Investment Securities (Tables)

6 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

The following table presents the amortized cost and fair value, and associated unrealized gains and losses, of investment securities as of the dates indicated:



	June 30, 2013								December 31, 2012
	Amortized Cost		Gross Unrealized				Fair Value		Amortized Cost		Gross Unrealized				Fair Value
(In millions)			Gains		Losses						Gains		Losses
Available for sale:
U.S. Treasury and federal agencies:
Direct obligations	$	758	$	20	$	1	$	777	$	823	$	19	$	1	$	841
Mortgage-backed securities	26,416		303		257		26,462		31,640		598		26		32,212
Asset-backed securities:
Student loans⁽¹⁾	15,476		60		396		15,140		16,829		100		508		16,421
Credit cards	9,159		24		49		9,134		9,928		61		3		9,986
Sub-prime	1,434		4		113		1,325		1,557		4		162		1,399
Other	4,264		166		36		4,394		4,583		155		61		4,677
Total asset-backed securities	30,333		254		594		29,993		32,897		320		734		32,483
Non-U.S. debt securities:
Mortgage-backed securities	10,153		251		13		10,391		11,119		313		27		11,405
Asset-backed securities	5,438		32		3		5,467		6,180		42		4		6,218
Government securities	3,431		1		2		3,430		3,197		2		—		3,199
Other	4,269		58		19		4,308		4,221		86		1		4,306
Total non-U.S. debt securities	23,291		342		37		23,596		24,717		443		32		25,128
State and political subdivisions	8,157		148		186		8,119		7,384		234		67		7,551
Collateralized mortgage obligations	4,969		87		80		4,976		4,818		151		15		4,954
Other U.S. debt securities	4,955		148		38		5,065		5,072		233		7		5,298
U.S. equity securities	37		6		—		43		28		3		—		31
Non-U.S. equity securities	1		—		—		1		1		—		—		1
Money-market mutual funds	1,148		—		—		1,148		1,183		—		—		1,183
Total	$	100,065	$	1,308	$	1,193	$	100,180	$	108,563	$	2,001	$	882	$	109,682
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	5,000	$	—	$	302	$	4,698	$	5,000	$	—	$	8	$	4,992
Mortgage-backed securities	114		8		—		122		153		11		—		164
Asset-backed securities:
Student loans⁽¹⁾	1,294		—		14		1,280		—		—		—		—
Credit cards	68		—		1		67		—		—		—		—
Other	889		1		1		889		16		—		—		16
Total asset-backed securities	2,251		1		16		2,236		16		—		—		16
Non-U.S. debt securities:
Mortgage-backed securities	3,809		121		76		3,854		3,122		85		68		3,139
Asset-backed securities	1,167		19		2		1,184		434		16		1		449
Government securities	15		—		—		15		3		—		—		3
Other	184		—		—		184		167		—		2		165
Total non-U.S. debt securities	5,175		140		78		5,237		3,726		101		71		3,756
State and political subdivisions	66		1		—		67		74		2		—		76
Collateralized mortgage obligations	2,862		202		42		3,022		2,410		259		12		2,657
Total	$	15,468	$	352	$	438	$	15,382	$	11,379	$	373	$	91	$	11,661

⁽¹⁾Substantially composed of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and

accrued interest on the underlying loans.

Schedule of Gross Pre-tax Unrealized Losses on Investment Securities

The following tables present the aggregate fair values of investment securities that have been in a continuous unrealized loss position for less than 12 months, and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated:



	Less than 12 months				12 months or longer				Total
June 30, 2013	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
(In millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Available for sale:
U.S. Treasury and federal agencies:
Direct obligations	$	—	$	—	$	120	$	1	$	120	$	1
Mortgage-backed securities	10,463		236		1,391		21		11,854		257
Asset-backed securities:
Student loans	2,913		36		7,887		360		10,800		396
Credit cards	4,883		49		—		—		4,883		49
Sub-prime	—		—		1,248		113		1,248		113
Other	546		6		810		30		1,356		36
Total asset-backed securities	8,342		91		9,945		503		18,287		594
Non-U.S. debt securities:
Mortgage-backed securities	672		1		290		12		962		13
Asset-backed securities	604		1		28		2		632		3
Government securities	2,863		2		—		—		2,863		2
Other	1,431		19		—		—		1,431		19
Total non-U.S. debt securities	5,570		23		318		14		5,888		37
State and political subdivisions	2,463		124		1,103		62		3,566		186
Collateralized mortgage obligations	1,398		70		393		10		1,791		80
Other U.S. debt securities	1,259		32		33		6		1,292		38
Total	$	29,495	$	576	$	13,303	$	617	$	42,798	$	1,193
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	4,698	$	302	$	—	$	—	$	4,698	$	302
Asset-backed securities:
Student loans	1,074		14		—		—		1,074		14
Credit cards	67		1		—		—		67		1
Other	191		1		—		—		191		1
Total asset-backed securities	1,332		16		—		—		1,332		16
Non-U.S. debt securities:
Mortgage-backed securities	801		5		914		71		1,715		76
Asset-backed securities	398		2		—		—		398		2
Total non-U.S. debt securities	1,199		7		914		71		2,113		78
Collateralized mortgage obligations	641		29		108		13		749		42
Total	$	7,870	$	354	$	1,022	$	84	$	8,892	$	438



