Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2011

Derivative Financial Instruments

Schedule Of Outstanding Hedges: (Notional Amount)

(In millions)	September 30, 2011		December 31, 2010
Derivatives not designated as hedging instruments:
Interest-rate contracts:
Swap agreements and forwards	$	250,003	$	52,383
Options and caps purchased		1,069		140
Options and caps written		2,068		130
Futures		71,245		25,253
Foreign exchange contracts:
Forward, swap and spot		1,097,107		637,847
Options purchased		13,795		14,299
Options written		14,119		14,587
Credit derivative contracts:
Credit default swap agreements		105		155
Other:
Stable value contracts		41,987		46,758
Derivatives designated as hedging instruments:
Interest-rate contracts:
Swap agreements		2,161		1,886
Futures		2,505		—
Foreign exchange contracts:
Forwards		2,799		—

Notional Amount Of Interest Rate Swap Agreements Designated As Fair Value And Cash Flow Hedges

	September 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	$	3,842	$	124	$	3,966	$	1,561	$	125	$	1,686
Long-term debt(1)		700		—		700		200		—		200
Total	$	4,542	$	124	$	4,666	$	1,761	$	125	$	1,886

⁽¹⁾  As of September 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 $129 million and $81 million, respectively.

Contractual And Weighted-Average Interest Rates, Which Include The Effects Of Hedges Related To Financial Instruments

	Three Months Ended September 30,
	2011						2010
	Contractual Rates			Rate Including Impact of Hedges			Contractual Rates			Rate Including Impact of Hedges
Long-term debt		3.58	%		3.17	%		3.72	%		3.33	%
	Nine Months Ended September 30,
	2011						2010
	Contractual Rates			Rate Including Impact of Hedges			Contractual Rates			Rate Including Impact of Hedges
Long-term debt		3.56	%		3.17	%		3.73	%		3.28	%

Schedule Of The Fair Values Of Derivative Financial Instruments

	Asset Derivatives			Liability Derivatives
	September 30, 2011			September 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	$	1,351	Other liabilities	$	1,418
Foreign exchange contracts	Other assets		20,429	Other liabilities		21,176
Credit derivative contracts	Other assets		—	Other liabilities		1
Equity derivative contracts	Other assets		2	Other liabilities		—
Total		$	21,782		$	22,595
Derivatives designated as hedging instruments:
Interest-rate contracts	Other assets	$	103	Other liabilities	$	297
Foreign exchange contracts			221			—
Total		$	324		$	297
	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	$	133	Other liabilities	$	140
Foreign exchange contracts	Other assets		8,058	Other liabilities		8,455
Credit derivative contracts	Other assets		1	Other liabilities		1
Equity derivative contracts	Other assets		1	Other liabilities		—
Total		$	8,193		$	8,596
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 September 30, 2011			Nine Months Ended September 30, 2011
Derivatives not designated as hedging instruments:
Interest-rate contracts	Trading services revenue	$	43		$	(4	)
Foreign exchange contracts	Trading services revenue		170			526
Foreign exchange contracts	Processing fees and other revenue		5			6
Total		$	218		$	528
	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 September 30, 2010			Nine Months Ended September 30, 2010
Derivatives not designated as hedging instruments:
Interest-rate contracts	Trading services revenue	$	(1	)	$	(3	)
Interest-rate contracts	Processing fees and other revenue		3			17
Foreign exchange contracts	Trading services revenue		117			448
Foreign exchange contracts	Processing fees and other revenue		5			(2	)
Total		$	124		$	460

	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 September 30, 2011			Nine Months Ended September 30, 2011					Three Months Ended September 30, 2011			Nine Months Ended September 30, 2011
Derivatives designated as fair value hedges:
Interest-rate contracts	Processing fees and other revenue	$	44		$	60		Long- term debt	Processing fees and other revenue	$	(42	)	$	(56	)
Interest-rate contracts	Processing fees and other revenue		(171	)		(161	)	Available- for-sale securities	Processing fees and other revenue		172			158
Foreign exchange contracts	Processing fees and other revenue		(306	)		(306	)	Investment securities	Processing fees and other revenue		306			306
Total		$	(433	)	$	(407	)			$	436		$	408

	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 September 30, 2010			Nine Months Ended September 30, 2010					Three Months Ended September 30, 2010			Nine Months Ended September 30, 2010
Derivatives designated as fair value hedges:
Interest-rate contracts	Processing fees and other revenue	$	30		$	70		Long- term debt	Processing fees and other revenue	$	(26	)	$	(61	)
Interest-rate contracts	Processing fees and other revenue		(48	)		(138	)	Available- for-sale securities	Processing fees and other revenue		46			136
Total		$	(18	)	$	(68	)			$	20		$	75

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 September 30, 2011		Nine Months Ended September 30, 2011			Three Months Ended September 30, 2011			Nine Months Ended September 30, 2011				Three Months Ended September 30, 2011		Nine Months Ended September 30, 2011
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	4	$	8	Net interest revenue	$	(1	)	$	(5	)	Net interest revenue	$	—	$	2
Total	$	4	$	8		$	(1	)	$	(5	)		$	—	$	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 September 30, 2010		Nine Months Ended September 30, 2010			Three Months Ended September 30, 2010			Nine Months Ended September 30, 2010				Three Months Ended September 30, 2010		Nine Months Ended September 30, 2010
Derivatives designated as cash flow hedges:
Interest-rate contracts	$	1	$	6	Net interest revenue	$	(2	)	$	(5	)	Net interest revenue	$	2	$	4
Total	$	1	$	6		$	(2	)	$	(5	)		$	2	$	4