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Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Asset and Liability Management Derivative Positions of Company
The following table summarizes the asset and liability management derivative positions of the Company:
 
    Asset Derivatives              Liability Derivatives  
(Dollars in Millions)  
Notional
Value
     
Fair
Value
     
Weighted-
Average
Remaining
Maturity
In Years
             
Notional
Value
     
Fair
Value
     
Weighted-
Average
Remaining
Maturity
In Years
  
March 31, 2021
                                 
 
                           
Fair value hedges
                                 
 
                           
Interest rate contracts
                                 
 
                           
Receive fixed/pay floating swaps
   $ 6,600      $ –        1.96         
 
    $ –      $ –        –  
Cash flow hedges
                                 
 
                           
Interest rate contracts
                                 
 
                           
Pay fixed/receive floating swaps
     –        –        –         
 
      3,250        –        4.34  
Net investment hedges
                                 
 
                           
Foreign exchange forward contracts
     781        10        .05         
 
      –        –        –  
Other economic hedges
                                 
 
                           
Interest rate contracts
                                 
 
                           
Futures and forwards
                                 
 
                           
Buy
     6,044        31        .06         
 
      11,179        107        .10  
Sell
     30,218        349        .19         
 
      9,364        66        .04  
Options
                                 
 
                           
Purchased
     18,370        290        3.68         
 
      –        –        –  
Written
     4,373        109        .12         
 
      6,740        300        2.33  
Receive fixed/pay floating swaps
     4,333        –        4.72         
 
      6,373        –        10.03  
Pay fixed/receive floating swaps
     3,379        –        4.20         
 
      4,389        –        4.85  
Foreign exchange forward contracts
     270        1        .06         
 
      344        2        .04  
Equity contracts
     117        –        .33         
 
      74        2        .19  
Other (a)
     311        5        .03         
 
      2,096        172        1.92  
Total
   $ 74,796      $ 795                  
 
    $ 43,809      $ 649           
December 31, 2020
                                 
 
                           
Fair value hedges
                                 
 
                           
Interest rate contracts
                                 
 
                           
Receive fixed/pay floating swaps
   $ 8,400      $ –        1.76         
 
    $ –      $ –        –  
Pay fixed/receive floating swaps
     –        –        –         
 
      100        –        9.63  
Cash flow hedges
                                 
 
                           
Interest rate contracts
                                 
 
                           
Pay fixed/receive floating swaps
     –        –        –         
 
      3,250        –        4.59  
Net investment hedges
                                 
 
                           
Foreign exchange forward contracts
     479        –        .06         
 
      336        3        .06  
Other economic hedges
                                 
 
                           
Interest rate contracts
                                 
 
                           
Futures and forwards
                                 
 
                           
Buy
     16,431        73        .50         
 
      1,925        5        .07  
Sell
     10,440        48        .04         
 
      28,976        157        .07  
Options
                                 
 
                           
Purchased
     11,610        121        4.11         
 
      –        –        –  
Written
     5,073        202        .13         
 
      7,770        198        2.53  
Receive fixed/pay floating swaps
     11,064        –        7.31         
 
      907        –        23.43  
Pay fixed/receive floating swaps
     78        –        13.68         
 
      8,538        –        5.67  
Foreign exchange forward contracts
     292        1        .04         
 
      341        2        .05  
Equity contracts
     127        3        .39         
 
      45        –        .46  
Other (a)
     47        1        .11         
 
      1,832        183        2.44  
Total
   $ 64,041      $ 449     
 
 
 
   
 
 
 
    $ 54,020      $ 548     
 
 
 
 
(a)
Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common and preferred shares of Visa Inc. The Visa swap agreements had a total notional value, fair value and weighted-average remaining maturity of $1.8 billion, $167 million and 2.25 years at March 31, 2021, respectively, compared to $1.8 billion, $182 million and 2.50 years at December 31, 2020, respectively. In addition, includes short-term underwriting purchase and sale commitments with total asset and liability notional values of $311 million at March 31, 2021, and $47 million at December 31, 2020.
Customer-Related Derivative Positions of Company
The following table summarizes the customer-related derivative positions of the Company:
 
    Asset Derivatives              Liability Derivatives  
(Dollars in Millions)   Notional
Value		      Fair
Value		      Weighted-
Average
Remaining
Maturity In
Years		              Notional
Value		      Fair
Value		      Weighted-
Average
Remaining
Maturity In
Years		  
March 31, 2021
                                 
 
                           
Interest rate contracts
                                 
 
                           
Receive fixed/pay floating swaps
   $ 121,392      $ 2,416        4.42         
 
    $ 40,305      $ 494        7.50  
Pay fixed/receive floating swaps
     39,173        115        7.22         
 
      115,251        801        4.32  
Other (a)
     9,128        2        3.74         
 
      6,901        2        4.73  
Options
                                 
 
                           
Purchased
     80,134        204        1.32         
 
      1,465        31        2.71  
Written
     1,391        31        2.77         
 
      75,365        195        1.25  
Futures
                                 
 
                           
Buy
     921        –        .95         
 
      1,628        –        1.14  
Sell
     1,468        –        1.10         
 
      1,310        –        .45  
Foreign exchange rate contracts
                                 
 
                           
Forwards, spots and swaps
     41,612        1,307        1.09         
 
      41,887        1,284        1.25  
Options
                                 
 
                           
Purchased
     650        23        .98         
 
      –        –        –  
Written
     –        –        –         
 
      650        20        .98  
Credit contracts
     2,906        1        2.68         
 
      7,495        10        4.45  
Total
   $ 298,775      $ 4,099                  
 
    $ 292,257      $ 2,837           
December 31, 2020
                                 
 
                           
