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Investment Securities
 6 Months Ended
Jun. 30, 2013
Available-for-sale Securities [Abstract]  
Investment Securities [Text Block]
Investment Securities
Our portfolio of securities includes bonds, equity securities, asset- and mortgage-backed securities, notes, interests in securitization trusts, and other investments. The cost, fair value, and gross unrealized gains and losses on available-for-sale securities were as follows:
 
 
June 30, 2013
 
December 31, 2012
 
 
Amortized cost
 
Gross unrealized
 
Fair
value
 
Amortized cost
 
Gross unrealized
 
Fair
value
($ in millions)
 
gains  
 
losses  
 
gains  
 
losses  
 
Available-for-sale securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agencies
 
$
1,840

 
$
1

 
$
(51
)
 
$
1,790

 
$
2,212

 
$
3

 
$
(1
)
 
$
2,214

Foreign government
 
290

 
4

 
(2
)
 
292

 
295

 
8

 
—

 
303

Mortgage-backed residential (a)
 
10,558

 
39

 
(269
)
 
10,328

 
6,779

 
130

 
(3
)
 
6,906

Asset-backed
 
2,258

 
22

 
(4
)
 
2,276

 
2,309

 
32

 
(1
)
 
2,340

Corporate debt
 
1,297

 
24

 
(12
)
 
1,309

 
1,209

 
57

 
(3
)
 
1,263

Total debt securities 
 
16,243

 
90

 
(338
)
 
15,995

 
12,804

 
230

 
(8
)
 
13,026

Equity securities
 
1,051

 
40

 
(71
)
 
1,020

 
1,193

 
32

 
(73
)
 
1,152

Total available-for-sale securities (b)
 
$
17,294

 
$
130

 
$
(409
)
 
$
17,015

 
$
13,997

 
$
262

 
$
(81
)
 
$
14,178

(a)
Residential mortgage-backed securities include agency-backed bonds totaling $7,720 million and $4,983 million at June 30, 2013, and December 31, 2012, respectively.
(b)
Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled $15 million and $15 million at June 30, 2013, and December 31, 2012, respectively.
The maturity distribution of available-for-sale debt securities outstanding is summarized in the following tables. Prepayments may cause actual maturities to differ from scheduled maturities.
 
 
Total
 
Due in
one year
or less
 
Due after
one year
through
five years
 
Due after
five years
through
ten years
 
Due after
ten years (a)
($ in millions)
 
Amount
 
Yield
 
Amount
 
Yield
 
Amount
 
Yield
 
Amount
 
Yield
 
Amount
 
Yield
June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of available-for-sale debt securities (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agencies
 
$
1,790

 
1.1
%
 
$
349

 
0.1
%
 
$
507

 
1.2
%
 
$
934

 
1.3
%
 
$
—

 
—
%
Foreign government
 
292

 
3.9

 
10

 
7.4

 
111

 
4.3

 
171

 
3.5

 
—

 
—

Mortgage-backed residential
 
10,328

 
2.6

 
—

 
—

 
—

 
—

 
113

 
2.1

 
10,215

 
2.6

Asset-backed
 
2,276

 
1.9

 
—

 
—

 
1,700

 
1.9

 
484

 
1.8

 
92

 
2.6

Corporate debt
 
1,309

 
5.0

 
25

 
6.6

 
593

 
4.0

 
608

 
5.6

 
83

 
5.9

Total available-for-sale debt securities
 
$
15,995

 
2.5

 
$
384

 
0.7

 
$
2,911

 
2.2

 
$
2,310

 
2.7

 
$
10,390

 
2.6

Amortized cost of available-for-sale debt securities
 
$
16,243

 
 
 
$
384

 
 
 
$
2,898

 
 
 
$
2,342

 
 
 
$
10,619

 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of available-for-sale debt securities (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agencies
 
$
2,214

 
0.9
%
 
$
422

 
—
%
 
$
682

 
0.7
%
 
$
1,110

 
1.4
%
 
$
—

 
—
%
Foreign government
 
303

 
2.5

 
1

 
2.2

 
136

 
1.8

 
166

 
3.0

 
—

 
—

Mortgage-backed residential
 
6,906

 
2.7

 
—

 
—

 
—

 
—

 
35

 
4.3

 
6,871

 
2.7

Asset-backed
 
2,340

 
2.1

 
—

 
—

 
1,543

 
2.0

 
510

 
1.7

 
287

 
3.3

Corporate debt
 
1,263

 
5.1

 
9

 
3.2

 
560

 
4.0

 
596

 
6.0

 
98

 
5.8

Total available-for-sale debt securities
 
$
13,026

 
2.4

 
$
432

 
0.1

 
$
2,921

 
2.0

 
$
2,417

 
2.6

 
$
7,256

 
2.6

Amortized cost of available-for-sale debt securities
 
$
12,804

 
 
