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SECURITIES (Tables)
 9 Months Ended
Sep. 30, 2015
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, 2015
 
December 31, 2014
(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
9

—

—

9

 
10

—

—

10

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
17,340

292

(25
)
17,607

 
17,683

301

(50
)
17,934

Other/non-agency
587

3

(41
)
549

 
703

4

(35
)
672

Total mortgage-backed securities
17,927

295

(66
)
18,156

 
18,386

305

(85
)
18,606

Total debt securities available for sale
17,951

295

(66
)
18,180

 
18,411

305

(85
)
18,631

Marketable equity securities
5

—

—

5

 
10

3

—

13

Other equity securities
12

—

—

12

 
12

—

—

12

Total equity securities available for sale
17

—

—

17

 
22

3

—

25

Total securities available for sale

$17,968


$295


($66
)

$18,197

 

$18,433


$308


($85
)

$18,656

Securities Held to Maturity
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
Federal agencies and U.S. government sponsored entities

$4,092


$67


($4
)

$4,155

 

$3,728


$22


($31
)

$3,719

Other/non-agency
1,193

38

—

1,231

 
1,420

54

—

1,474

Total securities held to maturity

$5,285


$105


($4
)

$5,386

 

$5,148


$76


($31
)

$5,193

Other Investment Securities, at Fair Value
 
 
 
 
 
 
 
 
 
Money market mutual fund

$45


$—


$—


$45

 

$28


$—


$—


$28

Venture capital and other investments
5

—

—

5

 
5

—

—

5

Total other investment securities, at fair value

$50


$—


$—


$50

 

$33


$—


$—


$33

 
 
 
 
 
 
 
 
 
 
Other Investment Securities, at Cost
 
 
 
 
 
 
 
 
 
Federal Reserve Bank stock

$468


$—


$—


$468

 

$477


$—


$—


$477

Federal Home Loan Bank stock
354

—

—

354

 
390

—

—

390

Total other investment securities, at cost

$822


$—


$—


$822

 

$867


$—


$—


$867
Other than temporary impairment recognized in earnings
The Company has reviewed its securities portfolio for other-than-temporary impairments. The following table presents the net impairment losses recognized in earnings:

 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
(in millions)
2015

2014

 
2015

2014

Other-than-temporary impairment:
 
 
 
 
 
Total other-than-temporary impairment losses

($14
)

($3
)
 

($46
)

($42
)
      Portions of loss recognized in other comprehensive income (before taxes)
12

2

 
41

35

Net impairment losses recognized in earnings

($2
)

($1
)
 

($5
)

($7
)
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, 2015
 
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


$9


$—

 
—


$—


$—

 
1


$9


$—

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
35

2,985

(12
)
 
37

960

(17
)
 
72

3,945

(29
)
Other/non-agency
6

52

(1
)
 
19

366

(40
)
 
25

418

(41
)
Total mortgage-backed securities
41

3,037

(13
)
 
56

1,326

(57
)
 
97

4,363

(70
)
Total
42


$3,046


($13
)
 
56


$1,326


($57
)
 
98


$4,372


($70
)

 
December 31, 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
State and political subdivisions
—


$—


$—

 
1


$10


$—

 
1


$10


$—

Mortgage-backed securities:






 






 






Federal agencies and U.S. government sponsored entities
75

3,282

(24
)
 
52

1,766

(57
)
 
127

5,048

(81
)
Other/non-agency
6

80

(2
)
 
17

397

(33
)
 
23

477

(35
)
Total mortgage-backed securities
81

3,362

(26
)
 
69

2,163

(90
)
 
150

5,525

(116
)
Total
81


$3,362


($26
)
 
70


$2,173


($90
)
 
151


$5,535


($116
)
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:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in millions)
2015

2014

 
2015

2014

Cumulative balance at beginning of period

$62


$60

 

$62


$56

Credit impairments recognized in earnings on securities not previously impaired
—

