Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

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)	March 31, 2013		December 31, 2012
Derivatives not designated as hedging instruments:
Interest-rate contracts:
Swap agreements and forwards	$	1,426	$	1,578
Options and caps purchased	57		68
Options and caps written	57		68
Futures	5,239		1,910
Foreign exchange contracts:
Forward, swap and spot	967,407		897,354
Options purchased	7,584		9,454
Options written	7,092		8,734
Credit derivative contracts:
Credit swap agreements	42		27
Other:
Stable value contracts	32,171		33,512
Derivatives designated as hedging instruments:
Interest-rate contracts:
Swap agreements	2,614		3,153
Foreign exchange contracts:
Forward and swap	3,276		3,477

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:

	March 31, 2013						December 31, 2012
(In millions)	Fair Value Hedges		Cash Flow Hedges		Total		Fair Value Hedges		Cash Flow Hedges		Total
Investment securities available for sale	$	1,743	$	121	$	1,864	$	1,573	$	130	$	1,703
Long-term debt(1)	750		—		750		1,450		—		1,450
Total	$	2,493	$	121	$	2,614	$	3,023	$	130	$	3,153

⁽¹⁾ As of March 31, 2013 and December 31, 2012, fair value hedges of long-term debt increased the carrying value of long-term debt presented in our consolidated statement of condition by $151 million and $174 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 March 31,
	2013				2012
	Contractual Rates		Rate Including Impact of Hedges		Contractual Rates		Rate Including Impact of Hedges
Long-term debt	3.77	%	3.03	%	3.93	%	3.23	%

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 2.

	Asset Derivatives			Liability Derivatives
	March 31, 2013			March 31, 2013
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Other assets	$	9,969	Other liabilities	$	9,639
Interest-rate contracts	Other assets	50		Other liabilities	50
Other derivative contracts	Other assets	—		Other liabilities	9
Total		$	10,019		$	9,698
Derivatives designated as hedging instruments:
Interest-rate contracts	Other assets	$	36	Other liabilities	$	263
Foreign exchange contracts	Other assets	244		Other liabilities	4
Total		$	280		$	267

	Asset Derivatives			Liability Derivatives
	December 31, 2012			December 31, 2012
(In millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Other assets	$	9,243	Other liabilities	$	9,067
Interest-rate contracts	Other assets	61		Other liabilities	61
Other derivative contracts	Other assets	—		Other liabilities	9
Total		$	9,304		$	9,137
Derivatives designated as hedging instruments:
Interest-rate contracts	Other assets	$	162	Other liabilities	$	284
Foreign exchange contracts	Other assets	135		Other liabilities	17
Total		$	297		$	301

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
(In millions)		March 31, 2013		March 31, 2012
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Trading services revenue	$	145	$	217
Foreign exchange contracts	Processing fees and other revenue	—		(2		)
Interest-rate contracts	Trading services revenue	1		(88		)
Interest-rate contracts	Processing fees and other revenue	—		2
Total		$	146	$	129

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

	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					Three Months Ended
(In millions)		March 31, 2013					March 31, 2013
Derivatives designated as fair value hedges:
Foreign exchange contracts	Processing fees and other revenue	$	4		Investment securities	Processing fees and other revenue	$	(4	)
Interest-rate contracts	Processing fees and other revenue	(15		)	Long-term debt	Processing fees and other revenue	16
Interest-rate contracts	Processing fees and other revenue	1			Available-for-sale securities	Processing fees and other revenue	(2		)
Total		$	(10	)			$	10

	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					Three Months Ended
(In millions)		March 31, 2012					March 31, 2012
Derivatives designated as fair value hedges:
Foreign exchange contracts	Processing fees and other revenue	$	30		Investment securities	Processing fees and other revenue	$	(30	)
Interest-rate contracts	Processing fees and other revenue	(16		)	Long-term debt	Processing fees and other revenue	13
Interest-rate contracts	Processing fees and other revenue	25			Available-for-sale securities	Processing fees and other revenue	(27		)
Total		$	39				$	(44	)

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			Three Months Ended				Three Months Ended
(In millions)	March 31, 2013			March 31, 2013				March 31, 2013
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	12	Net interest revenue	$	(1	)	Net interest revenue	$	1
Foreign exchange contracts	105		Net interest revenue	—			Net interest revenue	3
Total	$	117		$	(1	)		$	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			Three Months Ended				Three Months Ended
(In millions)	March 31, 2012			March 31, 2012				March 31, 2012
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	1	Net interest revenue	$	(2	)	Net interest revenue	$	1
Total	$	1		$	(2	)		$	1