Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 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)	December 31, 2013		December 31, 2012
Derivatives not designated as hedging instruments:
Interest-rate contracts:
Swap agreements and forwards	$	1,023	$	1,578
Options and caps purchased	27		68
Options and caps written	27		68
Futures	3,282		1,910
Foreign exchange contracts:
Forward, swap and spot	1,124,355		897,354
Options purchased	1,666		9,454
Options written	1,423		8,734
Credit derivative contracts:
Credit swap agreements	141		27
Other:
Stable value contracts	24,906		33,512
Futures	3		—
Derivatives designated as hedging instruments:
Interest-rate contracts:
Swap agreements	5,221		3,153
Foreign exchange contracts:
Forward and swap	2,783		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:

	December 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	$	2,589	$	132	$	2,721	$	1,573	$	130	$	1,703
Long-term debt(1)	2,500		—		2,500		1,450		—		1,450
Total	$	5,089	$	132	$	5,221	$	3,023	$	130	$	3,153

⁽¹⁾ As of December 31, 2013, fair value hedges of long-term debt decreased the carrying value of long-term debt presented in our consolidated statement of condition by $35 million. As of 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 $174 million.

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 fair value hedges presented in the table above, for the periods indicated:

	Years Ended December 31,
	2013				2012
	Contractual Rates		Rate Including Impact of Hedges		Contractual Rates		Rate Including Impact of Hedges
Long-term debt	3.46	%	2.75	%	4.01	%	3.17	%

Schedule of the Fair Values of Derivative Financial Instruments

The following tables present the fair value of 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 3.

	Asset Derivatives
	Balance Sheet Location	Fair Value
(In millions)		December 31, 2013		December 31, 2012
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Other assets	$	11,552	$	9,243
Interest-rate contracts	Other assets	29		61
Credit derivative contracts	Other assets	1		—
Total		$	11,582	$	9,304
Derivatives designated as hedging instruments:
Foreign exchange contracts	Other assets	$	359	$	135
Interest-rate contracts	Other assets	36		162
Total		$	395	$	297

	Liability Derivatives
	Balance Sheet Location	Fair Value
(In millions)		December 31, 2013		December 31, 2012
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Other liabilities	$	11,428	$	9,067
Interest-rate contracts	Other liabilities	29		61
Other derivative contracts	Other liabilities	9		9
Total		$	11,466	$	9,137
Derivatives designated as hedging instruments:
Interest-rate contracts	Other liabilities	$	302	$	284
Foreign exchange contracts	Other liabilities	43		17
Total		$	345	$	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 years indicated:

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
		Years Ended December 31,
(In millions)		2013		2012			2011
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Trading services revenue	$	586	$	576		$	641
Foreign exchange contracts	Processing fees and other revenue	—		(2		)	7
Interest-rate contracts	Trading services revenue	2		(86		)	21
Interest-rate contracts	Processing fees and other revenue	—		6			—
Credit derivative contracts	Processing fees and other revenue	1		—			—
Total		$	589	$	494		$	669

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
(In millions)		Years Ended December 31,										Years Ended December 31,
Derivatives designated as fair value hedges:		2013			2012		2011					2013			2012			2011
Foreign exchange contracts	Processing fees and other revenue	$	(183	)	$	34	$	(161	)	Investment securities	Processing fees and other revenue	$	183		$	(34	)	$	161
Interest-rate contracts	Processing fees and other revenue	32			11		(165		)	Available-for-sale securities	Processing fees and other revenue	(30		)	(17		)	153
Interest-rate contracts	Processing fees and other revenue	(192		)	50		75			Long-term debt	Processing fees and other revenue	175			(45		)	(70		)
Total		$	(343	)	$	95	$	(251	)			$	328		$	(96	)	$	244

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
	Years Ended December 31,							Years Ended December 31,										Years Ended December 31,
(In millions)	2013		2012		2011			2013			2012			2011				2013		2012		2011
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	9	$	4	$	9	Net interest revenue	$	(4	)	$	(5	)	$	(7	)	Net interest revenue	$	3	$	3	$	3
Foreign exchange contracts	153		122		—		Net interest revenue	—			—			—			Net interest revenue	6		6		—
Total	$	162	$	126	$	9		$	(4	)	$	(5	)	$	(7	)		$	9	$	9	$	3