Investment Securities (Tables)

6 Months Ended

Jun. 30, 2014

Investment Securities Disclosure [Abstract]

Note 7 Investment Securities

Table 73: Investment Securities Summary

			Amortized		Unrealized						Fair
In millions			Cost		Gains			Losses			Value
June 30, 2014

Securities Available for Sale
Debt securities
	U.S. Treasury and government agencies		$	5,210		$	160	$	(3)	$	5,367
	Residential mortgage-backed
		Agency		19,690			471		(80)		20,081
		Non-agency		5,102			341		(102)		5,341
	Commercial mortgage-backed
		Agency		591			13		-		604
		Non-agency		3,437			125		(4)		3,558
	Asset-backed			5,380			88		(30)		5,438
	State and municipal			1,865			70		(10)		1,925
	Other debt			1,795			54		(6)		1,843
		Total debt securities		43,070			1,322		(235)		44,157
Corporate stocks and other				355			8		(1)		362
	Total securities available for sale		$	43,425		$	1,330	$	(236)	$	44,519
Securities Held to Maturity (a)
Debt securities
	U.S. Treasury and government agencies		$	243		$	28		-	$	271
	Residential mortgage-backed
		Agency		5,712			156	$	(19)		5,849
		Non-agency		283			6		(1)		288
	Commercial mortgage-backed
		Agency		1,204			63		-		1,267
		Non-agency		1,273			24		-		1,297
	Asset-backed			981			2		(7)		976
	State and municipal			2,060			72		-		2,132
	Other debt			327			9		-		336
	Total securities held to maturity		$	12,083		$	360	$	(27)	$	12,416

December 31, 2013

Securities Available for Sale
Debt securities
	U.S. Treasury and government agencies		$	3,990		$	135	$	(7)	$	4,118
	Residential mortgage-backed
		Agency		22,669			384		(222)		22,831
		Non-agency		5,457			308		(160)		5,605
	Commercial mortgage-backed
		Agency		632			15		(1)		646
		Non-agency		3,937			123		(18)		4,042
	Asset-backed			5,754			66		(48)		5,772
	State and municipal			2,609			52		(44)		2,617
	Other debt			2,506			55		(18)		2,543
		Total debt securities		47,554			1,138		(518)		48,174
Corporate stocks and other				434					(1)		433
	Total securities available for sale		$	47,988		$	1,138	$	(519)	$	48,607
Securities Held to Maturity (a)
Debt securities
	U.S. Treasury and government agencies		$	239		$	8	$	(4)	$	243
	Residential mortgage-backed
		Agency		5,814			71		(64)		5,821
		Non-agency		293					(4)		289
	Commercial mortgage-backed
		Agency		1,251			49				1,300
		Non-agency		1,687			20		(5)		1,702
	Asset-backed			1,009			2		(10)		1,001
	State and municipal			1,055			10		(4)		1,061
	Other debt			339			9				348
	Total securities held to maturity		$	11,687		$	169	$	(91)	$	11,765
(a)	Held to maturity securities transferred from available for sale are included in held to maturity at fair value at the time of transfer. The amortized cost of held to maturity securities included net unrealized gains of $141 million and $111 million at June 30, 2014 and December 31, 2013, respectively, related to securities transferred, which are offset in Accumulated Other Comprehensive Income, net of tax.

Gross Unrealized Loss and Fair Value of Securities Available for Sale

Table 74: Gross Unrealized Loss and Fair Value of Securities Available for Sale

				Unrealized loss position less					Unrealized loss position 12
In millions				than 12 months					months or more				Total
				Unrealized			Fair		Unrealized		Fair		Unrealized		Fair
				Loss			Value		Loss		Value		Loss		Value
June 30, 2014
Debt securities
	U.S. Treasury and government agencies				$	(3)	$	1,878		-		-	$	(3)	$	1,878
	Residential mortgage-backed
		Agency				(10)		959	$	(70)	$	2,591		(80)		3,550
		Non-agency				(3)		237		(99)		1,673		(102)		1,910
	Commercial mortgage-backed
		Agency				-		60		-		19				79
		Non-agency				(1)		336		(3)		214		(4)		550
	Asset-backed					(3)		892		(27)		593		(30)		1,485
	State and municipal					-		10		(10)		333		(10)		343
	Other debt					(2)		85		(4)		216		(6)		301
			Total debt securities			(22)		4,457		(213)		5,639		(235)		10,096
	Corporate stocks and other					-		-		(1)		15		(1)		15
			Total		$	(22)	$	4,457	$	(214)	$	5,654	$	(236)	$	10,111

December 31, 2013
Debt securities
	U.S. Treasury and government agencies				$	(7)	$	1,066					$	(7)	$	1,066
	Residential mortgage-backed
		Agency				(210)		7,950	$	(12)	$	293		(222)		8,243
		Non-agency				(18)		855		(142)		1,719		(160)		2,574
	Commercial mortgage-backed
		Agency				(1)		23						(1)		23
		Non-agency				(18)		1,315				14		(18)		1,329
	Asset-backed					(11)		1,752		(37)		202		(48)		1,954
	State and municipal					(23)		897		(21)		286		(44)		1,183
	Other debt					(17)		844		(1)		12		(18)		856
			Total debt securities			(305)		14,702		(213)		2,526		(518)		17,228
	Corporate stocks and other					(1)		15						(1)		15
			Total		$	(306)	$	14,717	$	(213)	$	2,526	$	(519)	$	17,243

