DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2018

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, 2018								December 31, 2017
(in millions)	Notional Amount⁽¹⁾		Derivative Assets			Derivative Liabilities			Notional Amount⁽¹⁾		Derivative Assets			Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate contracts		$11,550		$—			$—			$13,300		$—			$—
Derivatives not designated as hedging instruments:
Interest rate contracts	88,089		204			377			80,180		538			379
Foreign exchange contracts	9,525		158			150			9,882		148			149
Other contracts	1,142		7			5			1,039		7			5
Total derivatives not designated as hedging instruments			369			532					693			533
Gross derivative fair values			369			532					693			533
Less: Gross amounts offset in the Consolidated Balance Sheets ⁽²⁾			(83		)	(83		)			(72		)	(72		)
Less: Cash collateral applied ⁽²⁾			(12		)	(118		)			(4		)	(151		)
Total net derivative fair values presented in the Consolidated Balance Sheets				$274			$331					$617			$310

⁽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 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:



	Amounts Recognized in Other Income for the
	Three Months Ended March 31, 2018								Three Months Ended March 31, 2017
(in millions)	Derivative			Hedged Item		Hedge Ineffectiveness			Derivative			Hedged Item		Hedge Ineffectiveness
Hedges of interest rate risk on borrowings using interest rate swaps		($38	)		$37		($1	)		($6	)		$6		$—

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)	2018			2017
Effective portion of loss recognized in OCI ⁽¹⁾		($70	)		($5	)
Amounts reclassified from OCI to interest income ⁽²⁾	(6		)	12
Amounts reclassified from OCI to interest expense ⁽²⁾	4			(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 income or 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)	2018			2017
Customer derivative contracts
Customer interest rate contracts ⁽¹⁾		($204	)		($3	)
Customer foreign exchange contracts ⁽¹⁾	11			18
Residential loan commitments ⁽²⁾	(1		)	5
Economic hedges
Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts ⁽¹⁾	216			15
Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts ⁽¹⁾	(17		)	(14		)
Forward sale contracts ⁽²⁾	—			(11		)
Total		$5			$10

⁽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.