Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2012

Derivative Financial Instruments

Schedule of derivative financial instruments and related hedged items

							June 30, 2012						December 31, 2011
						Hedged Item or	Notional		Fair Value				Notional		Fair Value
						Transaction	Amount		Gain (1)		Loss (1)		Amount		Gain (1)		Loss (1)
							(Dollars in millions)
Cash Flow Hedges: (2)
	Interest rate contracts:
		Pay fixed swaps				3 month LIBOR funding	$	6,035	$	―	$	(313)	$	5,750	$	―	$	(307)
				Total				6,035		―		(313)		5,750		―		(307)
Net Investment Hedges:
	Foreign exchange contracts							73		3		―		73		1		―
				Total				73		3		―		73		1		―
Fair Value Hedges:
	Interest rate contracts:
		Receive fixed swaps and option trades				Long-term debt		800		195		―		2,556		254		―
		Pay fixed swaps				Commercial loans		185		―		(7)		98		―		(5)
		Pay fixed swaps				Municipal securities		355		―		(166)		355		―		(158)
				Total				1,340		195		(173)		3,009		254		(163)
Not Designated as Hedges:
	Client-related and other risk management:
		Interest rate contracts:
			Receive fixed swaps					9,225		717		―		9,176		703		―
			Pay fixed swaps					9,440		―		(745)		9,255		―		(730)
			Other swaps					2,326		1		(5)		2,450		―		(6)
			Option trades					1,059		40		(44)		1,004		38		(40)
			Futures contracts					328		―		―		240		―		―
			Risk participations					160		―		―		150		―		―
		Foreign exchange contracts						906		7		(6)		575		6		(8)
				Total				23,444		765		(800)		22,850		747		(784)
	Mortgage Banking:
		Interest rate contracts:
			Receive fixed swaps					52		1		―		50		1		―
			Pay fixed swaps					―		―		―		16		―		―
			Interest rate lock commitments					5,217		68		―		4,977		60		(1)
			When issued securities, forward rate agreements and forward
				commitments				6,853		7		(59)		7,125		10		(88)
			Option trades					370		6		―		70		5		―
			Futures contracts					19		―		―		65		1		―
				Total				12,511		82		(59)		12,303		77		(89)
	Mortgage Servicing Rights:
		Interest rate contracts:
			Receive fixed swaps					5,659		166		(2)		5,616		154		(1)
			Pay fixed swaps					4,778		1		(136)		4,651		1		(111)
			Option trades					19,465		361		(145)		9,640		273		(51)
			Futures contracts					300		―		―		38		―		―
			When issued securities, forward rate agreements and forward
				commitments				3,384		3		―		3,651		18		―
				Total				33,586		531		(283)		23,596		446		(163)
					Total nonhedging derivatives			69,541		1,378		(1,142)		58,749		1,270		(1,036)
Total Derivatives							$	76,989	$	1,576	$	(1,628)	$	67,581	$	1,525	$	(1,506)
(1)	Derivatives in a gain position are recorded as Other assets and derivatives in a loss position are recorded as Other liabilities on the Consolidated Balance Sheet.
(2)	Cash flow hedges are hedging the first unhedged forecasted settlements associated with the listed hedged item descriptions.

The effect of derivative instruments on the consolidated statements of income

The Effect of Derivative Instruments on the Consolidated Statements of Income
Three Months Ended June 30, 2012 and 2011
					Effective Portion
					Pre-tax Gain or					Pre-tax (Gain) or Loss
					(Loss) Recognized				Location of Amounts	Reclassified from
					in AOCI				Reclassified from AOCI	AOCI into Income
					2012		2011		into Income	2012		2011
						(Dollars in millions)
Cash Flow Hedges
	Interest rate contracts				$	(36)	$	(90)	Total interest income	$	(4)	$	(6)
									Total interest expense		14		14
										$	10	$	8
Net Investment Hedges
	Foreign exchange contracts				$	1	$	(1)		$	―	$	―
									Effective Portion
										Pre-tax Gain or
									Location of Amounts	(Loss) Recognized
									Recognized	in Income
									in Income	2012		2011
						(Dollars in millions)
Fair Value Hedges
	Interest rate contracts								Total interest expense	$	103	$	92
	Interest rate contracts								Total interest income		(5)		(5)
				Total						$	98	$	87
Not Designated as Hedges
	Client-related and other risk management
		Interest rate contracts							Other noninterest income	$	11	$	1
		Foreign exchange contracts							Other noninterest income		2		2
	Mortgage Banking
		Interest rate contracts							Mortgage banking income		(18)		(2)
	Mortgage Servicing Rights
		Interest rate contracts							Mortgage banking income		152		59
			Total							$	147	$	60

The Effect of Derivative Instruments on the Consolidated Statements of Income
Six Months Ended June 30, 2012 and 2011
					Effective Portion
					Pre-tax Gain or					Pre-tax (Gain) or Loss
					(Loss) Recognized				Location of Amounts	Reclassified from
					in AOCI				Reclassified from AOCI	AOCI into Income
					2012		2011		into Income	2012		2011
						(Dollars in millions)
Cash Flow Hedges
	Interest rate contracts				$	(44)	$	(81)	Total interest income	$	(8)	$	(13)
									Total interest expense		27		27
										$	19	$	14
Net Investment Hedges
	Foreign exchange contracts				$	―	$	(3)		$	―	$	―
									Effective Portion
										Pre-tax Gain or
									Location of Amounts	(Loss) Recognized
									Recognized	in Income
									in Income	2012		2011
						(Dollars in millions)
Fair Value Hedges
	Interest rate contracts								Total interest expense	$	174	$	136
	Interest rate contracts								Total interest income		(10)		(10)
				Total						$	164	$	126
Not Designated as Hedges
	Client-related and other risk management
		Interest rate contracts							Other noninterest income	$	17	$	(2)
		Foreign exchange contracts							Other noninterest income		4		4
	Mortgage Banking
		Interest rate contracts							Mortgage banking income		39		(62)
	Mortgage Servicing Rights
		Interest rate contracts							Mortgage banking income		99		20
			Total							$	159	$	(40)