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SECURITIES (Tables)
 12 Months Ended
Dec. 31, 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:
 
December 31, 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 and other

$16


$—


$—


$16

 

$15


$—


$—


$15

State and political subdivisions
9

—

—

9

 
10

—

—

10

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
17,234

153

(67
)
17,320

 
17,683

301

(50
)
17,934

Other/non-agency
555

4

(37
)
522

 
703

4

(35
)
672

Total mortgage-backed securities
17,789

157

(104
)
17,842

 
18,386

305

(85
)
18,606

Total debt securities available for sale
17,814

157

(104
)
17,867

 
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

$17,831


$157


($104
)

$17,884

 

$18,433


$308


($85
)

$18,656

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

$4,105


$27


($11
)

$4,121

 

$3,728


$22


($31
)

$3,719

Other/non-agency
1,153

23

—

1,176

 
1,420

54

—

1,474

Total securities held to maturity

$5,258


$50


($11
)

$5,297

 

$5,148


$76


($31
)

$5,193

Other Investment Securities, at Fair Value
 
 
 
 
 
 
 
 
 
Money market mutual fund

$65


$—


$—


$65

 

$28


$—


$—


$28

Other investments
5

—

—

5

 
5

—

—

5

Total other investment securities, at fair value

$70


$—


$—


$70

 

$33


$—


$—


$33

Other Investment Securities, at Cost
 
 
 
 
 
 
 
 
 
Federal Reserve Bank stock

$468


$—


$—


$468

 

$477


$—


$—


$477

Federal Home Loan Bank stock
395

—

—

395

 
390

—

—

390

Total other investment securities, at cost

$863


$—


$—


$863

 

$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 securities impairment losses recognized in earnings:
 
Year Ended December 31,
(in millions)
2015

 
2014

 
2013

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

($43
)
 

($45
)
 

($49
)
      Portions of loss recognized in other comprehensive income (before taxes)
36

 
35

 
41

Net securities impairment losses recognized in earnings

($7
)
 

($10
)
 

($8
)
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:
 
December 31, 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


$—

US Treasury and other
1

15

—

 
—

—

—

 
1

15


$—

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
162

7,423

(51
)
 
36

819

(27
)
 
198

8,242

(78
)
Other/non-agency
2

9

—

 
20

361

(37
)
 
22

370

(37
)
Total mortgage-backed securities
164

7,432

(51
)
 
56

1,180

(64
)
 
220

8,612

(115
)
Total
166


$7,456


($51
)
 
56


$1,180


($64
)
 
222


$8,636


($115
)

 
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:
 
Year Ended December 31,
(in millions)
2015

 
2014

 
2013

Cumulative balance at beginning of period

$62

 

$56

 

$55

Credit impairments recognized in earnings on securities that have been previously impaired
7

 
10

 
8

Reductions due to increases in cash flow expectations on impaired securities
(3
)
 
(4
)
 
(7
)
Cumulative balance at end of period

$66

 

$62

 

$56
Schedule of investments classified by maturity date
The amortized cost and fair value of debt securities at December 31, 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 and other

$15


$—


$1


$—


$16

State and political subdivisions
—

—

—

9

9

Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
4

52

1,833

15,345

17,234

Other/non-agency
—

68

3

484

555

Total debt securities available for sale
19

120

1,837

15,838

17,814

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

—

—

4,105

4,105

Other/non-agency
—

—

—

1,153

1,153

Total debt securities held to maturity
—

—

—

5,258

5,258

Total amortized cost of debt securities

$19


$120


$1,837


$21,096


$23,072

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

$15


$—


$1


$—


$16

State and political subdivisions
—

—

—

9

9

Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
4

54

1,845

15,417

17,320

Other/non-agency
—

70

3

449

522

Total debt securities available for sale
19

124

1,849

15,875

17,867

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

—

—

4,121

4,121

Other/non-agency
—

—

—

1,176

1,176

Total debt securities held to maturity
—

—

—

5,297

5,297

Total fair value of debt securities

$19


$124


$1,849


$21,172


$23,164
Schedule of income recognized on investment securities
The following table reports the amounts recognized in interest income from investment securities and interest-bearing deposits in banks on the Consolidated Statements of Operations:
 
Year Ended December 31,
(in millions)
2015

2014

2013

Taxable

$621


$619


$477

Non-taxable
—

—

—

Interest-bearing cash and due from banks and deposits in banks

$5


$5


$11

Total interest income from investment securities and interest-bearing deposits in banks

$626


$624


$488


Realized gains and losses on securities are shown below:
 
Year Ended December 31,
(in millions)
2015

 
2014

 
2013

Gains on sale of debt securities

$41

 

$33

 

$144

Losses on sale of debt securities
(12
)
 
(5
)
 
—

Debt securities gains, net

$29

 

$28

 

$144

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:
 
December 31, 2015
 
December 31, 2014
(in millions)
Amortized Cost
Fair Value

 
Amortized Cost
Fair Value

Pledged against repurchase agreements

$805


$808

 

$3,650


$3,701

Pledged against FHLB borrowed funds
1,163

1,186

 
1,355

1,407

Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law
3,579

3,610

 
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:
 
December 31, 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

$500


($500
)

$—

 

$—


$—


$—

Securities sold under agreements to repurchase
(500
)
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 16 “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 December 31, 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


$—


$—


$500

Total securities purchased under agreements to resell

$—


$500


$—


$—


$500

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

$—


($500
)

$—


$—


($500
)
Total securities sold under agreement to repurchase

$—


($500
)

$—


$—


($500
)