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Derivatives (Tables)
 3 Months Ended
Mar. 31, 2013
Derivative Instrument Detail [Abstract]  
Derivative Contracts
The following table summarizes the fair values of derivative contracts recorded as “derivative contracts” assets and liabilities in the balance sheet at March 31, 2013 (in thousands):
 
 
Assets
 
 
Notional1
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
12,428,736

 
$
59,599

 
$
(21,727
)
 
$
37,872

 
$
—

 
$
37,872

Interest rate swaps
 
1,380,439

 
65,654

 
—

 
65,654

 
—

 
65,654

Energy contracts
 
1,415,266

 
62,426

 
(35,440
)
 
26,986

 
(1,622
)
 
25,364

Agricultural contracts
 
167,652

 
4,174

 
(3,444
)
 
730

 
—

 
730

Foreign exchange contracts
 
176,617

 
176,617

 
—

 
176,617

 
—

 
176,617

Equity option contracts
 
212,147

 
14,054

 
—

 
14,054

 
—

 
14,054

Total customer risk management programs
 
15,780,857

 
382,524

 
(60,611
)
 
321,913

 
(1,622
)
 
320,291

Interest rate risk management programs
 
22,000

 
182

 
—

 
182

 
—

 
182

Total derivative contracts
 
$
15,802,857

 
$
382,706

 
$
(60,611
)
 
$
322,095

 
$
(1,622
)
 
$
320,473

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
Notional¹
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
12,827,390

 
$
56,565

 
$
(21,727
)
 
$
34,838

 
$
(21,657
)
 
$
13,181

Interest rate swaps
 
1,380,439

 
66,149

 
—

 
66,149

 
(35,127
)
 
31,022

Energy contracts
 
1,388,495

 
62,185

 
(35,440
)
 
26,745

 
(10,433
)
 
16,312

Agricultural contracts
 
167,642

 
4,157

 
(3,444
)
 
713

 
—

 
713

Foreign exchange contracts
 
176,170

 
176,170

 
—

 
176,170

 
—

 
176,170

Equity option contracts
 
212,147

 
14,054

 
—

 
14,054

 
—

 
14,054

Total customer risk management programs
 
16,152,283

 
379,280

 
(60,611
)
 
318,669

 
(67,217
)
 
251,452

Interest rate risk management programs
 
25,000

 
384

 
—

 
384

 
—

 
384

Total derivative contracts
 
$
16,177,283

 
$
379,664

 
$
(60,611
)
 
$
319,053

 
$
(67,217
)
 
$
251,836

1 
Notional amounts for commodity contracts are converted into dollar-equivalent amounts based on dollar prices at the inception of the contract.


The following table summarizes the fair values of derivative contracts recorded as “derivative contracts” assets and liabilities in the balance sheet at December 31, 2012 (in thousands):

 
 
Assets
 
 
Notional
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
12,850,805

 
$
46,113

 
$
(15,656
)
 
$
30,457

 
$
—

 
$
30,457

Interest rate swaps
 
1,319,827

 
72,201

 
—

 
72,201

 
—

 
72,201

Energy contracts
 
1,346,780

 
82,349

 
(44,485
)
 
37,864

 
(3,464
)
 
34,400

Agricultural contracts
 
212,434

 
3,638

 
(3,164
)
 
474

 
—

 
474

Foreign exchange contracts
 
180,318

 
180,318

 
—

 
180,318

 
—

 
180,318

Equity option contracts
 
211,941

 
12,593

 
—

 
12,593

 
—

 
12,593

Total customer risk management programs
 
16,122,105

 
397,212

 
(63,305
)
 
333,907

 
(3,464
)
 
330,443

Interest rate risk management programs
 
66,000

 
7,663

 
—

 
7,663

 
—

 
7,663

Total derivative contracts
 
$
16,188,105

 
$
404,875

 
$
(63,305
)
 
$
341,570

 
$
(3,464
)
 
$
338,106

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
Notional
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
13,239,078

 
$
43,064

 
$
(15,656
)
 
$
27,408

 
$
(15,467
)
 
$
11,941

Interest rate swaps
 
1,319,827

 
72,724

 
—

 
72,724

 
(31,945
)
 
40,779

Energy contracts
 
1,334,349

 
83,654

 
(44,485
)
 
39,169

 
(1,769
)
 
37,400

Agricultural contracts
 
212,135

 
3,571

 
(3,164
)
 
