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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2023
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)September 30, 2023December 31, 2022
Derivatives not designated as hedging instruments:
Interest rate contracts:
Futures$15,704 $8,683 
Foreign exchange contracts:
Forward, swap and spot2,379,456 2,267,221 
Options purchased683 607 
Options written278 445 
Futures148 1,550 
Other:
Futures130 — 
Stable value contracts(1)
29,490 31,391 
Deferred value awards(2)
320 300 
Derivatives designated as hedging instruments:
Interest rate contracts:
Swap agreements20,453 22,566 
Foreign exchange contracts:
Forward and swap9,279 8,213 
(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 2022 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)September 30, 2023December 31, 2022September 30, 2023December 31, 2022
Derivatives not designated as hedging instruments:
Foreign exchange contracts$20,090 $26,081 $20,103 $25,407 
Other derivative contracts— — 196 216 
Total$20,090 $26,081 $20,299 $25,623 
Derivatives designated as hedging instruments:
Foreign exchange contracts$518 $105 $3 $342 
Interest rate contracts1 — 1 1 
Total$519 $105 $4 $343 
(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)September 30, 2023December 31, 2022September 30, 2023December 31, 2022
Derivatives not designated as hedging instruments:
Foreign exchange contracts$20,090 $26,081 $20,103 $25,407 
Other derivative contracts— — 196 216 
Total$20,090 $26,081 $20,299 $25,623 
Derivatives designated as hedging instruments:
Foreign exchange contracts$518 $105 $3 $342 
Interest rate contracts1 — 1 1 
Total$519 $105 $4 $343 
(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 September 30,Nine Months Ended September 30,
2023202220232022
(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$198 $207 $621 $676 
Foreign exchange contractsInterest expense(24)(16)(40)— 
Interest rate contractsForeign exchange trading services revenue(3)— (2)— 
Other derivative contractsOther fee revenue6 — 5 — 
Other derivative contractsCompensation and employee benefits(21)(11)(99)(75)
Total$156 $180 $485 $601 
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 September 30,Three Months Ended September 30,
2023202220232022
(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$57 $349 
Available-for-sale securities(1)
Net interest income
$(57)$(349)
Interest rate contractsNet interest income(76)(261)Long-term debtNet interest income76 261 
Total$(19)$88 $19 $(88)
Nine Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(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$99 707 
Available-for-sale securities(2)
Net interest income$(100)$(709)
Interest rate contractsNet interest income(52)(600)Long-term debtNet interest income52 600 
Total$47 $107 $(48)$(109)
(1) In the three months ended September 30, 2023, approximately $36 million of net unrealized gains on AFS investment securities designated in fair value hedges were recognized in OCI compared to $256 million of net unrealized gains in the same period of 2022.
(2) In the nine months ended September 30, 2023, approximately $70 million of net unrealized gains on AFS investment securities designated in fair value hedges were recognized in OCI compared to $526 million of net unrealized gains in the same period of 2022.
Three Months Ended September 30,Three Months Ended September 30,
20232022Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income20232022
(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)
$(1)$(222)Net interest income$(53)$(22)
Foreign exchange contracts33 39 Net interest income— — 
Total derivatives designated as cash flow hedges$32 $(183)$(53)$(22)
Derivatives designated as net investment hedges:
Foreign exchange contracts$225 $395 $— $— 
Total derivatives designated as net investment hedges225 395 — — 
Total$257 $212 $(53)$(22)
Nine Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(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$(4)$(604)Net interest income$(156)$3 
Foreign exchange contracts115 215 Net interest income1 6 
Total derivatives designated as cash flow hedges$111 $(389)$(155)$9 
Derivatives designated as net investment hedges:
Foreign exchange contracts$176 $723 $— $— 
Total derivatives designated as net investment hedges176 723 — — 
Total$287 $334 $(155)$9 
(1) As of September 30, 2023, the maximum maturity date of the underlying hedged items is approximately 5.0 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:
September 30, 2023
Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount
(In millions)Carrying Amount of Hedged Assets/LiabilitiesActive
De-designated(1)
Long-term debt$13,960 $(594)$176 
Available-for-sale securities(2)(3)
9,957 (767)4 
December 31, 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$12,513 $(644)$362 
Available-for-sale securities(2)(3)
9,801 (675)8 
(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 financial assets designated under the portfolio layer hedging relationships (hedged item is the hedged layer of a closed portfolio of financial assets expected to remain outstanding at the end of the hedging relationship). At September 30, 2023 and December 31, 2022, the amortized cost of the closed portfolios used in these hedging relationships was $699 million and $207 million, respectively, of which $400 million and $64 million, respectively, was designated under the portfolio layer hedging relationship. At September 30, 2023 and December 31, 2022, the cumulative adjustment associated with these hedging relationships was ($16) million and ($4) million, respectively.
(3) Carrying amount represents amortized cost.