Interest rate contracts
                                 
 
                           
Receive fixed/pay floating swaps
   $ 144,859      $ 3,782        4.93         
 
    $ 12,027      $ 99        8.72  
Pay fixed/receive floating swaps
     15,048        2        8.43         
 
      134,963        1,239        4.71  
Other (a)
     9,921        6        3.75         
 
      6,387        3        4.22  
Options
                                 
 
                           
Purchased
     72,655        111        1.40         
 
      1,454        46        2.96  
Written
     1,736        46        2.76         
 
      68,205        81        1.25  
Futures
                                 
 
                           
Buy
     1,851        –        1.22         
 
      924        –        .05  
Sell
     –        –        –         
 
      4,090        –        .72  
Foreign exchange rate contracts
                                 
 
                           
Forwards, spots and swaps
     44,845        1,590        .96         
 
      45,992        1,565        1.13  
Options
                                 
 
                           
Purchased
     519        14        .90         
 
      –        –        –  
Written
     –        –        –         
 
      519        14        .90  
Credit contracts
     2,876        1        2.75         
 
      7,479        7        3.81  
Total
   $ 294,310      $ 5,552     
 
 
 
   
 
 
 
    $ 282,040      $ 3,054     
 
 
 
 
(a)
Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes.     
Summary of Effective Portion of Gains (Losses) Recognized in Other Comprehensive Income (Loss) and Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings
(net-of-tax)
for the three months ended March 31:
 
   
Gains (Losses)
Recognized in
Other
  Comprehensive  
Income
(Loss)
     Gains (Losses)
Reclassified from
Other
Comprehensive
Income
  (Loss) into Earnings  		  
(Dollars in Millions)   2021      2020     2021     2020  
Asset and Liability Management Positions
                                   
Cash flow hedges
                                   
Interest rate contracts
   $ 74      $ (192 )    $   (3 )    $ (10 ) 
Net investment hedges
                                   
Foreign exchange forward contracts
     7        16         –       –  
Non-derivative
debt instruments
     48        25         –       –  
 
Note:
The Company does not exclude components from effectiveness testing for cash flow and net investment hedges.    
Effect of Fair Value and Cash Flow Hedge Accounting Included in Interest Expense on Consolidated Statement of Income
The table below shows the effect of fair value and cash flow hedge accounting on the Consolidated Statement of I
n
come for the three months ended March 31:
 
    Interest Income              Interest Expense  
(Dollars in Millions)   2021     2020              2021     2020  
Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded
   $ 3,341     $ 4,116         
 
    $ 278     $ 893  
           
Asset and Liability Management Positions
                       
 
                 
Fair value hedges
                       
 
                 
Interest rate contract derivatives
     (1 )      –         
 
      55       (1,035 ) 
Hedged items
     1       –         
 
      (55 )      1,028  
Cash flow hedges
                       
 
                 
Interest rate contract derivatives
     –       –     
 
 
 
      4       13  
 
Note:
The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $15 million into earnings during the three months ended March 31, 2021, as a result of the discontinuance of cash flow hedges. The Company did not reclassify gains or losses into earnings as a result of the discontinuance of cash flow hedges during the three months ended March 31, 2020.
Summary of Cumulative Hedging Adjustments and the Carrying Amount of Assets and Liabilities Designated in Fair Value Hedges
The table below shows cumulative hedging adjustments and the carrying amount of assets and liabilities designated in fair value hedges:    
 
    Carrying Amount of the Hedged Assets
and Liabilities		              Cumulative Hedging Adjustment (a)  
(Dollars in Millions)   March 31, 2021      December 31, 2020              March 31, 2021     December 31, 2020  
Line Item in the Consolidated Balance Sheet
        
 
     
Available-for-sale
investment securities
   $ –      $ 99         
 
    $ (4 )    $ (1 ) 
Long-term debt
     6,713        8,567     
 
 
 
      800       903  
 
(a)
The cumulative hedging adjustment related to the discontinued hedging relationships on available-for-sale investment securities and long-term debt was
$(4) million and $678
 
million, respectively, at March 31, 2021. The cumulative hedging adjustment related to discontinued hedging relationships on long-term debt was $726 million at December 31, 2020. 
Summary of Gains (Losses) Recognized in Earnings for Other Economic Hedges and Customer-Related Positions
The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions for the three months ended March 31:
 
(Dollars in Millions)    Location of Gains (Losses)
Recognized in Earnings		      2021     2020  
Asset and Liability Management Positions
                          
Other economic hedges
                          
Interest rate contracts
                          
Futures and forwards
      Mortgage banking revenue/
other noninterest income
 		    $ 430     $ (75 ) 
Purchased and written options
      Mortgage banking revenue        12       280  
Swaps
      Mortgage banking revenue        (390 )      729  
Foreign exchange forward contracts
      Other noninterest income        (3 )      17  
Equity contracts
      Compensation expense        4       (4 ) 
Other
      Other noninterest income        –       (1 ) 
Customer-Related Positions
                          
Interest rate contracts
                          
Swaps
      Commercial products revenue        27       (22 ) 
Purchased and written options
      Commercial products revenue        (7 )      17  
Futures
      Commercial products revenue        –       (18 ) 
Foreign exchange rate contracts
                          
Forwards, spots and swaps
      Commercial products revenue        19       17  
Purchased and written options
      Commercial products revenue        –       –  
Credit contracts
      Commercial products revenue        2       18