	Less than 12 months				12 months or longer				Total
December 31, 2012	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
(In millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Available for sale:
U.S. Treasury and federal agencies:
Direct obligations	$	—	$	—	$	132	$	1	$	132	$	1
Mortgage-backed securities	3,486		18		865		8		4,351		26
Asset-backed securities:
Student loans	625		6		10,241		502		10,866		508
Credit cards	888		3		—		—		888		3
Sub-prime	—		—		1,346		162		1,346		162
Other	639		13		989		48		1,628		61
Total asset-backed securities	2,152		22		12,576		712		14,728		734
Non-U.S. debt securities:
Mortgage-backed securities	670		3		453		24		1,123		27
Asset-backed securities	973		1		53		3		1,026		4
Other	509		1		—		—		509		1
Total non-U.S. debt securities	2,152		5		506		27		2,658		32
State and political subdivisions	685		9		1,152		58		1,837		67
Collateralized mortgage obligations	347		1		621		14		968		15
Other U.S. debt securities	302		1		33		6		335		7
Total	$	9,124	$	56	$	15,885	$	826	$	25,009	$	882
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	3,792	$	8	$	—	$	—	$	3,792	$	8
Non-U.S. debt securities:
Mortgage-backed securities	56		1		956		67		1,012		68
Asset-backed securities	—		—		73		1		73		1
Other	—		—		156		2		156		2
Total non-U.S. debt securities	56		1		1,185		70		1,241		71
Collateralized mortgage obligations	120		1		153		11		273		12
Total	$	3,968	$	10	$	1,338	$	81	$	5,306	$	91

Investments Classified by Contractual Maturity Date

The following table presents contractual maturities of debt investment securities as of June 30, 2013:



(In millions)	Under 1 Year		1 to 5 Years		6 to 10 Years		Over 10 Years
Available for sale:
U.S. Treasury and federal agencies:
Direct obligations	$	3	$	38	$	55	$	681
Mortgage-backed securities	112		2,115		5,825		18,410
Asset-backed securities:
Student loans	1,120		6,709		4,493		2,818
Credit cards	2,574		4,366		2,194		—
Sub-prime	25		30		2		1,268
Other	140		2,071		1,406		777
Total asset-backed securities	3,859		13,176		8,095		4,863
Non-U.S. debt securities:
Mortgage-backed securities	226		5,458		183		4,524
Asset-backed securities	306		4,657		326		178
Government securities	2,445		985		—		—
Other	1,175		2,580		553		—
Total non-U.S. debt securities	4,152		13,680		1,062		4,702
State and political subdivisions	669		2,938		3,048		1,464
Collateralized mortgage obligations	149		2,257		1,161		1,409
Other U.S. debt securities	225		4,060		747		33
Total	$	9,169	$	38,264	$	19,993	$	31,562
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	—	$	—	$	5,000	$	—
Mortgage-backed securities	—		25		26		63
Asset-backed securities
Student loans	—		154		170		970
Credit cards	—		10		58		—
Other	—		541		342		6
Total asset-backed securities	—		705		570		976
Non-U.S. debt securities:
Mortgage-backed securities	57		823		—		2,929
Asset-backed securities	65		1,055		47		—
Government securities	15		—		—		—
Other	—		179		—		5
Total non-U.S. debt securities	137		2,057		47		2,934
State and political subdivisions	50		16		—		—
Collateralized mortgage obligations	140		1,208		379		1,135
Total	$	327	$	4,011	$	6,022	$	5,108

Gains and Losses Related to Investment Securities

The following table presents realized gains and losses related to investment securities for the periods indicated:



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2013			2012			2013			2012
Gross realized gains from sales of available-for-sale securities	$	30		$	32		$	87		$	51
Gross realized losses from sales of available-for-sale securities⁽¹⁾	(30		)	(46		)	(82		)	(46		)

Gross losses from other-than-temporary impairment	—			(21		)	—			(46		)
Losses reclassified (from) to other comprehensive income	(7		)	8			(10		)	25
Net impairment losses recognized in consolidated statement of income	(7		)	(13		)	(10		)	(21		)
Gains (losses) related to investment securities, net	$	(7	)	$	(27	)	$	(5	)	$	(16	)

Impairment associated with expected credit losses	$	—		$	(9	)	$	—		$	(13	)
Impairment associated with management's intent to sell impaired securities prior to recovery in value	(6		)	—			(6		)	—
Impairment associated with adverse changes in timing of expected future cash flows	(1		)	(4		)	(4		)	(8		)
Net impairment losses recognized in consolidated statement of income	$	(7	)	$	(13	)	$	(10	)	$	(21	)

⁽¹⁾In the three months ended June 30, 2012, we sold all of our Greek securities, which had an aggregate carrying value of approximately $91 million, and recorded a pre-tax loss of $46 million in our consolidated statement of income.

Schedule of Credit-Related Loss Activity Recognized in Earnings

he following table presents activity with respect to net impairment losses for the periods indicated:



	Six Months Ended June 30,
(In millions)	2013			2012
Beginning balance	$	124		$	113
Plus losses for which other-than-temporary impairment was not previously recognized	6			2
Plus losses for which other-than-temporary impairment was previously recognized	4			19
Less previously recognized losses related to securities sold or matured	(9		)	(20		)
Ending balance	$	125		$	114

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-1

-Paragraph 21

-Subparagraph a, b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 7

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 942

-SubTopic 320

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 942

-SubTopic 320

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 9

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 19, 20, 21

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS115-1/124-1

-Paragraph 17

-Subparagraph a, b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 21

-Subparagraph d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 18

-Paragraph 5

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 25

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7534914&loc=d3e22054-111558

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 9

-Subparagraph (c)-(e)

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 10

-Subparagraph (c)

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SAB TOPIC 5.M)

-URI http://asc.fasb.org/extlink&oid=6784337&loc=d3e87990-122713

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 7, 13, 16, 22

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 12

-Subparagraph a, b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 5

-Section M

+ Details

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

+ References+ Details

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

+ References+ Details