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Securities
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Securities
Securities
 
 
Our securities available-for-sale and securities held-to-maturity portfolios consisted of the following:
December 31, 2018
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
(in millions)
Securities available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury
$
13,549

 
$
106

 
$
(365
)
 
$
13,290

U.S. Government sponsored enterprises:
 
 
 
 
 
 
 
Mortgage-backed securities
5,541

 
6

 
(154
)
 
5,393

Collateralized mortgage obligations
686

 
1

 
(35
)
 
652

Direct agency obligations
2,831

 
37

 
(2
)
 
2,866

U.S. Government agency issued or guaranteed:
 
 
 
 
 
 
 
Mortgage-backed securities
4,442

 
1

 
(171
)
 
4,272

Collateralized mortgage obligations
1,140

 
9

 
(29
)
 
1,120

Direct agency obligations
295

 
9

 
—

 
304

Asset-backed securities collateralized by:
 
 
 
 
 
 
 
Home equity
44

 
—

 
(2
)
 
42

Other
102

 
5

 
—

 
107

Foreign debt securities(1)
3,330

 
3

 
—

 
3,333

Total available-for-sale securities
$
31,960

 
$
177

 
$
(758
)
 
$
31,379

Securities held-to-maturity:
 
 
 
 
 
 
 
U.S. Government sponsored enterprises:
 
 
 
 
 
 
 
Mortgage-backed securities
$
1,812

 
$
1

 
$
(34
)
 
$
1,779

Collateralized mortgage obligations
1,878

 
34

 
(26
)
 
1,886

U.S. Government agency issued or guaranteed:
 
 
 
 
 
 
 
Mortgage-backed securities
2,104

 
2

 
(63
)
 
2,043

Collateralized mortgage obligations
8,863

 
35

 
(176
)
 
8,722

Obligations of U.S. states and political subdivisions
11

 
—

 
—

 
11

Asset-backed securities collateralized by residential mortgages
2

 
—

 
—

 
2

Total held-to-maturity securities
$
14,670

 
$
72

 
$
(299
)
 
$
14,443

December 31, 2017
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
(in millions)
Securities available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury
$
15,340

 
$
153

 
$
(329
)
 
$
15,164

U.S. Government sponsored enterprises:
 
 
 
 
 
 
 
Mortgage-backed securities
3,616

 
—

 
(77
)
 
3,539

Collateralized mortgage obligations
648

 
—

 
(24
)
 
624

Direct agency obligations
3,369

 
85

 
—

 
3,454

U.S. Government agency issued or guaranteed:
 
 
 
 
 
 
 
Mortgage-backed securities
5,152

 
1

 
(87
)
 
5,066

Collateralized mortgage obligations
792

 
1

 
(18
)
 
775

Direct agency obligations
419

 
19

 
—

 
438

Asset-backed securities collateralized by:
 
 
 
 
 
 
 
Home equity
54

 
—

 
(3
)
 
51

Other
506

 
4

 
—

 
510

Foreign debt securities(1)
902

 
—

 
—

 
902

Equity securities
183

 
—

 
(6
)
 
177

Total available-for-sale securities
$
30,981

 
$
263

 
$
(544
)
 
$
30,700

Securities held-to-maturity:
 
 
 
 
 
 
 
U.S. Government sponsored enterprises:
 
 
 
 
 
 
 
Mortgage-backed securities
$
2,113

 
$
10

 
$
(12
)
 
$
2,111

Collateralized mortgage obligations
1,281

 
41

 
(18
)
 
1,304

U.S. Government agency issued or guaranteed:
 
 
 
 
 
 
 
Mortgage-backed securities
2,485

 
4

 
(13
)
 
2,476

Collateralized mortgage obligations
8,083

 
18

 
(106
)
 
7,995

Obligations of U.S. states and political subdivisions
12

 
1

 
—

 
13

Asset-backed securities collateralized by residential mortgages
3

 
—

 
—

 
3

Total held-to-maturity securities
$
13,977

 
$
74

 
$
(149
)
 
$
13,902

 
(1) 
Foreign debt securities represent public sector entity, bank or corporate debt.
Net unrealized losses were higher within the available-for-sale portfolio as compared with December 31, 2017 due primarily to increasing yields on U.S. Government agency mortgage-backed, U.S. Government sponsored mortgage-backed and U.S. Treasury securities.
The following table summarizes gross unrealized losses and related fair values at December 31, 2018 and 2017 classified as to the length of time the losses have existed:
 
One Year or Less
 
Greater Than One Year
December 31, 2018
Number
of
Securities
 
Gross
Unrealized
Losses
 
Aggregate
Fair Value
of Investment
 
Number
of
Securities
 
Gross
Unrealized
Losses
 
Aggregate
Fair Value
of Investment
 
(dollars are in millions)
Securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
8

