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Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2017
Schedule Of Expected Maturity And Weighted Average Yield Of Securities [Line Items]  
Schedule of Investment Portfolio
The table below presents the overview of our investment securities portfolio as of December 31, 2017 and 2016.
Table 3.1: Overview of Investment Securities Portfolio
(Dollars in millions)
 
December 31, 2017
 
December 31, 2016
Securities available for sale, at fair value
 
$
37,655

 
$
40,737

Securities held to maturity, at carrying value
 
28,984

 
25,712

Total investment securities
 
$
66,639

 
$
66,449
Schedule of Available-for-Sale Securities
The table below presents the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale as of December 31, 2017 and 2016.
Table 3.2: Investment Securities Available for Sale
 
 
December 31, 2017
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses(1)
 
Fair
Value
Investment securities available for sale:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
5,168

 
$
11

 
$
(8
)
 
$
5,171

RMBS:
 
 
 
 
 
 
 
 
Agency
 
26,013

 
67

 
(402
)
 
25,678

Non-agency
 
1,722

 
393

 
(1
)
 
2,114

Total RMBS
 
27,735

 
460

 
(403
)
 
27,792

Agency CMBS
 
3,209

 
10

 
(44
)
 
3,175

Other ABS 
 
513

 
0

 
(1
)
 
512

Other securities(2)
 
1,003

 
4

 
(2
)
 
1,005

Total investment securities available for sale
 
$
37,628

 
$
485

 
$
(458
)
 
$
37,655

 
 
December 31, 2016
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses(1)
 
Fair
Value
Investment securities available for sale:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
5,103

 
$
11

 
$
(49
)
 
$
5,065

RMBS:
 
 
 
 
 
 
 
 
Agency
 
26,830

 
109

 
(412
)
 
26,527

Non-agency
 
2,349

 
382

 
(9
)
 
2,722

Total RMBS
 
29,179

 
491

 
(421
)
 
29,249

CMBS:
 
 
 
 
 
 
 
 
Agency
 
3,335

 
14

 
(45
)
 
3,304

Non-agency
 
1,676

 
21

 
(13
)
 
1,684

Total CMBS
 
5,011

 
35

 
(58
)
 
4,988

Other ABS
 
714

 
1

 
(1
)
 
714

Other securities(2)
 
726

 
1

 
(6
)
 
721

Total investment securities available for sale
 
$
40,733

 
$
539

 
$
(535
)
 
$
40,737

__________
(1) 
Includes non-credit-related OTTI that is recorded in AOCI of $1 million and $9 million as of December 31, 2017 and 2016, respectively. Substantially all of this amount is related to non-agency RMBS.
(2) 
Includes supranational bonds, foreign government bonds, mutual funds and equity investments.
Investment Securities Held to Maturity
The table below presents the amortized cost, carrying value, gross unrealized gains and losses, and fair value of securities held to maturity as of December 31, 2017 and 2016.
Table 3.3: Investment Securities Held to Maturity
 
 
December 31, 2017
(Dollars in millions)
 
Amortized
Cost
 
Unrealized Losses Recorded in AOCI(1)
 
Carrying Value
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
 
$
200

 
$
0

 
$
200

 
$
0

 
$
0

 
$
200

Agency RMBS
 
25,741

 
(761
)
 
24,980

 
565

 
(150
)
 
25,395

Agency CMBS
 
3,882

 
(78
)
 
3,804

 
70

 
(32
)
 
3,842

Total investment securities held to maturity
 
$
29,823

 
$
(839
)
 
$
28,984

 
$
635

 
$
(182
)
 
$
29,437

 
 
December 31, 2016
(Dollars in millions)
 
Amortized
Cost
 
Unrealized
Losses Recorded in AOCI(1)
 
Carrying Value
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
 
$
199

 
$
0

 
$
199

 
$
0

 
$
0

 
$
199

Agency RMBS
 
23,022

 
(897
)
 
22,125

 
606

 
(158
)
 
22,573

Agency CMBS
 
3,480

 
(92
)
 
3,388

 
77

 
(41
)
 
3,424

Total investment securities held to maturity
 
$
26,701

 
$
(989
)
 
