Quarterly report pursuant to Section 13 or 15(d)

Fair Value Option (Tables)

v3.22.1
Fair Value Option (Tables)
3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Option Elections The following tables provide information about the fair value carrying amount and the contractual principal outstanding of assets and liabilities accounted for under the fair value option at March 31, 2022 and December 31, 2021, and information about where changes in the fair value of assets and liabilities accounted for under the fair value option are included in the Consolidated Statement of Income for the three months ended March 31, 2022 and 2021.
Fair Value Option Elections
March 31, 2022 December 31, 2021
(Dollars in millions)
Fair Value
 Carrying
 Amount
Contractual
 Principal
 Outstanding
Fair Value
Carrying
Amount Less
 Unpaid Principal
Fair Value
Carrying
Amount
Contractual
 Principal
 Outstanding
Fair Value
Carrying
  Amount Less
 Unpaid Principal
Federal funds sold and securities borrowed or purchased under agreements to resell
$ 174,685  $ 174,741  $ (56) $ 150,665  $ 150,677  $ (12)
Loans reported as trading account assets (1)
11,372  18,802  (7,430) 10,864  18,895  (8,031)
Trading inventory – other 21,250  n/a n/a 21,986  n/a n/a
Consumer and commercial loans 7,111  7,233  (122) 7,819  7,888  (69)
Loans held-for-sale (1)
3,203  4,297  (1,094) 4,455  5,343  (888)
Other assets 582  n/a n/a 544  n/a n/a
Long-term deposits 446  469  (23) 408  401 
Federal funds purchased and securities loaned or sold under agreements to repurchase
155,239  155,347  (108) 139,641  139,682  (41)
Short-term borrowings 3,487  3,910  (423) 4,279  4,127  152 
Unfunded loan commitments 136  n/a n/a 97  n/a n/a
Long-term debt 30,459  33,211  (2,752) 29,708  30,903  (1,195)
(1)A significant portion of the loans reported as trading account assets and LHFS are distressed loans that were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding.
n/a = not applicable
Gains (Losses) Related to Assets and Liabilities Accounted for Under the Fair Value Option
Three Months Ended March 31
2022 2021
(Dollars in millions) Market making
 and similar
 activities
Other
Income
Total Market making
 and similar
 activities
Other
Income
Total
Loans reported as trading account assets $ 4  $   $ 4  $ 112  $ —  $ 112 
Trading inventory – other (1)
460    460  (730) —  (730)
Consumer and commercial loans (22) (13) (35) 71  19  90 
Loans held-for-sale   (132) (132) —  (12) (12)
Short-term borrowings 559    559  413  —  413 
Long-term debt (2)
1,124  (11) 1,113  386  (16) 370 
Other (3)
(5) 10  5  12  27  39 
Total (4)
$ 2,120  $ (146) $ 1,974  $ 264  $ 18  $ 282 
(1)    The gains (losses) in market making and similar activities are primarily offset by (losses) gains on trading liabilities that hedge these assets.
(2)    The net gains in market making and similar activities relate to the embedded derivatives in structured liabilities and are typically offset by losses on derivatives and securities that hedge these liabilities. For the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in accumulated OCI, see Note 12 – Accumulated Other Comprehensive Income (Loss). For more information on how the Corporation’s own credit spread is determined, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2021 Annual Report on Form 10-K.
(3)    Includes gains (losses) on federal funds sold and securities borrowed or purchased under agreements to resell, other assets, long-term deposits, federal funds purchased and securities loaned or sold under agreements to repurchase and unfunded loan commitments.
(4)    Includes gains (losses) related to borrower-specific credit risk were $(69) million and $78 million for the three months ended March 31, 2022 and 2021.