Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Derivative Financial Instruments

Schedule of derivative financial instruments and related hedged items

							September 30, 2012						December 31, 2011
						Hedged Item or	Notional		Fair Value				Notional		Fair Value
						Transaction	Amount		Gain (1)		Loss (1)		Amount		Gain (1)		Loss (1)
							(Dollars in millions)
Cash Flow Hedges: (2)
	Interest rate contracts:
		Pay fixed swaps				3 month LIBOR funding	$	6,035	$	―	$	(321)	$	5,750	$	―	$	(307)
				Total				6,035		―		(321)		5,750		―		(307)
Net Investment Hedges:
	Foreign exchange contracts							73		―		(2)		73		1		―
				Total				73		―		(2)		73		1		―
Fair Value Hedges:
	Interest rate contracts:
		Receive fixed swaps and option trades				Long-term debt		800		195		―		2,556		254		―
		Pay fixed swaps				Commercial loans		188		―		(7)		98		―		(5)
		Pay fixed swaps				Municipal securities		345		―		(162)		355		―		(158)
				Total				1,333		195		(169)		3,009		254		(163)
Not Designated as Hedges:
	Client-related and other risk management:
		Interest rate contracts:
			Receive fixed swaps					9,477		741		―		9,176		703		―
			Pay fixed swaps					9,607		―		(771)		9,255		―		(730)
			Other swaps					2,341		1		(2)		2,450		―		(6)
			Option trades					821		27		(28)		1,004		38		(40)
			Futures contracts					135		―		―		240		―		―
			Risk participations					151		―		―		150		―		―
		Foreign exchange contracts						953		14		(8)		575		6		(8)
				Total				23,485		783		(809)		22,850		747		(784)
	Mortgage Banking:
		Interest rate contracts:
			Receive fixed swaps					118		1		―		50		1		―
			Pay fixed swaps					―		―		―		16		―		―
			Interest rate lock commitments					6,380		128		―		4,977		60		(1)
			When issued securities, forward rate agreements and forward
				commitments				8,822		17		(160)		7,125		10		(88)
			Option trades					70		6		―		70		5		―
			Futures contracts					29		―		―		65		1		―
				Total				15,419		152		(160)		12,303		77		(89)
	Mortgage Servicing Rights:
		Interest rate contracts:
			Receive fixed swaps					6,234		142		(5)		5,616		154		(1)
			Pay fixed swaps					5,483		1		(125)		4,651		1		(111)
			Option trades					20,200		408		(146)		9,640		273		(51)
			Futures contracts					―		―		―		38		―		―
			When issued securities, forward rate agreements and forward
				commitments				3,145		9		―		3,651		18		―
				Total				35,062		560		(276)		23,596		446		(163)
					Total nonhedging derivatives			73,966		1,495		(1,245)		58,749		1,270		(1,036)
Total Derivatives							$	81,407	$	1,690	$	(1,737)	$	67,581	$	1,525	$	(1,506)
(1)	Derivatives in a gain position are recorded as Other assets and derivatives in a loss position are recorded as Other liabilities on the Consolidated Balance Sheets.
(2)	Cash flow hedges are hedging the first unhedged forecasted settlements associated with the listed hedged item descriptions.

The effect of derivative instruments on the consolidated statements of income

The Effect of Derivative Instruments on the Consolidated Statements of Income
Three Months Ended September 30, 2012 and 2011
					Effective Portion
					Pre-tax Gain					Pre-tax (Gain) Loss
					(Loss) Recognized				Location of Amounts	Reclassified from
					in AOCI				Reclassified from AOCI	AOCI into Income
					2012		2011		into Income	2012		2011
						(Dollars in millions)
Cash Flow Hedges
	Interest rate contracts				$	(28)	$	(120)	Total interest income	$	(1)	$	(7)
									Total interest expense		14		16
										$	13	$	9
Net Investment Hedges
	Foreign exchange contracts				$	(3)	$	6		$	―	$	―
									Effective Portion
										Pre-tax Gain
									Location of Amounts	(Loss) Recognized
									Recognized	in Income
									in Income	2012		2011
						(Dollars in millions)
Fair Value Hedges
	Interest rate contracts								Total interest expense	$	72	$	85
	Interest rate contracts								Total interest income		(6)		(6)
				Total						$	66	$	79
Not Designated as Hedges
	Client-related and other risk management
		Interest rate contracts							Other noninterest income	$	10	$	6
		Foreign exchange contracts							Other noninterest income		2		1
	Mortgage Banking
		Interest rate contracts							Mortgage banking income		(28)		(21)
	Mortgage Servicing Rights
		Interest rate contracts							Mortgage banking income		49		329
			Total							$	33	$	315

The Effect of Derivative Instruments on the Consolidated Statements of Income
Nine Months Ended September 30, 2012 and 2011
					Effective Portion
					Pre-tax Gain					Pre-tax (Gain) Loss
					(Loss) Recognized				Location of Amounts	Reclassified from
					in AOCI				Reclassified from AOCI	AOCI into Income
					2012		2011		into Income	2012		2011
						(Dollars in millions)
Cash Flow Hedges
	Interest rate contracts				$	(72)	$	(201)	Total interest income	$	(9)	$	(20)
									Total interest expense		41		43
										$	32	$	23
Net Investment Hedges
	Foreign exchange contracts				$	(3)	$	3		$	―	$	―
									Effective Portion
										Pre-tax Gain
									Location of Amounts	(Loss) Recognized
									Recognized	in Income
									in Income	2012		2011
						(Dollars in millions)
Fair Value Hedges
	Interest rate contracts								Total interest expense	$	246	$	221
	Interest rate contracts								Total interest income		(16)		(16)
				Total						$	230	$	205
Not Designated as Hedges
	Client-related and other risk management
		Interest rate contracts							Other noninterest income	$	27	$	4
		Foreign exchange contracts							Other noninterest income		6		5
	Mortgage Banking
		Interest rate contracts							Mortgage banking income		11		(83)
	Mortgage Servicing Rights
		Interest rate contracts							Mortgage banking income		148		349
			Total							$	192	$	275