Investment Securities (Tables)

3 Months Ended

Mar. 31, 2020

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:

	March 31, 2020								December 31, 2019
	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	$	4,983	$	167	$	—	$	5,150	$	3,506	$	9	$	28	$	3,487
Mortgage-backed securities	17,842		547		25		18,364		17,599		264		25		17,838
Total U.S. Treasury and federal agencies	22,825		714		25		23,514		21,105		273		53		21,325
Asset-backed securities:
Student loans(1)	466		—		12		454		532		1		2		531
Credit cards	90		—		5		85		90		—		1		89
Collateralized loan obligations	1,931		—		90		1,841		1,822		1		3		1,820
Total asset-backed securities	2,487		—		107		2,380		2,444		2		6		2,440
Non-U.S. debt securities:
Mortgage-backed securities	1,710		—		18		1,692		1,978		3		1		1,980
Asset-backed securities	1,907		—		52		1,855		2,179		2		2		2,179
Government securities	12,952		121		18		13,055		12,243		131		1		12,373
Other(2)	8,761		59		46		8,774		8,595		73		10		8,658
Total non-U.S. debt securities	25,330		180		134		25,376		24,995		209		14		25,190
State and political subdivisions(3)	1,724		48		7		1,765		1,725		59		1		1,783
Collateralized mortgage obligations	96		—		—		96		104		—		—		104
Other U.S. debt securities	2,737		9		34		2,712		2,941		32		—		2,973
Total	$	55,199	$	951	$	307	$	55,843	$	53,314	$	575	$	74	$	53,815
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	9,268	$	171	$	—	$	9,439	$	10,311	$	24	$	3	$	10,332
Mortgage-backed securities	26,613		970		7		27,576		26,297		316		44		26,569
Total U.S. Treasury and federal agencies	35,881		1,141		7		37,015		36,608		340		47		36,901
Asset-backed securities:
Student loans(1)	4,055		1		148		3,908		3,783		10		41		3,752
Total asset-backed securities	4,055		1		148		3,908		3,783		10		41		3,752
Non-U.S. debt securities:
Mortgage-backed securities	335		56		14		377		366		82		6		442
Government securities	279		1		—		280		328		—		—		328
Total non-U.S. debt securities	614		57		14		657		694		82		6		770
Collateralized mortgage obligations	600		28		7		621		697		38		1		734
Total(4)	41,150		1,227		176		42,201		41,782		470		95		42,157
HTM securities purchased under the MMLF program(5)	26,812		9		13		26,808		—		—		—		—
Total held-to-maturity securities	$	67,962	$	1,236	$	189	$	69,009	$	41,782	$	470	$	95	$	42,157

⁽¹⁾ Primarily comprised 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, 2020 and December 31, 2019, the fair value of other non-U.S. debt securities included $6.00 billion and $5.50 billion, respectively, primarily of supranational and non-U.S. agency bonds, $1.71 billion and $1.78 billion, respectively, of corporate bonds and $0.47 billion and $0.68 billion, respectively, of covered bonds.

⁽³⁾ As of March 31, 2020 and December 31, 2019, the fair value of state and political subdivisions includes securities in trusts of $0.93 billion and $0.94 billion respectively. Additional information about these trusts is provided in Note 12.

⁽⁴⁾ An immaterial amount of accrued interest related to HTM and AFS investment securities was excluded from the amortized cost basis for the period ended March 31, 2020.

⁽⁵⁾ As of March 31, 2020, we recognized an allowance for credit losses of $4 million on HTM investment securities under the MMLF program.

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:

	As of March 31, 2020
	Less than 12 months				12 months or longer				Total
(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:
Mortgage-backed securities	$	2,135	$	23	$	200	$	2	$	2,335	$	25
Total U.S. Treasury and federal agencies	2,135		23		200		2		2,335		25
Asset-backed securities:
Student loans	344		11		99		1		443		12
Credit cards	85		5		—		—		85		5
Collateralized loan obligations	1,466		76		292		14		1,758		90
Total asset-backed securities	1,895		92		391		15		2,286		107
Non-U.S. debt securities:
Mortgage-backed securities	1,431		15		203		3		1,634		18
Asset-backed securities	1,741		46		98		6		1,839		52
Government securities	1,044		18		—		—		1,044		18
Other	3,367		45		293		1		3,660		46
Total non-U.S. debt securities	7,583		124		594		10		8,177		134
State and political subdivisions	579		6		22		1		601		7
Collateralized mortgage obligations	—		—		2		—		2		—
Other U.S. debt securities	2,012		34		—		—		2,012		34
Total	$	14,204	$	279	$	1,209	$	28	$	15,413	$	307
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	—	$	—	$	31	$	—	$	31	$	—
Mortgage-backed securities	955		6		25		1		980		7
Total U.S. Treasury and federal agencies	955		6		56		1		1,011		7
Asset-backed securities:
Student loans	2,739		96		1,043		52		3,782		148
Total asset-backed securities	2,739		96		1,043		52		3,782		148
Non-U.S. debt securities:
Mortgage-backed securities	35		—		122		14		157		14
Total non-U.S. debt securities	35		—		122		14		157		14
Collateralized mortgage obligations	39		4		20		3		59		7
Total	3,768		106		1,241		70		5,009		176
HTM securities purchased under the MMLF program	11,080		13		—		—		11,080		13
Total held-to-maturity securities	$	14,848	$	119	$	1,241	$	70	$	16,089	$	189

