Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2011

Derivative Financial Instruments

Schedule of derivative financial instruments and related hedged items

							December 31, 2011						December 31, 2010
						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	$	5,750	$	―	$	(307)	$	5,950	$	6	$	(181)
		Caps				3 month LIBOR funding		―		―		―		200		―		―
				Total				5,750		―		(307)		6,150		6		(181)
Net Investment Hedges:
	Foreign exchange contracts							73		1		―		73		―		(2)
				Total				73		1		―		73		―		(2)
Fair Value Hedges:
	Interest rate contracts:
		Receive fixed swaps and option trades				Long-term debt		2,556		254		―		1,160		25		―
		Pay fixed swaps				Commercial loans		98		―		(5)		54		―		―
		Pay fixed swaps				Municipal securities		355		―		(158)		355		―		(75)
				Total				3,009		254		(163)		1,569		25		(75)
Not Designated as Hedges:
	Client-related and other risk management:
		Interest rate contracts:
			Receive fixed swaps					9,176		703		―		9,696		496		(10)
			Pay fixed swaps					9,255		―		(730)		9,514		12		(530)
			Other swaps					2,450		―		(6)		3,328		2		(3)
			Option trades					1,004		38		(40)		897		29		(30)
			Futures contracts					240		―		―		1,747		1		―
			Risk participations					150		―		―		180		―		―
		Foreign exchange contracts						575		6		(8)		436		7		(4)
				Total				22,850		747		(784)		25,798		547		(577)
	Mortgage Banking:
		Interest rate contracts:
			Receive fixed swaps					50		1		―		11		―		―
			Pay fixed swaps					16		―		―		35		―		―
			Interest rate lock commitments					4,977		60		(1)		3,922		12		(37)
			When issued securities, forward rate agreements and forward
				commitments				7,125		10		(88)		7,717		106		(27)
			Option trades					70		5		―		400		11		―
			Futures contracts					65		1		―		13		1		―
				Total				12,303		77		(89)		12,098		130		(64)
	Mortgage Servicing Rights:
		Interest rate contracts:
			Receive fixed swaps					5,616		154		(1)		3,225		13		(61)
			Pay fixed swaps					4,651		1		(111)		2,536		15		(7)
			Option trades					9,640		273		(51)		6,095		192		(11)
			Futures contracts					38		―		―		4,260		―		(10)
			When issued securities, forward rate agreements and forward
				commitments				3,651		18		―		3,582		5		(14)
				Total				23,596		446		(163)		19,698		225		(103)
					Total nonhedging derivatives			58,749		1,270		(1,036)		57,594		902		(744)
Total Derivatives							$	67,581	$	1,525	$	(1,506)	$	65,386	$	933	$	(1,002)
(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 Sheet.
(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

				Effective Portion
				Gain or (Loss)						Location of		(Gain) or Loss Reclassified
				Recognized in OCI						Amounts Reclassified		from AOCI into Income
				2011		2010		2009		from AOCI into Income		2011		2010		2009
					(Dollars in millions)
Cash Flow Hedges:
	Interest rate contracts			$	(211)	$	(224)	$	146	Total interest income		$	(26)	$	(44)	$	(86)
										Total interest expense			58		20		37
												$	32	$	(24)	$	(49)
Net Investment Hedges:
	Foreign exchange contracts			$	1	$	(4)	$	(11)			$	―	$	―	$	―
												Gain or (Loss)
										Location of Amounts		Recognized in Income
										Recognized in Income		2011		2010		2009
											(Dollars in millions)
Fair Value Hedges:
	Interest rate contracts									Total interest expense		$	300	$	170	$	177
										Total interest income			(21)		(19)		(17)
												$	279	$	151	$	160
Not Designated as Hedges:
	Client-related and other risk management:
			Interest rate contracts							Other income		$	10	$	5	$	22
			Other derivatives							Other income			―		―		(20)
			Foreign exchange contracts							Other income			6		6		(1)
	Mortgage Banking:
		Interest rate contracts								Mortgage banking income			(70)		33		23
	Mortgage Servicing Rights:
		Interest rate contracts								Mortgage banking income			394		196		(98)
												$	340	$	240	$	(74)
Note: All amounts for Other Comprehensive Income (“OCI”) and Accumulated Other Comprehensive Income (“AOCI”) are stated on a pre-tax basis.