Investment Securities (Tables)

6 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Schedule of Marketable Securities

The following table presents the amortized cost, fair value and associated unrealized gains and losses of AFS and HTM investment securities as of the dates indicated:

	June 30, 2018								December 31, 2017
	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	$	11	$	—	$	—	$	11	$	222	$	2	$	1	$	223
Mortgage-backed securities	16,158		22		287		15,893		10,975		26		129		10,872
Total U.S. Treasury and federal agencies	16,169		22		287		15,904		11,197		28		130		11,095
Asset-backed securities:
Student loans(1)	1,546		22		1		1,567		3,325		37		4		3,358
Credit cards	639		1		23		617		1,565		2		25		1,542
CLOs	848		4		1		851		1,440		7		—		1,447
Total asset-backed securities	3,033		27		25		3,035		6,330		46		29		6,347
Non-U.S. debt securities:
Mortgage-backed securities	2,609		8		2		2,615		6,664		36		5		6,695
Asset-backed securities	1,655		2		—		1,657		2,942		5		—		2,947
Government securities	13,089		31		48		13,072		10,754		16		49		10,721
Other(2)	4,449		19		16		4,452		6,076		38		6		6,108
Total non-U.S. debt securities	21,802		60		66		21,796		26,436		95		60		26,471
State and political subdivisions(3)	4,127		114		13		4,228		8,929		245		23		9,151
Collateralized mortgage obligations	325		—		6		319		1,060		3		9		1,054
Other U.S. debt securities	2,104		5		43		2,066		2,563		12		15		2,560
U.S. equity securities(4)	—		—		—		—		40		8		2		46
U.S. money-market mutual funds(4)	—		—		—		—		397		—		—		397
Total	$	47,560	$	228	$	440	$	47,348	$	56,952	$	437	$	268	$	57,121
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	15,992	$	—	$	292	$	15,700	$	17,028	$	—	$	143	$	16,885
Mortgage-backed securities	17,443		1		652		16,792		16,651		22		225		16,448
Total U.S. Treasury and federal agencies	33,435		1		944		32,492		33,679		22		368		33,333
Asset-backed securities:
Student loans(1)	2,892		44		8		2,928		3,047		32		9		3,070
Credit cards	710		1		—		711		798		2		—		800
Other	1		—		—		1		1		—		—		1
Total asset-backed securities	3,603		45		8		3,640		3,846		34		9		3,871
Non-U.S. debt securities:
Mortgage-backed securities	727		82		5		804		939		82		6		1,015
Asset-backed securities	231		—		—		231		263		1		—		264
Government securities	404		2		—		406		474		2		—		476
Other	47		—		—		47		48		—		—		48
Total non-U.S. debt securities	1,409		84		5		1,488		1,724		85		6		1,803
Collateralized mortgage obligations	1,147		45		7		1,185		1,209		45		6		1,248
Total	$	39,594	$	175	$	964	$	38,805	$	40,458	$	186	$	389	$	40,255

⁽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 June 30, 2018 and December 31, 2017, the fair value of other non-U.S. debt securities was primarily composed of $1,959 million and $3,537 million, respectively, of covered bonds and $1,735 million and $1,885 million, respectively, of corporate bonds.

⁽³⁾ As of June 30, 2018 and December 31, 2017, the fair value of State and Political subdivisions includes securities in trusts of $1,207 million and $1,247 million, respectively. Additional information about these trusts is provided in Note 11 to the consolidated financial statements in this Form 10-Q.

⁽⁴⁾ During the first quarter of 2018, we adopted ASU 2016-01. For additional information see Note 1.

Schedule of Gross Pre-tax Unrealized Losses on Investment Securities

The following tables present the aggregate fair values of AFS and HTM 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, 2018	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:
Mortgage-backed securities	$	7,776	$	136	$	3,030	$	151	$	10,806	$	287
Total U.S. Treasury and federal agencies	7,776		136		3,030		151		10,806		287
Asset-backed securities:
Student loans	309		1		192		—		501		1
Credit cards	491		23		—		—		491		23
CLOs	326		1		—		—		326		1
Total asset-backed securities	1,126		25		192		—		1,318		25
Non-U.S. debt securities:
Mortgage-backed securities	756		2		63		—		819		2
Government securities	6,216		48		—		—		6,216		48
Other	1,254		15		56		1		1,310		16
Total non-U.S. debt securities	8,226		65		119		1		8,345		66
State and political subdivisions	563		7		233		6		796		13
Collateralized mortgage obligations	232		4		70		2		302		6
Other U.S. debt securities	1,382		36		113		7		1,495		43
Total	$	19,305	$	273	$	3,757	$	167	$	23,062	$	440
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	12,528	$	246	$	3,172	$	46	$	15,700	$	292
Mortgage-backed securities	11,090		320		5,606		332		16,696		652
Total U.S. Treasury and federal agencies	23,618		566		8,778		378		32,396		944
Asset-backed securities:
Student loans	99		1		559		7		658		8
Total asset-backed securities	99		1		559		7		658		8
Non-U.S. debt securities:
Mortgage-backed securities	93		1		133		4		226		5
Total non-U.S. debt securities	93		1		133		4		226		5
Collateralized mortgage obligations	2		—		238		7		240		7
Total	$	23,812	$	568	$	9,708	$	396	$	33,520	$	964

