Derivatives (Tables)

v2.4.0.8

Derivatives (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 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.   June 30, 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 $ 30,735.7   $ 569.4   $ 8.2   $ 577.6   $ 568.3   $ 0.3   $ 568.6 Futures and forwards 9,781.2   1.9   —   1.9   2.0   —   2.0 Written options 1,924.4   —   —   —   72.0   —   72.0 Purchased options 1,965.2   72.6   —   72.6   —   —   — Foreign exchange contracts                         Swaps 2,289.6   33.3   0.8   34.1   33.3   0.8   34.1 Spot, futures and forwards 3,777.2   21.1   0.1   21.2   22.5   0.6   23.1 Written options 500.9   —   —   —   7.1   —   7.1 Purchased options 460.4   6.9   —   6.9   —   —   — Equity contracts                         Swaps 185.1   3.9   —   3.9   3.7   —   3.7 Futures and forwards 83.7   1.2   —   1.2   1.7   —   1.7 Written options 330.3   —   —   —   28.7   —   28.7 Purchased options 306.4   28.6   —   28.6   —   —   — Commodity contracts                         Swaps 69.5   2.8   —   2.8   4.2   —   4.2 Futures and forwards 564.6   5.1   —   5.1   3.3   —   3.3 Written options 148.0   —   —   —   4.7   —   4.7 Purchased options 154.3   4.8   —   4.8   —   —   — Credit derivatives                         Purchased credit derivatives:                         Credit default swaps 1,263.3   10.1   —   10.1   29.1   —   29.1 Total return swaps/other 64.9   0.4   —   0.4   1.8   —   1.8 Written credit derivatives:                           Credit default swaps 1,223.8   30.4   —   30.4   8.7   —   8.7 Total return swaps/other 78.8   4.7   —   4.7   0.5   —   0.5 Gross derivative assets/liabilities     $ 797.2   $ 9.1   $ 806.3   $ 791.6   $ 1.7   $ 793.3 Less: Legally enforceable master netting agreements       (717.2 )           (717.2 ) Less: Cash collateral received/paid             (41.2 )           (37.5 ) Total derivative assets/liabilities           $ 47.9           $ 38.6 (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                 June 30, 2014   December 31, 2013 (Dollars in billions) Derivative Assets   Derivative Liabilities   Derivative Assets   Derivative Liabilities Interest rate contracts               Over-the-counter $ 360.0   $ 346.6   $ 381.7   $ 365.9 Exchange-traded 0.2   0.2   0.4   0.3 Over-the-counter cleared 288.8   292.7   351.2   356.5 Foreign exchange contracts               Over-the-counter 59.5   61.0   82.9   83.9 Equity contracts               Over-the-counter 19.6   16.9   20.3   17.6 Exchange-traded 8.3   9.7   8.4   9.8 Commodity contracts               Over-the-counter 7.0   7.7   6.3   7.4 Exchange-traded 3.2   2.9   3.3   2.9 Credit derivatives               Over-the-counter 37.8   32.9   44.0   38.9 Over-the-counter cleared 7.0   6.7   5.8   5.9 Total gross derivative assets/liabilities, before netting           Over-the-counter 483.9   465.1   535.2   513.7 Exchange-traded 11.7   12.8   12.1   13.0 Over-the-counter cleared 295.8   299.4   357.0   362.4 Less: Legally enforceable master netting agreements and cash collateral received/paid               Over-the-counter (453.0 )   (445.5 )   (505.0 )   (495.4 ) Exchange-traded (10.2 )   (10.2 )   (11.2 )   (11.2 ) Over-the-counter cleared (295.2 )   (299.0 )   (356.6 )   (362.4 ) Derivative assets/liabilities, after netting 33.0   22.6   31.5   20.1 Other gross derivative assets/liabilities 14.9   16.0   16.0   17.3 Total derivative assets/liabilities 47.9   38.6   47.5   37.4 Less: Financial instruments collateral (1) (9.3 )   (5.5 )   (10.1 )   (4.6 ) Total net derivative assets/liabilities $ 38.6   $ 33.1   $ 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 and six months ended June 30, 2014 and 2013. Derivatives Designated as Fair Value Hedges             Gains (Losses) Three Months Ended June 30   Six Months Ended June 30   2014   2014 (Dollars in millions) Derivative   Hedged Item   Hedge Ineffectiveness   Derivative   Hedged Item   Hedge Ineffectiveness Interest rate risk on long-term debt (1) $ 735   $ (944 )   $ (209 )   $ 1,101   $ (1,504 )   $ (403 ) Interest rate and foreign currency risk on long-term debt (1) 145   (171 )   (26 )   263   (315 )   (52 ) Interest rate risk on available-for-sale securities (2) (23 )   19   (4 )   (21 )   16   (5 ) Price risk on commodity inventory (3) —   (2 )   (2 )   2   3   5 Total $ 857   $ (1,098 )   $ (241 )   $ 1,345   $ (1,800 )   $ (455 )                           2013   