Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2011

Derivative Financial Instruments

Schedule of Outstanding Hedges: (Notional Amount)

(In millions)	June 30, 2011		December 31, 2010
Derivatives not designated as hedging instruments:
Interest-rate contracts:
Swap agreements and forwards	$	192,346	$	52,383
Options and caps purchased		1,156		140
Options and caps written		1,344		130
Futures		126,792		25,253
Foreign exchange contracts:
Forward, swap and spot		1,000,892		637,847
Options purchased		13,228		14,299
Options written		12,943		14,587
Credit derivative contracts:
Credit default swap agreements		155		155
Other:
Stable value contracts		43,150		46,758
Derivatives designated as hedging instruments:
Interest-rate contracts:
Swap agreements		2,265		1,886
Futures		2,383		—

Notional Amount of Interest Rate Swap Agreements Designated as Fair Value and Cash Flow Hedges

	June 30, 2011						December 31, 2010
(In millions)	Fair Value Hedges		Cash Flow Hedges		Total		Fair Value Hedges		Cash Flow Hedges		Total
Investment securities available for sale	$	3,820	$	128	$	3,948	$	1,561	$	125	$	1,686
Long-term debt(1)		700		—		700		200		—		200
Total	$	4,520	$	128	$	4,648	$	1,761	$	125	$	1,886

⁽¹⁾  As of June 30, 2011 and December 31, 2010, fair value hedges of long-term debt increased the carrying value of long-term debt presented in our consolidated statement of condition by $90 million and $81 million, respectively.

Contractual and Weighted-Average Interest Rates, Which Include the Effects of Hedges Related to Financial Instruments

	Three Months Ended June 30,
	2011						2010
	Contractual Rates			Rate Including Impact of  Hedges			Contractual Rates			Rate Including Impact of  Hedges
Long-term debt		3.55	%		3.16	%		3.73	%		3.23	%
	Six Months Ended June 30,
	2011						2010
	Contractual Rates			Rate Including Impact of  Hedges			Contractual Rates			Rate Including Impact of  Hedges
Long-term debt		3.55	%		3.18	%		3.74	%		3.26	%

Schedule of the Fair Values of Derivative Financial Instruments

	Asset Derivatives				Liability Derivatives
	June 30, 2011				June 30, 2011
(In millions)	Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value
Derivatives not designated as hedging instruments:
Interest-rate contracts		Other assets	$	397		Other liabilities	$	471
Foreign exchange contracts		Other assets		8,278		Other liabilities		8,312
Credit derivative contracts		Other assets		—		Other liabilities		1
Equity derivative contracts		Other assets		1		Other liabilities		—
Total			$	8,676			$	8,784
Derivatives designated as hedging instruments:
Interest-rate contracts		Other assets	$	66		Other liabilities	$	230
Total			$	66			$	230

	Asset Derivatives				Liability Derivatives
	December 31, 2010				December 31, 2010
(In millions)	Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value
Derivatives not designated as hedging instruments:
Interest-rate contracts		Other assets	$	412		Other liabilities	$	423
Foreign exchange contracts		Other assets		7,779		Other liabilities		8,174
Credit derivative contracts		Other assets		1		Other liabilities		1
Equity derivative contracts		Other assets		1		Other liabilities		—
Total			$	8,193			$	8,598
Derivatives designated as hedging instruments:
Interest-rate contracts		Other assets	$	32		Other liabilities	$	228
Total			$	32			$	228

Impact of Derivatives on Consolidated Statement of Income

	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
(In millions)		Three Months Ended June 30, 2011			Six Months Ended June 30, 2011
Derivatives not designated as hedging instruments:
Interest-rate contracts	Trading services revenue	$	(8	)	$	(18	)
Foreign exchange contracts	Trading services revenue		168			327
Foreign exchange contracts	Processing fees and other revenue		(4	)		1
Total		$	156		$	310
	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
(In millions)		Three Months Ended June 30, 2010			Six Months Ended June 30, 2010
Derivatives not designated as hedging instruments:
Interest-rate contracts	Trading services revenue	$	(1	)	$	(2	)
Interest-rate contracts	Processing fees and other revenue		3			14
Foreign exchange contracts	Trading services revenue		188			331
Foreign exchange contracts	Processing fees and other revenue		(5	)		(7	)
Total		$	185		$	336

	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)		Three Months Ended June 30, 2011			Six Months Ended June  30, 2011				Three Months Ended June 30, 2011			Six Months Ended June 30, 2011
Derivatives designated as fair value hedges:
Interest-rate contracts	Processing fees and other revenue	$	19		$	16	Long- term debt	Processing fees and other revenue	$	(17	)	$	(14	)
Interest-rate contracts	Processing fees and other revenue		(16	)		10	Available- for-sale securities	Processing fees and other revenue		11			(14	)
Total		$	3		$	26			$	(6	)	$	(28	)

	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)		Three Months Ended June 30, 2010			Six Months Ended June 30, 2010					Three Months Ended June 30, 2010			Six Months Ended June 30, 2010
Derivatives designated as fair value hedges:
Interest-rate contracts	Processing fees and other revenue	$	38		$	40		Long- term debt	Processing fees and other revenue	$	(36	)	$	(35	)
Interest-rate contracts	Processing fees and other revenue		(81	)		(90	)	Available- for-sale securities	Processing fees and other revenue		81			90
Total		$	(43	)	$	(50	)			$	45		$	55

Schedule of Differences Between the Gains (Losses) on the Derivative and the Gains (Losses) on the Hedged Item

	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
(In millions)	Three Months Ended June 30, 2011		Six Months Ended June 30, 2011			Three Months Ended June 30, 2011			Six Months Ended June 30, 2011				Three Months Ended June 30, 2011		Six Months Ended June 30, 2011
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	4	$	4	Net interest revenue	$	(2	)	$	(4	)	Net interest revenue	$	1	$	2
Total	$	4	$	4		$	(2	)	$	(4	)		$	1	$	2

	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
(In millions)	Three Months Ended June 30, 2010		Six Months Ended June 30, 2010			Three Months Ended June 30, 2010			Six Months Ended June 30, 2010				Three Months Ended June 30, 2010		Six Months Ended June 30, 2010
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	5	$	5	Net interest revenue	$	(2	)	$	(3	)	Net interest revenue		—	$	2
Total	$	5	$	5		$	(2	)	$	(3	)			—	$	2