Investment Securities (Tables)

12 Months Ended

Dec. 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:



	December 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	$	5,717	$	6	$	5	$	5,718	$	10,573	$	83	$	1	$	10,655
Mortgage-backed securities	18,168		131		134		18,165		20,648		193		127		20,714
Asset-backed securities:
Student loans⁽¹⁾	7,358		16		198		7,176		12,478		106		124		12,460
Credit cards	1,378		—		37		1,341		3,077		10		34		3,053
Sub-prime	448		2		31		419		1,005		2		56		951
Other⁽²⁾	1,724		43		3		1,764		4,055		100		10		4,145
Total asset-backed securities	10,908		61		269		10,700		20,615		218		224		20,609
Non-U.S. debt securities:
Mortgage-backed securities	7,010		72		11		7,071		9,442		168		4		9,606
Asset-backed securities	3,272		2		7		3,267		3,215		11		—		3,226
Government securities	4,348		7		—		4,355		3,899		10		—		3,909
Other⁽³⁾	4,817		29		12		4,834		5,383		52		7		5,428
Total non-U.S. debt securities	19,447		110		30		19,527		21,939		241		11		22,169
State and political subdivisions	9,402		371		27		9,746		10,532		325		37		10,820
Collateralized mortgage obligations	2,993		16		22		2,987		5,280		71		12		5,339
Other U.S. debt securities	2,611		31		18		2,624		4,033		88		12		4,109
U.S. equity securities	33		9		3		39		29		10		—		39
Non-U.S. equity securities	3		—		—		3		2		—		—		2
U.S. money-market mutual funds	542		—		—		542		449		—		—		449
Non-U.S. money-market mutual funds	19		—		—		19		8		—		—		8
Total	$	69,843	$	735	$	508	$	70,070	$	94,108	$	1,229	$	424	$	94,913
Held to maturity⁽⁴⁾:
U.S. Treasury and federal agencies:
Direct obligations	$	20,878	$	2	$	217	$	20,663	$	5,114	$	—	$	147	$	4,967
Mortgage-backed securities	610		2		8		604		62		4		—		66
Asset-backed securities:
Student loans⁽¹⁾	1,592		—		47		1,545		1,814		2		4		1,812
Credit cards	897		—		1		896		897		2		—		899
Other	366		2		1		367		577		3		1		579
Total asset-backed securities	2,855		2		49		2,808		3,288		7		5		3,290
Non-U.S. debt securities:
Mortgage-backed securities	2,202		109		26		2,285		3,787		177		22		3,942
Asset-backed securities	1,415		4		3		1,416		2,868		14		1		2,881
Government securities	239		—		1		238		154		—		—		154
Other	65		—		—		65		72		—		—		72
Total non-U.S. debt securities	3,921		113		30		4,004		6,881		191		23		7,049
State and political subdivisions	1		—		—		1		9		—		—		9
Collateralized mortgage obligations	1,687		60		29		1,718		2,369		107		15		2,461
Total	$	29,952	$	179	$	333	$	29,798	$	17,723	$	309	$	190	$	17,842

⁽¹⁾ Primarily 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 December 31, 2015 and 2014, the fair value of other ABS was primarily composed of $1.76 billion and $3.8 billion, respectively, of collateralized loan obligations and approximately zero and $315 million, respectively, of automobile loan securities.

⁽³⁾As of December 31, 2015 and December 31, 2014, the fair value of other non-U.S. debt securities was primarily composed of $3.18 billion and $3.3 billion of covered bonds and $613 million and $1.2 billion, as of December 31, 2015 and December 31, 2014, respectively, of corporate bonds.

⁽⁴⁾ At amortized cost or fair value on the date of transfer from AFS.

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
December 31, 2015	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
(In millions)
Available for sale:
U.S. Treasury and federal agencies:
Direct obligations	$	3,123	$	4	$	121	$	1	$	3,244	$	5
Mortgage-backed securities	5,729		48		3,166		86		8,895		134
Asset-backed securities:
Student loans	2,841		54		3,217		144		6,058		198
Credit cards	838		7		490		30		1,328		37
Sub-prime	7		—		387		31		394		31
Other	720		3		43		—		763		3
Total asset-backed securities	4,406		64		4,137		205		8,543		269
Non-U.S. debt securities:
Mortgage-backed securities	1,457		7		437		4		1,894		11
Asset-backed securities	2,190		7		22		—		2,212		7
Government securities	1,691		—		—		—		1,691		—
Other	1,548		5		527		7		2,075		12
Total non-U.S. debt securities	6,886		19		986		11		7,872		30
State and political subdivisions	206		1		658		26		864		27
Collateralized mortgage obligations	1,511		14		217		8		1,728		22
Other U.S. debt securities	475		9		178		9		653		18
U.S. equity securities	—		—		5		3		5		3
Total	$	22,336	$	159	$	9,468	$	349	$	31,804	$	508
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	16,370	$	120	$	3,005	$	97	$	19,375	$	217
Mortgage-backed	560		8		—		—		560		8
Asset-backed securities:
Student loans	896		25		615		22		1,511		47
Credit cards	636		1		—		—		636		1
Other	102		—		31		1		133		1
Total asset-backed securities	1,634		26		646		23		2,280		49
Non-U.S. mortgage-backed securities:
Mortgage-backed securities	338		2		524		24		862		26
Asset-backed securities	1,015		3		69		—		1,084		3
Government securities	128		1		—		—		128		1
Other	—		—		43		—		43		—
Total non-U.S. debt securities	1,481		6		636		24		2,117		30
Collateralized mortgage obligations	634		9		537		20		1,171		29
Total	$	20,679	$	169	$	4,824	$	164	$	25,503	$	333



