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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2018
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 also 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.
 
June 30, 2018
 
December 31, 2017
 
Derivative Assets
 
Derivative Liabilities
 
Derivative Assets
 
Derivative Liabilities
 
(in millions)
Derivatives accounted for as fair value hedges(1)
 
 
 
 
 
 
 
OTC-cleared(2)
$
—

 
$
—

 
$
84

 
$
390

Bilateral OTC(2)
—

 
100

 
—

 
134

Interest rate contracts
—

 
100

 
84

 
524

Derivatives accounted for as cash flow hedges(1)
 
 
 
 
 
 
 
Foreign exchange contracts - bilateral OTC(2)
36

 
—

 
10

 
—

OTC-cleared(2)
—

 
—

 
4

 
86

Bilateral OTC(2)
—

 
9

 
—

 
22

Interest rate contracts
—

 
9

 
4

 
108

Total derivatives accounted for as hedges
36

 
109

 
98

 
632

Trading derivatives not accounted for as hedges(3)
 
 
 
 
 
 
 
Exchange-traded(2)
7

 
132

 
6

 
59

OTC-cleared(2)
122

 
14

 
11,905

 
10,526

Bilateral OTC(2)
9,805

 
10,765

 
11,549

 
12,997

Interest rate contracts
9,934

 
10,911

 
23,460

 
23,582

Exchange-traded(2)
1

 
—

 
4

 
—

Bilateral OTC(2)
18,197

 
17,550

 
15,746

 
14,666

Foreign exchange contracts
18,198

 
17,550

 
15,750

 
14,666

Equity contracts - bilateral OTC(2)
2,831

 
2,812

 
2,820

 
2,806

Exchange-traded(2)
104

 
28

 
52

 
108

Bilateral OTC(2)
732

 
674

 
502

 
613

Precious metals contracts
836

 
702

 
554

 
721

OTC-cleared(2)
161

 
156

 
67

 
75

Bilateral OTC(2)
782

 
643

 
589

 
485

Credit contracts
943

 
799

 
656

 
560

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

 
—

 
519

 
60

Bilateral OTC(2)
124

 
282

 
170

 
164

Interest rate contracts
124

 
282

 
689

 
224

Foreign exchange contracts - bilateral OTC(2)
42

 
18

 
—

 
—

Equity contracts - bilateral OTC(2)
968

 
298

 
1,264

 
145

Precious metals contracts - bilateral OTC(2)
—

 
—

 
—

 
1

Credit contracts - bilateral OTC(2)
16

 
11

 
—

 
24

Other contracts - bilateral OTC(2)(4)
8

 
59

 
6

 
52

Total derivatives
33,936

 
33,551

 
45,297

 
43,413

Less: Gross amounts of receivable / payable subject to enforceable master netting agreements(5)(7)
27,075

 
27,075

 
36,394

 
36,394

Less: Gross amounts of cash collateral received / posted subject to enforceable master netting agreements(6)(7)
3,166

 
4,178

 
4,480

 
3,823

Net amounts of derivative assets / liabilities presented in the balance sheet
3,695

 
2,298

 
4,423

 
3,196

Less: Gross amounts of financial instrument collateral received / posted subject to enforceable master netting agreements but not offset in the consolidated balance sheet
663

 
394

 
742

 
370

Net amounts of derivative assets / liabilities
$
3,032

 
$
1,904

 
$
3,681

 
$
2,826

 
(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 obtaining collateral and enforceable master netting agreements. 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 each of the original counterparties. Exchange traded derivatives are executed directly on an organized exchange. Credit risk is minimized for OTC-cleared derivatives and exchange traded derivatives through daily margining requirements. During the first quarter of 2018, a central clearing counterparty amended its rules for OTC-cleared interest rate derivatives to legally re-characterize daily variation margin payments to be settlement payments as opposed to cash collateral posted. The impact of reflecting the rule change for this central clearing counterparty as of December 31, 2017 would have been a reduction in gross derivative assets and liabilities of approximately $11.5 billion and $10.3 billion, respectively, with corresponding decreases in the related counterparty and cash collateral netting.
(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 allocated 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
  
Net Interest Income
 
Other Income
 
Net Interest Income
 
Other Income
 
Other Income
 
(in millions)
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
Interest rate contracts / AFS Securities
$
(10
)
 
$
125

 
$
89

 
$
(117
)
 
$
8

Interest rate contracts / long-term debt
(14
)
 
(7
)
 
(53
)
 
4

 
(3
)
Total
$
(24
)
 
