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Fair Value Option (Tables)
 9 Months Ended
Sep. 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 September 30, 2018
 
 
 
 
 
Commercial loans held for sale
$
242

 
$
247

 
$
(5
)
Securities purchased under resale agreements
117

 
117

 
—

Securities sold under repurchase agreements
916

 
915

 
1

Fixed rate long-term debt
1,962

 
1,750

 
212

Hybrid instruments:
 
 
 
 
 
Structured deposits
7,980

 
8,301

 
(321
)
Structured notes
10,300

 
9,410

 
890

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 on instruments designated at fair value and related derivatives reflected in the consolidated statement of income for the three and nine months ended September 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 September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Interest rate and other components(1)
$
—

 
$
—

 
$
—

 
$
51

 
$
(229
)
 
$
(178
)
Credit risk component(2)
—

 
—

 
—

 
—

 
—

 
—

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

 
—

 
—

 
51

 
(229
)
 
(178
)
Mark-to-market on related derivatives
—

 
—

 
—

 
(44
)
 
241

 
197

Net realized gain on related long-term debt derivatives
—

 
—

 
—

 
10

 
—

 
10

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

 
$
—

 
$
—

 
$
17

 
$
12

 
$
29

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

 
$
(1
)
 
$
—

 
$
—

 
$
(355
)
 
$
(356
)
Credit risk component(2)
(1
)
 
—

 
—

 
—

 
—

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

 
—

 
(355
)
 
(357
)
Mark-to-market on related derivatives
—

 
—

 
—

 
(6
)
 
354

 
348

Net realized gain on related long-term debt derivatives
—

 
—

 
—

 
16

 
—

 
16

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

 
$
10

 
$
(1
)
 
$
7

 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Interest rate and other components(1)
$
—

 
$
—

 
$
—

 
$
173

 
$
78

 
$
251

Credit risk component(2)
3

 
—

 
—

 
—

 
—

 
3

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

 
—

 
—

 
173

 
78

 
254

Mark-to-market on related derivatives
—

 
—

 
—

 
(154
)
 
(71
)
 
(225
)
Net realized gain on related long-term debt derivatives
—

 
—

 
—

 
34

 
—

 
34

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

 
$
—

 
$
—

 
$
53

 
$
7

 
$
63

 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Interest rate and other components(1)
$
—

 
$
6

 
$
3

 
$
(7
)
 
$
(922
)
 
$
(920
)
Credit risk component(2)
(3
)
 
—

 
—

 
—

 
—

 
(3
)
Total mark-to-market on financial instruments designated at fair value
(3
)
 
6

 
3

 
(7
)
 
(922
)
 
(923
)
Mark-to-market on related derivatives
—

 
—

 
—

 
(13
)
 
931

 
918

Net realized gain on related long-term debt derivatives
—

 
—

 
—

 
45

 
—

 
45

Gain (loss) on instruments designated at fair value and related derivatives
$
(3
)
 
$
6

 
$
3

 
$
25

 
$
9

 
$
40

 
(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 (loss).