visa Inc. ("Visa") Class B common shares ("Class B Shares").
(5) 
Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable netting agreements.
(6) 
Represents the netting of cash collateral posted and received by counterparty under enforceable netting agreements.
(7) 
Netting is performed at a counterparty level in cases where enforceable master netting 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.
Schedule of Gains and Losses on Fair Value Hedging Instruments
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 locations 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 (Loss)
 
Interest Income
(Expense)
 
Other Income (Loss)
 
Other Income (Loss)
 
(in millions)
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
Interest rate contracts/AFS Securities
$
(28
)
 
$
2

 
$
88

 
$
(2
)
 
$
—

Interest rate contracts/long-term debt
2

 
(5
)
 
(63
)
 
3

 
(2
)
Total
$
(26
)
 
$
(3
)
 
$
25

 
$
1

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
Interest rate contracts/AFS Securities
$
(38
)
 
$
26

 
$
92

 
$
(37
)
 
$
(11
)
Interest rate contracts/long-term debt
8

 
(27
)
 
(34
)
 
26

 
(1
)
Total
$
(30
)
 
$
(1
)
 
$
58

 
$
(11
)
 
$
(12
)
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
Interest rate contracts/AFS Securities
$
(95
)
 
$
(59
)
 
$
268

 
$
62

 
$
3

Interest rate contracts/long-term debt
14

 
14

 
(197
)
 
(13
)
 
1

Total
$
(81
)
 
$
(45
)
 
$
71

 
$
49

 
$
4

 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
Interest rate contracts/AFS Securities
$
(133
)
 
$
(1,027
)
 
$
281

 
$
965

 
$
(62
)
Interest rate contracts/long-term debt
23

 
71

 
(95
)
 
(70
)
 
1

Total
$
(110
)
 
$
(956
)
 
$
186

 
$
895

 
$
(61
)
 
 
 
 
 
 
 
 
 
 
Schedule of Gains and Losses on Cash Flow Hedging Instruments
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)
 
2017
 
2016
 
 
2017
 
2016
 
 
2017
 
2016
 
(in millions)
Three Months Ended September 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
$
(3
)
 
$
11

 
Interest income (expense)
 
$
(5
)
 
$
(5
)
 
Other income (loss)
 
$
—

 
$
—

Total
$
(3
)
 
$
11

 
 
 
$
(5
)
 
$
(5
)
 
 
 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
$
(14
)
 
$
(89
)
 
Interest income (expense)
 
$
(11
)
 
$
(14
)
 
Other income (loss)
 
$
—

 
$
—

Total
$
(14
)
 
$
(89
)
 
 
 
$
(11
)
 
$
(14
)
 
 
 
$
—

 
$
—
Schedule of Gains and Losses on Derivative Instruments Included in Trading Activities
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 September 30,
 
Nine Months Ended September 30,
2017
 
2016
 
2017
 
2016
 
 
(in millions)
Interest rate contracts
Trading revenue
$
(52
)
 
$
97

 
$
(249
)
 
$
(413
)
Interest rate contracts
Residential mortgage banking revenue (expense)
—

 
(3
)
 
—

 
40

Foreign exchange contracts
Trading revenue
116

 
(243
)
 
185

 
(15
)
Equity contracts
Trading revenue
1

 
2

 
—

 
5

Precious metals contracts
Trading revenue
50

 
35

 
161

 
64

Credit contracts
Trading revenue
(41
)
 
(40
)
 
(87
)
 
(102
)
Total
 
$
74

 
$
(152
)
 
$
10

 
$
(421
)
Schedule of Gains and Losses on Derivative Instruments Held for Non-qualifying Hedging Activities
The following table presents information on gains and losses on derivative instruments held for non-qualifying hedging and other 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 September 30,
 
Nine Months Ended September 30,
2017
 
2016
 
2017
 
2016
 
 
(in millions)
Interest rate contracts
Gain (loss) on instruments designated at fair value and related derivatives
$
14

 
$
(6
)
 
$
89

 
$
319

Foreign exchange contracts
Gain (loss) on instruments designated at fair value and related derivatives
8

 
6

 
11

 
26

Equity contracts
Gain (loss) on instruments designated at fair value and related derivatives
342

 
194

 
863

 
226

Credit contracts
Other income (loss)
(9
)
 
(23
)
 
(39
)
 
(64
)
Other contracts(1)
Other income (loss)
(5
)
 
—

 
(7
)
 
—

Total
 
$
350

 
$
171

 
$
917

 
$
507

 

(1) 
Consists of swap agreements entered into in conjunction with the sales of certain Visa Class B Shares.
Credit-Risk Related Contingent Features
The following table presents the amount of additional collateral that we would be required to post (from the current collateral level) related to derivative instruments with credit-risk related contingent features if our long term ratings were downgraded by one or two notches. A downgrade by a single rating agency that does not result in a rating lower than a preexisting corresponding rating provided by another rating agency will generally not result in additional collateral.
 
One-notch downgrade
 
Two-notch downgrade
 
(in millions)
Amount of additional collateral to be posted upon downgrade
$
40

 
$
41
Notional Value of Derivative Contracts
The following table summarizes the notional values of derivative contracts:

September 30, 2017
 
December 31, 2016
 
(in millions)
Interest rate:
 
 
 
Futures and forwards
$
830,442

 
$
501,635

Swaps
2,367,130

 
2,142,183

Options written
52,585

 
74,741

Options purchased
69,476

 
87,020

 
3,319,633

 
2,805,579

Foreign exchange:
 
 
 
Swaps, futures and forwards
908,523

 
965,301

Options written
28,088

 
52,845

Options purchased
29,921

 
53,260

Spot
45,123

 
34,565

 
1,011,655

 
1,105,971

Commodities, equities and precious metals:
 
 
 
Swaps, futures and forwards
55,672

 
49,555

Options written
26,603

 
19,495

Options purchased
38,166

 
30,632

 
120,441

 
99,682

Credit derivatives
95,914

 
123,714

Other contracts(1)
594

 
184

Total
$
4,548,237

 
$
4,135,130

 
(1) 
Consists of swap agreements entered into in conjunction with the sales of certain Visa Class B Shares.