SECURITIES (Tables)

6 Months Ended

Jun. 30, 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:

	June 30, 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		$15		$—		$—			$15		$16		$—		$—			$16
State and political subdivisions	9		—		—			9		9		—		—			9
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	17,588		401		(8		)	17,981		17,234		153		(67		)	17,320
Other/non-agency	489		2		(34		)	457		555		4		(37		)	522
Total mortgage-backed securities	18,077		403		(42		)	18,438		17,789		157		(104		)	17,842
Total debt securities available for sale	18,101		403		(42		)	18,462		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		$18,118		$403		($42	)		$18,479		$17,831		$157		($104	)		$17,884
Securities Held to Maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities		$3,912		$119		$—			$4,031		$4,105		$27		($11	)		$4,121
Other/non-agency	1,061		44		—			1,105		1,153		23		—			1,176
Total securities held to maturity		$4,973		$163		$—			$5,136		$5,258		$50		($11	)		$5,297
Other Investment Securities, at Fair Value
Money market mutual fund		$68		$—		$—			$68		$65		$—		$—			$65
Other investments	5		—		—			5		5		—		—			5
Total other investment securities, at fair value		$73		$—		$—			$73		$70		$—		$—			$70
Other Investment Securities, at Cost
Federal Reserve Bank stock		$463		$—		$—			$463		$468		$—		$—			$468
Federal Home Loan Bank stock	410		—		—			410		395		—		—			395
Total other investment securities, at cost		$873		$—		$—			$873		$863		$—		$—			$863

Other than temporary impairment recognized in earnings

The following table presents the net securities impairment losses recognized in earnings:

	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2016			2015			2016			2015
Other-than-temporary impairment:
Total other-than-temporary impairment losses		($1	)		($1	)		($42	)		($32	)
Portions of loss recognized in other comprehensive income (before taxes)	(6		)	(1		)	34			29
Net securities impairment losses recognized in earnings		($7	)		($2	)		($8	)		($3	)

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:

	June 30, 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
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	7		$95		$—	33		$734		($8	)	40		$829		($8	)
Other/non-agency	4	19		—		20	330		(34		)	24	349		(34		)
Total mortgage-backed securities	11	114		—		53	1,064		(42		)	64	1,178		(42		)
Total	11		$114		$—	53		$1,064		($42	)	64		$1,178		($42	)

	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 June 30,					Six Months Ended June 30,
(in millions)	2016		2015			2016			2015
Cumulative balance at beginning of period		$66		$62			$66			$62
Credit impairments recognized in earnings on securities that have been previously impaired	7		2			8			3
Reductions due to increases in cash flow expectations on impaired securities	—		(2		)	(1		)	(3		)
Cumulative balance at end of period		$73		$62			$73			$62

Schedule of investments classified by maturity date

The amortized cost and fair value of debt securities 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.

	June 30, 2016
	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		$—		$—		$—		$15
State and political subdivisions	—		—		—		9		9
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	15		36		1,668		15,869		17,588
Other/non-agency	—		50		2		437		489
Total debt securities available for sale	30		86		1,670		16,315		18,101
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		3,912		3,912
Other/non-agency	—		—		—		1,061		1,061
Total debt securities held to maturity	—		—		—		4,973		4,973
Total amortized cost of debt securities		$30		$86		$1,670		$21,288		$23,074
Fair Value:
Debt securities available for sale
U.S. Treasury and other		$15		$—		$—		$—		$15
State and political subdivisions	—		—		—		9		9
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	15		38		1,710		16,218		17,981
Other/non-agency	—		50		3		404		457
Total debt securities available for sale	30		88		1,713		16,631		18,462
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		4,031		4,031
Other/non-agency	—		—		—		1,105		1,105
Total debt securities held to maturity	—		—		—		5,136		5,136
Total fair value of debt securities		$30		$88		$1,713		$21,767		$23,598

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 June 30,				Six Months Ended June 30,
(in millions)	2016		2015		2016		2015
Taxable		$141		$155		$286		$314
Non-taxable	—		—		—		—
Total interest income from investment securities		$141		$155		$286		$314

Realized gains and losses on securities are shown below:

	Three Months Ended June 30,					Six Months Ended June 30,
(in millions)	2016		2015			2016		2015
Gains on sale of debt securities		$4		$10			$13		$22
Losses on sale of debt securities	—		(1		)	—		(5		)
Debt securities gains, net		$4		$9			$13		$17
Equity securities gains		$—		$1			$—		$3

Schedule of financial instruments owned and pledged as collateral

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

	June 30, 2016				December 31, 2015
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Pledged against repurchase agreements		$705		$720		$805		$808
Pledged against FHLB borrowed funds	1,070		1,114		1,163		1,186
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law	4,236		4,341		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:

	June 30, 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.”