Investment Securities

9 Months Ended

Sep. 30, 2012

Investment Securities [Abstract]

Investment Securities

5. Investment Securities

Investment securities include debt and equity securities classified as available for sale. The Company's investment securities, principally debt securities, are carried at fair value on the Consolidated Balance Sheets with unrealizedgains (losses) recorded in Accumulated Other Comprehensive Income (AOCI), net of income taxes. Realized gains and losses are recognized in results of operations upon disposition of the securities using the specific identification method on a trade date basis. Refer to Note 2 for a description of the Company's methodology for determining the fair value of investment securities.

The following is a summary of investment securities as of September 30, 2012 and December 31, 2011:

		2012								2011
					Gross		Gross		Estimated				Gross		Gross		Estimated
					Unrealized		Unrealized		Fair				Unrealized		Unrealized		Fair
Description of Securities (Millions)			Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
State and municipal obligations		$	4,421	$	199	$	(6)	$	4,614	$	4,968	$	103	$	(72)	$	4,999
U.S. Government agency
	obligations		3		―		―		3		352		2		―		354
U.S. Government treasury
	obligations		330		9		―		339		330		10		―		340
Corporate debt securities(a)			374		7		(1)		380		626		9		(3)		632
Mortgage-backed securities(b)			231		17		―		248		261		17		―		278
Equity securities(c)			73		208		―		281		95		265		―		360
Foreign government bonds and
	obligations		126		15		―		141		120		10		―		130
Other(d)			53		1		―		54		54		―		―		54
Total		$	5,611	$	456	$	(7)	$	6,060	$	6,806	$	416	$	(75)	$	7,147

(a) The September 30, 2012 and December 31, 2011 balancesinclude, on a cost basis, $300 million and $550million, respectively, of corporate debt obligations issued under the Temporary Liquidity Guarantee Program that are guaranteed by the Federal Deposit Insurance Corporation (FDIC).

(b) Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.

(c)        Primarily represents the Company's investment in the Industrial and Commercial Bank of China (ICBC).

(d) Other comprises investments in various mutual funds.

The following table provides information about the Company's investment securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2012 and December 31, 2011:

	2012								2011
	Less than 12 months				12 months or more				Less than 12 months				12 months or more
				Gross				Gross				Gross				Gross
		Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
Description of Securities (Millions)		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
State and municipal obligations	$	―	$	―	$	126	$	(6)	$	―	$	―	$	1,094	$	(72)
Corporate debt securities		―		―		3		(1)		15		(2)		2		(1)
Total	$	―	$	―	$	129	$	(7)	$	15	$	(2)	$	1,096	$	(73)

The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of September 30, 2012 and December 31, 2011:

	Less than 12 months					12 months or more					Total
					Gross					Gross					Gross
Ratio of Fair Value to	Number of		Estimated		Unrealized	Number of		Estimated		Unrealized	Number of		Estimated		Unrealized
Amortized Cost (Dollars in millions)	Securities		Fair Value		Losses	Securities		Fair Value		Losses	Securities		Fair Value		Losses
2012:
90%–100%	―	$	―	$	―	13	$	126	$	(6)	13	$	126	$	(6)
Less than 90%	―		―		―	1		3		(1)	1		3		(1)
Total as of September 30, 2012	―	$	―	$	―	14	$	129	$	(7)	14	$	129	$	(7)
2011:
90%–100%	―	$	―	$	―	114	$	884	$	(35)	114	$	884	$	(35)
Less than 90%	1		15		(2)	22		212		(38)	23		227		(40)
Total as of December 31, 2011	1	$	15	$	(2)	136	$	1,096	$	(73)	137	$	1,111	$	(75)

The gross unrealized losses areattributed to overall wider credit spreads for state and municipal securities, wider credit spreads for specific issuers, adverse changes in market benchmark interest rates, or a combination thereof, all as compared to those prevailing when the investment securities were acquired.

Overall, for the investment securities in gross unrealized loss positions identified above, (i) the Company does not intend to sell the investment securities, (ii) it is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses and (iii) the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary impairment during thenine months ended September 30, 2012 or the year ended December 31, 2011.

Supplemental Information

Gross realized gains on sales of investment securities, included in other non-interest revenuesfor the three andnine months endedSeptember 30,2012,were$35million and $85 million, respectively (there were no gross realized gains for the three and nine months ended September 30, 2011). Gross realized losses on sales of investment securities, included in other non-interest revenues for the three and nine months ended September 30, 2012, were nil and$1 million, respectively (there were no gross realized lossesfor the three andnine months ended September 30, 2011).

Contractual maturities of investment securities, excluding equity securities and other securities, as of September 30, 2012 were as follows:

				Estimated
(Millions)		Cost		Fair Value
Due within 1 year	$	507	$	509
Due after 1 year but within 5 years		344		353
Due after 5 years but within 10 years		166		179
Due after 10 years		4,468		4,684
Total	$	5,485	$	5,725

The expected payments on state and municipal obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.