Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table presents the fair value of derivative contracts by major product type on a gross basis. Gross fair values exclude the effects of both counterparty netting as well as collateral, and therefore are not representative of our exposure. The table below presents the amounts of counterparty netting and cash collateral that have been offset in the consolidated balance sheet, as well as cash and securities collateral posted and received under enforceable credit support agreements that do not meet the criteria for netting. Derivative assets and liabilities which are not subject to an enforceable master netting agreement, or are subject to a netting agreement that we have not yet determined to be enforceable, have not been netted in the table below. Where we have received or posted collateral under credit support agreements, but have not yet determined such agreements are enforceable, the related collateral also has not been netted in the table below.

	December 31, 2013				December 31, 2012
	Derivative assets		Derivative liabilities		Derivative assets		Derivative liabilities
	(in millions)
Derivatives accounted for as fair value hedges(1)
OTC-cleared(2)	$	75	$	20	$	—	$	15
Bilateral OTC(2)	203		192		10		860
Interest rate contracts	278		212		10		875
Derivatives accounted for as cash flow hedges(1)
Bilateral OTC(2)	—		3		33		9
Foreign exchange contracts	—		3		33		9
OTC-cleared(2)	16		—		—		—
Bilateral OTC(2)	16		62		14		227
Interest rate contracts	32		62		14		227
Total derivatives accounted for as hedges	310		277		57		1,111
Trading derivatives not accounted for as hedges(3)
Exchange-traded(2)	82		32		99		82
OTC-cleared(2)	24,218		25,468		17,204		16,663
Bilateral OTC(2)	31,097		30,451		48,480		48,623
Interest rate contracts	55,397		55,951		65,783		65,368
Exchange-traded(2)	7		16		4		25
Bilateral OTC(2)	15,422		14,565		13,756		13,537
Foreign exchange contracts	15,429		14,581		13,760		13,562
Equity contract - bilateral OTC(2)	1,413		1,412		1,287		1,291
Exchange-traded(2)	181		6		135		19
Bilateral OTC(2)	1,402		815		656		719
Precious metals contracts	1,583		821		791		738
OTC-cleared(2)	576		604		511		437
Bilateral OTC(2)	4,079		4,104		6,617		6,910
Credit contracts	4,655		4,708		7,128		7,347
Other derivatives not accounted for as hedges(1)
Interest rate contracts - bilateral OTC(2)	470		91		901		97
Foreign exchange contracts - bilateral OTC(2)	—		44		52		17
Equity contracts - bilateral OTC(2)	789		148		472		126
Precious metals contracts - bilateral OTC(2)	—		36		—		—
Credit contracts - bilateral OTC(2)	9		11		1		4
Total derivatives	80,055		78,080		90,232		89,661
Less: Gross amounts of receivable / payable subject to enforceable master netting agreements(4)(6)	68,616		68,616		78,244		78,244
Less: Gross amounts of cash collateral received / posted subject to enforceable master netting agreements(5)(6)	3,870		2,116		5,123		1,336
Net amounts of derivative assets / liabilities presented in the balance sheet	7,569		7,348		6,865		10,081
Less: Gross amounts of financial instrument collateral received / posted subject to enforceable master netting agreements but not offset in the consolidated balance sheet	1,641		3,094		627		4,887
Net amounts of derivative assets / liabilities	$	5,928	$	4,254	$	6,238	$	5,194

⁽¹⁾  Derivative assets/liabilities related to cash flow hedges, fair value hedges and derivative instruments held for purposes other than for trading are recorded in other assets / interest, taxes and other liabilities on the consolidated balance sheet.

⁽²⁾  Over-the-counter (OTC) derivatives include derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. The credit risk associated with bilateral OTC derivatives is managed through master netting agreements and obtaining collateral. OTC-cleared derivatives are executed bilaterally in the OTC market but then novated to a central clearing counterparty, whereby the central clearing counterparty becomes the counterparty to both of the original counterparties. Exchange traded derivatives are executed directly on an organized exchange that provides pre-trade price transparency. Credit risk is minimized for OTC-cleared derivatives and exchange traded derivatives through daily margining required by central clearing counterparties.

⁽³⁾  Trading related derivative assets/liabilities are recorded in trading assets/trading liabilities on the consolidated balance sheet.

⁽⁴⁾  Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable netting agreements.

⁽⁵⁾  Represents the netting of cash collateral posted and received by counterparty under enforceable credit support agreements.

⁽⁶⁾  Netting is performed at a counterparty level in cases where enforceable master netting and credit support agreements are in place, regardless of the type of derivative instrument. Therefore, we have not attempted to allocate netting to the different types of derivative instruments shown in the table above.

