Investment Securities (Tables)

3 Months Ended

Mar. 31, 2015

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:



	March 31, 2015								December 31, 2014
	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	$	12,803	$	194	$	1	$	12,996	$	10,573	$	83	$	1	$	10,655
Mortgage-backed securities	20,861		251		66		21,046		20,648		193		127		20,714
Asset-backed securities:
Student loans⁽¹⁾	12,070		107		113		12,064		12,478		106		124		12,460
Credit cards	2,941		10		34		2,917		3,077		10		34		3,053
Sub-prime	961		2		52		911		1,005		2		56		951
Other⁽²⁾	3,950		90		12		4,028		4,055		100		10		4,145
Total asset-backed securities	19,922		209		211		19,920		20,615		218		224		20,609
Non-U.S. debt securities:
Mortgage-backed securities	8,522		146		4		8,664		9,442		168		4		9,606
Asset-backed securities	3,353		9		1		3,361		3,215		11		—		3,226
Government securities	3,800		11		—		3,811		3,899		10		—		3,909
Other⁽³⁾	5,186		50		5		5,231		5,383		52		7		5,428
Total non-U.S. debt securities	20,861		216		10		21,067		21,939		241		11		22,169
State and political subdivisions	10,729		357		37		11,049		10,532		325		37		10,820
Collateralized mortgage obligations	5,738		99		7		5,830		5,280		71		12		5,339
Other U.S. debt securities	3,987		94		8		4,073		4,033		88		12		4,109
U.S. equity securities	31		9		1		39		29		10		—		39
Non-U.S. equity securities	2		—		—		2		2		—		—		2
U.S. money-market mutual funds	582		—		—		582		449		—		—		449
Non-U.S. money-market mutual funds	8		—		—		8		8		—		—		8
Total	$	95,524	$	1,429	$	341	$	96,612	$	94,108	$	1,229	$	424	$	94,913
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	5,112	$	—	$	69	$	5,043	$	5,114	$	—	$	147	$	4,967
Mortgage-backed securities	57		4		—		61		62		4		—		66
Asset-backed securities:
Student loans⁽¹⁾	1,755		3		5		1,753		1,814		2		4		1,812
Credit cards	897		2		—		899		897		2		—		899
Other	545		3		—		548		577		3		1		579
Total asset-backed securities	3,197		8		5		3,200		3,288		7		5		3,290
Non-U.S. debt securities:
Mortgage-backed securities	3,275		154		19		3,410		3,787		177		22		3,942
Asset-backed securities	2,298		11		—		2,309		2,868		14		1		2,881
Government securities	148		—		—		148		154		—		—		154
Other	65		—		—		65		72		—		—		72
Total non-U.S. debt securities	5,786		165		19		5,932		6,881		191		23		7,049
State and political subdivisions	3		—		—		3		9		—		—		9
Collateralized mortgage obligations	2,090		96		8		2,178		2,369		107		15		2,461
Total	$	16,245	$	273	$	101	$	16,417	$	17,723	$	309	$	190	$	17,842

⁽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.

⁽²⁾As of March 31, 2015 and December 31, 2014, the fair value of other asset-backed securities was primarily composed of $3.6 billion and $3.8 billion, respectively, of collateralized loan obligations and approximately $348 million and approximately $315 million, respectively, of automobile loan securities.

⁽³⁾As of both March 31, 2015 and December 31, 2014, the fair value of other non-U.S. debt securities was primarily composed of $3.3 billion of covered bonds and $1.1 billion and $1.2 billion, as of March 31, 2015 and December 31, 2014, respectively, of corporate bonds.

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
March 31, 2015	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	$	—	$	—	$	158	$	1	$	158	$	1
Mortgage-backed securities	1,565		8		4,373		58		5,938		66
Asset-backed securities:
Student loans	1,440		13		4,875		100		6,315		113
Credit cards	—		—		1,287		34		1,287		34
Sub-prime	—		—		860		52		860		52
Other	844		5		640		7		1,484		12
Total asset-backed securities	2,284		18		7,662		193		9,946		211
Non-U.S. debt securities:
Mortgage-backed securities	1,097		3		146		1		1,243		4
Asset-backed securities	499		1		—		—		499		1
Other	641		2		293		3		934		5
Total non-U.S. debt securities	2,237		6		439		4		2,676		10
State and political subdivisions	980		6		776		31		1,756		37
Collateralized mortgage obligations	747		2		208		5		955		7
Other U.S. debt securities	—		—		146		8		146		8
U.S. equity securities	6		1		—		—		6		1
Total	$	7,819	$	41	$	13,762	$	300	$	21,581	$	341
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	2,062	$	13	$	2,981	$	56	$	5,043	$	69
Asset-backed securities:
Student loans	631		3		232		2		863		5
Total asset-backed securities	631		3		232		2		863		5
Non-U.S. mortgage-backed securities:
Mortgage-backed securities	517		2		569		17		1,086		19
Total non-U.S. debt securities	517		2		569		17		1,086		19
Collateralized mortgage obligations	272		3		415		5		687		8
Total	$	3,482	$	21	$	4,197	$	80	$	7,679	$	101



