Derivatives (Tables)

v2.4.0.8

Derivatives (Tables)	3 Months Ended
	Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments	The following tables present derivative instruments included on the Consolidated Balance Sheet in derivative assets and liabilities at March 31, 2014 and December 31, 2013. Balances are presented on a gross basis, prior to the application of counterparty and cash collateral netting. Total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and have been reduced by the cash collateral received or paid.   March 31, 2014       Gross Derivative Assets   Gross Derivative Liabilities (Dollars in billions) Contract/ Notional (1)   Trading Derivatives and Other Risk Management Derivatives   Qualifying Accounting Hedges   Total   Trading Derivatives and Other Risk Management Derivatives   Qualifying Accounting Hedges   Total Interest rate contracts                           Swaps $ 31,892.5   $ 583.1   $ 7.9   $ 591.0   $ 577.9   $ 0.7   $ 578.6 Futures and forwards 7,900.8   1.3   —   1.3   1.2   —   1.2 Written options 1,925.8   —   —   —   67.9   —   67.9 Purchased options 1,901.3   67.3   —   67.3   —   —   — Foreign exchange contracts                         Swaps 2,258.3   35.1   0.7   35.8   34.2   0.7   34.9 Spot, futures and forwards 3,504.4   23.5   0.4   23.9   24.9   0.9   25.8 Written options 506.1   —   —   —   8.0   —   8.0 Purchased options 482.4   7.6   —   7.6   —   —   — Equity contracts                         Swaps 187.8   3.5   —   3.5   3.9   —   3.9 Futures and forwards 75.9   1.1   —   1.1   1.5   —   1.5 Written options 320.9   —   —   —   29.6   —   29.6 Purchased options 285.6   28.7   —   28.7   —   —   — Commodity contracts                         Swaps 71.8   3.8   —   3.8   5.7   —   5.7 Futures and forwards 541.4   5.8   —   5.8   3.6   —   3.6 Written options 156.5   —   —   —   4.9   —   4.9 Purchased options 158.4   5.1   —   5.1   —   —   — Credit derivatives                         Purchased credit derivatives:                         Credit default swaps 1,304.8   13.7   —   13.7   28.1   —   28.1 Total return swaps/other 60.0   0.4   —   0.4   3.8   —   3.8 Written credit derivatives:                           Credit default swaps 1,272.0   29.3   —   29.3   11.9   —   11.9 Total return swaps/other 76.5   6.0   —   6.0   0.1   —   0.1 Gross derivative assets/liabilities     $ 815.3   $ 9.0   $ 824.3   $ 807.2   $ 2.3   $ 809.5 Less: Legally enforceable master netting agreements       (736.2 )           (736.2 ) Less: Cash collateral received/paid             (42.8 )           (36.4 ) Total derivative assets/liabilities           $ 45.3           $ 36.9 (1)  Represents the total contract/notional amount of derivative assets and liabilities outstanding.   December 31, 2013       Gross Derivative Assets   Gross Derivative Liabilities (Dollars in billions) Contract/ Notional (1)   Trading Derivatives and Other Risk Management Derivatives   Qualifying Accounting Hedges   Total   Trading Derivatives and Other Risk Management Derivatives   Qualifying Accounting Hedges   Total Interest rate contracts                           Swaps $ 33,272.0   $ 659.9   $ 7.5   $ 667.4   $ 658.4   $ 0.9   $ 659.3 Futures and forwards 8,217.6   1.6   —   1.6   1.5   —   1.5 Written options 2,065.4   —   —   —   64.4   —   64.4 Purchased options 2,028.3   65.4   —   65.4   —   —   — Foreign exchange contracts                           Swaps 2,284.1   43.1   1.0   44.1   42.7   1.0   43.7 Spot, futures and forwards 2,922.5   32.5   0.7   33.2   33.5   1.1   34.6 Written options 412.4   —   —   —   9.2   —   9.2 Purchased options 392.4   8.8   —   8.8   —   —   — Equity contracts                           Swaps 162.0   3.6   —   3.6   4.2   —   4.2 Futures and forwards 71.4   1.1   —   1.1   1.4   —   1.4 Written options 315.6   —   —   —   29.6   —   29.6 Purchased options 266.7   30.4   —   30.4   —   —   — Commodity contracts                           Swaps 73.1   3.8   —   3.8   5.7   —   5.7 Futures and forwards 454.4   4.7   —   4.7   2.5   —   2.5 Written options 157.3   —   —   —   5.0   —   5.0 Purchased options 164.0   5.2   —   5.2   —   —   — Credit derivatives                           Purchased credit derivatives:                           Credit default swaps 1,305.1   15.7   —   15.7   28.1   —   28.1 Total return swaps/other 38.1   2.0   —   2.0   3.2   —   3.2 Written credit derivatives:                           Credit default swaps 1,265.4   29.3   —   29.3   13.8   —   13.8 Total return swaps/other 63.4   4.0   —   4.0   0.2   —   0.2 Gross derivative assets/liabilities     $ 911.1   $ 9.2   $ 920.3   $ 903.4   $ 3.0   $ 906.4 Less: Legally enforceable master netting agreements       (825.5 )           (825.5 ) Less: Cash collateral received/paid             (47.3 )           (43.5 ) Total derivative assets/liabilities           $ 47.5           $ 37.4 (1)  Represents the total contract/notional amount of derivative assets and liabilities outstanding.
