Investment Securities (Tables)

3 Months Ended

Mar. 31, 2016

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, 2016								December 31, 2015
	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	$	6,321	$	23	$	2	$	6,342	$	5,717	$	6	$	5	$	5,718
Mortgage-backed securities	18,028		243		37		18,234		18,168		131		134		18,165
Asset-backed securities:
Student loans⁽¹⁾	7,052		9		244		6,817		7,358		16		198		7,176
Credit cards	1,390		9		31		1,368		1,378		—		37		1,341
Sub-prime	421		1		34		388		448		2		31		419
Other⁽²⁾	1,784		35		6		1,813		1,724		43		3		1,764
Total asset-backed securities	10,647		54		315		10,386		10,908		61		269		10,700
Non-U.S. debt securities:
Mortgage-backed securities	7,581		57		26		7,612		7,010		72		11		7,071
Asset-backed securities	2,709		2		7		2,704		3,272		2		7		3,267
Government securities	5,057		13		—		5,070		4,348		7		—		4,355
Other⁽³⁾	4,985		34		10		5,009		4,817		29		12		4,834
Total non-U.S. debt securities	20,332		106		43		20,395		19,447		110		30		19,527
State and political subdivisions	9,614		443		31		10,026		9,402		371		27		9,746
Collateralized mortgage obligations	2,900		47		9		2,938		2,993		16		22		2,987
Other U.S. debt securities	2,211		36		16		2,231		2,611		31		18		2,624
U.S. equity securities	34		9		3		40		33		9		3		39
Non-U.S. equity securities	3		—		—		3		3		—		—		3
U.S. money-market mutual funds	473		—		—		473		542		—		—		542
Non-U.S. money-market mutual funds	18		—		—		18		19		—		—		19
Total	$	70,581	$	961	$	456	$	71,086	$	69,843	$	735	$	508	$	70,070
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	22,603	$	298	$	6	$	22,895	$	20,878	$	2	$	217	$	20,663
Mortgage-backed securities	588		3		—		591		610		2		8		604
Asset-backed securities:
Student loans⁽¹⁾	1,544		—		56		1,488		1,592		—		47		1,545
Credit cards	897		1		—		898		897		—		1		896
Other	277		—		1		276		366		2		1		367
Total asset-backed securities	2,718		1		57		2,662		2,855		2		49		2,808
Non-U.S. debt securities:
Mortgage-backed securities	2,147		104		31		2,220		2,202		109		26		2,285
Asset-backed securities	1,109		—		4		1,105		1,415		4		3		1,416
Government securities	273		2		—		275		239		—		1		238
Other	217		3		—		220		65		—		—		65
Total non-U.S. debt securities	3,746		109		35		3,820		3,921		113		30		4,004
State and political subdivisions	—		—		—		—		1		—		—		1
Collateralized mortgage obligations	1,557		52		22		1,587		1,687		60		29		1,718
Total	$	31,212	$	463	$	120	$	31,555	$	29,952	$	179	$	333	$	29,798

⁽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 March 31, 2016 and December 31, 2015, the fair value of other ABS was primarily composed of $1.81 billion and $1.76 billion, respectively, of collateralized loan obligations.

⁽³⁾As of March 31, 2016 and December 31, 2015, the fair value of other non-U.S. debt securities was primarily composed of $3.38 billion and $3.18 billion, respectively, of covered bonds and $741 million and $613 million, as of March 31, 2016 and December 31, 2015, 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, 2016	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	$	106	$	1	$	116	$	1	$	222	$	2
Mortgage-backed securities	1,127		3		3,630		34		4,757		37
Asset-backed securities:
Student loans	2,886		70		3,154		174		6,040		244
Credit cards	50		—		500		31		550		31
Sub-prime	1		—		365		34		366		34
Other	1,165		5		45		1		1,210		6
Total asset-backed securities	4,102		75		4,064		240		8,166		315
Non-U.S. debt securities:
Mortgage-backed securities	2,265		13		809		13		3,074		26
Asset-backed securities	1,656		6		250		1		1,906		7
Government securities	657		—		—		—		657		—
Other	1,499		5		401		5		1,900		10
Total non-U.S. debt securities	6,077		24		1,460		19		7,537		43
State and political subdivisions	186		1		640		30		826		31
Collateralized mortgage obligations	343		2		282		7		625		9
Other U.S. debt securities	103		5		159		11		262		16
U.S. equity securities	1		—		5		3		6		3
Non-U.S. equity securities	1		—		—		—		1		—
Total	$	12,046	$	111	$	10,356	$	345	$	22,402	$	456
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	781	$	3	$	613	$	3	$	1,394	$	6
Mortgage-backed securities	267		—		—		—		267		—
Asset-backed securities:
Student loans	967		33		521		23		1,488		56
Credit cards	307		—		—		—		307		—
Other	161		1		30		—		191		1
Total asset-backed securities	1,435		34		551		23		1,986		57
Non-U.S. mortgage-backed securities:
Mortgage-backed securities	249		7		626		24		875		31
Asset-backed securities	814		3		60		1		874		4
Government securities	158		—		—		—		158		—
Total non-U.S. debt securities	1,221		10		686		25		1,907		35
Collateralized mortgage obligations	776		11		360		11		1,136		22
Total	$	4,480	$	58	$	2,210	$	62	$	6,690	$	120



	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
Non-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 securities	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. debt 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

Investments Classified by Contractual Maturity Date

The following table presents contractual maturities of debt investment securities by carrying amount as of March 31, 2016:



	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	$	2,002	$	3,654	$	246	$	440	$	6,342
Mortgage-backed securities	117		2,240		4,323		11,554		18,234
Asset-backed securities:
Student loans	465		3,851		1,455		1,046		6,817
Credit cards	6		259		1,103		—		1,368
Sub-prime	1		4		2		381		388
Other	6		219		1,439		149		1,813
Total asset-backed securities	478		4,333		3,999		1,576		10,386
Non-U.S. debt securities:
Mortgage-backed securities	1,202		3,707		896		1,807		7,612
Asset-backed securities	177		2,140		234		153		2,704
Government securities	3,233		1,691		146		—		5,070
Other	1,653		2,692		664		—		5,009
Total non-U.S. debt securities	6,265		10,230		1,940		1,960		20,395
State and political subdivisions	447		2,389		5,267		1,923		10,026
Collateralized mortgage obligations	282		47		528		2,081		2,938
Other U.S. debt securities	837		1,224		139		31		2,231
Total	$	10,428	$	24,117	$	16,442	$	19,565	$	70,552
Held to maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	—	$	11,887	$	10,633	$	83	$	22,603
Mortgage-backed securities	—		11		—		577		588
Asset-backed securities:
Student loans	50		142		244		1,108		1,544
Credit cards	39		641		217		—		897
Other	72		134		68		3		277
Total asset-backed securities	161		917		529		1,111		2,718
Non-U.S. debt securities:
Mortgage-backed securities	376		520		91		1,160		2,147
Asset-backed securities	116		993		—		—		1,109
Government securities	158		115		—		—		273
Other	98		119		—		—		217
Total non-U.S. debt securities	748		1,747		91		1,160		3,746
Collateralized mortgage obligations	196		70		302		989		1,557
Total	$	1,105	$	14,632	$	11,555	$	3,920	$	31,212

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)	2016			2015
Balance, beginning of period	$	92		$	115
Additions:
Losses for which OTTI was previously recognized	—			1
Deductions:
Previously recognized losses related to securities sold or matured	(1		)	(9		)
Balance, end of period	$	91		$	107

- 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 + Details