DERIVATIVES (Tables)

12 Months Ended

Dec. 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:



	December 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		$13,300		$—			$—			$13,350		$52			$193
Derivatives not designated as hedging instruments:
Interest rate contracts	80,180		538			379			54,656		557			452
Foreign exchange contracts	9,882		148			149			8,039		134			126
Other contracts	1,039		7			5			1,498		16			7
Total derivatives not designated as hedging instruments			693			533					707			585
Gross derivative fair values			693			533					759			778
Less: Gross amounts offset in the Consolidated Balance Sheets ⁽³⁾			(72		)	(72		)			(106		)	(106		)
Less: Cash collateral applied ⁽³⁾			(4		)	(151		)			(26		)	(13		)
Total net derivative fair values presented in the Consolidated Balance Sheets				$617			$310					$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. For interest rate contracts, the notional amount is 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 changes in the treatment of variation margin on certain centrally cleared derivatives.

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

Schedule of fair value hedges

The following table presents the effect on other income of fair value hedges described above, in millions:



Amounts Recognized in Other Income for the Year Ended December 31,
2017							2016								2015
Derivative			Hedged Item		Hedge Ineffectiveness		Derivative			Hedged Item		Hedge Ineffectiveness			Derivative			Hedged Item		Hedge Ineffectiveness
	($26	)		$27		$1		($6	)		$5		($1	)		($2	)		$2		$—

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 Year Ended December 31,
(in millions)	2017			2016			2015
Effective portion of (loss) gain recognized in OCI ⁽¹⁾		($23	)		($100	)		$150
Amounts reclassified from OCI to interest income ⁽²⁾	25			90			82
Amounts reclassified from OCI to interest expense ⁽²⁾	—			(27		)	(59		)
Amounts reclassified from OCI to other income ⁽³⁾	—			(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 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 income or expense of the underlying hedged item.

⁽³⁾This includes gains and losses attributable to previously hedged cash flows where the likelihood occurrence of those cash flows 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 noninterest income:



	Amounts Recognized in Noninterest Income for the Year Ended December 31,
(in millions)	2017			2016			2015
Customer derivative contracts
Customer interest rate contracts ⁽¹⁾		$5			($23	)		$140
Customer foreign exchange contracts ⁽¹⁾	172			(81		)	(18		)
Residential loan commitments ⁽²⁾	2			(2		)	(4		)
Economic hedges
Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts ⁽¹⁾	46			70			(106		)
Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts ⁽¹⁾	(151		)	95			19
Forward sale contracts ⁽²⁾	(8		)	6			1
Total		$66			$65			$32

⁽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.