$
25,712

 
$
683

 
$
(199
)
 
$
26,196

__________
(1) 
Certain investment securities were transferred from the available for sale category to the held to maturity category in 2013. This amount represents the unrealized holding gain or loss at the date of transfer, net of any subsequent accretion. Any bonds purchased into the securities held to maturity portfolio rather than transferred, will not have unrealized losses recognized in AOCI.
Schedule of Available-for-Sale Securities in Gross Unrealized Loss Position
The table below provides, by major security type, information about our securities available for sale in a gross unrealized loss position and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2017 and 2016.
Table 3.4: Securities in a Gross Unrealized Loss Position
 
 
December 31, 2017
 
 
Less than 12 Months
 
12 Months or Longer
 
Total
(Dollars in millions)
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
Investment securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
2,031

 
$
(8
)
 
$
0

 
$
0

 
$
2,031

 
$
(8
)
RMBS:
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
8,192

 
(67
)
 
13,175

 
(335
)
 
21,367

 
(402
)
Non-agency
 
10

 
0

 
10

 
(1
)
 
20

 
(1
)
Total RMBS
 
8,202

 
(67
)
 
13,185

 
(336
)
 
21,387

 
(403
)
Agency CMBS
 
880

 
(8
)
 
1,236

 
(36
)
 
2,116

 
(44
)
Other ABS
 
130

 
0

 
95

 
(1
)
 
225

 
(1
)
Other securities
 
371

 
(2
)
 
0

 
0

 
371

 
(2
)
Total investment securities available for sale in a gross unrealized loss position
 
$
11,614

 
$
(85
)
 
$
14,516

 
$
(373
)
 
$
26,130

 
$
(458
)
 
 
December 31, 2016
 
 
Less than 12 Months
 
12 Months or Longer
 
Total
(Dollars in millions)
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
Investment securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
1,060

 
$
(49
)
 
$
0

 
$
0

 
$
1,060

 
$
(49
)
RMBS:
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
16,899

 
(329
)
 
4,865

 
(83
)
 
21,764

 
(412
)
Non-agency
 
128

 
(2
)
 
145

 
(7
)
 
273

 
(9
)
Total RMBS
 
17,027

 
(331
)
 
5,010

 
(90
)
 
22,037

 
(421
)
CMBS:
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
1,624

 
(21
)
 
745

 
(24
)
 
2,369

 
(45
)
Non-agency
 
826

 
(11
)
 
129

 
(2
)
 
955

 
(13
)
Total CMBS
 
2,450

 
(32
)
 
874

 
(26
)
 
3,324

 
(58
)
Other ABS
 
187

 
(1
)
 
21

 
0

 
208

 
(1
)
Other securities
 
417

 
(6
)
 
0

 
0

 
417

 
(6
)
Total investment securities available for sale in a gross unrealized loss position
 
$
21,141

 
$
(419
)
 
$
5,905

 
$
(116
)
 
$
27,046

 
$
(535
)
Schedule of Contractual Maturities for Securities
The table below summarizes, by major security type, the contractual maturities and weighted-average yields of our investment securities as of December 31, 2017. Because borrowers may have the right to call or prepay certain obligations, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below. The weighted-average yield below represents the effective yield for the investment securities and is calculated based on the amortized cost of each security.
Table 3.5: Contractual Maturities and Weighted-Average Yields of Securities
 
 
December 31, 2017
(Dollars in millions)
 
Due in
1 Year or Less
 
Due > 1 Year
through
5 Years
 
Due > 5 Years
through
10 Years
 
Due > 10 Years
 
Total
Fair value of securities available for sale:
U.S. Treasury securities
 
$
200

 
$
1,238

 
$
3,733

 
$
0

 
$
5,171

RMBS(1):
 
 
 
 
 
 
 
 
 
 
Agency
 
4

 
45

 
507

 
25,122

 
25,678

Non-agency
 
0

 
0

 
0

 
2,114

 
2,114

Total RMBS
 
4

 
45

 
507

 
27,236

 
27,792

Agency CMBS(1)

