SECURITIES (Tables)

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Schedule of securities held

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

	December 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		$30		$—		$—			$30		$16		$—		$—			$16
State and political subdivisions	8		—		—			8		9		—		—			9
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	19,231		78		(264		)	19,045		17,234		153		(67		)	17,320
Other/non-agency	427		2		(28		)	401		555		4		(37		)	522
Total mortgage-backed securities	19,658		80		(292		)	19,446		17,789		157		(104		)	17,842
Total debt securities available for sale	19,696		80		(292		)	19,484		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		$19,713		$80		($292	)		$19,501		$17,831		$157		($104	)		$17,884
Securities Held to Maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities		$4,126		$12		($44	)		$4,094		$4,105		$27		($11	)		$4,121
Other/non-agency	945		19		—			964		1,153		23		—			1,176
Total securities held to maturity		$5,071		$31		($44	)		$5,058		$5,258		$50		($11	)		$5,297
Other Investment Securities, at Fair Value
Money market mutual fund		$91		$—		$—			$91		$65		$—		$—			$65
Other investments	5		—		—			5		5		—		—			5
Total other investment securities, at fair value		$96		$—		$—			$96		$70		$—		$—			$70
Other Investment Securities, at Cost
Federal Reserve Bank stock		$463		$—		$—			$463		$468		$—		$—			$468
Federal Home Loan Bank stock	479		—		—			479		395		—		—			395
Total other investment securities, at cost		$942		$—		$—			$942		$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:

	Year Ended December 31,
(in millions)	2016			2015			2014
Other-than-temporary impairment:
Total other-than-temporary impairment losses		($39	)		($43	)		($45	)
Portions of loss recognized in other comprehensive income (before taxes)	27			36			35
Net securities impairment losses recognized in earnings		($12	)		($7	)		($10	)

Schedule of unrealized loss on investments

The following tables present 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, 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
State and political subdivisions	1		$8		$—		—		$—		$—		1		$8		$—
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	323	15,387		(292		)	25	461		(16		)	348	15,848		(308		)
Other/non-agency	4	8		—			20	302		(28		)	24	310		(28		)
Total mortgage-backed securities	327	15,395		(292		)	45	763		(44		)	372	16,158		(336		)
Total	328		$15,403		($292	)	45		$763		($44	)	373		$16,166		($336	)

	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	)

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)	2016			2015			2014
Cumulative balance at beginning of period		$66			$62			$56
Credit impairments recognized in earnings on securities that have been previously impaired	12			7			10
Reductions due to increases in cash flow expectations on impaired securities (1)	(3		)	(3		)	(4		)
Cumulative balance at end of period		$75			$66			$62

⁽¹⁾ Reported in interest income from investment securities on the Consolidated Statements of Operations.

Schedule of investments classified by maturity date

The amortized cost and fair value of debt securities at December 31, 2016 by contractual maturity are presented 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		$30		$—		$—		$—		$30
State and political subdivisions	—		—		—		8		8
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	1		27		1,177		18,026		19,231
Other/non-agency	—		36		3		388		427
Total debt securities available for sale	31		63		1,180		18,422		19,696
Debt securities held to maturity:
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		4,126		4,126
Other/non-agency	—		—		—		945		945
Total debt securities held to maturity	—		—		—		5,071		5,071
Total amortized cost of debt securities		$31		$63		$1,180		$23,493		$24,767
Fair Value:
Debt securities available for sale
U.S. Treasury and other		$30		$—		$—		$—		$30
State and political subdivisions	—		—		—		8		8
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	1		28		1,194		17,822		19,045
Other/non-agency	—		36		3		362		401
Total debt securities available for sale	31		64		1,197		18,192		19,484
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		4,094		4,094
Other/non-agency	—		—		—		964		964
Total debt securities held to maturity	—		—		—		5,058		5,058
Total fair value of debt securities		$31		$64		$1,197		$23,250		$24,542

Schedule of income recognized on investment securities

Realized gains and losses on securities are presented below:

	Year Ended December 31,
(in millions)	2016			2015			2014
Gains on sale of debt securities		$18			$41			$33
Losses on sale of debt securities	(2		)	(12		)	(5		)
Debt securities gains, net		$16			$29			$28
Equity securities gains		$3			$3			$—

Schedule of financial instruments owned and pledged as collateral

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

	December 31, 2016				December 31, 2015
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Pledged against repurchase agreements		$631		$620		$805		$808
Pledged against FHLB borrowed funds	953		972		1,163		1,186
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law	3,575		3,563		3,579		3,610

Schedule of effect of repurchase agreements on balance sheet accounts

The impact of this offsetting on the Consolidated Balance Sheets is presented in the following table:

	December 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 16 “Derivatives.”