Investment Securities (Tables)

9 Months Ended

Sep. 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:



	September 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	$	13,156	$	199	$	1	$	13,354	$	10,573	$	83	$	1	$	10,655
Mortgage-backed securities	18,636		254		61		18,829		20,648		193		127		20,714
Asset-backed securities:
Student loans⁽¹⁾	7,816		20		192		7,644		12,478		106		124		12,460
Credit cards	1,527		4		27		1,504		3,077		10		34		3,053
Sub-prime	485		2		29		458		1,005		2		56		951
Other⁽²⁾	1,901		55		1		1,955		4,055		100		10		4,145
Total asset-backed securities	11,729		81		249		11,561		20,615		218		224		20,609
Non-U.S. debt securities:
Mortgage-backed securities	7,835		93		12		7,916		9,442		168		4		9,606
Asset-backed securities	3,200		3		5		3,198		3,215		11		—		3,226
Government securities	3,704		7		—		3,711		3,899		10		—		3,909
Other⁽³⁾	4,978		34		10		5,002		5,383		52		7		5,428
Total non-U.S. debt securities	19,717		137		27		19,827		21,939		241		11		22,169
State and political subdivisions	9,703		317		46		9,974		10,532		325		37		10,820
Collateralized mortgage obligations	3,267		43		11		3,299		5,280		71		12		5,339
Other U.S. debt securities	2,866		53		12		2,907		4,033		88		12		4,109
U.S. equity securities	32		7		2		37		29		10		—		39
Non-U.S. equity securities	3		—		—		3		2		—		—		2
U.S. money-market mutual funds	298		—		—		298		449		—		—		449
Non-U.S. money-market mutual funds	8		—		—		8		8		—		—		8
Total	$	79,415	$	1,091	$	409	$	80,097	$	94,108	$	1,229	$	424	$	94,913
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	7,931	$	32	$	71	$	7,892	$	5,114	$	—	$	147	$	4,967
Mortgage-backed securities	46		3		—		49		62		4		—		66
Asset-backed securities:
Student loans⁽¹⁾	1,642		—		36		1,606		1,814		2		4		1,812
Credit cards	897		1		—		898		897		2		—		899
Other	404		2		1		405		577		3		1		579
Total asset-backed securities	2,943		3		37		2,909		3,288		7		5		3,290
Non-U.S. debt securities:
Mortgage-backed securities	2,705		122		31		2,796		3,787		177		22		3,942
Asset-backed securities	1,747		5		3		1,749		2,868		14		1		2,881
Government securities	236		—		—		236		154		—		—		154
Other	67		—		—		67		72		—		—		72
Total non-U.S. debt securities	4,755		127		34		4,848		6,881		191		23		7,049
State and political subdivisions	2		—		—		2		9		—		—		9
Collateralized mortgage obligations	1,786		70		20		1,836		2,369		107		15		2,461
Total	$	17,463	$	235	$	162	$	17,536	$	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 September 30, 2015 and December 31, 2014, the fair value of other asset-backed securities was primarily composed of $1.9 billion and $3.8 billion, respectively, of collateralized loan obligations and approximately $12 million and approximately $315 million, respectively, of automobile loan securities.

