Fair Value Option (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Summary of Fair Value and Unpaid Principal Balance for Items Accounted for Under FVO

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 March 31, 2022
Student loans held for sale	$	24	$	26	$	(2)
Commercial loans held for sale	120		126		(6)
Fixed rate long-term debt	845		741		104
Hybrid instruments:
Structured deposits	2,379		2,190		189
Structured notes	6,820		6,250		570
At December 31, 2021
Student loans held for sale	$	25	$	28	$	(3)
Commercial loans held for sale	23		23		—
Fixed rate long-term debt	945		741		204
Hybrid instruments:
Structured deposits	2,749		2,465		284
Structured notes	7,997		6,834		1,163

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 months ended March 31, 2022 and 2021:

	Loans Held for Sale		Long-Term Debt		Hybrid Instruments		Total
	(in millions)
Three Months Ended March 31, 2022
Interest rate and other components(1)	$	—	$	74	$	413	$	487
Credit risk component(2)	(8)		—		—		(8)
Total mark-to-market on financial instruments designated at fair value	(8)		74		413		479
Mark-to-market on related derivatives	—		(85)		(397)		(482)
Net realized gain on related long-term debt derivatives	—		9		—		9
Gain (loss) on instruments designated at fair value and related derivatives	$	(8)	$	(2)	$	16	$	6
Three Months Ended March 31, 2021
Interest rate and other components(1)	$	—	$	100	$	(452)	$	(352)
Credit risk component(2)	1		—		—		1
Total mark-to-market on financial instruments designated at fair value	1		100		(452)		(351)
Mark-to-market on related derivatives	—		(108)		468		360
Net realized gain on related long-term debt derivatives	—		9		—		9
Gain (loss) on instruments designated at fair value and related derivatives	$	1	$	1	$	16	$	18

(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 other comprehensive loss.