Credit Impairment Assessment Assumptions - Non Agency Residential Mortgage-Backed and Asset-Backed Securities

Table 75: Credit Impairment Assessment Assumptions - Non-Agency Residential Mortgage-Backed and Asset-Backed Securities

						Weighted-
June 30, 2014			Range			average (a)
Long-term prepayment rate (annual CPR)
	Prime			7 - 20	%	13	%
	Alt-A			5 - 12		6
	Option ARM			3 - 6		3
Remaining collateral expected to default
	Prime			1 - 34	%	14	%
	Alt-A			5 - 53		29
	Option ARM			13 - 56		39
Loss severity
	Prime			25 - 68	%	40	%
	Alt-A			30 - 80		55
	Option ARM			40 - 75		60
(a)		Calculated by weighting the relevant assumption for each individual security by the current outstanding cost basis of the security.

Rollforward of Cumulative OTTI Credit Losses Recognized in Earnings

Table 76: Rollforward of Cumulative OTTI Credit Losses Recognized in Earnings

Three months ended June 30,
In millions	2014			2013
Balance at beginning of period		$	(1,157)		$	(1,165)
Additional loss where credit impairment was previously recognized			(1)			(4)
Reduction due to credit impaired securities sold or matured						5
Balance at end of period		$	(1,158)		$	(1,164)

Six months ended June 30,
In millions	2014			2013
Balance at beginning of period		$	(1,160)		$	(1,201)
Additional loss where credit impairment was previously recognized			(3)			(14)
Reduction due to credit impaired securities sold or matured			5			51
Balance at end of period		$	(1,158)		$	(1,164)

Gains (Losses) on Sales Of Securities Available for Sale

Table 77: Gains (Losses) on Sales of Securities Available for Sale

			Gross		Gross		Net		Tax
In millions	Proceeds		Gains		Losses		Gains		Expense
Six months ended June 30
2014	$	3,401	$	29	$	(25)	$	4	$	1
2013		3,877		98		(23)		75		26

Contractual Maturity of Debt Securities

Table 78: Contractual Maturity of Debt Securities

June 30, 2014					After 1 Year			After 5 Years			After 10
Dollars in millions		1 Year or Less			through 5 Years			through 10 Years			Years			Total
Securities Available for Sale
U.S. Treasury and government agencies			-		$	1,317		$	3,422		$	471		$	5,210
Residential mortgage-backed
	Agency		-			97			495			19,098			19,690
	Non-agency		-			8			1			5,093			5,102
Commercial mortgage-backed
	Agency	$	69			404			20			98			591
	Non-agency		-			-			51			3,386			3,437
Asset-backed			44			826			2,088			2,422			5,380
State and municipal			4			118			299			1,444			1,865
Other debt			101			996			455			243			1,795
Total debt securities available for sale		$	218		$	3,766		$	6,831		$	32,255		$	43,070
Fair value		$	219		$	3,875		$	6,949		$	33,114		$	44,157
Weighted-average yield, GAAP basis			3.00	%		2.65	%		2.35	%		3.03	%		2.89	%
Securities Held to Maturity
U.S. Treasury and government agencies			-			-			-		$	243		$	243
Residential mortgage-backed
	Agency		-			-			-			5,712			5,712
	Non-agency		-			-			-			283			283
Commercial mortgage-backed
	Agency		-		$	1,032		$	172			-			1,204
	Non-agency		-			6			-			1,267			1,273
Asset-backed			-			4			283			694			981
State and municipal		$	20			21			641			1,378			2,060
Other debt			-			-			327						327
Total debt securities held to maturity		$	20		$	1,063		$	1,423		$	9,577		$	12,083
Fair value		$	21		$	1,113		$	1,478		$	9,804		$	12,416
Weighted-average yield, GAAP basis			4.42	%		3.43	%		3.36	%		3.65	%		3.60	%

Weighted-Average Expected Maturity of Mortgage and Other Asset-Backed Debt Securities

Table 79: Weighted-Average Expected Maturity of Mortgage and Other Asset-Backed Debt Securities

June 30, 2014		Years
Agency residential mortgage-backed securities		4.2
Non-agency residential mortgage-backed securities		5.7
Agency commercial mortgage-backed securities		3.3
Non-agency commercial mortgage-backed securities		3.1
Asset-backed securities		3.5

Fair Value of Securities Pledged and Accepted as Collateral

Table 80: Fair Value of Securities Pledged and Accepted as Collateral

		June 30			December 31
In millions		2014			2013
Pledged to others			$	16,549		$	18,772
Accepted from others:
	Permitted by contract or custom to sell or repledge			1,105			1,571
	Permitted amount repledged to others			886			1,343

- 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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