Investment Securities (Tables)

6 Months Ended

Jun. 30, 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:



	June 30, 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	$	12,777	$	127	$	2	$	12,902	$	10,573	$	83	$	1	$	10,655
Mortgage-backed securities	19,655		192		129		19,718		20,648		193		127		20,714
Asset-backed securities:
Student loans⁽¹⁾	9,159		73		93		9,139		12,478		106		124		12,460
Credit cards	1,599		—		30		1,569		3,077		10		34		3,053
Sub-prime	520		2		31		491		1,005		2		56		951
Other⁽²⁾	2,932		76		3		3,005		4,055		100		10		4,145
Total asset-backed securities	14,210		151		157		14,204		20,615		218		224		20,609
Non-U.S. debt securities:
Mortgage-backed securities	8,210		125		6		8,329		9,442		168		4		9,606
Asset-backed securities	2,926		7		—		2,933		3,215		11		—		3,226
Government securities	3,993		10		—		4,003		3,899		10		—		3,909
Other⁽³⁾	5,084		39		5		5,118		5,383		52		7		5,428
Total non-U.S. debt securities	20,213		181		11		20,383		21,939		241		11		22,169
State and political subdivisions	10,271		252		74		10,449		10,532		325		37		10,820
Collateralized mortgage obligations	3,959		39		14		3,984		5,280		71		12		5,339
Other U.S. debt securities	3,280		67		11		3,336		4,033		88		12		4,109
U.S. equity securities	31		9		1		39		29		10		—		39
Non-U.S. equity securities	3		—		—		3		2		—		—		2
U.S. money-market mutual funds	282		—		—		282		449		—		—		449
Non-U.S. money-market mutual funds	8		—		—		8		8		—		—		8
Total	$	84,689	$	1,018	$	399	$	85,308	$	94,108	$	1,229	$	424	$	94,913
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	5,707	$	2	$	162	$	5,547	$	5,114	$	—	$	147	$	4,967
Mortgage-backed securities	52		3		—		55		62		4		—		66
Asset-backed securities:
Student loans⁽¹⁾	1,695		3		4		1,694		1,814		2		4		1,812
Credit cards	897		2		—		899		897		2		—		899
Other	500		3		—		503		577		3		1		579
Total asset-backed securities	3,092		8		4		3,096		3,288		7		5		3,290
Non-U.S. debt securities:
Mortgage-backed securities	3,121		140		22		3,239		3,787		177		22		3,942
Asset-backed securities	2,061		9		—		2,070		2,868		14		1		2,881
Government securities	153		—		—		153		154		—		—		154
Other	68		—		1		67		72		—		—		72
Total non-U.S. debt securities	5,403		149		23		5,529		6,881		191		23		7,049
State and political subdivisions	3		—		—		3		9		—		—		9
Collateralized mortgage obligations	1,898		82		12		1,968		2,369		107		15		2,461
Total	$	16,155	$	244	$	201	$	16,198	$	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 June 30, 2015 and December 31, 2014, the fair value of other asset-backed securities was primarily composed of $2.9 billion and $3.8 billion, respectively, of collateralized loan obligations and approximately $72 million and approximately $315 million, respectively, of automobile loan securities.

⁽³⁾As of both June 30, 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 $863 million and $1.2 billion, as of June 30, 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
June 30, 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	$	405	$	1	$	112	$	1	$	517	$	2
Mortgage-backed securities	5,106		37		4,128		92		9,234		129
Asset-backed securities:
Student loans	1,693		12		3,319		81		5,012		93
Credit cards	60		—		1,281		30		1,341		30
Sub-prime	11		—		446		31		457		31
Other	310		1		357		2		667		3
Total asset-backed securities	2,074		13		5,403		144		7,477		157
Non-U.S. debt securities:
Mortgage-backed securities	909		4		210		2		1,119		6
Other	918		4		411		1		1,329		5
Total non-U.S. debt securities	1,827		8		621		3		2,448		11
State and political subdivisions	2,319		34		779		40		3,098		74
Collateralized mortgage obligations	1,297		9		161		5		1,458		14
Other U.S. debt securities	304		3		145		8		449		11
U.S. equity securities	6		1		—		—		6		1
Total	$	13,338	$	106	$	11,349	$	293	$	24,687	$	399
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	1,952	$	50	$	2,993	$	112	$	4,945	$	162
Asset-backed securities:
Student loans	671		3		243		1		914		4
Total asset-backed securities	671		3		243		1		914		4
Non-U.S. mortgage-backed securities:
Mortgage-backed securities	466		2		532		20		998		22
Other	—		—		44		1		44		1
Total non-U.S. debt securities	466		2		576		21		1,042		23
Collateralized mortgage obligations	403		4		421		8		824		12
Total	$	3,492	$	59	$	4,233	$	142	$	7,725	$	201