Offsetting Assets/Liabilities	Offsetting of Derivatives                 March 31, 2014   December 31, 2013 (Dollars in billions) Derivative Assets   Derivative Liabilities   Derivative Assets   Derivative Liabilities Interest rate contracts               Over-the-counter $ 369.0   $ 353.0   $ 381.7   $ 365.9 Exchange-traded 0.4   0.3   0.4   0.3 Over-the-counter cleared 289.1   292.4   351.2   356.5 Foreign exchange contracts               Over-the-counter 64.5   65.7   82.9   83.9 Equity contracts               Over-the-counter 19.7   17.4   20.3   17.6 Exchange-traded 7.7   9.9   8.4   9.8 Commodity contracts               Over-the-counter 7.4   8.6   6.3   7.4 Exchange-traded 3.4   3.0   3.3   2.9 Over-the-counter cleared 0.1   0.1   —   — Credit derivatives               Over-the-counter 42.1   37.4   44.0   38.9 Over-the-counter cleared 6.4   6.1   5.8   5.9 Total gross derivative assets/liabilities, before netting           Over-the-counter 502.7   482.1   535.2   513.7 Exchange-traded 11.5   13.2   12.1   13.0 Over-the-counter cleared 295.6   298.6   357.0   362.4 Less: Legally enforceable master netting and cash collateral received/paid               Over-the-counter (473.7 )   (463.6 )   (505.0 )   (495.4 ) Exchange-traded (10.4 )   (10.4 )   (11.2 )   (11.2 ) Over-the-counter cleared (294.9 )   (298.6 )   (356.6 )   (362.4 ) Derivative assets/liabilities, after netting 30.8   21.3   31.5   20.1 Other gross derivative assets/liabilities 14.5   15.6   16.0   17.3 Total derivative assets/liabilities 45.3   36.9   47.5   37.4 Less: Financial instruments collateral (1) (9.1 )   (4.4 )   (10.1 )   (4.6 ) Total net derivative assets/liabilities $ 36.2   $ 32.5   $ 37.4   $ 32.8 (1) These amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The table below summarizes certain information related to fair value hedges for the three months ended March 31, 2014 and 2013. Derivatives Designated as Fair Value Hedges Gains (Losses) Three Months Ended March 31   2014 (Dollars in millions) Derivative   Hedged Item   Hedge Ineffectiveness Interest rate risk on long-term debt (1) $ 366   $ (560 )   $ (194 ) Interest rate and foreign currency risk on long-term debt (1) 118   (144 )   (26 ) Interest rate risk on available-for-sale securities (2) 2   (3 )   (1 ) Price risk on commodity inventory (3) 2   5   7 Total $ 488   $ (702 )   $ (214 )               2013 Interest rate risk on long-term debt (1) $ (953 )   $ 771   $ (182 ) Interest rate and foreign currency risk on long-term debt (1) (1,538 )   1,456   (82 ) Interest rate risk on available-for-sale securities (2) 850   (846 )   4 Price risk on commodity inventory (3) (3 )   3   — Total $ (1,644 )   $ 1,384   $ (260 ) (1)  Amounts are recorded in interest expense on long-term debt and in other income (loss). (2)  Amounts are recorded in interest income on debt securities. (3)  Amounts relating to commodity inventory are recorded in trading account profits.
