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DERIVATIVES (Tables)
 6 Months Ended
Jun. 30, 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:
 
June 30, 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

$12,690


$4


$1

 

$13,300


$—


$—

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate contracts
99,182

202

435

 
80,180

538

379

Foreign exchange contracts
10,320

143

126

 
9,882

148

149

Other contracts
1,343

8

6

 
1,039

7

5

Total derivatives not designated as hedging instruments
 
353

567

 
 
693

533

Gross derivative fair values
 
357

568

 
 
693

533

Less: Gross amounts offset in the Consolidated Balance Sheets (2)
 
(93
)
(93
)
 
 
(72
)
(72
)
Less: Cash collateral applied (2)
 
(40
)
(50
)
 
 
(4
)
(151
)
Total net derivative fair values presented in the Consolidated Balance Sheets
 

$224


$425

 
 

$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 June 30, 2018
 
Three Months Ended June 30, 2017
(in millions)
Derivative
Hedged Item
Hedge Ineffectiveness
 
Derivative
Hedged Item
Hedge Ineffectiveness
Hedges of interest rate risk on borrowings using interest rate swaps

$12


($13
)

($1
)
 

$16


($15
)

$1

 
Amounts Recognized in Other Income for the
 
Six Months Ended June 30, 2018
 
Six Months Ended June 30, 2017
(in millions)
Derivative
Hedged Item
Hedge Ineffectiveness
 
Derivative
Hedged Item
Hedge Ineffectiveness
Hedges of interest rate risk on borrowings using interest rate swaps

($26
)

$24


($2
)
 

$10


($9
)

$1
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 June 30,
 
Six Months Ended June 30,
(in millions)
2018

 
2017

 
2018

 
2017

Effective portion of (loss) gain recognized in OCI (1)

($17
)
 

$42

 

($87
)
 

$37

Amounts reclassified from OCI to interest income (2)
(13
)
 
8

 
(19
)
 
20

Amounts reclassified from OCI to interest expense (2)
4

 
(1
)
 
8

 
(3
)
(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 (i) the amortization of effective gains and losses associated with the Company’s terminated cash flow hedges and (ii) the current reporting period’s interest settlements realized on the Company’s active cash flow hedges. Both (i) and (ii) 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 June 30,
 
Six Months Ended June 30,
(in millions)
2018

 
2017

 
2018

 
2017

Customer derivative contracts
 
 
 
 
 
 
 
Customer interest rate contracts (1)

($75
)
 

$83

 

($279
)
 

$80

Customer foreign exchange contracts (1)
(68
)
 
78

 
(57
)
 
96

Residential loan commitments (2)
1

 
(2
)
 
—

 
3

Economic hedges
 
 
 
 
 
 
 
Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1)
90

 
(71
)
 
306

 
(56
)
Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (1)
92

 
(71
)
 
75

 
(85
)
Forward sale contracts (2)
(2
)
 
5

 
(2
)
 
(6
)
Total

$38

 

$22

 

$43

 

$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.