SECURITIES (Tables)

3 Months Ended

Mar. 31, 2017

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:

	March 31, 2017									December 31, 2016
(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		$30		$—		$—			$30
State and political subdivisions	7		—		—			7		8		—		—			8
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	19,773		71		(282		)	19,562		19,231		78		(264		)	19,045
Other/non-agency	397		2		(19		)	380		427		2		(28		)	401
Total mortgage-backed securities	20,170		73		(301		)	19,942		19,658		80		(292		)	19,446
Total debt securities available for sale	20,192		73		(301		)	19,964		19,696		80		(292		)	19,484
Marketable equity securities	—		—		—			—		5		—		—			5
Other equity securities	—		—		—			—		12		—		—			12
Total equity securities available for sale	—		—		—			—		17		—		—			17
Total securities available for sale		$20,192		$73		($301	)		$19,964		$19,713		$80		($292	)		$19,501
Securities Held to Maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities		$4,075		$15		($36	)		$4,054		$4,126		$12		($44	)		$4,094
Other/non-agency	917		24		—			941		945		19		—			964
Total securities held to maturity		$4,992		$39		($36	)		$4,995		$5,071		$31		($44	)		$5,058
Other Investment Securities, at Fair Value
Money market mutual fund		$96		$—		$—			$96		$91		$—		$—			$91
Other investments	5		—		—			5		5		—		—			5
Total other investment securities, at fair value		$101		$—		$—			$101		$96		$—		$—			$96
Other Investment Securities, at Cost
Federal Reserve Bank stock		$463		$—		$—			$463		$463		$—		$—			$463
Federal Home Loan Bank stock	458		—		—			458		479		—		—			479
Other equity securities	18		—		—			18		—		—		—			—
Total other investment securities, at cost		$939		$—		$—			$939		$942		$—		$—			$942

Other than temporary impairment recognized in earnings

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

	Three Months Ended March 31,
(in millions)	2017			2016
Other-than-temporary impairment:
Total other-than-temporary impairment losses		($20	)		($41	)
Portions of loss recognized in other comprehensive income (before taxes)	19			40
Net securities impairment losses recognized in earnings		($1	)		($1	)

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:

	March 31, 2017
	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		$7		$—		—		$—		$—		1		$7		$—
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	323	15,287		(305		)	24	449		(13		)	347	15,736		(318		)
Other/non-agency	7	50		(1		)	17	229		(18		)	24	279		(19		)
Total mortgage-backed securities	330	15,337		(306		)	41	678		(31		)	371	16,015		(337		)
Total	331		$15,344		($306	)	41		$678		($31	)	372		$16,022		($337	)

	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	)

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)	2017			2016
Cumulative balance at beginning of period		$75			$66
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		)	(1		)
Cumulative balance at end of period		$75			$66

⁽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 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.

	March 31, 2017
	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	—		—		—		7		7
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	1		74		1,118		18,580		19,773
Other/non-agency	—		31		2		364		397
Total debt securities available for sale	16		105		1,120		18,951		20,192
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		4,075		4,075
Other/non-agency	—		—		—		917		917
Total debt securities held to maturity	—		—		—		4,992		4,992
Total amortized cost of debt securities		$16		$105		$1,120		$23,943		$25,184
Fair Value:
Debt securities available for sale
U.S. Treasury and other		$15		$—		$—		$—		$15
State and political subdivisions	—		—		—		7		7
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	1		74		1,132		18,355		19,562
Other/non-agency	—		31		2		347		380
Total debt securities available for sale	16		105		1,134		18,709		19,964
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		4,054		4,054
Other/non-agency	—		—		—		941		941
Total debt securities held to maturity	—		—		—		4,995		4,995
Total fair value of debt securities		$16		$105		$1,134		$23,704		$24,959

Schedule of income recognized on investment securities

Realized gains and losses on securities are presented below:

	Three Months Ended March 31,
(in millions)	2017		2016
Gains on sale of debt securities		$4		$9
Losses on sale of debt securities	—		—
Debt securities gains, net		$4		$9

Schedule of financial instruments owned and pledged as collateral

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

	March 31, 2017				December 31, 2016
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Pledged against repurchase agreements		$538		$531		$631		$620
Pledged against FHLB borrowed funds	925		948		953		972
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law	3,301		3,277		3,575		3,563