SECURITIES (Tables)

3 Months Ended

Mar. 31, 2016

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:

	March 31, 2016									December 31, 2015
(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		$16		$—		$—			$16
State and political subdivisions	9		—		—			9		9		—		—			9
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	17,147		300		(13		)	17,434		17,234		153		(67		)	17,320
Other/non-agency	526		2		(40		)	488		555		4		(37		)	522
Total mortgage-backed securities	17,673		302		(53		)	17,922		17,789		157		(104		)	17,842
Total debt securities available for sale	17,698		302		(53		)	17,947		17,814		157		(104		)	17,867
Marketable equity securities	5		—		—			5		5		—		—			5
Other equity securities	12		—		—			12		12		—		—			12
Total equity securities available for sale	17		—		—			17		17		—		—			17
Total securities available for sale		$17,715		$302		($53	)		$17,964		$17,831		$157		($104	)		$17,884
Securities Held to Maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities		$4,010		$93		$—			$4,103		$4,105		$27		($11	)		$4,121
Other/non-agency	1,119		39		—			1,158		1,153		23		—			1,176
Total securities held to maturity		$5,129		$132		$—			$5,261		$5,258		$50		($11	)		$5,297
Other Investment Securities, at Fair Value
Money market mutual fund		$63		$—		$—			$63		$65		$—		$—			$65
Other investments	5		—		—			5		5		—		—			5
Total other investment securities, at fair value		$68		$—		$—			$68		$70		$—		$—			$70
Other Investment Securities, at Cost
Federal Reserve Bank stock		$468		$—		$—			$468		$468		$—		$—			$468
Federal Home Loan Bank stock	428		—		—			428		395		—		—			395
Total other investment securities, at cost		$896		$—		$—			$896		$863		$—		$—			$863

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:

	Three Months Ended  March 31
(in millions)	2016			2015
Other-than-temporary impairment:
Total other-than-temporary impairment losses		($41	)		($31	)
Portions of loss recognized in other comprehensive income (before taxes)	40			30
Net securities impairment losses recognized in earnings		($1	)		($1	)

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:

	March 31, 2016
	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 and other	1		$9		$—		—		$—		$—		1		$9		$—
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	15	614		(1		)	33	727		(12		)	48	1,341		(13		)
Other/non-agency	6	19		—			20	344		(40		)	26	363		(40		)
Total mortgage-backed securities	21	633		(1		)	53	1,071		(52		)	74	1,704		(53		)
Total	22		$642		($1	)	53		$1,071		($52	)	75		$1,713		($53	)

	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		$—
U.S. 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	)

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 March 31,
(in millions)	2016			2015
Cumulative balance at beginning of period		$66			$62
Credit impairments recognized in earnings on securities that have been previously impaired	1			1
Reductions due to increases in cash flow expectations on impaired securities	(1		)	(1		)
Cumulative balance at end of period		$66			$62

Schedule of investments classified by maturity date

The amortized cost and fair value of debt securities at March 31, 2016 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	15		37		1,790		15,305		17,147
Other/non-agency	—		57		3		466		526
Total debt securities available for sale	30		94		1,794		15,780		17,698
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		4,010		4,010
Other/non-agency	—		—		—		1,119		1,119
Total debt securities held to maturity	—		—		—		5,129		5,129
Total amortized cost of debt securities		$30		$94		$1,794		$20,909		$22,827
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	15		39		1,823		15,557		17,434
Other/non-agency	—		57		3		428		488
Total debt securities available for sale	30		96		1,827		15,994		17,947
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		4,103		4,103
Other/non-agency	—		—		—		1,158		1,158
Total debt securities held to maturity	—		—		—		5,261		5,261
Total fair value of debt securities		$30		$96		$1,827		$21,255		$23,208

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 March 31,
(in millions)	2016		2015
Taxable		$145		$159
Non-taxable	—		—
Total interest income from investment securities and interest-bearing deposits in banks		$145		$159

Realized gains and losses on securities are shown below:

	Three Months Ended March 31,
(in millions)	2016		2015
Gains on sale of debt securities		$9		$12
Losses on sale of debt securities	—		(4		)
Debt securities gains, net		$9		$8
Equity securities gains		$—		$2

Schedule of financial instruments owned and pledged as collateral

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

	March 31, 2016				December 31, 2015
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Pledged against repurchase agreements		$682		$695		$805		$808
Pledged against FHLB borrowed funds	1,129		1,168		1,163		1,186
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law	3,336		3,406		3,579		3,610

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:

	March 31, 2016						December 31, 2015
(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			—

Note: The Company also offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. For further information see Note 11 “Derivatives.”