Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2012

Derivatives and Hedging Activities [Abstract]

Fair values, Volume of activity and gain/loss information related to derivative instruments

	June 30, 2012						December 31, 2011						June 30, 2011
			Fair Value						Fair Value						Fair Value
in millions	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate	$	15,903	$	586	$	32	$	15,067	$	589	$	27	$	9,713	$	459	$	1
Foreign exchange		431		2		8		554		—		147		1,188		—		150
Total		16,334		588		40		15,621		589		174		10,901		459		151
Derivatives not designated as hedging instruments:
Interest rate		58,222		1,273		1,278		48,537		1,364		1,371		46,355		1,149		1,180
Foreign exchange		5,579		105		97		5,549		151		141		6,001		178		169
Energy and commodity		1,691		209		204		1,610		253		253		1,896		295		303
Credit		2,613		25		24		3,210		37		62		2,934		34		31
Equity		18		—		—		17		3		3		32		4		4
Total		68,123		1,612		1,603		58,923		1,808		1,830		57,218		1,660		1,687
Netting adjustments (a)		—		(1,382)		(880)		—		(1,452)		(978)		—		(1,219)		(847)
Total derivatives	$	84,457	$	818	$	763	$	74,544	$	945	$	1,026	$	68,119	$	900	$	991

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related collateral.

Pre-tax net gains (losses) on fair value hedges

	Six months ended June 30, 2012
in millions	Income Statement Location of Net Gains (Losses) on Derivative	Net Gains     (Losses) on Derivative		Hedged Item	Income Statement Location of Net Gains (Losses) on Hedged Item	Net Gains (Losses) on     Hedged Item
Interest rate	Other income	$	(13)	Long-term debt	Other income	$	10	(a)
Interest rate	Interest expense – Long-term debt		89
Foreign exchange	Other income		5	Long-term debt	Other income		(6)	(a)
Foreign exchange	Interest expense – Long-term debt		1	Long-term debt	Interest expense – Long-term debt		(1)	(b)
Total		$	82			$	3
	Six months ended June 30, 2011
in millions	Income Statement Location of Net Gains (Losses) on Derivative	Net Gains     (Losses) on Derivative		Hedged Item	Income Statement Location of Net Gains (Losses) on Hedged Item	Net Gains (Losses) on     Hedged Item
Interest rate	Other income	$	(12)	Long-term debt	Other income	$	8	(a)
Interest rate	Interest expense – Long-term debt		112
Foreign exchange	Other income		90	Long-term debt	Other income		(95)	(a)
Foreign exchange	Interest expense – Long-term debt		5	Long-term debt	Interest expense – Long-term debt		(8)	(b)
Total		$	195			$	(95)

(a) Net gains (losses) on hedged items represent the change in fair value caused by fluctuations in interest rates.

(b) Net gains (losses) on hedged items represent the change in fair value caused by fluctuations in foreign currency exchange rates.

Derivative Instrument Cash Flow hedge earning recognized by income statement location

	Six months ended June 30, 2012
in millions	Net Gains (Losses) Recognized in OCI (Effective Portion)		Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)	Net Gains (Losses) Reclassified     From OCI Into Income (Effective  Portion)		Income Statement Location of Net Gains (Losses) Recognized in Income (Ineffective Portion)		Net Gains (Losses) Recognized in Income     (Ineffective Portion)
Cash Flow Hedges
Interest rate	$	50	Interest income – Loans	$	29		Other income		—
Interest rate		(7)	Interest expense – Long-term debt		(5)		Other income		—
Interest rate		—	Net gains (losses) from loan sales		—		Other income		—
Net Investment Hedges
Foreign exchange contracts		(6)	Other Income		—		Other income		—
Total	$	37		$	24				—
	Six months ended June 30, 2011
in millions	Net Gains (Losses) Recognized in OCI (Effective Portion)		Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)	Net Gains (Losses) Reclassified     From OCI Into Income (Effective Portion)		Income Statement Location of Net Gains (Losses) Recognized in Income (Ineffective Portion)		Net Gains (Losses) Recognized in Income     (Ineffective Portion)
Interest rate	$	42	Interest income – Loans	$	27		Other income		—
Interest rate		(9)	Interest expense – Long-term debt		(5)		Other income		—
Interest rate		—	Net gains (losses) from loan sales		—		Other income		—
Total	$	33		$	22				—

After-tax change in AOCI resulting from cash flow hedges

in millions		December 31, 2011				2012 Hedging Activity			Reclassification of Gains to Net Income				June 30, 2012
AOCI resulting from cash flow and net investment hedges	$		(2	)	$		23	$		(15	)	$		6

Pre-tax net gains (losses) on derivatives not designated as hedging instruments

		Six months ended June 30,
in millions		2012		2011
NET GAINS (LOSSES) (a)
Interest rate	$		10	$	6
Foreign exchange			19		20
Energy and commodity			6		2
Credit			(9)		(10)
Total net gains (losses)	$		26	$	18

(a) Recorded in “investment banking and capital markets income (loss)” on the income statement.

Largest exposure to an individual counterparty

in millions	June 30,   2012		December 31,   2011		June 30,   2011
Largest gross exposure (derivative asset) to an individual counterparty	$	196	$	194	$	147
Collateral posted by this counterparty		70		64		33
Derivative liability with this counterparty		217		250		250
Collateral pledged to this counterparty		93		127		137
Net exposure after netting adjustments and collateral		2		7		2

Fair value of derivative assets by type

in millions	June 30,   2012		December 31,   2011		June 30,   2011
Interest rate	$	1,221	$	1,257	$	1,026
Foreign exchange		22		64		110
Energy and commodity		82		96		105
Credit		6		12		10
Equity		—		2		3
Derivative assets before collateral		1,331		1,431		1,254
Less:  Related collateral		513		486		354
Total derivative assets	$	818	$	945	$	900

Fair value of credit derivatives purchased and sold

	June 30, 2012						December 31, 2011						June 30, 2011
in millions	Purchased		Sold		Net		Purchased		Sold		Net		Purchased		Sold		Net
Single name credit default swaps	$	(4)	$	1	$	(3)	$	3	$	(1)	$	2	$	(10)	$	9	$	(1)
Traded credit default swap indices		—		3		3		6		(6)		—		—		2		2
Other		1		(1)		—		1		(1)		—		3		—		3
Total credit derivatives	$	(3)	$	3	$	—	$	10	$	(8)	$	2	$	(7)	$	11	$	4

Credit derivatives sold and held

	June 30, 2012							December 31, 2011							June 30, 2011
dollars in millions	Notional Amount		Average Term (Years)		Payment /     Performance Risk			Notional Amount		Average Term (Years)		Payment /     Performance Risk			Notional Amount		Average Term (Years)		Payment /     Performance Risk
Single name credit default swaps	$	550		2.42		4.40	%	$	878		2.18		4.98	%	$	844		2.40		4.45	%
Traded credit default swap indices		478		2.76		1.87			343		3.20		4.58			318		3.88		3.47
Other		23		5.48		9.74			18		5.74		10.89			17		5.56		9.04
Total credit derivatives sold	$	1,051		—		—		$	1,239		—		—		$	1,179		—		—

Credit risk contingent feature

		June 30, 2012				December 31, 2011				June 30, 2011
in millions		Moody’s		S&P		Moody’s		S&P		Moody’s		S&P
KeyBank’s long-term senior unsecured credit ratings			A3		A-		A3		A-		A3		A-
One rating downgrade	$		6	$	6	$	11	$	11	$	11	$	11
Two rating downgrades			11		11		16		16		16		16
Three rating downgrades			17		17		16		16		16		16