2013 Interest rate risk on long-term debt (1) $ (2,407 )   $ 2,239   $ (168 )   $ (3,383 )   $ 3,033   $ (350 ) Interest rate and foreign currency risk on long-term debt (1) (582 )   548   (34 )   (2,120 )   2,004   (116 ) Interest rate risk on available-for-sale securities (2) (14 )   9   (5 )   836   (837 )   (1 ) Price risk on commodity inventory (3) 3   (4 )   (1 )   —   (1 )   (1 ) Total $ (3,000 )   $ 2,792   $ (208 )   $ (4,667 )   $ 4,199   $ (468 ) (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 and six months ended June 30, 2014 and 2013. During the next 12 months, net losses in accumulated other comprehensive income (OCI) of $960 million ($600 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 June 30   Six Months Ended June 30   2014   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)   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 $ 28   $ (279 )   $ —   $ 45   $ (560 )   $ — Price risk on restricted stock awards (220 )   75   —   (64 )   225   — Total $ (192 )   $ (204 )   $ —   $ (19 )   $ (335 )   $ — Net investment hedges                       Foreign exchange risk $ (797 )   $ —   $ (118 )   $ (978 )   $ (2 )   $ (176 )                           2013   2013 Cash flow hedges                       Interest rate risk on variable-rate portfolios $ (276 )   $ (255 )   $ (1 )   $ (290 )   $ (530 )   $ (2 ) Price risk on restricted stock awards 110   69   —   165   109   — Total $ (166 )   $ (186 )   $ (1 )   $ (125 )   $ (421 )   $ (2 ) Net investment hedges                       Foreign exchange risk $ 804   $ 3   $ (37 )   $ 2,480   $ (91 )   $ (72 ) (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 and six months ended June 30, 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 June 30   Six Months Ended June 30 (Dollars in millions) 2014   2013   2014   2013 Interest rate risk on mortgage banking income (1) $ 196   $ (464 )   $ 376   $ (497 ) Credit risk on loans (2) (27 )   (11 )   (33 )   (7 ) Interest rate and foreign currency risk on ALM activities (3) (713 )   1,113   (1,311 )   508 Price risk on restricted stock awards (4) (338 )   124   26   240 Other (1 )   (8 )   (4 )   (11 ) (1)  Net gains (losses) on these derivatives are recorded in mortgage banking income as they are used to mitigate the interest rate risk related to MSRs, interest rate lock commitments and mortgage loans held-for-sale, all of which are measured at fair value with changes in fair value recorded in mortgage banking income. The net gains on interest rate lock commitments related to the origination of mortgage loans that are held-for-sale, which are considered derivative instruments, were $225 million and $398 million for the three and six months ended June 30, 2014 compared to $132 million and $539 million for the same periods in 2013. (2)  Net gains (losses) on these derivatives are recorded in other income (loss). (3)  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). (4)  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 and six months ended June 30, 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 June 30   Six Months Ended June 30   2014   2014 (Dollars in millions) Trading Account Profits   Net Interest Income   Other (1)   Total   Trading Account Profits   Net Interest Income   Other (1)   Total Interest rate risk $ 443   $ 302   $ 85   $ 830   $ 796   $ 582   $ 222   $ 1,600 Foreign exchange risk 229   2   (31 )   200   466   4   (61 )   409 Equity risk 550   (75 )   561   1,036   1,152   (92 )   1,162   2,222 Credit risk 507   682   203   1,392   1,550   1,382   358   3,290 Other risk 39   (97 )   20   (38 )   171   (191 )   93   73 Total sales and trading revenue $ 1,768   $ 814   $ 838   $ 3,420   $ 4,135   $ 1,685   $ 1,774   $ 7,594                                   2013   2013 Interest rate risk $ 341   $ 270   $ (34 )   $ 577   $ 1,018   $ 563   $ (60 )   $ 1,521 Foreign exchange risk 305   1   (26 )   280   675   1   (51 )   625 Equity risk 663   (21 )   638   1,280   1,271   (6 )   1,168   2,433 Credit risk 415   672   125   1,212   1,454   1,388   (249 )   2,593 Other risk 124   (42 )   18   100   320   (92 )   7   235 Total sales and trading revenue $ 1,848   $ 880   $ 721   $ 3,449   $ 4,738   $ 1,854   $ 815   $ 7,407 (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 $540 million and $1.1 billion for the three and six months ended June 30, 2014 and $549 million and $1.1 billion for the same periods in 2013.