⁽³⁾As of both September 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 $763 million and $1.2 billion, as of September 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
September 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	$	—	$	—	$	125	$	1	$	125	$	1
Mortgage-backed securities	1,411		9		3,331		52		4,742		61
Asset-backed securities:
Student loans	3,372		64		2,762		128		6,134		192
Credit cards	—		—		498		27		498		27
Sub-prime	—		—		419		29		419		29
Other	—		—		91		1		91		1
Total asset-backed securities	3,372		64		3,770		185		7,142		249
Non-U.S. debt securities:
Mortgage-backed securities	2,030		9		197		3		2,227		12
Asset-backed securities	2,016		5		—		—		2,016		5
Other	1,208		7		514		3		1,722		10
Total non-U.S. debt securities	5,254		21		711		6		5,965		27
State and political subdivisions	818		7		824		39		1,642		46
Collateralized mortgage obligations	667		5		188		6		855		11
Other U.S. debt securities	255		3		155		9		410		12
U.S. equity securities	5		2		—		—		5		2
Total	$	11,782	$	111	$	9,104	$	298	$	20,886	$	409
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	1,990	$	14	$	3,048	$	57	$	5,038	$	71
Asset-backed securities:
Student loans	1,204		27		385		9		1,589		36
Other	—		—		34		1		34		1
Total asset-backed securities	1,204		27		419		10		1,623		37
Non-U.S. mortgage-backed securities:
Mortgage-backed securities	613		3		480		28		1,093		31
Asset-backed securities	1,142		3		—		—		1,142		3
Total non-U.S. debt securities	1,755		6		480		28		2,235		34
Collateralized mortgage obligations	452		5		547		15		999		20
Total	$	5,401	$	52	$	4,494	$	110	$	9,895	$	162



	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 September 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	$	1,403	$	9,228	$	2,245	$	478
Mortgage-backed securities	135		2,268		3,784		12,642
Asset-backed securities:
Student loans	335		3,858		2,271		1,180
Credit cards	144		262		1,098		—
Sub-prime	6		5		4		443
Other	29		292		758		876
Total asset-backed securities	514		4,417		4,131		2,499
Non-U.S. debt securities:
Mortgage-backed securities	1,554		3,134		657		2,571
Asset-backed securities	391		2,475		136		196
Government securities	2,647		1,064		—		—
Other	1,407		2,927		668		—
Total non-U.S. debt securities	5,999		9,600		1,461		2,767
State and political subdivisions	616		2,372		5,075		1,911
Collateralized mortgage obligations	333		215		490		2,261
Other U.S. debt securities	983		1,716		174		34
Total	$	9,983	$	29,816	$	17,360	$	22,592
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	—	$	1,625	$	6,197	$	109
Mortgage-backed securities	2		6		7		31
Asset-backed securities:
Student loans	—		193		313		1,136
Credit cards	—		630		267		—
Other	60		232		109		3
Total asset-backed securities	60		1,055		689		1,139
Non-U.S. debt securities:
Mortgage-backed securities	362		815		100		1,428
Asset-backed securities	276		1,320		151		—
Government securities	123		—		113		—
Other	23		44		—		—
Total non-U.S. debt securities	784		2,179		364		1,428
State and political subdivisions	2		—		—		—
Collateralized mortgage obligations	350		143		494		799
Total	$	1,198	$	5,008	$	7,751	$	3,506

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 September 30,
(In millions)	2015			2014
Gross realized gains from sales of available-for-sale securities	$	15		$	48
Gross realized losses from sales of available-for-sale securities	(17		)	(48		)
Net impairment losses:
Losses reclassified (from) to other comprehensive income	—			—
Net impairment losses⁽¹⁾	—			—
Losses related to investment securities, net	$	(2	)	$	—
⁽¹⁾ Net impairment losses, recognized in our consolidated statement of income, were composed of the following:
Impairment associated with expected credit losses	$	—		$	—
Impairment associated with adverse changes in timing of expected future cash flows	—			—
Net impairment losses	$	—		$	—



	Nine Months Ended September 30,
(In millions)	2015			2014
Gross realized gains from sales of available-for-sale securities	$	57		$	64
Gross realized losses from sales of available-for-sale securities	(62		)	(49		)
Net impairment losses:
Gross losses from other-than-temporary impairment	(1		)	(1		)
Losses reclassified (from) to other comprehensive income	—			(10		)
Net impairment losses⁽¹⁾	(1		)	(11		)
Gains (losses) related to investment securities, net	$	(6	)	$	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 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.



	Nine Months Ended September 30,
(In millions)	2015			2014
Balance, beginning of period (December 31, 2014 and 2013, respectively)	$	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	(22		)	(11		)
Losses related to securities intended or required to be sold	—			(6		)
Balance, end of period	$	94		$	116

- 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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