 
$
431

 
 
 
$
2,880

 
 
 
$
2,369

 
 
 
$
7,124

 
 
(a)
Investments with no stated maturities are included as contractual maturities of greater than 10 years. Actual maturities may differ due to call or prepayment options.
(b)
Yields on tax-exempt obligations are computed on a tax-equivalent basis.
The balances of cash equivalents were $3.2 billion and $3.4 billion at June 30, 2013, and December 31, 2012, respectively, and were composed primarily of money market accounts and short-term securities, including U.S. Treasury bills.
The following table presents gross gains and losses realized upon the sales of available-for-sale securities and other-than-temporary impairment.
 
Three months ended June 30,
 
Six months ended June 30,
($ in millions)
2013
 
2012
 
2013
 
2012
Gross realized gains
$
67

 
$
68

 
$
137

 
$
165

Gross realized losses
(3
)
 
(4
)
 
(14
)
 
(12
)
Other-than-temporary impairment
—

 
—

 
(8
)
 
—

Net realized gains
$
64

 
$
64

 
$
115

 
$
153


The following table presents interest and dividends on available-for-sale securities.
 
Three months ended June 30,
 
Six months ended June 30,
($ in millions)
2013
 
2012
 
2013
 
2012
Taxable interest
$
69

 
$
70

 
$
132

 
$
139

Taxable dividends
7

 
7

 
12

 
12

Interest and dividends on available-for-sale securities
$
76

 
$
77

 
$
144

 
$
151


Certain available-for-sale securities were sold at a loss in 2013 as a result of market conditions. The table below summarizes available-for-sale securities in an unrealized loss position in accumulated other comprehensive income. Based on the methodology described below that was applied to these securities, we believe that the unrealized losses relate to factors other than credit losses in the current market environment. As of June 30, 2013, we did not have the intent to sell the debt securities with an unrealized loss position in accumulated other comprehensive income, and it is not more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. As of June 30, 2013, we had the ability and intent to hold equity securities with an unrealized loss position in accumulated other comprehensive income. As a result, we believe that the securities with an unrealized loss position in accumulated other comprehensive income are not considered to be other-than-temporarily impaired at June 30, 2013. Refer to Note 1 to the Consolidated Financial Statements in our 2012 Annual Report for additional information related to investment securities and our methodology for evaluating potential other-than-temporary impairments.
 
 
June 30, 2013
 
December 31, 2012
 
 
Less than
12 months
 
12 months
or longer
 
Less than
12 months
 
12 months
or longer
($ in millions)
 
Fair
value
 
Unrealized
loss
 
Fair
value
 
Unrealized
loss
 
Fair
value
 
Unrealized
loss
 
Fair
value
 
Unrealized
loss
Available-for-sale securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agencies
 
$
1,648

 
$
(51
)
 
$
—

 
$
—

 
$
244

 
$
(1
)
 
$
—

 
$
—

Foreign government
 
113

 
(2
)
 
—

 
—

 
11

 
—

 
—

 
—

Mortgage-backed residential
 
7,326

 
(269
)
 
13

 
—

 
493

 
(2
)
 
23

 
(1
)
Asset-backed
 
426

 
(4
)
 
1

 
—

 
143

 
(1
)
 
1

 
—

Corporate debt
 
501

 
(12
)
 
2

 
—

 
120

 
(2
)
 
15

 
(1
)
Total temporarily impaired debt securities
 
10,014

 
(338
)
 
16

 
—

 
1,011

 
(6
)
 
39

 
(2
)
Temporarily impaired equity securities
 
327

 
(42
)
 
146

 
(29
)
 
380

 
(39
)
 
218

 
(34
)
Total temporarily impaired available-for-sale securities
 
$
10,341

 
$
(380
)
 
$
162

 
$
(29
)
 
$
1,391

 
$
(45
)
 
$
257

 
$
(36
)