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DERIVATIVES (Tables)
 9 Months Ended
Sep. 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:
 
September 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

$10,050


$5


$—

 

$13,300


$—


$—

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate contracts
111,837

160

469

 
80,180

538

379

Foreign exchange contracts
10,346

116

105

 
9,882

148

149

Other contracts
5,201

19

1

 
1,039

7

5

Total derivatives not designated as hedging instruments
 
295

575

 
 
693

533

Gross derivative fair values
 
300

575

 
 
693

533

Less: Gross amounts offset in the Consolidated Balance Sheets (2)
 
(85
)
(85
)
 
 
(72
)
(72
)
Less: Cash collateral applied (2)
 
(42
)
(41
)
 
 
(4
)
(151
)
Total net derivative fair values presented in the Consolidated Balance Sheets
 

$173


$449

 
 

$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 September 30, 2018
 
Three Months Ended September 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

($6
)

$7


$1

 

($5
)

$4


($1
)
 
Amounts Recognized in Other Income for the
 
Nine Months Ended September 30, 2018
 
Nine Months Ended September 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

($32
)

$31


($1
)
 

$5


($5
)

$—
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)
2018

 
2017

 
2018

 
2017

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

($35
)
 

($2
)
 

($122
)
 

$35

Amount of net (loss) gain reclassified from OCI to interest income (2)
(17
)
 
3

 
(36
)
 
23

Amount of net gain (loss) reclassified from OCI to interest expense (2)
3

 
1

 
11

 
(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 (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 economic hedges on noninterest income:
 
 
Amounts Recognized in
Noninterest Income for the
 
Affected Line Item in the Consolidated Statements of Operations
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in millions)
2018

 
2017

 
2018

 
2017

Economic Hedge Type
 
 
 
 
 
 
 
 
Customer interest rate contracts
Foreign exchange and interest rate products

($84
)
 

$12

 

($363
)
 

$92

Customer foreign exchange contracts
Foreign exchange and interest rate products
30

 
61

 
(27
)
 
157

Derivatives transactions to hedge interest rate risk
Foreign exchange and interest rate products
97

 
(2
)
 
403

 
(58
)
Derivatives transactions to hedge foreign exchange risk
Foreign exchange and interest rate products
24

 
(55
)
 
99

 
(140
)
Residential loan commitments
Mortgage banking fees
6

 
—

 
6

 
3

Forward sale contracts
Mortgage banking fees
(13
)
 
(1
)
 
(15
)
 
(7
)
Interest rate derivative contracts used to hedge residential MSRs
Mortgage banking fees
(3
)
 
—

 
(3
)
 
—

Total
 

$57

 

$15

 

$100

 

$47