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DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments in consolidated balance sheets

The following table presents derivative instruments included on the Consolidated Balance Sheets:

			December 31, 2020												December 31, 2019
(in millions)			Notional Amount (1)			Derivative Assets			Derivative Liabilities						Notional Amount (1)			Derivative Assets			Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate contracts			$22,300			$1			$3						$29,846			$1			$—
Derivatives not designated as hedging instruments:
Interest rate contracts			149,021			1,565			214						142,386			772			133
Foreign exchange contracts			16,789			320			291						15,101			174			166
TBA contracts			11,149			8			65						—			—			—
Other contracts			8,297			259			61						6,868			37			23
Total derivatives not designated as hedging instruments						2,152			631									983			322
Gross derivative fair values						2,153			634									984			322
Less: Gross amounts offset in the Consolidated Balance Sheets (2)						(182)			(182)									(107)			(107)
Less: Cash collateral applied (2)						(56)			(324)									(70)			(95)
Total net derivative fair values presented in the Consolidated Balance Sheets						$1,915			$128									$807			$120

(1) The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. For interest rate contracts, the notional amount is typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they do not measure the true economic risk of these contracts.

(2) Amounts represent the impact of enforceable master netting agreements that allow the Company to net settle positive and negative positions as well as collateral paid and received.

Schedule of fair value hedges

The following table presents the change in fair value of interest rate contracts designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Consolidated Statements of Operations:

									Year Ended December 31,
(in millions)															2020						2019						2018			Affected Line Item in the Consolidated Statements of Operations
Interest rate swaps hedging borrowed funds															$65						$107						$8			Interest expense - long-term borrowed funds
Hedged long-term debt attributable to the risk being hedged															(63)						(107)						(9)			Interest expense - long-term borrowed funds
Interest rate swaps hedging fixed rate loans															17						(17)						—			Interest and fees on loans and leases
Hedged fixed rate loans attributable to the risk being hedged															(17)						17						—			Interest and fees on loans and leases
Interest rate swaps hedging debt securities available for sale															(104)						8						—			Interest income - investment securities
Hedged debt securities available for sale attributable to risk being hedged															104						(8)						—			Interest income - investment securities

The following table reflects amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:    

			December 31, 2020									December 31, 2019
(in millions)			Debt securities available for sale(1)						Long-term borrowed funds						Debt securities available for sale(1)			Residential mortgages			Long-term borrowed funds
Carrying amount of hedged assets			$10,869						$—						$15,798			$976			$—
Carrying amount of hedged liabilities			—						3,307						—			—			4,689
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items			96						112						(8)			17			50

(1) The Company designated $2.0 billion as the hedged amount (from a closed portfolio of prepayable financial assets with a amortized cost basis of $10.9 billion and $15.8 billion as of December 31, 2020 and December 31, 2019, respectively) in a last-of-layer hedging relationship, which commenced in the third quarter of 2019.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents the pre-tax net gains (losses) recorded in the Consolidated Statements of Operations and in the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges:

			Amounts Recognized for the Year Ended December 31,
(in millions)			2020						2019						2018
Amount of pre-tax net gains (losses) recognized in OCI			$130						$138						($44)
Amount of pre-tax net gains (losses) reclassified from OCI into interest income			184						(68)						(55)
Amount of pre-tax net (losses) gains reclassified from OCI into interest expense			(35)						11						12

Schedule of effect of derivative Instruments on net income

The following table presents the effect of economic hedges on noninterest income:

			Amounts Recognized in Noninterest Income for the Year Ended December 31,															Affected Line Item in the Consolidated Statements of Operations
(in millions)			2020						2019						2018
Economic hedge type:
Customer interest rate contracts			$1,234						$687						$5			Foreign exchange and interest rate products
Customer foreign exchange contracts			216						(166)						(54)			Foreign exchange and interest rate products
Derivatives transactions to hedge interest rate risk			(1,188)						(620)						43			Foreign exchange and interest rate products
Derivatives transactions to hedge foreign exchange risk			(263)						200						158			Foreign exchange and interest rate products
Residential loan commitments			179						8						(3)			Mortgage banking fees
Derivative contracts used to hedge residential loan commitments			(50)						20						21			Mortgage banking fees
Derivative contracts used to hedge residential MSRs(1)			311						134						35			Mortgage banking fees
Other derivative contracts			(9)						—						—			Foreign exchange and interest rate products
Derivative transactions to hedge other derivative risk			13						—						—			Foreign exchange and interest rate products
Total			$443						$263						$205

(1)Includes ($5) million related to interest rate derivative contracts used to hedge residential MSRs valued at LOCOM for the year ended December 31, 2019.

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Tabular disclosure of gain (loss) on derivative and nonderivative instruments designated and qualifying as cash flow hedge recorded in accumulated other comprehensive income (AOCI) and reclassified into earnings.

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Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

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Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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Tabular disclosure for fair value hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position.

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