Fair Value Option (Tables)

12 Months Ended

Dec. 31, 2025

Summary of Fair Value and Unpaid Principal Balance for Items Accounted for Under FVO

The following table summarizes the fair value and unpaid principal balance for items we account for under FVO:


	Fair Value		Unpaid Principal Balance		Fair Value Over (Under) Unpaid Principal Balance
	(in millions)
At December 31, 2025

Commercial loans held for sale	$	626	$	721	$	(95)



Fixed rate long-term debt	831		791		40
Hybrid instruments:
Structured deposits	3,570		3,260		310
Structured notes	7,435		7,093		342

At December 31, 2024

Commercial loans held for sale	$	395	$	399	$	(4)



Fixed rate long-term debt	851		847		4
Hybrid instruments:
Structured deposits	3,956		3,892		64
Structured notes	7,044		6,888		156

Components of Gain on Instruments at Fair Value and Related Derivatives

The following table summarizes the components of gain (loss) on instruments designated at fair value and related derivatives reflected in the consolidated statement of income:


	Loans Held for Sale		Long-Term Debt		Hybrid Instruments		Total
	(in millions)
















Year Ended December 31, 2025
Interest rate and other components(1)	$	—	$	(15)	$	(824)	$	(839)
Credit risk component(2)(3)	(67)		—		—		(67)
Total mark-to-market on financial instruments designated at fair value	(67)		(15)		(824)		(906)
Gain (loss) on related derivatives	—		22		829		851

Gain (loss) on instruments designated at fair value and related derivatives	$	(67)	$	7	$	5	$	(55)

Year Ended December 31, 2024
Interest rate and other components(1)	$	—	$	40	$	(253)	$	(213)
Credit risk component(2)	2		—		—		2
Total mark-to-market on financial instruments designated at fair value	2		40		(253)		(211)
Gain (loss) on related derivatives	—		(50)		223		173

Gain (loss) on instruments designated at fair value and related derivatives	$	2	$	(10)	$	(30)	$	(38)


	Loans Held for Sale		Long-Term Debt		Hybrid Instruments		Total
	(in millions)
Year Ended December 31, 2023
Interest rate and other components(1)	$	—	$	3	$	(987)	$	(984)
Credit risk component(2)	11		—		—		11
Total mark-to-market on financial instruments designated at fair value	11		3		(987)		(973)
Gain (loss) on related derivatives	—		(5)		936		931

Gain (loss) on instruments designated at fair value and related derivatives	$	11	$	(2)	$	(51)	$	(42)

(1)As it relates to hybrid instruments, interest rate and other components primarily includes interest rate and equity contract risks.

(2)The fair value movement on FVO liabilities attributable to our own credit spread is recorded in other comprehensive income.

(3)During 2025, the loss in the credit risk component for loans held for sale was primarily attributable to the weakening of market conditions associated with a single transaction.