Cash Flow and Net Investment Hedges	The table below summarizes certain information related to cash flow hedges and net investment hedges for the three months ended March 31, 2014 and 2013. During the next 12 months, net losses in accumulated other comprehensive income (OCI) of $781 million ($488 million after-tax) on derivative instruments that qualify as cash flow hedges are expected to be reclassified into earnings. These net losses reclassified into earnings are expected to primarily reduce net interest income related to the respective hedged items. Amounts related to price risk on restricted stock awards reclassified from accumulated OCI are recorded in personnel expense. Derivatives Designated as Cash Flow and Net Investment Hedges   Three Months Ended March 31   2014 (Dollars in millions, amounts pre-tax) Gains (Losses) Recognized in Accumulated OCI on Derivatives   Gains (Losses) in Income Reclassified from Accumulated OCI   Hedge Ineffectiveness and Amounts Excluded from Effectiveness Testing (1) Cash flow hedges           Interest rate risk on variable-rate portfolios $ 17   $ (281 )   $ — Price risk on restricted stock awards 156   150   — Total $ 173   $ (131 )   $ — Net investment hedges           Foreign exchange risk $ (181 )   $ (2 )   $ (58 )               2013 Cash flow hedges           Interest rate risk on variable-rate portfolios $ (14 )   $ (275 )   $ (1 ) Price risk on restricted stock awards 55   40   — Total $ 41   $ (235 )   $ (1 ) Net investment hedges           Foreign exchange risk $ 1,676   $ (94 )   $ (35 ) (1)  Amounts related to derivatives designated as cash flow hedges represent hedge ineffectiveness and amounts related to net investment hedges represent amounts excluded from effectiveness testing.
Other Risk Management Derivatives	The table below presents gains (losses) on these derivatives for the three months ended March 31, 2014 and 2013. These gains (losses) are largely offset by the income or expense that is recorded on the hedged item. Other Risk Management Derivatives Gains (Losses) Three Months Ended March 31 (Dollars in millions) 2014   2013 Price risk on mortgage banking production income (1, 2) $ 140   $ 422 Market-related risk on mortgage banking servicing income (1) 241   (136 ) Credit risk on loans (3) (6 )   3 Interest rate and foreign currency risk on ALM activities (4) (598 )   (605 ) Price risk on restricted stock awards (5) 364   116 Other (3 )   (4 ) Total $ 138   $ (204 ) (1)  Net gains (losses) on these derivatives are recorded in mortgage banking income. (2)  Includes net gains on interest rate lock commitments related to the origination of mortgage loans that are held-for-sale, which are considered derivative instruments, of $173 million and $407 million for the three months ended March 31, 2014 and 2013. (3)  Net gains (losses) on these derivatives are recorded in other income (loss). (4)  The balance is primarily related to hedges of debt securities carried at fair value and hedges of foreign currency-denominated debt. Results from these items are recorded in other income (loss). The offsetting mark-to-market, while not included in the table above, is also recorded in other income (loss). (5)  Gains (losses) on these derivatives are recorded in personnel expense.
Schedule of Derivative Instruments Included in Trading Activities	The table below, which includes both derivatives and non-derivative cash instruments, identifies the amounts in the respective income statement line items attributable to the Corporation's sales and trading revenue in Global Markets, categorized by primary risk, for the three months ended March 31, 2014 and 2013. The difference between total trading account profits in the table below and in the Consolidated Statement of Income represents trading activities in business segments other than Global Markets. Global Markets results in Note 18 – Business Segment Information are presented on a fully taxable-equivalent (FTE) basis. The table below is not presented on a FTE basis. Sales and Trading Revenue                 Three Months Ended March 31   2014 (Dollars in millions) Trading Account Profits   Net Interest Income   Other (1)   Total Interest rate risk $ 353   $ 280   $ 113   $ 746 Foreign exchange risk 237   2   (5 )   234 Equity risk 601   (18 )   601   1,184 Credit risk 1,039   700   155   1,894 Other risk 137   (90 )   73   120 Total sales and trading revenue $ 2,367   $ 874   $ 937   $ 4,178                   2013 Interest rate risk $ 677   $ 293   $ (42 )   $ 928 Foreign exchange risk 370   —   (8 )   362 Equity risk 608   15   530   1,153 Credit risk 1,040   716   (374 )   1,382 Other risk 195   (48 )   (11 )   136 Total sales and trading revenue $ 2,890   $ 976   $ 95   $ 3,961 (1)  Represents amounts in investment and brokerage services and other income (loss) that are recorded in Global Markets and included in the definition of sales and trading revenue. Includes investment and brokerage services revenue of $561 million and $528 million for the three months ended March 31, 2014 and 2013.
