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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2024
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, 2024December 31, 2023
Derivatives not designated as hedging instruments:
Interest rate contracts:
Futures$46,505 $12,668 
Foreign exchange contracts:
Forward, swap and spot3,006,136 2,528,115 
Options purchased789 851 
Options written125 544 
Futures399 197 
Other:
Futures179 125 
Stable value contracts(1)
28,456 28,704 
Deferred value awards(2)
283 289 
Derivatives designated as hedging instruments:
Interest rate contracts:
Swap agreements26,699 20,333 
Foreign exchange contracts:
Forward and swap9,644 9,777 
(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 156 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2023 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, 2024December 31, 2023September 30, 2024December 31, 2023
Derivatives not designated as hedging instruments:
Foreign exchange contracts$19,893 $19,498 $20,241 $19,153 
Other derivative contracts— — 157 182 
Total$19,893 $19,498 $20,398 $19,335 
Derivatives designated as hedging instruments:
Foreign exchange contracts$7 $196 $190 $263 
Interest rate contracts53 13 1 4 
Total$60 $209 $191 $267 
(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, 2024December 31, 2023September 30, 2024December 31, 2023
Derivatives not designated as hedging instruments:
Foreign exchange contracts$19,893 $19,498 $20,241 $19,153 
Other derivative contracts— — 157 182 
Total$19,893 $19,498 $20,398 $19,335 
Derivatives designated as hedging instruments:
Foreign exchange contracts$7 $196 $190 $263 
Interest rate contracts53 13 1 4 
Total$60 $209 $191 $267 
(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,
2024202320242023
(In millions)Location of Gain (Loss) on Derivative in Consolidated Statement of IncomeAmount 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 $198 $645 $621 
Foreign exchange contractsInterest expense82 (24)195 (40)
Interest rate contractsForeign exchange trading services revenue2 (3)11 (2)
Other derivative contractsOther fee revenue(10)6 (13)5 
Other derivative contractsCompensation and employee benefits(22)(21)(94)(99)
Total$282 $156 $744 $485 
The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:
Three Months Ended September 30,Three Months Ended September 30,
2024202320242023
(In millions)Location of Gain (Loss) on Derivative in Consolidated Statement of IncomeAmount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income		Hedged Item in Fair Value Hedging RelationshipLocation of Gain (Loss) on Hedged Item in Consolidated Statement of IncomeAmount of Gain
(Loss) on Hedged
Item Recognized in
Consolidated
Statement of Income
Derivatives designated as fair value hedges:
Interest rate contractsNet interest income$(521)$57 
Available-for-sale securities(1)
Net interest income
$522 $(57)
Interest rate contractsNet interest income195 (76)Long-term debtNet interest income(195)76 
Foreign exchange contractsOther fee revenue18 — 
Available-for-sale securities
Other fee revenue(18)— 
Total$(308)$(19)$309 $19 
Nine Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In millions)Location of Gain (Loss) on Derivative in Consolidated Statement of IncomeAmount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income		Hedged Item in Fair Value Hedging RelationshipLocation of Gain (Loss) on Hedged Item in Consolidated Statement of IncomeAmount of Gain
(Loss) on Hedged
Item Recognized in
Consolidated
Statement of Income
Derivatives designated as fair value hedges:
Interest rate contractsNet interest income$(478)$99 
Available-for-sale securities(2)
Net interest income$479 $(100)
Interest rate contractsNet interest income159 (52)Long-term debtNet interest income(159)52 
Foreign exchange contractsOther fee revenue23 — 
Available-for-sale securities
Other fee revenue(23)— 
Total$(296)$47 $297 $(48)
(1) In the three months ended September 30, 2024, approximately $436 million of net unrealized losses on AFS investment securities designated in fair value hedges were recognized in OCI compared to $36 million of net unrealized gains in the same period of 2023.
(2) In the nine months ended September 30, 2024, approximately $404 million of net unrealized losses on AFS investment securities designated in fair value hedges were recognized in OCI compared to $70 million of net unrealized gains in the same period of 2023.
Three Months Ended September 30,Three Months Ended September 30,
20242023Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income20242023
(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)
$15 $(1)Net interest income$(51)$(53)
Foreign exchange contracts— 33 Net interest income— — 
Total derivatives designated as cash flow hedges$15 $32 $(51)$(53)
Derivatives designated as net investment hedges:
Foreign exchange contracts$(265)$225 Gains (Losses) related to investment securities, net$— $— 
Total derivatives designated as net investment hedges(265)225 — — 
Total$(250)$257 $(51)$(53)
Nine Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(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(1)
$(6)$(4)Net interest income$(160)$(156)
Foreign exchange contracts59 115 Net interest income254 1 
Total derivatives designated as cash flow hedges$53 $111 $94 $(155)
Derivatives designated as net investment hedges:
Foreign exchange contracts$(22)$176 Gains (Losses) related to investment securities, net$— $— 
Total derivatives designated as net investment hedges(22)176 — — 
Total$31 $287 $94 $(155)
(1) As of September 30, 2024, 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, 2024
Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount
(In millions)Carrying Amount of Hedged Assets/LiabilitiesActive
De-designated(1)
Long-term debt$12,470 $(181)$114 
Available-for-sale securities(2)(3)
16,563 48 1 
December 31, 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$12,463 $(340)$156 
Available-for-sale securities(2)(3)
11,260 (503)3 
(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, 2024 and December 31, 2023, the amortized cost of the closed portfolios used in these hedging relationships was $630 million and $685 million, respectively, of which $400 million was designated under the portfolio layer hedging relationship for both periods. At September 30, 2024 and December 31, 2023, the cumulative adjustment associated with these hedging relationships was ($2) million and ($6) million, respectively.
(3) Carrying amount represents amortized cost.