| Schedule of Fair Value Option Elections |
The table below provides information about the fair value carrying amount and the contractual principal outstanding of assets and liabilities accounted for under the fair value option at December 31, 2018 and 2017.
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Fair Value Option Elections |
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December 31, 2018 |
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December 31, 2017 |
(Dollars in millions) |
Fair Value Carrying Amount |
|
Contractual Principal Outstanding |
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Fair Value Carrying Amount Less Unpaid Principal |
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Fair Value Carrying Amount |
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Contractual Principal Outstanding |
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Fair Value Carrying Amount Less Unpaid Principal |
Federal funds sold and securities borrowed or purchased under agreements to resell |
$ |
56,399 |
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$ |
56,376 |
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$ |
23 |
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$ |
52,906 |
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$ |
52,907 |
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|
$ |
(1 |
) |
Loans reported as trading account assets (1)
|
6,195 |
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|
13,088 |
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(6,893 |
) |
|
5,735 |
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|
11,804 |
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(6,069 |
) |
Trading inventory – other |
13,778 |
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n/a |
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n/a |
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12,027 |
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n/a |
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n/a |
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Consumer and commercial loans |
4,349 |
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4,399 |
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(50 |
) |
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5,710 |
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5,744 |
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(34 |
) |
Loans held-for-sale (1)
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2,942 |
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4,749 |
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(1,807 |
) |
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2,156 |
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3,717 |
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(1,561 |
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Other assets |
3 |
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n/a |
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n/a |
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3 |
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n/a |
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n/a |
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Long-term deposits |
492 |
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454 |
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38 |
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449 |
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421 |
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28 |
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Federal funds purchased and securities loaned or sold under agreements to repurchase |
28,875 |
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28,881 |
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(6 |
) |
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36,182 |
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36,187 |
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(5 |
) |
Short-term borrowings |
1,648 |
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1,648 |
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— |
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1,494 |
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1,494 |
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— |
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Unfunded loan commitments |
169 |
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n/a |
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n/a |
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120 |
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n/a |
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n/a |
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Long-term debt (2)
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27,637 |
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29,147 |
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(1,510 |
) |
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31,786 |
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31,512 |
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274 |
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(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. |
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(2) |
Includes structured liabilities with a fair value of $27.3 billion and $31.4 billion, and contractual principal outstanding of $28.8 billion and $31.1 billion at December 31, 2018 and 2017.
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n/a = not applicable
The following tables provide information about where changes in the fair value of assets and liabilities accounted for under the fair value option are included in the Consolidated Statement of Income for 2018, 2017 and 2016.
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Gains (Losses) Relating to Assets and Liabilities Accounted for Under the Fair Value Option |
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Trading Account Profits |
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Other
Income |
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Total |
(Dollars in millions) |
2018 |
Loans reported as trading account assets (1)
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$ |
8 |
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$ |
— |
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$ |
8 |
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Trading inventory – other (2)
|
1,750 |
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— |
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|
1,750 |
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Consumer and commercial loans (1)
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(422 |
) |
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(53 |
) |
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(475 |
) |
Loans held-for-sale (1, 3)
|
1 |
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24 |
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25 |
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Unfunded loan commitments |
— |
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(49 |
) |
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(49 |
) |
Long-term debt (4, 5)
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2,157 |
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(93 |
) |
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2,064 |
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Other (6)
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8 |
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18 |
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26 |
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Total |
$ |
3,502 |
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$ |
(153 |
) |
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$ |
3,349 |
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2017 |
Loans reported as trading account assets (1)
|
$ |
318 |
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|
$ |
— |
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$ |
318 |
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Trading inventory – other (2)
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3,821 |
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— |
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3,821 |
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Consumer and commercial loans (1)
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(9 |
) |
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35 |
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26 |
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Loans held-for-sale (1, 3)
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— |
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|
298 |
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298 |
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Unfunded loan commitments |
— |
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|
36 |
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36 |
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Long-term debt (4, 5)
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(1,044 |
) |
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(146 |
) |
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(1,190 |
) |
Other (6)
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(93 |
) |
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13 |
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(80 |
) |
Total |
$ |
2,993 |
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$ |
236 |
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$ |
3,229 |
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2016 |
Loans reported as trading account assets (1)
|
$ |
301 |
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$ |
— |
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$ |
301 |
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Trading inventory – other (2)
|
57 |
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— |
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|
57 |
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Consumer and commercial loans (1)
|
49 |
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(37 |
) |
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12 |
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Loans held-for-sale (1, 3)
|
11 |
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|
524 |
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|
535 |
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Unfunded loan commitments |
— |
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|
487 |
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|
487 |
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Long-term debt (4, 5)
|
(489 |
) |
|
(97 |
) |
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(586 |
) |
Other (6)
|
(85 |
) |
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53 |
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(32 |
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Total |
$ |
(156 |
) |
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$ |
930 |
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$ |
774 |
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(1) Gains (losses) related to borrower-specific credit risk were not significant.
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(2) |
The gains in trading account profits are primarily offset by losses on trading liabilities that hedge these assets. |
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(3) |
Includes the value of IRLCs on funded loans, including those sold during the period. |
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(4) |
The majority of the net gains (losses) in trading account profits relate to the embedded derivatives in structured liabilities and are offset by gains (losses) on derivatives and securities that hedge these liabilities. |
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(5) |
For the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in accumulated OCI, see . For more information on how the Corporation’s own credit spread is determined, see .
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(6) 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 short-term borrowings.
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