Disclosure of Credit Derivatives	Credit derivative instruments where the Corporation is the seller of credit protection and their expiration are summarized at March 31, 2014 and December 31, 2013 in the table below. These instruments are classified as investment and non-investment grade based on the credit quality of the underlying referenced obligation. The Corporation considers ratings of BBB- or higher as investment grade. Non-investment grade includes non-rated credit derivative instruments. The Corporation discloses internal categorizations of investment grade and non-investment grade consistent with how risk is managed for these instruments. Credit Derivative Instruments       March 31, 2014   Carrying Value (Dollars in millions) Less than One Year   One to Three Years   Three to Five Years   Over Five Years   Total Credit default swaps:                   Investment grade $ 3   $ 219   $ 756   $ 880   $ 1,858 Non-investment grade 518   1,833   2,019   5,704   10,074 Total 521   2,052   2,775   6,584   11,932 Total return swaps/other:                   Investment grade 25   —   —   —   25 Non-investment grade 24   70   2   7   103 Total 49   70   2   7   128 Total credit derivatives $ 570   $ 2,122   $ 2,777   $ 6,591   $ 12,060 Credit-related notes: (1)                   Investment grade $ 2   $ 279   $ 601   $ 4,024   $ 4,906 Non-investment grade 124   109   348   1,036   1,617 Total credit-related notes $ 126   $ 388   $ 949   $ 5,060   $ 6,523   Maximum Payout/Notional Credit default swaps:                   Investment grade $ 161,359   $ 377,903   $ 409,371   $ 57,499   $ 1,006,132 Non-investment grade 47,811   90,484   95,078   32,498   265,871 Total 209,170   468,387   504,449   89,997   1,272,003 Total return swaps/other:                   Investment grade 36,553   —   —   —   36,553 Non-investment grade 25,557   9,964   3,269   1,135   39,925 Total 62,110   9,964   3,269   1,135   76,478 Total credit derivatives $ 271,280   $ 478,351   $ 507,718   $ 91,132   $ 1,348,481                       December 31, 2013   Carrying Value Credit default swaps:                   Investment grade $ 2   $ 220   $ 974   $ 1,134   $ 2,330 Non-investment grade 424   1,924   2,469   6,667   11,484 Total 426   2,144   3,443   7,801   13,814 Total return swaps/other:                   Investment grade 22   —   —   —   22 Non-investment grade 29   38   2   86   155 Total 51   38   2   86   177 Total credit derivatives $ 477   $ 2,182   $ 3,445   $ 7,887   $ 13,991 Credit-related notes: (1)                   Investment grade $ —   $ 278   $ 595   $ 4,457   $ 5,330 Non-investment grade 145   107   756   946   1,954 Total credit-related notes $ 145   $ 385   $ 1,351   $ 5,403   $ 7,284   Maximum Payout/Notional Credit default swaps:                   Investment grade $ 170,764   $ 379,273   $ 411,426   $ 36,039   $ 997,502 Non-investment grade 53,316   90,986   95,319   28,257   267,878 Total 224,080   470,259   506,745   64,296   1,265,380 Total return swaps/other:                   Investment grade 21,771   —   —   —   21,771 Non-investment grade 27,784   8,150   4,103   1,599   41,636 Total 49,555   8,150   4,103   1,599   63,407 Total credit derivatives $ 273,635   $ 478,409   $ 510,848   $ 65,895   $ 1,328,787 (1)  For credit-related notes, maximum payout/notional is the same as carrying value.
Additional Collateral required to be posted upon downgrade	The table below presents the amount of additional collateral contractually required by derivative contracts and other trading agreements at March 31, 2014 if the rating agencies had downgraded their long-term senior debt ratings for the Corporation or certain subsidiaries by one incremental notch and by an additional second incremental notch. Additional Collateral Required to be Posted Upon Downgrade   March 31, 2014 (Dollars in millions) One incremental notch   Second incremental notch Bank of America Corporation $ 1,166   $ 3,712 Bank of America, N.A. and subsidiaries (1) 816   2,588 (1)  Included in Bank of America Corporation collateral requirements in this table.
Derivative Liability subject to unilateral termination upon downgrade	The table below presents the derivative liability that would be subject to unilateral termination by counterparties and the amounts of collateral that would have been posted at March 31, 2014 if the rating agencies had downgraded their long-term senior debt ratings for the Corporation or certain subsidiaries by one incremental notch and by an additional second incremental notch. Derivative Liability Subject to Unilateral Termination Upon Downgrade   March 31, 2014 (Dollars in millions) One incremental notch   Second incremental notch Derivative liability $ 1,177   $ 2,052 Collateral posted 925   1,674
Valuation Adjustments on Derivatives	The table below presents CVA and DVA gains (losses) on derivatives, which are recorded in trading account profits on a gross and net of hedge basis, for the three months ended March 31, 2014 and 2013. Valuation Adjustments on Derivatives   Three Months Ended March 31   2014   2013 (Dollars in millions) Gross Net   Gross Net Derivative assets (CVA) (1) $ 52 $ 40   $ (131 ) $ (295 ) Derivative liabilities (DVA) (2) (82 ) (85 )   375 379 (1)  At both March 31, 2014 and December 31, 2013, the cumulative CVA reduced the derivative assets balance by $1.6 billion. (2)  At March 31, 2014 and December 31, 2013, the cumulative DVA reduced the derivative liabilities balance by $714 million and $803 million.