DERIVATIVES (Tables)

12 Months Ended

Dec. 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:



	December 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		$12,050		$5			$—			$13,300		$—			$—
Derivatives not designated as hedging instruments:
Interest rate contracts	117,076		301			277			80,180		538			379
Foreign exchange contracts	9,866		129			113			9,882		148			149
Other contracts	3,555		14			25			1,039		7			5
Total derivatives not designated as hedging instruments			444			415					693			533
Gross derivative fair values			449			415					693			533
Less: Gross amounts offset in the Consolidated Balance Sheets ⁽²⁾			(87		)	(87		)			(72		)	(72		)
Less: Cash collateral applied ⁽²⁾			(45		)	(36		)			(4		)	(151		)
Total net derivative fair values presented in the Consolidated Balance Sheets				$317			$292					$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 as well as collateral paid and received.

Schedule of fair value hedges

The following table presents the effect on other income of fair value hedges, specifically hedges of interest rate risk on borrowings using interest rate swaps, described above, in millions:



Amounts Recognized in Other Income for the Year Ended December 31,
2018								2017							2016
Derivative		Hedged Item			Hedge Ineffectiveness			Derivative			Hedged Item		Hedge Ineffectiveness		Derivative			Hedged Item		Hedge Ineffectiveness
	$8		($9	)		($1	)		($26	)		$27		$1		($6	)		$5		($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 Year Ended December 31,
(in millions)	2018			2017			2016
Effective portion of loss recognized in OCI ⁽¹⁾		($44	)		($23	)		($100	)
Amount of net (loss) gain reclassified from OCI to interest income ⁽²⁾	(55		)	25			90
Amount of net gain (loss) reclassified from OCI to interest expense ⁽²⁾	12			—			(27		)
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 (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.

⁽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 economic hedges on noninterest income:



	Affected Line Item in the Consolidated Statements of Operations	Amounts Recognized in Noninterest Income for the Year Ended December 31,
(in millions)		2018			2017			2016
Economic Hedge Type
Customer interest rate contracts	Foreign exchange and interest rate products		$5			$5			($23	)
Customer foreign exchange contracts	Foreign exchange and interest rate products	(54		)	172			(81		)
Derivatives transactions to hedge interest rate risk	Foreign exchange and interest rate products	43			46			70
Derivatives transactions to hedge foreign exchange risk	Foreign exchange and interest rate products	158			(151		)	95
Residential loan commitments	Mortgage banking fees	(3		)	2			(2		)
Forward sale contracts	Mortgage banking fees	21			(8		)	6
Interest rate derivative contracts used to hedge residential MSRs	Mortgage banking fees	35			—			—
Total			$205			$66			$65