 
$
(12
)
 
$
1,013

 
41

 
$
(353
)
 
$
8,828

U.S. Government sponsored enterprises
55

 
(6
)
 
538

 
159

 
(185
)
 
3,698

U.S. Government agency issued or guaranteed
8

 
(2
)
 
106

 
72

 
(198
)
 
4,825

Asset-backed securities
1

 
—

 
—

 
4

 
(2
)
 
42

Foreign debt securities
16

 
—

 
1,724

 
—

 
—

 
—

Securities available-for-sale
88

 
$
(20
)
 
$
3,381

 
276

 
$
(738
)
 
$
17,393

Securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government sponsored enterprises
103

 
$
(8
)
 
$
684

 
511

 
$
(52
)
 
$
1,739

U.S. Government agency issued or guaranteed
111

 
(14
)
 
769

 
491

 
(225
)
 
7,372

Obligations of U.S. states and political subdivisions
1

 
—

 
—

 
1

 
—

 
—

Securities held-to-maturity
215

 
$
(22
)
 
$
1,453

 
1,003

 
$
(277
)

$
9,111

 
One Year or Less
 
Greater Than One Year
December 31, 2017
Number
of
Securities
 
Gross
Unrealized
Losses
 
Aggregate
Fair Value
of Investment
 
Number
of
Securities
 
Gross
Unrealized
Losses
 
Aggregate
Fair Value
of Investment
 
(dollars are in millions)
Securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
3

 
$
(3
)
 
$
463

 
48

 
$
(326
)
 
$
10,285

U.S. Government sponsored enterprises
83

 
(7
)
 
883

 
77

 
(94
)
 
3,109

U.S. Government agency issued or guaranteed
52

 
(85
)
 
5,161

 
23

 
(20
)
 
573

Asset-backed securities
—

 
—

 
—

 
4

 
(3
)
 
51

Foreign debt securities
10

 
—

 
733

 
1

 
—

 
44

Equity securities
—

 
—

 
—

 
1

 
(6
)
 
177

Securities available-for-sale
148

 
$
(95
)
 
$
7,240

 
154

 
$
(449
)

$
14,239

Securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government sponsored enterprises
264

 
$
(5
)
 
$
1,126

 
284

 
$
(25
)
 
$
1,020

U.S. Government agency issued or guaranteed
116

 
(48
)
 
5,973

 
506

 
(71
)
 
2,962

Obligations of U.S. states and political subdivisions
1

 
—

 
—

 
2

 
—

 
—

Securities held-to-maturity
381

 
$
(53
)
 
$
7,099

 
792

 
$
(96
)
 
$
3,982


Although the fair value of a particular security may be below its amortized cost, it does not necessarily result in a credit loss and hence an other-than-temporary impairment. The decline in fair value may be caused by, among other things, the illiquidity of the market. We have reviewed the securities for which there is an unrealized loss for other-than-temporary impairment in accordance with our accounting policies, discussed further below. At December 31, 2018 and 2017, we do not consider any of our debt securities to be other-than-temporarily impaired as we expect to recover their amortized cost basis and we neither intend nor expect to be required to sell these securities prior to recovery, even if that equates to holding securities until their individual maturities. However, other-than-temporary impairments may occur in future periods if the credit quality of the securities deteriorates.
Other-Than-Temporary Impairment  On a quarterly basis, we perform an assessment to determine whether there have been any events or economic circumstances to indicate that a debt security with an unrealized loss has suffered other-than-temporary impairment. A debt security is considered impaired if its fair value is less than its amortized cost basis at the reporting date. If impaired, we assess whether the impairment is other-than-temporary.
If we intend to sell the debt security or if it is more-likely-than-not that we will be required to sell the debt security before the recovery of its amortized cost basis, the impairment is considered other-than-temporary and the unrealized loss is recorded in earnings. An impairment is also considered other-than-temporary if a credit loss exists (i.e., the present value of the expected future cash flows is less than the amortized cost basis of the debt security). In the event a credit loss exists, the credit loss component of an other-than-temporary impairment is recorded in earnings while the remaining portion of the impairment loss attributable to factors other than credit loss is recognized, net of tax, in other comprehensive income (loss).
For all securities held in the available-for-sale or held-to-maturity portfolios for which unrealized losses attributed to factors other than credit existed, we do not have the intention to sell and believe we will not be required to sell the securities for contractual, regulatory or liquidity reasons as of the reporting date. In determining whether a credit loss exists and the period over which the debt security is expected to recover, we considered the following factors:
•
The length of time and the extent to which the fair value has been less than the amortized cost basis;
•
The credit protection features embedded within the instrument, which includes but is not limited to credit subordination positions, payment structure, over collateralization, protective triggers and financial guarantees provided by third parties;
•
Changes in the near term prospects of the issuer or the underlying collateral of a security such as changes in default rates, loss severities given default and significant changes in prepayment assumptions;
•
The level of excess cash flows generated from the underlying collateral supporting the principal and interest payments of the debt securities; and
•
Any adverse change to the credit conditions of the issuer, the monoline insurer or the security such as credit downgrades by the rating agencies.
During 2018, 2017 and 2016, none of our debt securities were determined to have other-than-temporary impairment, as such, there were no other-than-temporary impairment losses recognized related to credit loss.
Other securities gains, net  The following table summarizes realized gains and losses on investment securities transactions attributable to available-for-sale securities:
Year Ended December 31,
2018
 
