Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2013

Derivatives and Hedging Activities (Tables) [Abstract]

Schedule of derivative instruments in statement of financial position, fair value

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of March 31, 2013 and December 31, 2012:

		Other Assets				Other Liabilities
		Fair Value				Fair Value
(Millions)		2013		2012		2013		2012
Derivatives designated as hedging instruments:
Interest rate contracts
	Fair value hedges	$	718	$	824	$	―	$	―
Total return contract
	Fair value hedge		4		―		―		19
Foreign exchange contracts
	Net investment hedges		81		43		153		150
Total derivatives designated as hedging instruments		$	803	$	867	$	153	$	169
Derivatives not designated as hedging instruments:
	Interest rate contracts	$	―	$	―	$	―	$	―
	Foreign exchange contracts, including certain embedded derivatives(a)		155		75		76		158
	Equity-linked embedded derivative(b)		―		―		1		2
Total derivatives not designated as hedging instruments			155		75		77		160
Total derivatives, gross		$	958	$	942	$	230	$	329
Cash collateral netting(c)			(524)		(326)		―		(21)
Derivative asset and derivative liability netting(d)			(31)		(23)		(31)		(23)
Total derivatives, net(e)		$	403	$	593	$	199	$	285

• Includes foreign currency derivatives embedded in certain operating agreements.
• Represents an equity-linked derivative embedded in one of the Company's investment securities.
• Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement.Additionally, the Company received noncash collateral in the form of security interest in U.S. Treasury securities with a fair value of niland $335 millionas of March 31, 2013 and December 31, 2012, respectively, none of which was sold or repledged. Such noncash collateral effectively further reduces the Company's risk exposureto $403 million and $258 millionas of March 31, 2013 and December 31, 2012, respectively, but does not reduce the net exposure on the Company's Consolidated Balance Sheets.
• Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.
• The Company has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and derivative liabilities are presented within other assets and other liabilities on the Company's Consolidated Balance Sheets.

Effect of fair value hedges on results of operations

The following table summarizes the impact on the Consolidated Statements of Income associated with the Company's hedges ofits fixed-rate long-term debtand its investment in ICBC for the three months ended March 31:

	Gains (losses) recognized in income
(Millions)	Derivative contract					Hedged item					Net hedge
		Amount					Amount				ineffectiveness
Derivative relationship	Income Statement Line Item	2013		2012		Income Statement Line Item	2013		2012		2013		2012
Interest rate contracts	Other, net expenses	$	(104)	$	(83)	Other, net expenses	$	110	$	69	$	6	$	(14)
Total return contract	Other non-interest revenues		4		(32)	Other non-interest revenues		(4)		32		―		―

Derivative instruments gain loss recognized in income

The following table summarizes the impact on pretax earnings of derivatives not designated as hedges, as reported on the Consolidated Statements of Income for thethree months ended March 31:

	Pretax gains (losses)
		Amount
Description (Millions)	Income Statement Line Item	2013		2012
Interest rate contracts	Other, net expenses	$	―	$	(1)
Foreign exchange contracts(a)	Other non-interest revenues		1		―
	Other, net expenses		170		(102)
Equity-linked contract	Other non-interest revenues		1		1
Total		$	172	$	(102)

• Foreign exchange contracts include embedded foreign currency derivatives. Gains (losses) on these embedded derivatives are included in other expenses.