DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments in consolidated balance sheets

The following table identifies derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities:



	September 30, 2014								December 31, 2013
(in millions)	Notional Amount⁽¹⁾		Derivative Assets			Derivative Liabilities			Notional Amount⁽¹⁾		Derivative Assets			Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate swaps		$5,000		$22			$203			$5,500		$23			$412
Derivatives not designated as hedging instruments:
Interest rate swaps	28,940		541			452			29,355		654			558
Foreign exchange contracts	8,278		137			132			7,771		94			87
Other contracts	686		6			10			569		7			10
Total derivatives not designated as hedging instruments			684			594					755			655
Gross derivative fair values			706			797					778			1,067
Less: Gross amounts offset in the Consolidated Balance Sheets⁽²⁾			(159		)	(159		)			(128		)	(128		)
Total net derivative fair values presented in the Consolidated Balance Sheets⁽³⁾				$547			$638					$650			$939

⁽¹⁾The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. For interest rate derivatives, the notional amount is typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they tend to greatly overstate the true economic risk of these contracts.

⁽²⁾Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions.

⁽³⁾The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 2 "Securities" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information for further information

Schedule of effect of cash flow hedges on net income and stockholders' equity

The following table summarizes certain information related to the Company’s cash flow hedges:



The Effect of Cash Flow Hedges on Net Income and Stockholders' Equity
	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2014			2013			2014			2013
Effective portion of gain (loss) recognized in OCI⁽¹⁾		$27			$2			$217			($191	)
Amounts reclassified from OCI to interest income⁽²⁾	18			18			54			38
Amounts reclassified from OCI to interest expense⁽²⁾	(23		)	(48		)	(79		)	(160		)
Amounts reclassified from OCI to other income⁽³⁾	—			—			—			(2		)

⁽¹⁾The cumulative effective gains and losses on the Company's cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets.

⁽²⁾This amount includes both (a) the amortization of effective gains and losses associated with the Company's terminated cash flow hedges and (b) the current reporting period's interest settlements realized on the Company's active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item.

⁽³⁾This amount represents hedging gains and losses that have been immediately reclassified from accumulated other comprehensive loss based on the probability that the hedged forecasted transactions would not occur by the originally specified time period. This amount is reflected in the other income line item on the Consolidated Statements of Operations.

Schedule of effect of derivative Instruments on net income

The following table summarizes certain information related to the Company’s economic hedges:



The Effect of Customer Derivatives and Economic Hedges on Net Income
	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2014			2013			2014			2013
Customer derivative contracts
Customer interest rate contracts⁽¹⁾		$2			$55			$151			($95	)
Customer foreign exchange contracts⁽¹⁾	(60		)	32			(54		)	22
Residential loan commitments⁽³⁾	(4		)	48			4			8

Economic hedges
Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts⁽¹⁾	5			(45		)	(130		)	133
Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts⁽²⁾	59			(33		)	52			(20		)
Forward sale contracts⁽³⁾	2			(21		)	(2		)	19
Total		$4			$36			$21			$67

⁽¹⁾Reported in other income on the Consolidated Statements of Operations.

⁽²⁾Reported in foreign exchange and trade finance fees on the Consolidated Statements of Operations.

⁽³⁾Reported in mortgage banking fees on the Consolidated Statements of Operations.