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Fair Value Option (Tables)
6 Months Ended
Jun. 30, 2018
Fair Value Option [Abstract]  
Fair Value, Option, Quantitative Disclosures
The following table summarizes the fair value and unpaid principal balance for items we account for under FVO:
 
Fair Value
 
Unpaid Principal Balance
 
Fair Value Over (Under) Unpaid Principal Balance
 
(in millions)
At June 30, 2018
 
 
 
 
 
Commercial loans held for sale
$
90

 
$
94

 
$
(4
)
Securities purchased under resale agreements
395

 
395

 

Securities sold under repurchase agreements
1,315

 
1,315

 

Fixed rate long-term debt
1,973

 
1,750

 
223

Hybrid instruments:
 
 
 
 
 
Structured deposits
7,701

 
7,926

 
(225
)
Structured notes
10,409

 
9,649

 
760

At December 31, 2017
 
 
 
 
 
Commercial loans held for sale
$
471

 
$
483

 
$
(12
)
Securities purchased under resale agreements
80

 
80

 

Securities sold under repurchase agreements
2,032

 
2,031

 
1

Fixed rate long-term debt
2,230

 
1,750

 
480

Hybrid instruments:
 
 
 
 
 
Structured deposits
7,693

 
7,685

 
8

Structured notes
10,656

 
9,530

 
1,126

Components of Gain on Instruments at Fair Value and Related Derivatives
The following table summarizes the components of gain (loss) on instruments designated at fair value and related derivatives reflected in the consolidated statement of income for the three and six months ended June 30, 2018 and 2017:
 
Loans
 
Securities Purchased Under Resale Agreements
 
Securities Sold Under Repurchase Agreements
 
Long-Term
Debt
 
Hybrid
Instruments
 
Total
 
(in millions)
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Interest rate and other components(1)
$

 
$

 
$
1

 
$
34

 
$
(135
)
 
$
(100
)
Credit risk component(2)
(1
)
 

 

 

 

 
(1
)
Total mark-to-market on financial instruments designated at fair value
(1
)
 

 
1

 
34

 
(135
)
 
(101
)
Mark-to-market on related derivatives

 

 

 
(33
)
 
127

 
94

Net realized gain on related long-term debt derivatives

 

 

 
11

 

 
11

Gain (loss) on instruments designated at fair value and related derivatives
$
(1
)
 
$

 
$
1

 
$
12

 
$
(8
)
 
$
4

 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Interest rate and other components(1)
$

 
$
1

 
$
2

 
$
(26
)
 
$
(204
)
 
$
(227
)
Credit risk component(2)
(1
)
 

 

 

 

 
(1
)
Total mark-to-market on financial instruments designated at fair value
(1
)
 
1

 
2

 
(26
)
 
(204
)
 
(228
)
Mark-to-market on related derivatives

 

 

 
17

 
196

 
213

Net realized gain on related long-term debt derivatives

 

 

 
14

 

 
14

Gain (loss) on instruments designated at fair value and related derivatives
$
(1
)
 
$
1

 
$
2

 
$
5

 
$
(8
)
 
$
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Interest rate and other components(1)
$

 
$

 
$

 
$
122

 
$
307

 
$
429

Credit risk component(2)
3

 

 

 

 

 
3

Total mark-to-market on financial instruments designated at fair value
3

 

 

 
122

 
307

 
432

Mark-to-market on related derivatives

 

 

 
(110
)
 
(312
)
 
(422
)
Net realized gain on related long-term debt derivatives

 

 

 
24

 

 
24

Gain (loss) on instruments designated at fair value and related derivatives
$
3

 
$

 
$

 
$
36

 
$
(5
)
 
$
34

 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Interest rate and other components(1)
$

 
$
7

 
$
3

 
$
(7
)
 
$
(567
)
 
$
(564
)
Credit risk component(2)
(2
)
 

 

 

 

 
(2
)
Total mark-to-market on financial instruments designated at fair value
(2
)
 
7

 
3

 
(7
)
 
(567
)
 
(566
)
Mark-to-market on related derivatives

 

 

 
(7
)
 
577

 
570

Net realized gain on related long-term debt derivatives

 

 

 
29

 

 
29

Gain (loss) on instruments designated at fair value and related derivatives
$
(2
)
 
$
7

 
$
3

 
$
15

 
$
10

 
$
33

 
(1) 
As it relates to hybrid instruments, interest rate and other components primarily includes interest rate, foreign exchange and equity contract risks.
(2) 
The fair value movement on fair value option liabilities attributable to our own credit spread is recorded in common equity as a component of other comprehensive income.