$
118

 
$
36

 
$
(113
)
 
$
5

 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
Interest rate contracts / AFS Securities
$
(36
)
 
$
(147
)
 
$
91

 
$
147

 
$
—

Interest rate contracts / long-term debt
4

 
32

 
(68
)
 
(30
)
 
2

Total
$
(32
)
 
$
(115
)
 
$
23

 
$
117

 
$
2

 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
Interest rate contracts / AFS Securities
$
(33
)
 
$
487

 
$
176

 
$
(474
)
 
$
13

Interest rate contracts / long-term debt
(20
)
 
(67
)
 
(110
)
 
65

 
(2
)
Total
$
(53
)
 
$
420

 
$
66

 
$
(409
)
 
$
11

 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
Interest rate contracts / AFS Securities
$
(67
)
 
$
(61
)
 
$
180

 
$
64

 
$
3

Interest rate contracts / long-term debt
12

 
19

 
(134
)
 
(16
)
 
3

Total
$
(55
)
 
$
(42
)
 
$
46

 
$
48

 
$
6
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)
 
2018
 
2017
 
 
2018
 
2017
 
 
2018
 
2017
 
(in millions)
Three Months Ended June 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
$
(1
)
 
$
—

 
Net interest income
 
$
—

 
$
—

 
Other income
 
$
—

 
$
—

Interest rate contracts
$
9

 
$
(9
)
 
Net interest income
 
$
(5
)
 
$
(3
)
 
Other income
 
$
—

 
$
—

Total
$
8

 
$
(9
)
 
 
 
$
(5
)
 
$
(3
)
 
 
 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
$
(6
)
 
$
—

 
Net interest income
 
$
—

 
$
—

 
Other income
 
$
—

 
$
—

Interest rate contracts
12

 
(11
)
 
Net interest income
 
(9
)
 
(6
)
 
Other income
 
—

 
—

Total
$
6

 
$
(11
)
 
 
 
$
(9
)
 
$
(6
)
 
 
 
$
—

 
$
—
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 June 30,
 
Six Months Ended June 30,
2018
 
2017
 
2018
 
2017
 
 
(in millions)
Interest rate contracts
Trading revenue
$
126

 
$
(177
)
 
$
329

 
$
(197
)
Foreign exchange contracts
Trading revenue
28

 
126

 
(72
)
 
69

Equity contracts
Trading revenue
2

 
(2
)
 
(1
)
 
(1
)
Precious metals contracts
Trading revenue
85

 
51

 
215

 
111

Credit contracts
Trading revenue
(1
)
 
(46
)
 
(4
)
 
(46
)
Total
 
$
240

 
$
(48
)
 
$
467

 
$
(64
)
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 June 30,
 
Six Months Ended June 30,
2018
 
2017
 
2018
 
2017
 
 
(in millions)
Interest rate contracts
Gain (loss) on instruments designated at fair value and related derivatives
$
(54
)
 
$
72

 
$
(216
)
 
$
75

Foreign exchange contracts
Gain (loss) on instruments designated at fair value and related derivatives
(8
)
 
(6
)
 
(10
)
 
3

Equity contracts
Gain (loss) on instruments designated at fair value and related derivatives
167

 
161

 
(172
)
 
521

Credit contracts
Other income
12

 
2

 
10

 
(30
)
Other contracts(1)
Other income
(12
)
 
(2
)
 
(14
)
 
(2
)
Total
 
$
105

 
$
227

 
$
(402
)
 
$
567

 

(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
$
25

 
$
46
Notional Value of Derivative Contracts
The following table summarizes the notional values of derivative contracts:

June 30, 2018
 
December 31, 2017
 
(in millions)
Interest rate:
 
 
 
Futures and forwards
$
937,672

 
$
735,757

Swaps
3,009,143

 
2,687,273

Options written
100,512

 
77,144

Options purchased
117,847

 
93,042

 
4,165,174

 
3,593,216

Foreign exchange:
 
 
 
Swaps, futures and forwards
1,061,194

 
924,163

Options written
29,417

 
25,911

Options purchased
29,916

 
26,617

Spot
40,302

 
19,401

 
1,160,829

 
996,092

Commodities, equities and precious metals:
 
 
 
Swaps, futures and forwards
53,437

 
38,709

Options written
33,847

 
31,631

Options purchased
45,720

 
43,202

 
133,004

 
113,542

Credit derivatives
91,081

 
90,290

Other contracts(1)
748

 
644

Total
$
5,550,836

 
$
4,793,784

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