DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments in consolidated balance sheets

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



	September 30, 2016								December 31, 2015
(in millions)	Notional Amount ⁽¹⁾		Derivative Assets			Derivative Liabilities			Notional Amount ⁽¹⁾		Derivative Assets			Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate contracts		$17,350		$347			$233			$16,750		$96			$50
Derivatives not designated as hedging instruments:
Interest rate contracts	51,847		709			621			33,719		540			455
Foreign exchange contracts	8,296		118			113			8,366		163			156
Other contracts	1,845		18			9			981		8			5
Total derivatives not designated as hedging instruments			845			743					711			616
Gross derivative fair values			1,192			976					807			666
Less: Gross amounts offset in the Consolidated Balance Sheets ⁽²⁾			(89		)	(89		)			(178		)	(178		)
Less: Cash collateral applied ⁽²⁾			(1		)	(47		)			(4		)	(3		)
Total net derivative fair values presented in the Consolidated Balance Sheets ⁽³⁾				$1,102			$840					$625			$485

⁽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. Notional amounts are typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they do not measure 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 tables present the effect of fair value hedges on net income:



	Amounts Recognized in Other Income for the
	Three Months Ended September 30, 2016								Three 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		($27	)		$25		($2	)		$16		($16	)		$—



	Amounts Recognized in Other Income for the
	Nine Months Ended September 30, 2016								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		$57		($58	)		($1	)		$22		($22	)		$—

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

The following table presents 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)	2016			2015			2016			2015
Effective portion of (loss) gain recognized in OCI ⁽¹⁾		($1	)		$78			$74			$174
Amounts reclassified from OCI to interest income ⁽²⁾	23			22			66			57
Amounts reclassified from OCI to interest expense ⁽²⁾	(8		)	(15		)	(24		)	(44		)
Amounts reclassified from OCI to other income ⁽³⁾	(5		)	—			(5		)	—

⁽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 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 includes gains and losses attributable to previously hedged cash flow where the likelihood of occurrence is no longer ‘probable’.

Schedule of effect of derivative Instruments on net income

The following table presents 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)	2016			2015			2016			2015
Customer derivative contracts
Customer interest rate contracts ⁽¹⁾		($32	)		$85			$63			$149
Customer foreign exchange contracts ⁽¹⁾	17			(4		)	45			(21		)
Residential loan commitments ⁽²⁾	1			9			8			2
Economic hedges
Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts ⁽¹⁾	45			(75		)	(31		)	(126		)
Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts ⁽³⁾	(19		)	5			(46		)	21
Forward sale contracts ⁽²⁾	4			(4		)	(6		)	(2		)
Total		$16			$16			$33			$23

⁽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 letter of credit fees on the Consolidated Statements of Operations.