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DERIVATIVES (Tables)
 6 Months Ended
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of derivative instruments in consolidated balance sheets
The following table presents derivative instruments included in the Consolidated Balance Sheets:
June 30, 2021December 31, 2020
(in millions)
Notional Amount(1)
Derivative AssetsDerivative Liabilities
Notional Amount(1)
Derivative AssetsDerivative Liabilities
Derivatives designated as hedging instruments:
Interest rate contracts$25,300 $16 $7 $22,300 $1 $3 
Derivatives not designated as hedging instruments:
Interest rate contracts144,982 1,118 190 149,021 1,565 214 
Foreign exchange contracts20,289 273 209 16,789 320 291 
Commodities contracts431 424 427 246 62 61 
TBA contracts10,924 5 28 11,149 8 65 
Other contracts6,717 89 — 8,051 197 — 
Total derivatives not designated as hedging instruments1,909 854 2,152 631 
Gross derivative fair values1,925 861 2,153 634 
Less: Gross amounts offset in the Consolidated Balance Sheets (2)
(207)(207)(182)(182)
Less: Cash collateral applied (2)
(63)(510)(56)(324)
Total net derivative fair values presented in the Consolidated Balance Sheets$1,655 $144 $1,915 $128 
(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 change in fair value of interest rate contracts designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Consolidated Statements of Operations:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2021202020212020Affected Line Item in the Consolidated Statements of Operations
Interest rate swaps hedging borrowed funds($10)$5 ($38)$98 Interest expense - long-term borrowed funds
Hedged long-term debt attributable to the risk being hedged9 (3)37 (95)Interest expense - long-term borrowed funds
Interest rate swaps hedging fixed rate loans— — — 17 Interest and fees on loans and leases
Hedged fixed rate loans attributable to the risk being hedged— — — (17)Interest and fees on loans and leases
Interest rate swaps hedging debt securities available for sale4 (14)32 (121)Interest income - investment securities
Hedged debt securities available for sale attributable to risk being hedged(4)14 (32)121 Interest income - investment securities

The following table reflects amounts recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:    
June 30, 2021December 31, 2020
(in millions)
Debt securities available for sale(1)
Long-term borrowed funds
Debt securities available for sale(1)
Long-term borrowed funds
Carrying amount of hedged assets$8,287 $— $10,869 $— 
Carrying amount of hedged liabilities— 2,272 — 3,307 
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items64 76 96 112 
(1) The Company designated $2.0 billion as the hedged amount (from a closed portfolio of prepayable financial assets with an amortized cost basis of $8.3 billion and $10.9 billion as of June 30, 2021 and December 31, 2020, respectively) in a last-of-layer hedging relationship, which commenced in the third quarter of 2019.
Schedule of effect of cash flow hedges on net income and stockholders' equity The following table presents the pre-tax net gains (losses) recorded in the Consolidated Statements of Operations and in the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2021202020212020
Amount of pre-tax net gains (losses) recognized in OCI$62 ($11)$34 $118 
Amount of pre-tax net gains (losses) reclassified from OCI into interest income49 55 95 60 
Amount of pre-tax net gains (losses) reclassified from OCI into interest expense(12)(10)(24)(11)
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
Three Months Ended June 30,Six Months Ended June 30,Affected Line Item in the Consolidated Statements of Operations
(in millions)2021202020212020
Economic hedge type:
Customer interest rate contracts$133 $180 ($215)$1,269 Foreign exchange and interest rate products
Derivatives hedging interest rate risk(129)(161)227 (1,246)Foreign exchange and interest rate products
Customer foreign exchange contracts19 23 (97)(7)Foreign exchange and interest rate products
Derivatives hedging foreign exchange risk(11)(50)139 49 Foreign exchange and interest rate products
Customer commodity contracts319 7 413 (56)Foreign exchange and interest rate products
Derivatives hedging commodity price risk(317)(7)(409)57 Foreign exchange and interest rate products
Residential loan commitments67 14 (171)154 Mortgage banking fees
Derivatives hedging residential loan commitments and mortgage loans held for sale, at fair value(141)110 134 (19)Mortgage banking fees
Derivative contracts used to hedge residential MSRs53 62 (129)333 Mortgage banking fees
Total($7)$178 ($108)$534