SECURITIES (Tables)

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Schedule of securities held

The following table provides the major components of securities at amortized cost and fair value:

	September 30, 2014									December 31, 2013
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale
U.S. Treasury		$15		$—		$—			$15		$15		$—		$—			$15
State and political subdivisions	10		—		—			10		11		—		(1		)	10
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	17,759		207		(68		)	17,898		14,970		151		(128		)	14,993
Other/non-agency	747		6		(35		)	718		992		5		(45		)	952
Total mortgage-backed securities	18,506		213		(103		)	18,616		15,962		156		(173		)	15,945
Total debt securities available for sale	18,531		213		(103		)	18,641		15,988		156		(174		)	15,970
Marketable equity securities	10		3		—			13		10		3		—			13
Other equity securities	12		—		—			12		12		—		—			12
Total equity securities available for sale	22		3		—			25		22		3		—			25
Total securities available for sale		$18,553		$216		($103	)		$18,666		$16,010		$159		($174	)		$15,995
Securities Held to Maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities		$3,833		$9		($46	)		$3,796		$2,940		$—		($33	)		$2,907
Other/non-agency	1,456		26		—			1,482		1,375		—		(25		)	1,350
Total securities held to maturity		$5,289		$35		($46	)		$5,278		$4,315		$—		($58	)		$4,257
Other Investment Securities
Federal Reserve Bank stock		$470		$—		$—			$470		$462		$—		$—			$462
Federal Home Loan Bank stock	417		—		—			417		468		—		—			468
Venture capital and other investments	6		—		—			6		5		—		—			5
Total other investment securities		$893		$—		$—			$893		$935		$—		$—			$935

Schedule of unrealized loss on investments

The following tables summarize those securities whose fair values are below carrying values, segregated by those that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer:

	September 30, 2014
	Less than 12 Months						12 Months or Longer						Total
(dollars in millions)	Number of Issues	Fair Value		Gross Unrealized Losses			Number of Issues	Fair Value		Gross Unrealized Losses			Number of Issues	Fair Value		Gross Unrealized Losses
U.S. Treasury	—		$—		$—		—		$—		$—		—		$—		$—
State and political subdivisions	—	—		—			1	10		—			1	10		—
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	121	7,178		(63		)	45	1,213		(51		)	166	8,391		(114		)
Other/non-agency	5	112		(1		)	17	414		(34		)	22	526		(35		)
Total mortgage-backed securities	126	7,290		(64		)	62	1,627		(85		)	188	8,917		(149		)
Total	126		$7,290		($64	)	63		$1,637		($85	)	189		$8,927		($149	)

	December 31, 2013
	Less than 12 Months						12 Months or Longer						Total
(dollars in millions)	Number of Issues	Fair Value		Gross Unrealized Losses			Number of Issues	Fair Value		Gross Unrealized Losses			Number of Issues	Fair Value		Gross Unrealized Losses
State and political subdivisions	1		$10		($1	)	—		$—		$—		1		$10		($1	)
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	263	12,067		(158		)	7	20		(2		)	270	12,087		(160		)
Other/non-agency	22	1,452		(34		)	19	490		(37		)	41	1,942		(71		)
Total mortgage-backed securities	285	13,519		(192		)	26	510		(39		)	311	14,029		(231		)
Total	286		$13,529		($193	)	26		$510		($39	)	312		$14,039		($232	)

Schedule of credit losses recognized in earnings

The following table presents the cumulative credit related losses recognized in earnings on debt securities held by the Company as of:

	Three Months Ended   September 30,						Nine Months Ended September 30,
(in millions)	2014			2013			2014			2013
Cumulative balance at beginning of period		$60			$56			$56			$55
Credit impairments recognized in earnings on debt securities that have been previously impaired	1			3			7			7
Reductions due to increases in cash flow expectations on impaired securities	(1		)	(3		)	(3		)	(6		)
Cumulative balance at end of period		$60			$56			$60			$56

Schedule of investments classified by maturity date

The amortized cost and fair value of debt securities at September 30, 2014 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Distribution of Maturities
(in millions)	1 Year or Less		1-5 Years		5-10 Years		After 10 Years		Total
Amortized Cost:
Debt securities available for sale
U.S. Treasury		$15		$—		$—		$—		$15
State and political subdivisions	—		—		—		10		10
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	4		56		2,438		15,261		17,759
Other/non-agency	—		61		62		624		747
Total debt securities available for sale	19		117		2,500		15,895		18,531
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		3,833		3,833
Other/non-agency	—		—		—		1,456		1,456
Total debt securities held to maturity	—		—		—		5,289		5,289
Total amortized cost of debt securities		$19		$117		$2,500		$21,184		$23,820
Fair Value:
Debt securities available for sale
U.S. Treasury		$15		$—		$—		$—		$15
State and political subdivisions	—		—		—		10		10
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	4		60		2,441		15,393		17,898
Other/non-agency	—		61		64		593		718
Total debt securities available for sale	19		121		2,505		15,996		18,641
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		3,796		3,796
Other/non-agency	—		—		—		1,482		1,482
Total debt securities held to maturity	—		—		—		5,278		5,278
Total fair value of debt securities		$19		$121		$2,505		$21,274		$23,919

Schedule of income recognized on investment securities

The following table reports the amounts recognized in interest income from investment securities on the Consolidated Statement of Operations:

	Three Months Ended   September 30,				Nine Months Ended September 30,
(in millions)	2014		2013		2014		2013
Taxable		$155		$120		$458		$348
Non-taxable	—		—		—		—
Total interest income from investment securities		$155		$120		$458		$348

Schedule of financial instruments owned and pledged as collateral

The amortized cost and fair value of securities pledged are shown below:

	September 30, 2014				December 31, 2013
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Pledged against repurchase agreements		$5,129		$5,165		$5,016		$4,998
Pledged against FHLB borrowed funds	1,390		1,416		1		1
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law	3,463		3,514		2,818		2,853

Schedule of effect of repurchase agreements on balance sheet accounts

The effects of this offsetting on the Consolidated Balance Sheets are presented in the following table:

	September 30, 2014								December 31, 2013
(in millions)	Gross Assets (Liabilities)			Gross Assets (Liabilities) Offset		Net Amounts of Assets (Liabilities)			Gross Assets (Liabilities)			Gross Assets (Liabilities) Offset		Net Amounts of Assets (Liabilities)
Securities purchased under agreements to resell		$—			$—		$—			$—			$—		$—
Securities sold under agreements to repurchase	(4,100		)	—		(4,100		)	(3,000		)	—		(3,000		)

Note: The Company also offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. See Note 11 "Derivatives" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information for further information.