2017
 
2016
 
(in millions)
Gross realized gains
$
54

 
$
65

 
$
142

Gross realized losses
(30
)
 
(13
)
 
(72
)
Net realized gains
$
24

 
$
52

 
$
70


Contractual Maturities and Yields  The following table summarizes the amortized cost and fair values of securities available-for-sale and securities held-to-maturity at December 31, 2018 by contractual maturity. Expected maturities differ from contractual maturities because borrowers have the right to prepay obligations without prepayment penalties in certain cases. The table below also reflects the distribution of maturities of debt securities held at December 31, 2018, together with the approximate taxable equivalent yield of the portfolio. The yields shown are calculated by dividing annualized interest income, including the accretion of discounts and the amortization of premiums, by the amortized cost of securities outstanding at December 31, 2018. Yields on tax-exempt obligations have been computed on a taxable equivalent basis using applicable statutory tax rates.
 
Within
One Year
 
After One
But Within
Five Years
 
After Five
But Within
Ten Years
 
After Ten
Years
Taxable Equivalent Basis
Amount
 
Yield
 
Amount
 
Yield
 
Amount
 
Yield
 
Amount
 
Yield
 
(dollars are in millions)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
$
—

 
—
%
 
$
5,456

 
2.03
%
 
$
5,701

 
2.19
%
 
$
2,392

 
3.10
%
U.S. Government sponsored enterprises
1,358

 
3.19

 
1,261

 
2.64

 
2,244

 
2.81

 
4,195

 
3.16

U.S. Government agency issued or guaranteed
—

 
—

 
72

 
2.17

 
10

 
3.65

 
5,795

 
2.73

Asset-backed securities
—

 
—

 
—

 
—

 
56

 
5.42

 
90

 
4.03

Foreign debt securities
1,780

 
.04

 
1,550

 
2.48

 
—

 
—

 
—

 
—

Total amortized cost
$
3,138

 
1.40
%
 
$
8,339

 
2.21
%
 
$
8,011

 
2.39
%
 
$
12,472

 
2.96
%
Total fair value
$
3,143

 
 
 
$
8,288

 
 
 
$
7,746

 
 
 
$
12,202

 
 
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government sponsored enterprises
$
50

 
2.22
%
 
$
389

 
2.71
%
 
$
163

 
2.63
%
 
$
3,088

 
2.96
%
U.S. Government agency issued or guaranteed
—

 
—

 
18

 
3.86

 
26

 
3.58

 
10,923

 
2.66

Obligations of U.S. states and political subdivisions
1

 
4.67

 
5

 
3.17

 
5

 
4.37

 
—

 
—

Asset-backed securities
—

 
—

 
—

 
—

 
—

 
—

 
2

 
8.41

Total amortized cost
$
51

 
2.27
%
 
$
412

 
2.77
%
 
$
194

 
2.80
%
 
$
14,013

 
2.73
%
Total fair value
$
51

 
 
 
$
409

 
 
 
$
190

 
 
 
$
13,793

 
 
Equity Securities As discussed more fully in Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," beginning January 1, 2018, equity securities that are not classified as trading are reported in other assets and measured at fair value with changes in fair value recognized in net income (loss).
Included in other assets at December 31, 2018 were $278 million of equity securities which were carried at fair value and $7 million of equity securities without readily determinable fair values which were carried at amortized cost, less impairment, adjusted for observable price changes.
On a quarterly basis, we perform an assessment to determine whether any equity securities without readily determinable fair values are impaired. In the event an equity security is deemed impaired, the security is written down to fair value with impairment recorded in earnings. At December 31, 2018, none of our equity securities without readily determinable fair values were determined to be impaired.
Also included in other assets were investments in Federal Home Loan Bank ("FHLB") stock and Federal Reserve Bank stock of $156 million and $631 million, respectively, at December 31, 2018 and $201 million and $631 million, respectively, at December 31, 2017.