	As of December 31, 2019
	Less than 12 months				12 months or longer				Total
(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	$	1,430	$	28	$	—	$	—	$	1,430	$	28
Mortgage-backed securities	2,499		7		1,665		18		4,164		25
Total U.S. Treasury and federal agencies	3,929		35		1,665		18		5,594		53
Asset-backed securities:
Student loans	271		1		127		1		398		2
Credit cards	89		1		—		—		89		1
Collateralized loan obligations	862		2		278		1		1,140		3
Total asset-backed securities	1,222		4		405		2		1,627		6
Non-U.S. debt securities:
Mortgage-backed securities	228		—		220		1		448		1
Asset-backed securities	672		1		109		1		781		2
Government securities	3,246		1		—		—		3,246		1
Other	2,736		9		187		1		2,923		10
Total non-U.S. debt securities	6,882		11		516		3		7,398		14
State and political subdivisions	163		—		22		1		185		1
Collateralized mortgage obligations	13		—		4		—		17		—
Other U.S. debt securities	219		—		14		—		233		—
Total	$	12,428	$	50	$	2,626	$	24	$	15,054	$	74
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	604	$	—	$	2,262	$	3	$	2,866	$	3
Mortgage-backed securities	6,056		31		1,606		13		7,662		44
Total U.S. Treasury and federal agencies	6,660		31		3,868		16		10,528		47
Asset-backed securities:
Student loans	2,003		22		778		19		2,781		41
Total asset-backed securities	2,003		22		778		19		2,781		41
Non-U.S. debt securities:
Mortgage-backed securities	—		—		138		6		138		6
Total non-U.S. debt securities	—		—		138		6		138		6
Collateralized mortgage obligations	13		—		110		1		123		1
Total	$	8,676	$	53	$	4,894	$	42	$	13,570	$	95

Investments Classified by Contractual Maturity Date

The following table presents the amortized cost and the fair value of contractual maturities of debt investment securities as of March 31, 2020. The maturities of certain ABS, MBS 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.

	As of March 31, 2020
(In millions)	Under 1 Year				1 to 5 Years				6 to 10 Years				Over 10 Years				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	1,060	$	1,075	$	1,873	$	1,907	$	2,050	$	2,168	$	—	$	—	$	4,983	$	5,150
Mortgage-backed securities	111		116		882		900		2,825		2,831		14,024		14,517		17,842		18,364
Total U.S. Treasury and federal agencies	1,171		1,191		2,755		2,807		4,875		4,999		14,024		14,517		22,825		23,514
Asset-backed securities:
Student loans	57		57		217		216		17		16		175		165		466		454
Credit cards	—		—		—		—		90		85		—		—		90		85
Collateralized loan obligations	—		—		923		888		891		843		117		110		1,931		1,841
Total asset-backed securities	57		57		1,140		1,104		998		944		292		275		2,487		2,380
Non-U.S. debt securities:
Mortgage-backed securities	303		301		548		541		143		141		716		709		1,710		1,692
Asset-backed securities	292		280		913		897		362		349		340		329		1,907		1,855
Government securities	4,920		4,927		7,270		7,375		402		406		360		347		12,952		13,055
Other	699		699		6,692		6,712		1,297		1,290		73		73		8,761		8,774
Total non-U.S. debt securities	6,214		6,207		15,423		15,525		2,204		2,186		1,489		1,458		25,330		25,376
State and political subdivisions	232		232		648		648		531		559		313		326		1,724		1,765
Collateralized mortgage obligations	—		—		—		—		—		—		96		96		96		96
Other U.S. debt securities	793		790		1,847		1,826		97		96		—		—		2,737		2,712
Total	$	8,467	$	8,477	$	21,813	$	21,910	$	8,705	$	8,784	$	16,214	$	16,672	$	55,199	$	55,843
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	3,609		3,633		5,628		5,775		5		5		26		26		$	9,268	$	9,439
Mortgage-backed securities	6		6		438		451		3,098		3,238		23,071		23,881		26,613		27,576
Total U.S. Treasury and federal agencies	3,615		3,639		6,066		6,226		3,103		3,243		23,097		23,907		35,881		37,015
Asset-backed securities:
Student loans	105		96		201		196		516		494		3,233		3,122		4,055		3,908
Total asset-backed securities	105		96		201		196		516		494		3,233		3,122		4,055		3,908
Non-U.S. debt securities:
Mortgage-backed securities	11		11		26		26		4		3		294		337		335		377
Government securities	279		280		—		—		—		—		—		—		279		280
Total non-U.S. debt securities	290		291		26		26		4		3		294		337		614		657
Collateralized mortgage obligations	2		2		279		283		13		12		306		324		600		621
Total	4,012		4,028		6,572		6,731		3,636		3,752		26,930		27,690		41,150		42,201
Held-to-maturity under money market mutual fund liquidity facility	26,812		26,808		—		—		—		—		—		—		26,812		26,808
Total held-to-maturity securities	$	30,824	$	30,836	$	6,572	$	6,731	$	3,636	$	3,752	$	26,930	$	27,690	$	67,962	$	69,009