Investment Securities (Tables)

6 Months Ended

Jun. 30, 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:

	June 30, 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	$	5,631	$	173	$	—	$	5,804	$	3,506	$	9	$	28	$	3,487
Mortgage-backed securities	16,118		564		6		16,676		17,599		264		25		17,838
Total U.S. Treasury and federal agencies	21,749		737		6		22,480		21,105		273		53		21,325
Asset-backed securities:
Student loans(1)	409		2		7		404		532		1		2		531
Credit cards	90		—		—		90		90		—		1		89
Collateralized loan obligations	1,949		—		30		1,919		1,822		1		3		1,820
Total asset-backed securities	2,448		2		37		2,413		2,444		2		6		2,440
Non-U.S. debt securities:
Mortgage-backed securities	1,714		—		8		1,706		1,978		3		1		1,980
Asset-backed securities	1,906		—		15		1,891		2,179		2		2		2,179
Government securities	12,964		162		7		13,119		12,243		131		1		12,373
Other(2)	9,935		135		8		10,062		8,595		73		10		8,658
Total non-U.S. debt securities	26,519		297		38		26,778		24,995		209		14		25,190
State and political subdivisions(3)	1,654		73		4		1,723		1,725		59		1		1,783
Collateralized mortgage obligations	89		1		—		90		104		—		—		104
Other U.S. debt securities	2,685		63		1		2,747		2,941		32		—		2,973
Total	$	55,144	$	1,173	$	86	$	56,231	$	53,314	$	575	$	74	$	53,815
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	8,179	$	138	$	—	$	8,317	$	10,311	$	24	$	3	$	10,332
Mortgage-backed securities	28,204		1,079		7		29,276		26,297		316		44		26,569
Total U.S. Treasury and federal agencies	36,383		1,217		7		37,593		36,608		340		47		36,901
Asset-backed securities:
Student loans(1)	4,148		8		104		4,052		3,783		10		41		3,752
Total asset-backed securities	4,148		8		104		4,052		3,783		10		41		3,752
Non-U.S. debt securities:
Mortgage-backed securities	339		60		7		392		366		82		6		442
Government securities	393		—		—		393		328		—		—		328
Total non-U.S. debt securities	732		60		7		785		694		82		6		770
Collateralized mortgage obligations	585		28		6		607		697		38		1		734
Total(4)	41,848		1,313		124		43,037		41,782		470		95		42,157
HTM securities purchased under the MMLF program(5)	11,261		33		—		11,294		—		—		—		—
Total held-to-maturity securities	$	53,109	$	1,346	$	124	$	54,331	$	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 June 30, 2020 and December 31, 2019, the fair value of other non-U.S. debt securities included $6.65 billion and $5.50 billion, respectively, primarily of supranational and non-U.S. agency bonds, $1.77 billion and $1.78 billion, respectively, of corporate bonds and $0.48 billion and $0.68 billion, respectively, of covered bonds.

⁽³⁾ As of June 30, 2020 and December 31, 2019, the fair value of state and political subdivisions includes securities in trusts of $0.87 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 June 30, 2020.

⁽⁵⁾ As of June 30, 2020, we recognized an allowance for credit losses of $4 million on HTM investment securities

Schedule of Gross Pre-tax Unrealized Losses on Investment Securities

The following tables present the aggregate fair values of AFS 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 June 30, 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:
Direct obligations	$	350	$	—	$	—	$	—	$	350	$	—
Mortgage-backed securities	1,001		5		124		1		1,125		6
Total U.S. Treasury and federal agencies	1,351		5		124		1		1,475		6
Asset-backed securities:
Student loans	268		7		71		—		339		7
Credit cards	—		—		—		—		—		—
Collateralized loan obligations	1,586		25		283		5		1,869		30
Total asset-backed securities	1,854		32		354		5		2,208		37
Non-U.S. debt securities:
Mortgage-backed securities	1,246		6		206		2		1,452		8
Asset-backed securities	1,483		13		105		2		1,588		15
Government securities	1,145		7		—		—		1,145		7
Other	856		7		747		1		1,603		8
Total non-U.S. debt securities	4,730		33		1,058		5		5,788		38
State and political subdivisions	344		3		22		1		366		4
Other U.S. debt securities	212		1		—		—		212		1
Total	$	8,491	$	74	$	1,558	$	12	$	10,049	$	86

	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

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 June 30, 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 June 30, 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	$	1,560	$	1,569	$	2,022	$	2,057	$	2,049	$	2,178	$	—	$	—	$	5,631	$	5,804
Mortgage-backed securities	199		206		706		726		2,639		2,672		12,574		13,072		16,118		16,676
Total U.S. Treasury and federal agencies	1,759		1,775		2,728		2,783		4,688		4,850		12,574		13,072		21,749		22,480
Asset-backed securities:
Student loans	163		164		127		126		2		2		117		112		409		404
Credit cards	—		—		—		—		90		90		—		—		90		90
Collateralized loan obligations	31		29		978		964		823		811		117		115		1,949		1,919
Total asset-backed securities	194		193		1,105		1,090		915		903		234		227		2,448		2,413
Non-U.S. debt securities:
Mortgage-backed securities	252		251		550		546		130		129		782		780		1,714		1,706
Asset-backed securities	272		270		984		977		318		315		332		329		1,906		1,891
Government securities	4,690		4,694		7,339		7,488		689		693		246		244		12,964		13,119
Other	1,446		1,452		6,968		7,068		1,431		1,451		90		91		9,935		10,062
Total non-U.S. debt securities	6,660		6,667		15,841		16,079		2,568		2,588		1,450		1,444		26,519		26,778
State and political subdivisions	169		169		669		683		526		564		290		307		1,654		1,723
Collateralized mortgage obligations	—		—		—		—		—		—		89		90		89		90
Other U.S. debt securities	695		700		1,887		1,938		103		109		—		—		2,685		2,747
Total	$	9,477	$	9,504	$	22,230	$	22,573	$	8,800	$	9,014	$	14,637	$	15,140	$	55,144	$	56,231
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	3,310	$	3,332	$	4,840	$	4,956	$	5	$	5	$	24	$	24	$	8,179	$	8,317
Mortgage-backed securities	61		63		545		557		3,716		3,898		23,882		24,758		28,204		29,276
Total U.S. Treasury and federal agencies	3,371		3,395		5,385		5,513		3,721		3,903		23,906		24,782		36,383		37,593
Asset-backed securities:
Student loans	359		343		200		193		539		523		3,050		2,993		4,148		4,052
Total asset-backed securities	359		343		200		193		539		523		3,050		2,993		4,148		4,052
Non-U.S. debt securities:
Mortgage-backed securities	117		112		27		27		3		3		192		250		339		392
Government securities	393		393		—		—		—		—		—		—		393		393
Total non-U.S. debt securities	510		505		27		27		3		3		192		250		732		785
Collateralized mortgage obligations	149		157		274		273		5		5		157		172		585		607
Total	4,389		4,400		5,886		6,006		4,268		4,434		27,305		28,197		41,848		43,037
Held-to-maturity under money market mutual fund liquidity facility	11,261		11,294		—		—		—		—		—		—		11,261		11,294
Total held-to-maturity securities	$	15,650	$	15,694	$	5,886	$	6,006	$	4,268	$	4,434	$	27,305	$	28,197	$	53,109	$	54,331