Investment Securities (Tables)

12 Months Ended

Dec. 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:



	December 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	$	4,265	$	7	$	9	$	4,263	$	5,717	$	6	$	5	$	5,718
Mortgage-backed securities	13,340		76		159		13,257		18,168		131		134		18,165
Asset-backed securities:
Student loans⁽¹⁾	5,659		12		75		5,596		7,358		16		198		7,176
Credit cards	1,377		—		26		1,351		1,378		—		37		1,341
Sub-prime	289		1		18		272		448		2		31		419
Other⁽²⁾	895		10		—		905		1,724		43		3		1,764
Total asset-backed securities	8,220		23		119		8,124		10,908		61		269		10,700
Non-U.S. debt securities:
Mortgage-backed securities	6,506		35		6		6,535		7,010		72		11		7,071
Asset-backed securities	2,513		4		1		2,516		3,272		2		7		3,267
Government securities	5,834		8		6		5,836		4,348		7		—		4,355
Other⁽³⁾	5,587		31		5		5,613		4,817		29		12		4,834
Total non-U.S. debt securities	20,440		78		18		20,500		19,447		110		30		19,527
State and political subdivisions	10,233		201		112		10,322		9,402		371		27		9,746
Collateralized mortgage obligations	2,610		18		35		2,593		2,993		16		22		2,987
Other U.S. debt securities	2,481		18		30		2,469		2,611		31		18		2,624
U.S. equity securities	39		6		3		42		33		9		3		39
Non-U.S. equity securities	3		—		—		3		3		—		—		3
U.S. money-market mutual funds	409		—		—		409		542		—		—		542
Non-U.S. money-market mutual funds	16		—		—		16		19		—		—		19
Total	$	62,056	$	427	$	485	$	61,998	$	69,843	$	735	$	508	$	70,070
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	17,527	$	17	$	58	$	17,486	$	20,878	$	2	$	217	$	20,663
Mortgage-backed securities	10,334		20		221		10,133		610		2		8		604
Asset-backed securities:
Student loans⁽¹⁾	2,883		5		30		2,858		1,592		—		47		1,545
Credit cards	897		2		—		899		897		—		1		896
Other	35		—		—		35		366		2		1		367
Total asset-backed securities	3,815		7		30		3,792		2,855		2		49		2,808
Non-U.S. debt securities:
Mortgage-backed securities	1,150		70		15		1,205		2,202		109		26		2,285
Asset-backed securities	531		—		—		531		1,415		4		3		1,416
Government securities	286		3		—		289		239		—		1		238
Other	113		1		—		114		65		—		—		65
Total non-U.S. debt securities	2,080		74		15		2,139		3,921		113		30		4,004
State and political subdivisions	—		—		—		—		1		—		—		1
Collateralized mortgage obligations	1,413		42		11		1,444		1,687		60		29		1,718
Total	$	35,169	$	160	$	335	$	34,994	$	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 December 31, 2016 and December 31, 2015, the fair value of other ABS was primarily composed of $905 million and $1,764 million, respectively, of collateralized loan obligations.

⁽³⁾As of December 31, 2016 and December 31, 2015, the fair value of other non-U.S. debt securities was primarily composed of $3,769 million and $3,184 million, respectively, of covered bonds and $988 million and $613 million, as of December 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
December 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	$	651	$	8	$	180	$	1	$	831	$	9
Mortgage-backed securities	7,072		131		1,114		28		8,186		159
Asset-backed securities:
Student loans	54		—		3,745		75		3,799		75
Credit cards	795		1		494		25		1,289		26
Sub-prime	1		—		252		18		253		18
Other	75		—		—		—		75		—
Total asset-backed securities	925		1		4,491		118		5,416		119
Non-U.S. debt securities:
Mortgage-backed securities	442		1		893		5		1,335		6
Asset-backed securities	253		—		276		1		529		1
Government securities	1,314		6		—		—		1,314		6
Other	670		4		218		1		888		5
Total non-U.S. debt securities	2,679		11		1,387		7		4,066		18
State and political subdivisions	3,390		102		304		10		3,694		112
Collateralized mortgage obligations	1,259		31		162		4		1,421		35
Other U.S. debt securities	944		24		157		6		1,101		30
U.S. equity securities	8		—		5		3		13		3
Total	$	16,928	$	308	$	7,800	$	177	$	24,728	$	485
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	8,891	$	57	$	86	$	1	$	8,977	$	58
Mortgage-backed securities	6,838		221		—		—		6,838		221
Asset-backed securities:
Student loans	705		9		1,235		21		1,940		30
Credit cards	33		—		—		—		33		—
Other	18		—		9		—		27		—
Total asset-backed securities	756		9		1,244		21		2,000		30
Non-U.S. mortgage-backed securities:
Mortgage-backed securities	54		2		330		13		384		15
Asset-backed securities	28		—		35		—		63		—
Government securities	180		—		—		—		180		—
Total non-U.S. debt securities	262		2		365		13		627		15
Collateralized mortgage obligations	537		4		204		7		741		11
Total	$	17,284	$	293	$	1,899	$	42	$	19,183	$	335