—

 
—

—

Credit impairments recognized in earnings on securities that have been previously impaired
2

1

 
5

7

Reductions due to increases in cash flow expectations on impaired securities
(1
)
(1
)
 
(4
)
(3
)
Cumulative balance at end of period

$63


$60

 

$63


$60
Schedule of investments classified by maturity date
The amortized cost and fair value of debt securities at September 30, 2015 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 incurring 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
—

—

—

9

9

Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
—

47

1,972

15,321

17,340

Other/non-agency
—

70

9

508

587

Total debt securities available for sale
15

117

1,981

15,838

17,951

Debt securities held to maturity
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
—

—

—

4,092

4,092

Other/non-agency
—

—

—

1,193

1,193

Total debt securities held to maturity
—

—

—

5,285

5,285

Total amortized cost of debt securities

$15


$117


$1,981


$21,123


$23,236

 
 
 
 
 
 
Fair Value:
 
 
 
 
 
Debt securities available for sale
 
 
 
 
 
U.S. Treasury

$15


$—


$—


$—


$15

State and political subdivisions
—

—

—

9

9

Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
—

50

2,006

15,551

17,607

Other/non-agency
—

71

9

469

549

Total debt securities available for sale
15

121

2,015

16,029

18,180

Debt securities held to maturity
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
—

—

—

4,155

4,155

Other/non-agency
—

—

—

1,231

1,231

Total debt securities held to maturity
—

—

—

5,386

5,386

Total fair value of debt securities

$15


$121


$2,015


$21,415


$23,566
Schedule of income recognized on investment securities
The following table reports the amounts recognized in interest income from investment securities on the Consolidated Statements of Operations:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in millions)
2015

2014

 
2015

2014

Taxable

$154


$155

 

$468


$458

Non-taxable
—

—

 
—

—

Total interest income from investment securities

$154


$155

 

$468


$458


Realized gains and losses on AFS securities are shown below:
 
Three Months Ended September 30, 2015
 
Nine Months Ended September 30, 2015
(in millions)
2015

2014

 
2015

2014

Gains on sale of debt securities

$7


$7

 

$29


$32

Losses on sale of debt securities
(7
)
(5
)
 
(12
)
(5
)
Debt securities gains, net

$—


$2

 

$17


$27

Equity securities gains

$—


$—

 

$3


$—
Schedule of financial instruments owned and pledged as collateral
The amortized cost and fair value of securities pledged are shown below:
 
September 30, 2015
 
December 31, 2014
(in millions)
Amortized Cost
Fair Value

 
Amortized Cost
Fair Value

Pledged against repurchase agreements

$1,275


$1,294

 

$3,650


$3,701

Pledged against FHLB borrowed funds
1,203

1,241

 
1,355

1,407

Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law
3,442

3,517

 
3,453

3,520
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, 2015
 
December 31, 2014
(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

$1,300


($1,300
)

$—

 

$—


$—


$—

Securities sold under agreements to repurchase
(1,800
)
1,300

(500
)
 
(2,600
)
—

(2,600
)

Note: The Company also offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. For further information see Note 12 “Derivatives.”
Securities under agreements to repurchase or resell
The following table presents the Company's related activity, by collateral type and remaining contractual maturity, at September 30, 2015:
 
Remaining Contractual Maturity of the Agreements
(in millions)
Overnight and Continuous
Up to 30 Days
30-90 Days
Greater Than 90 Days
Total

Securities purchased under agreements to resell
 
 
 
 
 
Mortgage-backed securities - Agency

$—


$500


$300


$500


$1,300

Total securities purchased under agreements to resell

$—


$500


$300


$500


$1,300

Securities sold under agreements to repurchase
 
 
 
 
 
Mortgage-backed securities - Agency

$—


($500
)

($800
)

($500
)

($1,800
)
Total securities sold under agreement to repurchase

$—


($500
)

($800
)

($500
)

($1,800
)