	Less than 12 months				12 months or longer				Total
December 31, 2014	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	$	—	$	—	$	167	$	1	$	167	$	1
Mortgage-backed securities	2,569		9		6,466		118		9,035		127
Asset-backed securities:
Student loans	1,473		15		5,025		109		6,498		124
Credit cards	344		1		1,270		33		1,614		34
Sub-prime	—		—		896		56		896		56
Other	547		1		791		9		1,338		10
Total asset-backed securities	2,364		17		7,982		207		10,346		224
Non-U.S. debt securities:
Mortgage-backed securities	1,350		2		170		2		1,520		4
Other	581		4		328		3		909		7
Total non-U.S. debt securities	1,931		6		498		5		2,429		11
State and political subdivisions	610		3		1,315		34		1,925		37
Collateralized mortgage obligations	731		2		311		10		1,042		12
Other U.S. debt securities	327		2		244		10		571		12
Total	$	8,532	$	39	$	16,983	$	385	$	25,515	$	424
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	76	$	1	$	4,891	$	146	$	4,967	$	147
Asset-backed securities:
Student Loans	780		3		192		1		972		4
Other	124		1		—		—		124		1
Total asset-backed securities	904		4		192		1		1,096		5
Non-U.S. debt securities:
Mortgage-backed securities	507		3		590		19		1,097		22
Asset-backed securities	699		1		—		—		699		1
Total non-U.S. debt securities	1,206		4		590		19		1,796		23
Collateralized mortgage obligations	422		4		547		11		969		15
Total	$	2,608	$	13	$	6,220	$	177	$	8,828	$	190

Investments Classified by Contractual Maturity Date

The following table presents contractual maturities of debt investment securities as of March 31, 2015:



(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	$	1	$	9,246	$	3,238	$	511
Mortgage-backed securities	117		2,420		4,056		14,453
Asset-backed securities:
Student loans	553		5,858		3,816		1,837
Credit cards	227		1,565		1,125		—
Sub-prime	8		7		—		896
Other	170		941		1,398		1,519
Total asset-backed securities	958		8,371		6,339		4,252
Non-U.S. debt securities:
Mortgage-backed securities	1,661		3,511		513		2,979
Asset-backed securities	390		2,796		112		63
Government securities	2,236		1,575		—		—
Other	1,340		3,152		739		—
Total non-U.S. debt securities	5,627		11,034		1,364		3,042
State and political subdivisions	723		2,848		4,952		2,526
Collateralized mortgage obligations	249		1,044		1,077		3,460
Other U.S. debt securities	1,087		2,674		277		35
Total	$	8,762	$	37,637	$	21,303	$	28,279
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	—	$	—	$	4,999	$	113
Mortgage-backed securities	—		11		11		35
Asset-backed securities:
Student loans	4		182		357		1,212
Credit cards	—		375		522		—
Other	9		370		162		4
Total asset-backed securities	13		927		1,041		1,216
Non-U.S. debt securities:
Mortgage-backed securities	476		939		133		1,727
Asset-backed securities	132		1,993		173		—
Government securities	148		—		—		—
Other	—		65		—		—
Total non-U.S. debt securities	756		2,997		306		1,727
State and political subdivisions	3		—		—		—
Collateralized mortgage obligations	483		290		496		821
Total	$	1,255	$	4,225	$	6,853	$	3,912

Gains and Losses Related to Investment Securities

The following tables present gross realized gains and losses from sales of available-for-sale securities, and the components of net impairment losses included in net gains and losses related to investment securities, for the periods indicated:



	Three Months Ended March 31,
(In millions)	2015			2014
Gross realized gains from sales of available-for-sale securities	$	—		$	15
Gross realized losses from sales of available-for-sale securities	—			—
Net impairment losses:
Gross losses from other-than-temporary impairment	(1		)	(1		)
Losses reclassified (from) to other comprehensive income, or OCI	—			(8		)
Net impairment losses⁽¹⁾	(1		)	(9		)
Gains related to investment securities, net	$	(1	)	$	6
⁽¹⁾ Net impairment losses, recognized in our consolidated statement of income, were composed of the following:
Impairment associated with expected credit losses	$	—		$	(9	)
Impairment associated with management's intent to sell impaired securities prior to recovery in value	—			—
Impairment associated with adverse changes in timing of expected future cash flows	(1		)	—
Net impairment losses	$	(1	)	$	(9	)

Schedule of Credit-Related Loss Activity Recognized in Earnings

The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated:



	Three Months Ended March 31,
(In millions)	2015			2014
Balance, beginning of period	$	115		$	122
Additions:
Losses for which other-than-temporary impairment was not previously recognized	—			9
Losses for which other-than-temporary impairment was previously recognized	1			—
Reductions:
Previously recognized losses related to securities sold or matured	(9		)	(1		)
Losses related to securities intended or required to be sold	—			(6		)
Balance, end of period	$	107		$	124

- 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.

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- 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.

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- Definition

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

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- 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.

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