	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 by carrying amount as of December 31, 2015:



	Under 1 Year		1 to 5 Years		6 to 10 Years		Over 10 Years		Total
(In millions)	Under 1 Year		1 to 5 Years		6 to 10 Years		Over 10 Years		Total
Available for sale:
U.S. Treasury and federal agencies:
Direct obligations	$	2,000	$	3,223	$	40	$	455	$	5,718
Mortgage-backed securities	78		2,501		3,858		11,728		18,165
Asset-backed securities:
Student loans	339		3,702		2,054		1,081		7,176
Credit cards	2		259		1,080		—		1,341
Sub-prime	1		5		3		410		419
Other	19		220		1,260		265		1,764
Total asset-backed securities	361		4,186		4,397		1,756		10,700
Non-U.S. debt securities:
Mortgage-backed securities	1,103		3,375		648		1,945		7,071
Asset-backed securities	485		2,394		220		168		3,267
Government securities	2,736		1,619		—		—		4,355
Other	1,410		2,886		538		—		4,834
Total non-U.S. debt securities	5,734		10,274		1,406		2,113		19,527
State and political subdivisions	542		2,450		5,001		1,753		9,746
Collateralized mortgage obligations	350		80		472		2,085		2,987
Other U.S. debt securities	948		1,500		142		34		2,624
Total	$	10,013	$	24,214	$	15,316	$	19,924	$	69,467
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	—	$	11,348	$	9,440	$	90	$	20,878
Mortgage-backed securities	1		12		—		597		610
Asset-backed securities:
Student loans	—		193		304		1,095		1,592
Credit cards	—		680		217		—		897
Other	60		227		76		3		366
Total asset-backed securities	60		1,100		597		1,098		2,855
Non-U.S. debt securities:
Mortgage-backed securities	435		507		95		1,165		2,202
Asset-backed securities	201		1,067		147		—		1,415
Government securities	129		110		—		—		239
Other	22		43		—		—		65
Total non-U.S. debt securities	787		1,727		242		1,165		3,921
State and political subdivisions	1		—		—		—		1
Collateralized mortgage obligations	251		142		489		805		1,687
Total	$	1,100	$	14,329	$	10,768	$	3,755	$	29,952

Gains and Losses Related to Investment Securities

The following tables present gross realized gains and losses from sales of AFS investment securities, and the components of net impairment losses included in net gains and losses related to investment securities, for the years ended December 31:



(In millions)	2015			2014			2013
Gross realized gains from sales of AFS investment securities	$	57		$	64		$	104
Gross realized losses from sales of AFS investment securities	(62		)	(49		)	(90		)
Net impairment losses:
Gross losses from OTTI	(1		)	(1		)	(21		)
Losses reclassified (from) to other comprehensive income	—			(10		)	(2		)
Net impairment losses⁽¹⁾	(1		)	(11		)	(23		)
Gains (losses) related to investment securities, net	$	(6	)	$	4		$	(9	)
⁽¹⁾ Net impairment losses, recognized in our consolidated statement of income, were composed of the following:
Impairment associated with expected credit losses	$	—		$	(10	)	$	(11	)
Impairment associated with management's intent to sell impaired securities prior to recovery in value	—			—			(6		)
Impairment associated with adverse changes in timing of expected future cash flows	(1		)	(1		)	(6		)
Net impairment losses	$	(1	)	$	(11	)	$	(23	)

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.



	Twelve Months Ended December 31,
(In millions)	2015			2014			2013
Balance, beginning of period	$	115		$	122		$	124
Additions:
Losses for which OTTI was not previously recognized	1			—			14
Losses for which OTTI was previously recognized	—			11			9
Deductions:
Previously recognized losses related to securities sold or matured	(24		)	(12		)	(25		)
Losses related to securities intended or required to be sold	—			(6		)	—
Balance, end of period	$	92		$	115		$	122

- 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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