Investment Securities

9 Months Ended

Sep. 30, 2013

Investments, Debt and Equity 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 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, 2013 and December 31, 2012:

		2013								2012
					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		$	4,197	$	63	$	(67)	$	4,193	$	4,280	$	199	$	(5)	$	4,474
U.S. Government agency
	obligations		3		―		―		3		3		―		―		3
U.S. Government treasury
	obligations		228		4		―		232		330		8		―		338
Corporate debt securities			42		3		―		45		73		6		―		79
Mortgage-backed securities(a)			170		7		―		177		210		14		―		224
Equity securities(b)			37		131		―		168		64		232		―		296
Foreign government bonds and
	obligations		265		7		(1)		271		134		15		―		149
Other(c)			50		―		(2)		48		51		―		―		51
Total		$	4,992	$	215	$	(70)	$	5,137	$	5,145	$	474	$	(5)	$	5,614

• Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.
• Primarily represents the Company's investment in ICBC.
• 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, 2013 and December 31, 2012:

		2013								2012
		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		$	1,274	$	(57)	$	68	$	(10)	$	100	$	(1)	$	73	$	(4)
Foreign government bonds and
	obligations		52		(1)		―		―		―		―		―		―
Other			21		(1)		17		(1)		―		―		―		―
Total		$	1,347	$	(59)	$	85	$	(11)	$	100	$	(1)	$	73	$	(4)

The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of September 30, 2013 and December 31, 2012:

	Less than 12 months					12 months or more					Total
Ratio of Fair Value to					Gross					Gross					Gross
Amortized Cost	Number of		Estimated		Unrealized	Number of		Estimated		Unrealized	Number of		Estimated		Unrealized
(Dollars in millions)	Securities		Fair Value		Losses	Securities		Fair Value		Losses	Securities		Fair Value		Losses
2013:
90%–100%	180	$	1,231	$	(42)	4	$	27	$	(2)	184	$	1,258	$	(44)
Less than 90%	15		116		(17)	4		58		(9)	19		174		(26)
Total as of September 30, 2013	195	$	1,347	$	(59)	8	$	85	$	(11)	203	$	1,432	$	(70)
2012:
90%–100%	46	$	100	$	(1)	4	$	73	$	(4)	50	$	173	$	(5)
Total as of December 31, 2012	46	$	100	$	(1)	4	$	73	$	(4)	50	$	173	$	(5)

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 endedSeptember 30, 2013 or the year ended December 31, 2012.

Supplemental Information

Gross realized gains onthe sales of investment securities, included in other non-interest revenues,for the three andnine months endedSeptember 30,2013were$37million and $102 million, respectively. Gross realized gains on the sales of investment securities, included in other non-interest revenues,for the three and nine months endedSeptember 30, 2012 were $35 million and $85 million, respectively. There were no gross realized losses on sales of investment securities for the three and nine months endedSeptember 30, 2013. Gross realized losseson sales of investment securities, included in other non-interest revenues,for the three andnine months endedSeptember 30, 2012 were nil and $1 million, respectively.

Contractual maturities of investment securities, excluding equity securities and other securities, as of September 30, 2013 were as follows:

				Estimated
(Millions)		Cost		Fair Value
Due within 1 year	$	571	$	571
Due after 1 year but within 5 years		337		345
Due after 5 years but within 10 years		159		166
Due after 10 years		3,838		3,839
Total	$	4,905	$	4,921

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.