Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of Outstanding Hedges: (Notional Amount)

The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments entered into in connection with our trading and asset and liability management activities as of the dates indicated:

(In millions)	September 30, 2012		December 31, 2011
Derivatives not designated as hedging instruments:
Interest-rate contracts:
Swap agreements and forwards	$	1,668	$	238,008
Options and caps purchased	80		1,431
Options and caps written	80		1,324
Futures	5,890		66,620
Foreign exchange contracts:
Forward, swap and spot	949,752		1,033,045
Options purchased	11,827		11,215
Options written	11,235		12,342
Credit derivative contracts:
Credit default swap agreements	28		105
Other:
Stable value contracts	35,825		40,963
Derivatives designated as hedging instruments:
Interest-rate contracts:
Swap agreements	3,784		3,872
Foreign exchange contracts:
Forward and swap	3,463		2,613

Notional Amount Of Interest Rate Swap Agreements Designated As Fair Value And Cash Flow Hedges

The following table presents the aggregate notional amounts of these interest-rate contracts and the related assets or liabilities being hedged as of the dates indicated:

	September 30, 2012						December 31, 2011
(In millions)	Fair Value Hedges		Cash Flow Hedges		Total		Fair Value Hedges		Cash Flow Hedges		Total
Investment securities available for sale	$	1,205	$	129	$	1,334	$	1,298	$	124	$	1,422
Long-term debt(1)	2,450		—		2,450		2,450		—		2,450
Total	$	3,655	$	129	$	3,784	$	3,748	$	124	$	3,872

⁽¹⁾  As of September 30, 2012 and December 31, 2011, fair value hedges of long-term debt increased the carrying value of long-term debt presented in our consolidated statement of condition by $190 million and $140 million, respectively.

Contractual And Weighted-Average Interest Rates, Which Include The Effects Of Hedges Related To Financial Instruments

The following table presents the contractual and weighted-average interest rates for long-term debt, which include the effects of the hedges presented in the table above, for the periods indicated:

	Three Months Ended September 30,
	2012				2011
	Contractual Rates		Rate Including Impact of Hedges		Contractual Rates		Rate Including Impact of Hedges
Long-term debt	4.13	%	3.20	%	3.58	%	3.17	%
	Nine Months Ended September 30,
	2012				2011
	Contractual Rates		Rate Including Impact of Hedges		Contractual Rates		Rate Including Impact of Hedges
Long-term debt	4.01	%	3.20	%	3.56	%	3.17	%

Schedule Of The Fair Values Of Derivative Financial Instruments

The following tables present the fair value of the derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is disclosed in note 9.

	Asset Derivatives			Liability Derivatives
	September 30, 2012			September 30, 2012
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Other assets	$	6,738	Other liabilities	$	6,444
Interest-rate contracts	Other assets	5		Other liabilities	1
Other derivative contracts	Other assets	—		Other liabilities	9
Total		$	6,743		$	6,454
Derivatives designated as hedging instruments:
Interest-rate contracts	Other assets	$	181	Other liabilities	$	300
Foreign exchange contracts	Other assets	7		Other liabilities	7
Total		$	188		$	307

	Asset Derivatives			Liability Derivatives
	December 31, 2011			December 31, 2011
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Other assets	$	12,210	Other liabilities	$	12,315
Interest-rate contracts	Other assets	1,682		Other liabilities	1,688
Other derivative contracts	Other assets	1		Other liabilities	10
Total		$	13,893		$	14,013
Derivatives designated as hedging instruments:
Interest-rate contracts	Other assets	$	123	Other liabilities	$	293
Foreign exchange contracts	Other assets	3		Other liabilities	37
Total		$	126		$	330

Impact Of Derivatives On Consolidated Statement Of Income

The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
		Three Months Ended September 30				Nine Months Ended September 30,
(In millions)		2012		2011		2012			2011
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Trading services revenue	$	113	$	170	$	459		$	526
Foreign exchange contracts	Processing fees and other revenue	1		5		(2		)	6
Interest-rate contracts	Trading services revenue	1		43		(87		)	(4		)
Interest-rate contracts	Processing fees and other revenue	—		—		2			—
Total		$	115	$	218	$	372		$	528

