Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Fair Value and Notional Amounts of Derivative Instruments

The following table summarizes the fair value and related outstanding notional amounts of derivative instruments reported in our consolidated balance sheets as of June 30, 2013 and December 31, 2012. The fair value amounts are segregated by derivatives that are designated as accounting hedges and those that are not, and are further segregated by type of contract within those two categories.


(Dollars in millions)	June 30, 2013						December 31, 2012
	Notional or Contractual Amount		Derivatives at Fair Value				Notional or Contractual Amount		Derivatives at Fair Value
	Notional or Contractual Amount		Assets		Liabilities		Notional or Contractual Amount		Assets		Liabilities
Derivatives designated as accounting hedges:
Interest rate contracts:
Fair value interest rate contracts	$	15,576	$	360	$	137	$	15,902	$	1,020	$	0
Cash flow interest rate contracts		14,525		5		182		13,025		116		14

Total interest rate contracts		30,101		365		319		28,927		1,136		14
Foreign exchange contracts:
Cash flow foreign exchange contracts		4,529		142		2		5,212		18		40

Total foreign exchange contracts		4,529		142		2		5,212		18		40

Total derivatives designated as accounting hedges		34,630		507		321		34,139		1,154		54

Derivatives not designated as accounting hedges:
Interest rate contracts covering:
MSRs		224		0		3		147		12		2
Customer accommodation		21,209		403		209		18,900		479		273
Other interest rate exposures		2,324		35		24		2,553		45		22

Total interest rate contracts		23,757		438		236		21,600		536		297
Foreign exchange contracts		1,337		186		67		1,372		158		46
Other contracts		1,073		13		14		701		0		3

Total derivatives not designated as accounting hedges		26,167		637		317		23,673		694		346

Total derivatives	$	60,797	$	1,144	$	638	$	57,812	$	1,848	$	400

Summary of Derivative Transactions and Repurchase Agreements Subject to Legally Enforceable Master Netting Agreements

The following tables summarize gross and net information about our derivative transactions and repurchase agreements subject to legally enforceable master netting agreements and the corresponding collateral received or pledged.


							Gross Amounts Not Offset in the Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheet		Net Amounts of Assets Presented in the Balance Sheet		Financial Instruments			Collateral Received			Net Amount
As of June 30, 2013
Derivatives	$	1,144	$	0	$	1,144	$	(252	)	$	(587	)⁽¹⁾	$	305	⁽²⁾

Total	$	1,144	$	0	$	1,144	$	(252	)	$	(587	)	$	305


							Gross Amounts Not Offset in the Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Liabilities Presented in the Balance Sheet		Financial Instruments			Collateral Pledged			Net Amount
As of June 30, 2013
Derivatives	$	638	$	0	$	638	$	(252	)	$	(156	)⁽¹⁾	$	230	⁽²⁾
Repurchase agreements		895		0		895		0			(895	)		0

Total	$	1,533	$	0	$	1,533	$	(252	)	$	(1,051	)	$	230


							Gross Amounts Not Offset in the Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheet		Net Amounts of Assets Presented in the Balance Sheet		Financial Instruments			Collateral Received			Net Amount
As of December 31, 2012
Derivatives	$	1,848	$	0	$	1,848	$	(220	)	$	(1,160	)⁽¹⁾	$	468	⁽²⁾

Total	$	1,848	$	0	$	1,848	$	(220	)	$	(1,160	)	$	468


							Gross Amounts Not Offset in the Balance Sheet
(Dollars in millions)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Liabilities Presented in the Balance Sheet		Financial Instruments			Collateral Pledged			Net Amount
As of December 31, 2012
Derivatives	$	400	$	0	$	400	$	(220	)	$	(98	)⁽¹⁾	$	82	⁽²⁾
Repurchase agreements		1,235		0		1,235		0			(1,235	)		0

Total	$	1,635	$	0	$	1,635	$	(220	)	$	(1,333	)	$	82

⁽¹⁾	When we receive or pledge collateral, we factor in accrued interest when calculating net positions with counterparties.

⁽²⁾	The majority of the net position relates to customer swaps. Customer swaps are cross-collateralized by the associated commercial loans and we do not require additional collateral on these transactions.

Net Gains (Losses) Recognized in Earnings Related to Derivatives in Fair Value Hedging Relationships and Free-Standing Derivatives

The net gains (losses) recognized in earnings related to derivatives in fair value hedging relationships and free-standing derivatives are presented below for the three and six months ended June 30, 2013 and 2012:


	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in millions)	2013			2012			2013			2012
Derivatives designated as accounting hedges⁽¹⁾:
Fair value interest rate contracts:
Gains (losses) recognized in earnings on derivatives	$	(317	)	$	147		$	(412	)	$	79
Gains (losses) recognized in earnings on hedged items		300			(146	)		390			(87	)

Net fair value hedge ineffectiveness gains (losses)		(17	)		1			(22	)		(8	)


Derivatives not designated as accounting hedges⁽¹⁾:
Interest rate contracts covering:
MSRs		(8	)		5			(8	)		3
Customer accommodation		16			7			25			18
Other interest rate exposures		(8	)		24			(9	)		(57	)

Total		0			36			8			(36	)
Foreign exchange contracts		(2	)		4			(4	)		(9	)
Other contracts		4			(2	)		(7	)		(3	)

Total gains (losses) on derivatives not designated as accounting hedges		2			38			(3	)		(48	)
Net derivative gains (losses) recognized in earnings	$	(15	)	$	39		$	(25	)	$	(56	)

⁽¹⁾	Amounts are recorded in our consolidated statements of income in other non-interest income.

Net Gains (Losses) Related to Derivatives Designated as Cash Flow Hedges

The table below shows the net gains (losses) related to derivatives designated as cash flow hedges for the three and six months ended June 30, 2013 and 2012:


	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in millions)	2013			2012			2013			2012
Gains (losses) recorded in AOCI:
Cash flow hedges:
Interest rate contracts	$	(146	)	$	50		$	(147	)	$	56
Foreign exchange contracts		(5	)		(5	)		(10	)		(11	)

Subtotal		(151	)		45			(157	)		45

Net derivative gains (losses) recognized in AOCI	$	(151	)	$	45		$	(157	)	$	45

Gains (losses) recorded in earnings:
Cash flow hedges:
Gains (losses) reclassified from AOCI into earnings:
Interest rate contracts⁽¹⁾	$	14		$	11		$	26		$	20
Foreign exchange contracts⁽²⁾		(4	)		(5	)		(9	)		(11	)

Subtotal		10			6			17			9

Gains (losses) recognized in earnings due to ineffectiveness:
Interest rate contracts⁽²⁾		(1	)		0			(1	)		0

Subtotal		(1	)		0			(1	)		0

Net derivative gains (losses) recognized in earnings	$	9		$	6		$	16		$	9

⁽¹⁾	Amounts reclassified are recorded in our consolidated statements of income in interest income or interest expense.

⁽²⁾	Amounts reclassified are recorded in our consolidated statements of income in other non-interest income.