Fair Value Option (Tables)

9 Months Ended

Sep. 30, 2012

Components of Gain on Instruments at Fair Value and Related Derivatives

The components of gain (loss) on instruments designated at fair value and related derivatives related to the changes in fair value of fixed rate debt accounted for under FVO are as follows:

	Three Months Ended September 30,
	2012											2011
	Loans		Long- Term Debt			Hybrid Instruments			Total			Loans			Long- Term Debt			Hybrid Instruments			Total
	(in millions)
Interest rate component	$	1	$	14		$	(389	)	$	(374	)	$	(5	)	$	(296	)	$	300		$	(1	)
Credit risk component		14		(179	)		(39	)		(204	)		(41	)		368			48			375
Total mark-to-market on financial instruments designated at fair value		15		(165	)		(428	)		(578	)		(46	)		72			348			374
Net realized gains on the financial instrument		1		-			-			1			(3	)		-			-			(3	)
Mark-to-market on the related derivatives		-		(21	)		396			375			1			328			(338	)		(9	)
Net realized gain (losses) on the related derivatives		-		15			-			15			-			17			-			17
Gain (loss) on instruments designated at fair value and related derivatives	$	16	$	(171	)	$	(32	)	$	(187	)	$	(48	)	$	417		$	10		$	379

	Nine Months Ended September 30,
	2012											2011
	Loans		Long- Term Debt			Hybrid Instruments			Total			Loans			Long- Term Debt			Hybrid Instruments			Total
	(in millions)
Interest rate component	$	2	$	(26	)	$	(744	)	$	(768	)	$	(7	)	$	(312	)	$	(11	)	$	(330	)
Credit risk component		48		(269	)		(62	)		(283	)		(25	)		375			86			436
Total mark-to-market on financial instruments designated at fair value		50		(295	)		(806	)		(1,051	)		(32	)		63			75			106
Net realized gains on the financial instrument		-		-			-			-			(1	)		-			-			(1	)
Mark-to-market on the related derivatives		-		6			741			747			-			344			(58	)		286
Net realized gain (losses) on the related long-term debt derivatives		-		46			-			46			-			49			-			49
Gain (loss) on instruments designated at fair value and related derivatives	$	50	$	(243	)	$	(65	)	$	(258	)	$	(33	)	$	456		$	17		$	440