DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 2015

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, 2015								December 31, 2014
(in millions)	Notional Amount ⁽¹⁾		Derivative Assets			Derivative Liabilities			Notional Amount ⁽¹⁾		Derivative Assets			Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate swaps		$11,000		$173			$68			$5,750		$24			$99
Derivatives not designated as hedging instruments:
Interest rate swaps	31,628		664			580			31,848		589			501
Foreign exchange contracts	7,783		163			158			8,359		170			164
Other contracts	1,081		10			10			730		7			9
Total derivatives not designated as hedging instruments			837			748					766			674
Gross derivative fair values			1,010			816					790			773
Less: Gross amounts offset in the Consolidated Balance Sheets ⁽²⁾			(172		)	(172		)			(161		)	(161		)
Less: Cash collateral applied ⁽²⁾			—			(3		)			—			—
Total net derivative fair values presented in the Consolidated Balance Sheets ⁽³⁾				$838			$641					$629			$612

⁽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” for further information

Schedule of fair value hedges

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



	The Effect of Fair Value Hedges on Net Income
	Amounts Recognized in Other Income for the
	Three Months Ended September 30, 2015							Nine Months Ended September 30, 2015
(in millions)	Derivative		Hedged Item			Hedge Ineffectiveness		Derivative		Hedged Item			Hedge Ineffectiveness
Hedges of interest rate risk on borrowings using interest rate swaps		$16		($16	)		$—		$22		($22	)		$—

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
	Amounts Recognized for the
	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2015			2014			2015			2014
Effective portion of gain recognized in OCI ⁽¹⁾		$78			$27			$174			$217
Amounts reclassified from OCI to interest income ⁽²⁾	22			18			57			54
Amounts reclassified from OCI to interest expense ⁽²⁾	(15		)	(23		)	(44		)	(79		)

⁽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.

Schedule of effect of derivative Instruments on net income

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



The Effect of Customer Derivatives and Economic Hedges on Net Income
	Amounts Recognized in Noninterest Income for the
	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2015			2014			2015			2014
Customer derivative contracts
Customer interest rate contracts ⁽¹⁾		$85			$2			$149			$151
Customer foreign exchange contracts ⁽¹⁾	(4		)	(60		)	(21		)	(54		)
Residential loan commitments ⁽²⁾	9			(4		)	2			4
Economic hedges
Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts ⁽¹⁾	(75		)	5			(126		)	(130		)
Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts ⁽³⁾	5			59			21			52
Forward sale contracts ⁽²⁾	(4		)	2			(2		)	(2		)
Total		$16			$4			$23			$21

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

⁽²⁾Reported in mortgage banking fees on the Consolidated Statements of Operations.

⁽³⁾Reported in foreign exchange and trade finance fees on the Consolidated Statements of Operations.