Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional and Fair Value Position [Table Text Block]

The following table displays the notional amount and estimated fair value of our asset and liability derivative instruments as of September 30, 2014 and December 31, 2013.

	As of September 30, 2014										As of December 31, 2013
	Asset Derivatives					Liability Derivatives					Asset Derivatives					Liability Derivatives
	Notional Amount		Estimated Fair Value			Notional Amount		Estimated Fair Value			Notional Amount		Estimated Fair Value			Notional Amount		Estimated Fair Value
	(Dollars in millions)
Risk management derivatives:
Swaps:
Pay-fixed	$	72,309	$	2,387		$	91,531	$	(4,963	)	$	68,637	$	5,378		$	93,428	$	(4,759	)
Receive-fixed	56,477		3,753			158,087		(2,229		)	67,527		3,320			156,250		(3,813		)
Basis	2,544		87			11,100		(2		)	27,014		36			600		—
Foreign currency	358		131			284		(24		)	389		120			653		(38		)
Swaptions:
Pay-fixed	20,400		79			31,525		(285		)	33,400		445			48,025		(600		)
Receive-fixed	2,000		82			34,525		(609		)	8,000		117			48,025		(484		)
Other(1)	84		26			12		(1		)	769		28			13		(1		)
Total gross risk management derivatives	154,172		6,545			327,064		(8,113		)	205,736		9,444			346,994		(9,695		)
Accrued interest receivable (payable)	—		807			—		(1,220		)	—		786			—		(930		)
Netting adjustment(2)	—		(6,202		)	—		9,040			—		(8,422		)	—		9,370
Total net risk management derivatives	$	154,172	$	1,150		$	327,064	$	(293	)	$	205,736	$	1,808		$	346,994	$	(1,255	)

Mortgage commitment derivatives:
Mortgage commitments to purchase whole loans	$	4,009	$	9	$	3,192	$	(6	)	$	1,138	$	1	$	4,353	$	(31	)
Forward contracts to purchase mortgage-related securities	21,629		63		16,822		(34		)	3,276		4		20,861		(168		)
Forward contracts to sell mortgage-related securities	22,388		34		36,122		(110		)	35,423		260		7,886		(15		)
Total mortgage commitment derivatives	$	48,026	$	106	$	56,136	$	(150	)	$	39,837	$	265	$	33,100	$	(214	)
Derivatives at fair value	$	202,198	$	1,256	$	383,200	$	(443	)	$	245,573	$	2,073	$	380,094	$	(1,469	)

__________

⁽¹⁾  Includes interest rate caps, futures, swap credit enhancements and mortgage insurance contracts that we account for as derivatives. The mortgage insurance contracts have payment provisions that are not based on a notional amount.

⁽²⁾  The netting adjustment for our risk management derivatives transactions represents the effect of the legal right to offset under legally enforceable master netting arrangements to settle with the same counterparty on a net basis, including cash collateral posted and received. Cash collateral posted was $3.5 billion and $2.0 billion as of September 30, 2014 and December 31, 2013, respectively. Cash collateral received was $685 million and $1.0 billion as of September 30, 2014 and December 31, 2013, respectively.

Fair Value Gain (Loss), Net [Table Text Block]

The following table displays, by type of derivative instrument, the fair value gains and losses, net on our derivatives for the three and nine months ended September 30, 2014 and 2013.

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2014			2013			2014			2013
	(Dollars in millions)
Risk management derivatives:
Swaps:
Pay-fixed	$	712		$	976		$	(3,755	)	$	11,879
Receive-fixed	(822		)	(217		)	2,282			(9,250		)
Basis	6			(13		)	49			(85		)
Foreign currency	(17		)	54			21			(79		)
Swaptions:
Pay-fixed	(53		)	148			(90		)	(303		)
Receive-fixed	82			(3		)	(19		)	265
Other	(1		)	(3		)	(1		)	18
Accrual of periodic settlements:
Pay-fixed interest-rate swaps	(939		)	(1,141		)	(2,755		)	(3,550		)
Receive-fixed interest-rate swaps	613			897			1,946			2,891
Other	12			15			39			49
Total risk management derivatives fair value (losses) gains, net	$	(407	)	$	713		$	(2,283	)	$	1,835
Mortgage commitment derivatives fair value (losses) gains, net	(73		)	(169		)	(728		)	459
Total derivatives fair value (losses) gains, net	$	(480	)	$	544		$	(3,011	)	$	2,294