 
19

 
592

 
1,123

 
1,441

 
3,175

Other ABS(1)
 
172

 
310

 
0

 
30

 
512

Other securities
 
229

 
332

 
348

 
96

 
1,005

Total securities available for sale
 
$
624

 
$
2,517

 
$
5,711

 
$
28,803

 
$
37,655

Amortized cost of securities available for sale
 
$
624

 
$
2,515

 
$
5,706

 
$
28,783

 
$
37,628

Weighted-average yield for securities available for sale
 
1.13
%
 
1.88
%
 
2.05
%
 
2.65
%
 
2.49
%
Carrying value of securities held to maturity:
U.S. Treasury securities
 
$
200

 
$
0

 
$
0

 
$
0

 
$
200

Agency RMBS
 
0

 
0

 
120

 
24,860

 
24,980

Agency CMBS
 
0

 
987

 
239

 
2,578

 
3,804

Total securities held to maturity
 
$
200

 
$
987

 
$
359

 
$
27,438

 
$
28,984

Fair value of securities held to maturity
 
$
200

 
$
1,031

 
$
366

 
$
27,840

 
$
29,437

Weighted-average yield for securities held to maturity
 
1.11
%
 
2.37
%
 
2.87
%
 
2.77
%
 
2.75
%
__________
(1) 
As of December 31, 2017, weighted-average expected maturities of RMBS, CMBS and other ABS are 5.0 years, 4.3 years and 1.0 years, respectively.
Schedule of Gross Realized Gains and Losses on Sale of Available-for-Sale Securities Recognized in Earnings
The following table presents the gross realized gains and losses on the sale and redemption of securities available for sale, and the OTTI losses recognized in earnings for the years ended December 31, 2017, 2016 and 2015. We also present the proceeds from the sale of securities available for sale for the periods presented. We did not sell any investment securities that are classified as held to maturity.
Table 3.6: Realized Gains and Losses and OTTI Recognized in Earnings
 
 
Year Ended December 31,
(Dollars in millions)
 
2017
 
2016
 
2015
Realized gains (losses):
 
 
 
 
 
 
Gross realized gains
 
$
144

 
$
12

 
$
23

Gross realized losses
 
(74
)
 
(6
)
 
(25
)
Net realized gains (losses)
 
70

 
6

 
(2
)
OTTI recognized in earnings:
 
 
 
 
 
 
Credit-related OTTI
 
(2
)
 
(11
)
 
(25
)
Intent-to-sell OTTI
 
(3
)
 
(6
)
 
(5
)
Total OTTI recognized in earnings
 
(5
)
 
(17
)
 
(30
)
Net securities gains (losses)
 
$
65

 
$
(11
)
 
$
(32
)
Total proceeds from sales
 
$
8,181

 
$
4,146

 
$
4,379
Schedule of Outstanding Contractual Balance and Carrying Value of Credit-Impaired Debt Securities
The table below presents the outstanding balance and carrying value of the purchased credit-impaired debt securities as of December 31, 2017 and 2016.
Table 3.7: Outstanding Balance and Carrying Value of Purchased Credit-Impaired Debt Securities
(Dollars in millions)
 
December 31, 2017
 
December 31, 2016
Outstanding balance
 
$
2,131

 
$
2,899

Carrying value
 
1,843

 
2,277
Schedule of Changes in Accretable Yield of Acquired Securities
The following table presents changes in the accretable yield related to the purchased credit-impaired debt securities for the years ended December 31, 2017, 2016 and 2015.
Table 3.8: Changes in the Accretable Yield of Purchased Credit-Impaired Debt Securities
 
 
Year Ended December 31,
(Dollars in millions)
 
2017
 
2016
 
2015
Accretable yield, beginning of period
 
$
1,173

 
$
1,237

 
$
1,250

Accretion recognized in earnings
 
(182
)
 
(206
)
 
(240
)
Reduction due to payoffs, disposals, transfers and other
 
(157
)
 
(2
)
 
(1
)
Net reclassifications (to) from nonaccretable difference
 
(8
)
 
144

 
228

Accretable yield, end of period
 
$
826

 
$
1,173

 
$
1,237