Schedule Of Differences Between The Gains (Losses) On The Derivative And The Gains (Losses) On The Hedged Item

The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
		Three Months Ended September 30				Nine Months Ended September 30,
(In millions)		2012		2011		2012			2011
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Trading services revenue	$	113	$	170	$	459		$	526
Foreign exchange contracts	Processing fees and other revenue	1		5		(2		)	6
Interest-rate contracts	Trading services revenue	1		43		(87		)	(4		)
Interest-rate contracts	Processing fees and other revenue	—		—		2			—
Total		$	115	$	218	$	372		$	528

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized  in Consolidated Statement of Income						Hedged Item in Fair Value Hedging Relationship	Location of Gain (Loss) on Hedged Item in Consolidated Statement  of Income	Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income
		Three Months Ended			Nine Months Ended					Three Months Ended			Nine Months Ended
(In millions)		September 30, 2012			September 30, 2012					September 30, 2012			September 30, 2012
Derivatives designated as fair value hedges:
Foreign exchange contracts	Processing fees and other revenue	$	26		$	30		Investment securities	Processing fees and other revenue	$	(26	)	$	(30	)
Interest-rate contracts	Processing fees and other revenue	22			62			Long-term debt	Processing fees and other revenue	(21		)	(58		)
Interest-rate contracts	Processing fees and other revenue	(1		)	(7		)	Available-for-sale securities	Processing fees and other revenue	1			3
Total		$	47		$	85				$	(46	)	$	(85	)

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized  in Consolidated Statement of Income						Hedged Item in Fair Value Hedging Relationship	Location of Gain (Loss) on Hedged Item in Consolidated Statement  of Income	Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income
		Three Months Ended			Nine Months Ended					Three Months Ended			Nine Months Ended
(In millions)		September 30, 2011			September 30, 2011					September 30, 2011			September 30, 2011
Derivatives designated as fair value hedges:
Foreign exchange contracts	Processing fees and other revenue	$	(306	)	$	(306	)	Investment securities	Processing fees and other revenue	$	306		$	306
Interest-rate contracts	Processing fees and other revenue	(171		)	(161		)	Available- for-sale securities	Processing fees and other revenue	172			158
Interest-rate contacts	Processing fees and other revenue	44			60			Long-term debt	Processing fees and other revenue	(42		)	(56		)
Total		$	(433	)	$	(407	)			$	436		$	408

Differences between the gains (losses) on the derivative and the gains (losses) on the hedged item, excluding any amounts recorded in net interest revenue, represent hedge ineffectiveness.

	Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income						Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income	Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income						Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
	Three Months Ended			Nine Months Ended				Three Months Ended			Nine Months Ended				Three Months Ended		Nine Months Ended
(In millions)	September 30, 2012			September 30, 2012				September 30, 2012			September 30, 2012				September 30, 2012		September 30, 2012
Derivatives designated as cash flow hedges:
Interest-rate contracts				$	3		Net interest revenue	$	(1	)	$	(4	)	Net interest revenue	$	1	$	2
Foreign exchange contracts	$	(2	)	(1		)	Net interest revenue	—			—			Net interest revenue	2		2
Total	$	(2	)	$	2			$	(1	)	$	(4	)		$	3	$	4

	Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income				Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income	Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income						Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
	Three Months Ended		Nine Months Ended			Three Months Ended			Nine Months Ended				Three Months Ended	Nine Months Ended
(In millions)	September 30, 2011		September 30, 2011			September 30, 2011			September 30, 2011				September 30, 2011	September 30, 2011
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	4	$	8	Net interest revenue	$	(1	)	$	(5	)	Net interest revenue		$	2
Total	$	4	$	8		$	(1	)	$	(5	)		—	$	2