Disclosure of Credit Derivatives	Credit derivative instruments where the Corporation is the seller of credit protection and their expiration are summarized at June 30, 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       June 30, 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 $ 4   $ 213   $ 349   $ 511   $ 1,077 Non-investment grade 425   1,301   1,365   4,523   7,614 Total 429   1,514   1,714   5,034   8,691 Total return swaps/other:                   Investment grade 45   —   —   —   45 Non-investment grade 379   86   2   3   470 Total 424   86   2   3   515 Total credit derivatives $ 853   $ 1,600   $ 1,716   $ 5,037   $ 9,206 Credit-related notes: (1)                   Investment grade $ 2   $ 291   $ 1,087   $ 3,354   $ 4,734 Non-investment grade 63   170   100   1,122   1,455 Total credit-related notes $ 65   $ 461   $ 1,187   $ 4,476   $ 6,189   Maximum Payout/Notional Credit default swaps:                   Investment grade $ 178,882   $ 387,781   $ 371,352   $ 35,155   $ 973,170 Non-investment grade 49,325   93,451   84,476   23,418   250,670 Total 228,207   481,232   455,828   58,573   1,223,840 Total return swaps/other:                   Investment grade 37,417   —   —   —   37,417 Non-investment grade 26,707   10,217   3,390   1,077   41,391 Total 64,124   10,217   3,390   1,077   78,808 Total credit derivatives $ 292,331   $ 491,449   $ 459,218   $ 59,650   $ 1,302,648                       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 June 30, 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   June 30, 2014 (Dollars in millions) One incremental notch   Second incremental notch Bank of America Corporation $ 1,119   $ 3,275 Bank of America, N.A. and subsidiaries (1) 778   2,218 (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 June 30, 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   June 30, 2014 (Dollars in millions) One incremental notch   Second incremental notch Derivative liability $ 1,403   $ 2,379 Collateral posted 1,158   1,914
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 and six months ended June 30, 2014 and 2013. For example, CVA gains reduce the cumulative CVA thereby increasing the derivatives asset balance. DVA gains increase the cumulative DVA thereby decreasing the derivatives liability balance. CVA and DVA losses have the opposite impact. Valuation Adjustments on Derivatives             Gains (Losses) Three Months Ended June 30   Six Months Ended June 30   2014   2013   2014   2013 (Dollars in millions) Gross Net   Gross Net   Gross Net   Gross Net Derivative assets (CVA) (1) $ 266 $ 161   $ 143 $ 62   $ 318 $ 201   $ 12 $ (233 ) Derivative liabilities (DVA) (2) (2 ) 1   77 39   (84 ) (84 )   452 418 (1)  At June 30, 2014 and December 31, 2013, the cumulative CVA reduced the derivative assets balance by $1.3 billion and $1.6 billion. (2)  At June 30, 2014 and December 31, 2013, the cumulative DVA reduced the derivative liabilities balance by $0.7 billion and $0.8 billion.