Derivative Instruments, Gain (Loss)

The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments in fair value hedges and the hedged items in fair value hedges and their location on the consolidated statement of income (loss).

	Gain (Loss) on Derivative						Gain (Loss) on Hedged Items						Net Ineffective Gain (Loss) Recognized
	Interest Income (Expense)			Other Income			Interest Income (Expense)			Other Income			Other Income
	(in millions)
Year Ended December 31, 2013
Interest rate contracts/AFS Securities	$	(202	)	$	821		$	427		$	(801	)	$	20
Interest rate contracts/commercial loans	—			(2		)	—			—			(2		)
Interest rate contracts/subordinated debt	16			—			(61		)	2			2
Total	$	(186	)	$	819		$	366		$	(799	)	$	20
Year Ended December 31, 2012
Interest rate contracts/AFS Securities	$	(204	)	$	(235	)	$	424		$	222		$	(13	)
Interest rate contracts/subordinated debt	14			9			(62		)	(8		)	1
Total	$	(190	)	$	(226	)	$	362		$	214		$	(12	)

The following table presents information on gains and losses on derivative instruments held for non-qualifying hedging activities and their locations on the consolidated statement of income (loss).

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives Year Ended December 31,
		2013			2012
	(in millions)
Interest rate contracts	Gain (loss) on instruments designated at fair value and related derivatives	$	(303	)	$	91
Interest rate contracts	Residential mortgage banking revenue	(5		)	4
Foreign exchange contracts	Gain (loss) on instruments designated at fair value and related derivatives	(70		)	95
Equity contracts	Gain (loss) on instruments designated at fair value and related derivatives	774			630
Credit contracts	Gain (loss) on instruments designated at fair value and related derivatives	2			1
Credit contracts	Other income	(7		)	(4		)
Total		$	391		$	817

Gains and Losses on Derivative Instruments Designated and Qualifying as Hedging Instruments in Cash Flow Hedges

The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments in cash flow hedges (including amounts recognized in accumulated other comprehensive income ("AOCI") from all terminated cash flow hedges) and their locations on the consolidated statement of income (loss).

	Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)				Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	Gain (Loss) Reclassed From AOCI into Income (Effective Portion)						Location of Gain (Loss) Recognized in Income on the Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Gain (Loss) Recognized in Income on the Derivative (Ineffective Portion)
	2013		2012			2013			2012				2013		2012
	(in millions)
Foreign exchange contracts	$	—	$	—	Interest income (expense)	$	—		$	—		Other income	$	—	$	—
Interest rate contracts	190		29		Interest income (expense)	(10		)	(17		)	Other income	—		—
Total	$	190	$	29		$	(10	)	$	(17	)		$	—	$	—

Gains and Losses on Derivative Instruments Held for other Purposes

The following table presents information on gains and losses on derivative instruments held for trading purposes and their locations on the consolidated statement of income (loss).

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives Year Ended December 31,
		2013			2012
		(in millions)
Interest rate contracts	Trading revenue	$	(348	)	$	(29	)
Interest rate contracts	Residential mortgage banking revenue	(61		)	26
Foreign exchange contracts	Trading revenue	655			649
Equity contracts	Trading revenue	5			57
Precious metals contracts	Trading revenue	24			115
Credit contracts	Trading revenue	83			(790		)
Total		$	358		$	28

Credit-Risk Related Contingent Features

The following tables summarize our obligation to post additional collateral (from the current collateral level) in certain hypothetical commercially reasonable downgrade scenarios. It is not appropriate to accumulate or extrapolate information presented in the tables below to determine our total obligation because the information presented to determine the obligation in hypothetical rating scenarios is not mutually exclusive.

Moody’s	Long-Term Ratings
Short-Term Ratings	A1		A2		A3
	(in millions)
P-1	$	—	$	18	$	130
P-2	2		18		130

S&P	Long-Term Ratings
Short-Term Ratings	AA-		A+		A
	(in millions)
A-1+	$	—	$	—	$	16
A-1	5		5		21

Notional Value of Derivative Contracts

The following table summarizes the notional values of derivative contracts.

At December 31,	2013		2012
	(in millions)
Interest rate:
Futures and forwards	$	175,468	$	313,935
Swaps	3,645,085		2,842,555
Options written	85,021		43,261
Options purchased	87,735		44,169
	3,993,309		3,243,920
Foreign Exchange:
Swaps, futures and forwards	804,278		743,678
Options written	82,817		54,891
Options purchased	84,835		55,477
Spot	52,193		56,326
	1,024,123		910,372
Commodities, equities and precious metals:
Swaps, futures and forwards	41,123		48,052
Options written	21,531		21,025
Options purchased	21,723		21,377
	84,377		90,454
Credit derivatives	367,443		484,932
Total	$	5,469,252	$	4,729,678