Fair Value Option (Tables)

12 Months Ended

Dec. 31, 2024

The following tables provide information about the fair value carrying amount and the contractual principal outstanding of assets and liabilities accounted for under the fair value option at December 31, 2024 and 2023, and information about where changes in the fair value of assets and liabilities accounted for under the fair value option are included in the Consolidated Statement of Income for 2024, 2023 and 2022.



Fair Value Option Elections

	December 31, 2024						December 31, 2023
(Dollars in millions)	Fair Value Carrying Amount		Contractual Principal Outstanding		Fair Value Carrying Amount Less Unpaid Principal		Fair Value Carrying Amount		Contractual Principal Outstanding		Fair Value Carrying Amount Less Unpaid Principal
Federal funds sold and securities borrowed or purchased under agreements to resell	$	144,501	$	144,449	$	52	$	133,053	$	133,001	$	52
Loans reported as trading account assets (1)	11,615		24,461		(12,846)		8,377		15,580		(7,203)
Trading inventory – other	15,369		n/a		n/a		25,282		n/a		n/a
Consumer and commercial loans	4,249		4,292		(43)		3,569		3,618		(49)
Loans held-for-sale (1)	2,214		2,824		(610)		2,059		2,873		(814)

Other assets	2,732		n/a		n/a		1,986		n/a		n/a
Long-term deposits	310		386		(76)		284		267		17
Federal funds purchased and securities loaned or sold under agreements to repurchase	192,859		192,877		(18)		178,609		178,634		(25)
Short-term borrowings	6,245		6,247		(2)		4,690		4,694		(4)
Unfunded loan commitments	144		n/a		n/a		67		n/a		n/a
Accrued expenses and other liabilities	2,642		2,414		228		1,341		1,347		(6)
Long-term debt	50,005		54,257		(4,252)		42,809		46,707		(3,898)

(1)A significant portion of the loans reported as trading account assets and LHFS are distressed loans that were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding.

n/a = not applicable



Gains (Losses) Related to Assets and Liabilities Accounted for Under the Fair Value Option



	Market making and similar activities		Other Income		Total
(Dollars in millions)	2024
Federal funds sold and securities borrowed or purchased under agreements to resell	$	327	$	(8)	$	319
Loans reported as trading account assets	(30)		40		10
Trading inventory – other (1)	2,965		—		2,965
Consumer and commercial loans	93		20		113
Loans held-for-sale (2)	—		(30)		(30)




Short-term borrowings	199		—		199
Unfunded loan commitments	—		(13)		(13)
Accrued expenses and other liabilities	378		—		378
Long-term debt (3)	582		(32)		550
Other (4)	(286)		(21)		(307)
Total	$	4,228	$	(44)	$	4,184

	2023
Federal funds sold and securities borrowed or purchased under agreements to resell	$	74	$	(14)	$	60
Loans reported as trading account assets	251		—		251
Trading inventory – other (1)	5,121		—		5,121
Consumer and commercial loans	(174)		67		(107)
Loans held-for-sale (2)	—		22		22




Short-term borrowings	7		—		7
Unfunded loan commitments	(1)		39		38
Accrued expenses and other liabilities	609		—		609
Long-term debt (3)	(1,143)		(35)		(1,178)
Other (4)	19		(9)		10
Total	$	4,763	$	70	$	4,833


	2022
Federal funds sold and securities borrowed or purchased under agreements to resell	$	(153)	$	10	$	(143)
Loans reported as trading account assets	(164)		—		(164)
Trading inventory – other (1)	(1,159)		—		(1,159)
Consumer and commercial loans	(58)		(27)		(85)
Loans held-for-sale (2)	—		(304)		(304)




Short-term borrowings	639		—		639
Unfunded loan commitments	—		8		8
Accrued expenses and other liabilities	11		—		11
Long-term debt (3)	4,359		(46)		4,313
Other (4)	227		20		247
Total	$	3,702	$	(339)	$	3,363

(1) The gains (losses) in market making and similar activities are primarily offset by (losses) gains on trading liabilities that hedge these assets.

(2) Includes the value of IRLCs on funded loans, including those sold during the period.

(3) The net gains (losses) in market making and similar activities relate to the embedded derivatives in structured liabilities and are typically offset by (losses) gains on derivatives and securities that hedge these liabilities. For the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in accumulated OCI, see Note 14 – Accumulated Other Comprehensive Income (Loss). For more information on how the Corporation’s own credit spread is determined, see Note 20 – Fair Value Measurements.

(4) Includes gains (losses) on other assets, long-term deposits and federal funds purchased and securities loaned or sold under agreements to repurchase.



Gains (Losses) Related to Borrower-specific Credit Risk for Assets and Liabilities Accounted for Under the Fair Value Option


(Dollars in millions)	2024		2023		2022
Loans reported as trading account assets	$	(38)	$	(3)	$	(950)
Consumer and commercial loans	18		44		(51)
Loans held-for-sale	(8)		(15)		(23)
Unfunded loan commitments	(13)		39		8
Long-term debt	(3)		—		—