	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 June 30, 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	$	2	$	9,322	$	3,087	$	493
Mortgage-backed securities	88		2,273		3,812		13,545
Asset-backed securities:
Student loans	448		4,091		3,248		1,351
Credit cards	176		310		1,083		—
Sub-prime	8		6		4		472
Other	46		548		900		1,510
Total asset-backed securities	678		4,955		5,235		3,333
Non-U.S. debt securities:
Mortgage-backed securities	1,778		3,194		625		2,732
Asset-backed securities	355		2,481		70		26
Government securities	2,941		1,049		13		—
Other	1,270		3,122		726		—
Total non-U.S. debt securities	6,344		9,846		1,434		2,758
State and political subdivisions	684		2,600		4,926		2,239
Collateralized mortgage obligations	262		546		660		2,516
Other U.S. debt securities	907		2,167		226		35
Total	$	8,965	$	31,709	$	19,380	$	24,919
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	—	$	492	$	5,104	$	111
Mortgage-backed securities	3		5		10		33
Asset-backed securities:
Student loans	—		194		328		1,174
Credit cards	—		375		522		—
Other	60		289		148		4
Total asset-backed securities	60		858		998		1,178
Non-U.S. debt securities:
Mortgage-backed securities	474		869		121		1,656
Asset-backed securities	106		1,783		172		—
Government securities	153		—		—		—
Other	24		45		—		—
Total non-U.S. debt securities	757		2,697		293		1,656
State and political subdivisions	3		—		—		—
Collateralized mortgage obligations	409		188		496		804
Total	$	1,232	$	4,240	$	6,901	$	3,782

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 June 30,
(In millions)	2015			2014
Gross realized gains from sales of available-for-sale securities	$	41		$	1
Gross realized losses from sales of available-for-sale securities	(44		)	(1		)
Net impairment losses:
Losses reclassified (from) to other comprehensive income, or OCI	—			(2		)
Net impairment losses⁽¹⁾	—			(2		)
Gains related to investment securities, net	$	(3	)	$	(2	)
⁽¹⁾ Net impairment losses, recognized in our consolidated statement of income, were composed of the following:
Impairment associated with expected credit losses	$	—		$	(1	)
Impairment associated with adverse changes in timing of expected future cash flows	—			(1		)
Net impairment losses	$	—		$	(2	)



	Six Months Ended June 30,
(In millions)	2015			2014
Gross realized gains from sales of available-for-sale securities	$	41		$	16
Gross realized losses from sales of available-for-sale securities	(44		)	(1		)
Net impairment losses:
Gross losses from other-than-temporary impairment	(1		)	(1		)
Losses reclassified (from) to other comprehensive income, or OCI	—			(10		)
Net impairment losses⁽¹⁾	(1		)	(11		)
Gains related to investment securities, net	$	(4	)	$	4
⁽¹⁾ Net impairment losses, recognized in our consolidated statement of income, were composed of the following:
Impairment associated with expected credit losses	$	—		$	(10	)
Impairment associated with adverse changes in timing of expected future cash flows	(1		)	(1		)
Net impairment losses	$	(1	)	$	(11	)

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. The beginning balance represents the amount related to credit losses on debt securities held by the us at the beginning of the period for which a portion of an other-than-temporary impairment was recognized in other comprehensive income. Additions represent increases to the amount related to the credit loss for which an other-than-temporary impairment was previously recognized. Deductions represent previously recognized losses related to securities sold or matured and losses related to securities intended or required to be sold.



	Six Months Ended June 30,
(In millions)	2015			2014
Balance, beginning of period	$	115		$	122
Additions:
Losses for which other-than-temporary impairment was previously recognized	1			11
Reductions:
Previously recognized losses related to securities sold or matured	(15		)	(2		)
Losses related to securities intended or required to be sold	—			(6		)
Balance, end of period	$	101		$	125

- 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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