	Less than 12 months				12 months or longer				Total
December 31, 2017	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	$	—	$	—	$	67	$	1	$	67	$	1
Mortgage-backed securities	5,161		31		3,341		98		8,502		129
Total U.S. Treasury and federal agencies	5,161		31		3,408		99		8,569		130
Asset-backed securities:
Student loans	—		—		769		4		769		4
Credit cards	1,289		25		—		—		1,289		25
Total asset-backed securities	1,289		25		769		4		2,058		29
Non-U.S. debt securities:
Mortgage-backed securities	1,059		4		469		1		1,528		5
Government securities	7,629		48		68		1		7,697		49
Other	816		4		289		2		1,105		6
Total non-U.S. debt securities	9,504		56		826		4		10,330		60
State and political subdivisions	734		6		901		17		1,635		23
Collateralized mortgage obligations	399		5		136		4		535		9
Other U.S. debt securities	1,007		8		345		7		1,352		15
U.S. equity securities	—		—		6		2		6		2
Total	$	18,094	$	131	$	6,391	$	137	$	24,485	$	268
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	14,439	$	109	$	2,447	$	34	$	16,886	$	143
Mortgage-backed securities	6,785		38		5,988		187		12,773		225
Total U.S. Treasury and federal agencies	21,224		147		8,435		221		29,659		368
Asset-backed securities:
Student loans	440		3		423		6		863		9
Total asset-backed securities	440		3		423		6		863		9
Non-U.S. debt securities:
Mortgage-backed securities	—		—		239		6		239		6
Total non-U.S. debt securities	—		—		239		6		239		6
Collateralized mortgage obligations	—		—		276		6		276		6
Total	$	21,664	$	150	$	9,373	$	239	$	31,037	$	389

Investments Classified by Contractual Maturity Date

The following table presents contractual maturities of debt investment securities by carrying amount as of June 30, 2018. The maturities of certain ABS, MBS, and CMOs 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.

June 30, 2018	Under 1 Year		1 to 5 Years		6 to 10 Years		Over 10 Years		Total
(In millions)
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	11	$	—	$	—	$	—	$	11
Mortgage-backed securities	105		621		2,708		12,459		15,893
Total U.S. Treasury and federal agencies	116		621		2,708		12,459		15,904
Asset-backed securities:
Student loans	56		366		457		688		1,567
Credit cards	—		491		126		—		617
CLOs	100		589		142		20		851
Total asset-backed securities	156		1,446		725		708		3,035
Non-U.S. debt securities:
Mortgage-backed securities	223		1,807		195		390		2,615
Asset-backed securities	155		712		650		140		1,657
Government securities	2,279		4,422		6,103		268		13,072
Other	1,232		2,478		705		37		4,452
Total non-U.S. debt securities	3,889		9,419		7,653		835		21,796
State and political subdivisions	406		1,284		1,786		752		4,228
Collateralized mortgage obligations	—		16		—		303		319
Other U.S. debt securities	76		1,281		709		—		2,066
Total	$	4,643	$	14,067	$	13,581	$	15,057	$	47,348
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	3,205	$	12,725	$	13	$	49	$	15,992
Mortgage-backed securities	10		185		1,467		15,781		17,443
Total U.S. Treasury and federal agencies	3,215		12,910		1,480		15,830		33,435
Asset-backed securities:
Student loans	32		276		226		2,358		2,892
Credit cards	173		537		—		—		710
Other	—		—		—		1		1
Total asset-backed securities	205		813		226		2,359		3,603
Non-U.S. debt securities:
Mortgage-backed securities	94		140		21		472		727
Asset-backed securities	—		231		—		—		231
Government securities	287		117		—		—		404
Other	47		—		—		—		47
Total non-U.S. debt securities	428		488		21		472		1,409
Collateralized mortgage obligations	5		418		49		675		1,147
Total	$	3,853	$	14,629	$	1,776	$	19,336	$	39,594

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.

	Six Months Ended June 30,
(In millions)	2018		2017
Balance, beginning of period	$	64	$	66
Additions:
Losses for which OTTI was previously recognized	1		—
Deductions:
Previously recognized losses related to securities sold or matured	—		(2		)
Balance, end of period	$	65	$	64