Investment Securities (Tables)

3 Months Ended

Mar. 31, 2014

	March 31, 2014								December 31, 2013
			Gross		Gross						Gross		Gross
	Amortized		unrealized		unrealized		Estimated		Amortized		unrealized		unrealized		Estimated
(In millions)	cost		gains		losses		fair value		cost		gains		losses		fair value


Debt
U.S. corporate	$	19,711	$	3,088	$	(138)	$	22,661	$	19,600	$	2,323	$	(217)	$	21,706
State and municipal		5,115		409		(130)		5,394		4,245		235		(191)		4,289
Residential mortgage-backed(a)		1,770		143		(39)		1,874		1,819		139		(48)		1,910
Commercial mortgage-backed		2,986		198		(61)		3,123		2,929		188		(82)		3,035
Asset-backed		7,347		32		(41)		7,338		7,373		60		(46)		7,387
Corporate – non-U.S.		1,716		137		(64)		1,789		1,741		103		(86)		1,758
Government – non-U.S.		2,058		103		(3)		2,158		2,336		81		(7)		2,410
U.S. government and
federal agency		707		48		(18)		737		752		45		(27)		770
Retained interests		64		11		-		75		64		8		-		72
Equity
Available-for-sale		195		46		(8)		233		203		51		(3)		251
Trading		68		-		-		68		74		-		-		74
Total	$	41,737	$	4,215	$	(502)	$	45,450	$	41,136	$	3,233	$	(707)	$	43,662

Substantially collateralized by U.S. mortgages. At March 31, 2014, $1,225 million relates to securities issued by government-sponsored entities and $649 million relates to securities of private-label issuers. Securities issued by private-label issuers are collateralized primarily by pools of individual direct mortgage loans of financial institutions.

Schedule of investments, by type and length in continuous loss position

	In loss position for
	Less than 12 months					12 months or more
			Gross					Gross
	Estimated		unrealized			Estimated		unrealized
(In millions)	fair value		losses		(a)	fair value		losses		(a)

March 31, 2014
Debt
U.S. corporate	$	1,578	$	(63)		$	563	$	(75)
State and municipal		942		(37)			347		(93)
Residential mortgage-backed		187		(6)			430		(33)
Commercial mortgage-backed		254		(11)			803		(50)
Asset-backed		101		(1)			294		(40)
Corporate – non-U.S.		43		(1)			430		(63)
Government – non-U.S.		1,098		(3)			52		-
U.S. government and federal agency		238		(18)			-		-
Retained interests		1		-			1		-
Equity		40		(8)			-		-
Total	$	4,482	$	(148)		$	2,920	$	(354)	(b)

December 31, 2013
Debt
U.S. corporate	$	2,170	$	(122)		$	598	$	(95)
State and municipal		1,076		(82)			367		(109)
Residential mortgage-backed		232		(11)			430		(37)
Commercial mortgage-backed		396		(24)			780		(58)
Asset-backed		112		(2)			359		(44)
Corporate – non-U.S.		96		(3)			454		(83)
Government – non-U.S.		1,479		(6)			42		(1)
U.S. government and federal agency		229		(27)			254		-
Retained interests		2		-			-		-
Equity		31		(3)			-		-
Total	$	5,823	$	(280)		$	3,284	$	(427)

Includes gross unrealized losses related to securities that had other-than-temporary impairments previously recognized of $(85) million at March 31, 2014.
The majority relate to debt securities held to support obligations to holders of GICs and more than 70% are debt securities that were considered to be investment-grade by the major rating agencies at March 31, 2014.

Pre Tax Other Than Temporary Impairments On Investment Securities [Table Text Block]

Pre-tax, Other-Than-Temporary Impairments on Investment Securities

		Three months ended March 31
(In millions)		2014		2013

Total pre-tax, OTTI recognized	$	38	$	289
Less: pre-tax, OTTI recognized in AOCI		(4)		(11)
Pre-tax, OTTI recognized in earnings(a)	$	34	$	278

(a) Included pre-tax, other-than-temporary impairments recorded in earnings related to equity securities of $1 million during both the three months ended March 31, 2014 and 2013.

Changes in Cumulative Cerdit Loss Impairments Recognized on Debt Securities Still Held

Changes in Cumulative Credit Loss Impairments Recognized on Debt Securities Still Held

		Three months ended March 31
(In millions)		2014		2013

Cumulative credit loss impairments recognized, beginning of period	$	1,025	$	420
Credit loss impairments recognized on securities not previously impaired		-		263
Incremental credit loss impairments recognized on securities previously impaired		29		12
Less: credit loss impairments previously recognized on securities sold during the period		(51)		(1)
Cumulative credit loss impairments recognized, end of period	$	1,003	$	694

Schedule of contractual maturities

Contractual Maturities of Investment in Available-for-Sale Debt Securities (Excluding Mortgage-Backed and Asset-Backed Securities)

	Amortized		Estimated
(In millions)	cost		fair value

Due
Within one year	$	1,838	$	1,845
After one year through five years		3,630		3,892
After five years through ten years		5,349		5,641
After ten years		18,490		21,361

Supplemental gross realized gains losses on available-for-sale investment securities

	Three months ended March 31
(In millions)	2014		2013

Gains	$	19	$	62
Losses, including impairments		(36)		(278)
Net	$	(17)	$	(216)

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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