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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments, including those entered into for trading and asset-and-liability management activities as of the dates indicated:
(In millions)June 30, 2022December 31, 2021
Derivatives not designated as hedging instruments:
Interest rate contracts:
Futures$4,783 $9,604 
Foreign exchange contracts:
Forward, swap and spot2,190,465 2,569,449 
Options purchased1,255 328 
Options written874 210 
Futures1,662 2,359 
Other:
Stable value contracts(1)
33,121 32,868 
Deferred value awards(2)
382 308 
Derivatives designated as hedging instruments:
Interest rate contracts:
Swap agreements24,066 15,100 
Foreign exchange contracts:
Forward and swap7,826 6,700 
(1) The notional value of the stable value contracts represents our maximum exposure. However, exposure to various stable value contracts is generally contractually limited to substantially lower amounts than the notional values.
(2) Represents grants of deferred value awards to employees; refer to page 158 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2021 Form 10-K.
Schedule of Derivative Liabilities at Fair Value
The following table presents 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 provided in Note 8.
Derivative Assets(1)
Derivative Liabilities(2)
(In millions)June 30, 2022December 31, 2021June 30, 2022December 31, 2021
Derivatives not designated as hedging instruments:
Foreign exchange contracts$23,415 $15,216 $23,031 $15,790 
Other derivative contracts— — 272 301 
Total$23,415 $15,216 $23,303 $16,091 
Derivatives designated as hedging instruments:
Foreign exchange contracts$218 $59 $5 $35 
Interest rate contracts11 2 — — 
Total$229 $61 $5 $35 
(1) Derivative assets are included within other assets in our consolidated statement of condition.
(2) Derivative liabilities are included within other liabilities in our consolidated statement of condition.
Schedule of Derivative Assets at Fair Value
The following table presents 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 provided in Note 8.
Derivative Assets(1)
Derivative Liabilities(2)
(In millions)June 30, 2022December 31, 2021June 30, 2022December 31, 2021
Derivatives not designated as hedging instruments:
Foreign exchange contracts$23,415 $15,216 $23,031 $15,790 
Other derivative contracts— — 272 301 
Total$23,415 $15,216 $23,303 $16,091 
Derivatives designated as hedging instruments:
Foreign exchange contracts$218 $59 $5 $35 
Interest rate contracts11 2 — — 
Total$229 $61 $5 $35 
(1) Derivative assets are included within other assets in our consolidated statement of condition.
(2) Derivative liabilities are included within other liabilities in our consolidated statement of condition.
Impact of Derivative Financial Instruments On Statement of Income
The following table presents the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(In millions)Location of Gain (Loss) on
Derivative in Consolidated
Statement of Income		Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
Derivatives not designated as hedging instruments:
Foreign exchange contractsForeign exchange trading services revenue$230 $188 $469 $431 
Foreign exchange contractsInterest expense3 16 16 37 
Interest rate contractsForeign exchange trading services revenue(6)1 — 1 
Other derivative contractsCompensation and employee benefits(10)(45)(64)(123)
Total$217 $160 $421 $346 
The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:
Three Months Ended June 30,Three Months Ended June 30,
2022202120222021
(In millions)Location of Gain (Loss) on Derivative in Consolidated Statement of IncomeAmount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income		Hedged Item in Fair Value Hedging RelationshipLocation of Gain (Loss) on Hedged Item in Consolidated Statement of IncomeAmount of Gain
(Loss) on Hedged
Item Recognized in
Consolidated
Statement of Income
Derivatives designated as fair value hedges:
Interest rate contractsNet interest income$148 $(23)
Available-for-sale securities(1)
Net interest income
$(149)$21 
Interest rate contractsNet interest income(96)(7)Long-term debtNet interest income96 7 
Total$52 $(30)$(53)$28 
Six Months Ended June 30,Six Months Ended June 30,
2022202120222021
(In millions)Location of Gain (Loss) on Derivative in Consolidated Statement of IncomeAmount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income		Hedged Item in Fair Value Hedging RelationshipLocation of Gain (Loss) on Hedged Item in Consolidated Statement of IncomeAmount of Gain
(Loss) on Hedged
Item Recognized in
Consolidated
Statement of Income
Derivatives designated as fair value hedges:
Interest rate contractsNet interest income$358 (6)
Available-for-sale securities(2)
Net interest income$(360)$5 
Interest rate contractsNet interest income(339)(19)Long-term debtNet interest income339 18 
Total$19 $(25)$(21)$23 
(1) In the three months ended June 30, 2022, approximately $113 million of net unrealized gains on AFS investment securities designated in fair value hedges was recognized in OCI compared to $16 million of net unrealized losses in the same period in 2021.
(2) In the six months ended June 30, 2022, approximately $270 million of net unrealized gains on AFS investment securities designated in fair value hedges was recognized in OCI compared to $4 million of net unrealized losses in the same period in 2021.
Three Months Ended June 30,Three Months Ended June 30,
20222021Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income20222021
(In millions)Amount of Gain or (Loss) Recognized in Other Comprehensive Income on DerivativeAmount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives designated as cash flow hedges:
Interest rate contracts(1)
$(92)$10 Net interest income$6 $22 
Foreign exchange contracts129 7 Net interest income3 3 
Total derivatives designated as cash flow hedges$37 $17 $9 $25 
Derivatives designated as net investment hedges:
Foreign exchange contracts$264 $(24)Gains (Losses) related to investment securities, net$— $— 
Total derivatives designated as net investment hedges264 (24)— — 
Total$301 $(7)$9 $25 
Six Months Ended June 30,Six Months Ended June 30,
2022202120222021
(In millions)Amount of Gain or (Loss) Recognized in Other Comprehensive Income on DerivativeLocation of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into IncomeAmount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives designated as cash flow hedges:
Interest rate contracts$(383)$(6)Net interest income$25 $40 
Foreign exchange contracts176 $43 Net interest income6 6 
Total derivatives designated as cash flow hedges$(207)$37 $31 $46 
Derivatives designated as net investment hedges:
Foreign exchange contracts$328 $111 Gains (losses) related to investment securities, net$— $— 
Total derivatives designated as net investment hedges328 111 — — 
Total$121 $148 $31 $46 
(1) As of June 30, 2022, the maximum maturity date of the underlying hedged items is approximately 4.3 years.
Schedule of Derivatives
The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships:
June 30, 2022
Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the carrying amount
(In millions)Carrying Amount of Hedged Assets/LiabilitiesActive
De-designated(1)
Long-term debt$10,271 $(403)$436 
Available-for-sale securities(2)(3)
11,289 (360)14 
December 31, 2021
Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the carrying amount
(In millions)Carrying Amount of Hedged Assets/LiabilitiesActive
De-designated(1)
Long-term debt$9,026 $(64)$514 
Available-for-sale securities3,551 — 24 
(1) Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date.
(2) Included in these amounts is the amortized cost of the prepayable financial assets designated in last-of-layer hedging relationships (hedged item is the last layer of a closed portfolio of prepayable financial assets expected to remain outstanding at the end of the hedging relationship). At June 30, 2022 and December 31, 2021, the amortized cost of the closed portfolios used in these hedging relationships was $221 million and zero, respectively, of which $68 million and zero, respectively, was designated in the last-of-layer hedging relationship. At June 30, 2022 and December 31, 2021 the cumulative adjustment associated with these hedging relationships was ($1) million and zero, respectively.
(3) Carrying amount represents amortized cost.