DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2017

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:



	March 31, 2017								December 31, 2016
(in millions)	Notional Amount⁽¹⁾		Derivative Assets⁽²⁾			Derivative Liabilities⁽²⁾			Notional Amount⁽¹⁾		Derivative Assets			Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate contracts		$16,050		$9			$14			$13,350		$52			$193
Derivatives not designated as hedging instruments:
Interest rate contracts	60,612		341			318			54,656		557			452
Foreign exchange contracts	8,301		95			85			8,039		134			126
Other contracts	1,292		11			8			1,498		16			7
Total derivatives not designated as hedging instruments			447			411					707			585
Gross derivative fair values			456			425					759			778
Less: Gross amounts offset in the Consolidated Balance Sheets ⁽³⁾			(89		)	(89		)			(106		)	(106		)
Less: Cash collateral applied ⁽³⁾			(10		)	(16		)			(26		)	(13		)
Total net derivative fair values presented in the Consolidated Balance Sheets				$357			$320					$627			$659

⁽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 reflect variation margin payments that are characterized as settlement per the rules of the Company’s central counterparties effective for the quarter ended March 31, 2017.

⁽³⁾Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions.

Schedule of fair value hedges

The following table presents the effect of fair value hedges on other income:



	Amounts Recognized in Other Income for the
	Three Months Ended March 31, 2017							Three Months Ended March 31, 2016
(in millions)	Derivative			Hedged Item		Hedge Ineffectiveness		Derivative		Hedged Item			Hedge Ineffectiveness
Hedges of interest rate risk on borrowings using interest rate swaps		($6	)		$6		$—		$52		($52	)		$—

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 March 31,
(in millions)	2017			2016
Effective portion of (loss) gain recognized in OCI ⁽¹⁾		($5	)		$54
Amounts reclassified from OCI to interest income ⁽²⁾	12			22
Amounts reclassified from OCI to interest expense ⁽²⁾	(2		)	(8		)

⁽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 presents the effect of customer derivatives and economic hedges on noninterest income:



	Amounts Recognized in Noninterest Income for the Three Months Ended March 31,
(in millions)	2017			2016
Customer derivative contracts
Customer interest rate contracts ⁽¹⁾		($3	)		$97
Customer foreign exchange contracts ⁽¹⁾	18			51
Residential loan commitments ⁽²⁾	5			4
Economic hedges
Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts ⁽¹⁾	15			(91		)
Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts ⁽¹⁾	(14		)	(50		)
Forward sale contracts ⁽²⁾	(11		)	(5		)
Total		$10			$6

⁽¹⁾Reported in foreign exchange and interest rate products on the Consolidated Statements of Operations.

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