407

 
(188
)
 
219

Foreign exchange contracts
 
179,852

 
179,852

 
—

 
179,852

 
—

 
179,852

Equity option contracts
 
211,941

 
12,593

 
—

 
12,593

 
—

 
12,593

Total customer risk management programs
 
16,497,182

 
395,458

 
(63,305
)
 
332,153

 
(49,369
)
 
282,784

Interest rate risk management programs
 
50,000

 
805

 
—

 
805

 
—

 
805

Total derivative contracts
 
$
16,547,182

 
$
396,263

 
$
(63,305
)
 
$
332,958

 
$
(49,369
)
 
$
283,589

1 
Notional amounts for commodity contracts are converted into dollar-equivalent amounts based on dollar prices at the inception of the contract.




The following table summarizes the fair values of derivative contracts recorded as “derivative contracts” assets and liabilities in the balance sheet at March 31, 2012 (in thousands):
 
 
Assets
 
 
Notional1
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
11,186,193

 
$
44,182

 
$
(27,470
)
 
$
16,712

 
$
(3,282
)
 
$
13,430

Interest rate swaps
 
1,246,861

 
73,451

 
—

 
73,451

 
—

 
73,451

Energy contracts
 
1,846,932

 
180,548

 
(89,185
)
 
91,363

 
(8,578
)
 
82,785

Agricultural contracts
 
116,575

 
5,664

 
(4,604
)
 
1,060

 
—

 
1,060

Foreign exchange contracts
 
190,306

 
190,306

 
—

 
190,306

 
—

 
190,306

Equity option contracts
 
217,169

 
18,244

 
—

 
18,244

 
—

 
18,244

Total customer risk management programs
 
14,804,036

 
512,395

 
(121,259
)
 
391,136

 
(11,860
)
 
379,276

Interest rate risk management programs
 
69,000

 
5,720

 
—

 
5,720

 
—

 
5,720

Total derivative contracts
 
$
14,873,036

 
$
518,115

 
$
(121,259
)
 
$
396,856

 
$
(11,860
)
 
$
384,996

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
Notional1
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
10,895,737

 
$
41,082

 
$
(27,470
)
 
$
13,612

 
$
—

 
$
13,612

Interest rate swaps
 
1,246,861

 
74,036

 
—

 
74,036

 
(33,070
)
 
40,966

Energy contracts
 
1,899,205

 
187,991

 
(89,185
)
 
98,806

 
(58,292
)
 
40,514

Agricultural contracts
 
122,979

 
5,597

 
(4,604
)
 
993

 
—

 
993

Foreign exchange contracts
 
189,926

 
189,926

 
—

 
189,926

 
—

 
189,926

Equity option contracts
 
217,169

 
18,244

 
—

 
18,244

 
—

 
18,244

Total customer risk management programs
 
14,571,877

 
516,876

 
(121,259
)
 
395,617

 
(91,362
)
 
304,255

Interest rate risk management programs
 
72,000

 
1,035

 
—

 
1,035

 
—

 
1,035

Total derivative contracts
 
$
14,643,877

 
$
517,911

 
$
(121,259
)
 
$
396,652

 
$
(91,362
)
 
$
305,290

1 
Notional amounts for commodity contracts are converted into dollar-equivalent amounts based on dollar prices at the inception of the contract.
Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The following summarizes the pre-tax net gains (losses) on derivative instruments and where they are recorded in the income statement (in thousands):
 
 
Three Months Ended
 
 
March 31, 2013
 
March 31, 2012
 
 
Brokerage
and Trading Revenue
 
Gain (Loss)
on Derivatives, Net
 
Brokerage
and Trading
Revenue
 
Gain (Loss)
on Derivatives,
Net
Customer Risk Management Programs:
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
(15
)
 
$
—

 
$
1,122

 
$
—

Interest rate swaps
 
767

 
—

 
912

 
—

Energy contracts
 
1,783

 
—

 
2,310

 
—

Agricultural contracts
 
108

 
—

 
91

 
—

Foreign exchange contracts
 
188

 
—

 
206

 
—

Equity option contracts
 
—

 
—

 
—

 
—

Total customer risk management programs
 
2,831

 
—

 
4,641

 
—

Interest Rate Risk Management Programs
 
—

 
6,118

 
—

 
(2,473
)
Total Derivative Contracts
 
$
2,831

 
$
6,118

 
$
4,641

 
$
(2,473
)