	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 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 December 31, 2016. The maturities of certain asset-backed securities, mortgage-backed securities, and collateralized mortgage obligations are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties.



December 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	$	2,722	$	1,114	$	44	$	383	$	4,263
Mortgage-backed securities	213		1,533		3,022		8,489		13,257
Asset-backed securities:
Student loans	590		3,181		757		1,068		5,596
Credit cards	4		1,052		295		—		1,351
Sub-prime	3		1		2		266		272
Other	1		21		883		—		905
Total asset-backed securities	598		4,255		1,937		1,334		8,124
Non-U.S. debt securities:
Mortgage-backed securities	1,301		3,339		731		1,164		6,535
Asset-backed securities	289		1,877		346		4		2,516
Government securities	4,372		987		477		—		5,836
Other	1,901		3,304		408		—		5,613
Total non-U.S. debt securities	7,863		9,507		1,962		1,168		20,500
State and political subdivisions	509		2,347		5,548		1,918		10,322
Collateralized mortgage obligations	2		44		871		1,676		2,593
Other U.S. debt securities	508		1,003		922		36		2,469
Total	$	12,415	$	19,803	$	14,306	$	15,004	$	61,528
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	400	$	14,888	$	2,167	$	72	$	17,527
Mortgage-backed securities	—		193		1,536		8,605		10,334
Asset-backed securities:
Student loans	442		201		349		1,891		2,883
Credit cards	99		798		—		—		897
Other	7		18		8		2		35
Total asset-backed securities	548		1,017		357		1,893		3,815
Non-U.S. debt securities:
Mortgage-backed securities	148		339		47		616		1,150
Asset-backed securities	163		368		—		—		531
Government securities	180		106		—		—		286
Other	71		42		—		—		113
Total non-U.S. debt securities	562		855		47		616		2,080
Collateralized mortgage obligations	102		23		488		800		1,413
Total	$	1,612	$	16,976	$	4,595	$	11,986	$	35,169

Gain (Loss) on Investments

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 periods indicated.



	Years Ended December 31,
(In millions)	2016			2015			2014
Gross realized gains from sales of AFS investment securities	$	15		$	57		$	64
Gross realized losses from sales of AFS investment securities	(5		)	(62		)	(49		)
Net impairment losses
Gross losses from OTTI	(2		)	(1		)	(1		)
Losses reclassified (from) to other comprehensive income	(1		)	—			(10		)
Net impairment losses⁽¹⁾	(3		)	(1		)	(11		)
Gains (losses) related to investment securities, net	$	7		$	(6	)	$	4
⁽¹⁾ Net impairment losses, recognized in our consolidated statement of income, were composed of the following:
Impairment associated with expected credit losses	$	(1	)	$	—		$	(10	)
Impairment associated with adverse changes in timing of expected future cash flows	(2		)	(1		)	(1		)
Net impairment losses	$	(3	)	$	(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.



	Years Ended December 31,
(In millions)	2016			2015			2014
Balance, beginning of period	$	92		$	115		$	122
Additions:
Losses for which OTTI was previously recognized	2			1			11
Deductions:
Previously recognized losses related to securities sold or matured	(28		)	(24		)	(12		)
Losses related to securities intended or required to be sold	—			—			(6		)
Balance, end of period	$	66		$	92		$	115

- 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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