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Investment Securities (Tables)
 12 Months Ended
Dec. 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:
 December 31, 2020December 31, 2019
 
Amortized
Cost
Gross
Unrealized
Fair
Value
Amortized
Cost
Gross
Unrealized
Fair
Value
(In millions)GainsLossesGainsLosses
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations$6,453 $123 $1 $6,575 $3,506 $9 $28 $3,487 
Mortgage-backed securities13,891 421 7 14,305 17,599 264 25 17,838 
Total U.S. Treasury and federal agencies20,344 544 8 20,880 21,105 273 53 21,325 
Asset-backed securities:
Student loans(1)
313 2 1 314 532 1 2 531 
Credit cards90 — — 90 90 — 1 89 
Collateralized loan obligations2,969 3 6 2,966 1,822 1 3 1,820 
Total asset-backed securities3,372 5 7 3,370 2,444 2 6 2,440 
Non-U.S. debt securities:
Mortgage-backed securities1,994 4 2 1,996 1,978 3 1 1,980 
Asset-backed securities2,294 1 4 2,291 2,179 2 2 2,179 
Government securities12,337 202 — 12,539 12,243 131 1 12,373 
Other(2)
12,729 177 3 12,903 8,595 73 10 8,658 
Total non-U.S. debt securities29,354 384 9 29,729 24,995 209 14 25,190 
State and political subdivisions(3)
1,470 80 2 1,548 1,725 59 1 1,783 
Collateralized mortgage obligations
76 2 — 78 104 — — 104 
Other U.S. debt securities3,371 72 — 3,443 2,941 32 — 2,973 
Total(4)
$57,987 $1,087 $26 $59,048 $53,314 $575 $74 $53,815 
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations$6,057 $83 $— $6,140 $10,311 $24 $3 $10,332 
Mortgage-backed securities36,883 955 67 37,771 26,297 316 44 26,569 
Total U.S. Treasury and federal agencies42,940 1,038 67 43,911 36,608 340 47 36,901 
Asset-backed securities:
Student loans(1)
4,774 33 25 4,782 3,783 10 41 3,752 
Total asset-backed securities4,774 33 25 4,782 3,783 10 41 3,752 
Non-U.S. debt securities:
Mortgage-backed securities303 68 4 367 366 82 6 442 
Government securities342 — — 342 328 — — 328 
Total non-U.S. debt securities645 68 4 709 694 82 6 770 
Collateralized mortgage obligations572 30 1 601 697 38 1 734 
Total(4)
48,931 1,169 97 50,003 41,782 470 95 42,157 
HTM securities purchased under the MMLF program3,300 4 — 3,304 — — — — 
Total held-to-maturity securities(4)(5)
$52,231 $1,173 $97 $53,307 $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 December 31, 2020 and December 31, 2019, the fair value of other non-U.S. debt securities included $9.55 billion and $5.50 billion, respectively, primarily of supranational and non-U.S. agency bonds, $1.88 billion and $1.78 billion, respectively, of corporate bonds and $0.47 billion and $0.68 billion, respectively, of covered bonds.
(3) As of December 31, 2020 and December 31, 2019, the fair value of state and political subdivisions includes securities in trusts of $0.70 billion and $0.94 billion, respectively. Additional information about these trusts is provided in Note 14.
(4) An immaterial amount of accrued interest related to HTM and AFS investment securities was excluded from the amortized cost basis for the year ended December 31, 2020.
(5) As of December 31, 2020, we recognized an allowance for credit losses of $3 million on all HTM securities.
Schedule of Gross Pre-tax Unrealized Losses on Investment Securities
The following table presents 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 December 31, 2020
Less than 12 months12 months or longerTotal
(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$1,636 $1 $— $— $1,636 $1 
Mortgage-backed securities1,394 7 63 — 1,457 7 
Total U.S. Treasury and federal agencies3,030 8 63 — 3,093 8 
Asset-backed securities:
Student loans31 — 197 1 228 1 
Collateralized loan obligations1,498 4 369 2 1,867 6 
Total asset-backed securities1,529 4 566 3 2,095 7 
Non-U.S. debt securities:
Mortgage-backed securities600 1 120 1 720 2 
Asset-backed securities1,015 3 446 1 1,461 4 
Government securities489 — — — 489 — 
Other715 3 80 — 795 3 
Total non-U.S. debt securities2,819 7 646 2 3,465 9 
State and political subdivisions95 — 76 2 171 2 
Other U.S. debt securities17 — — — 17 — 
Total$7,490 $19 $1,351 $7 $8,841 $26 
The following table presents 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 December 31, 2019
Less than 12 months12 months or longerTotal
(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 securities2,499 7 1,665 18 4,164 25 
Total U.S. Treasury and federal agencies3,929 35 1,665 18 5,594 53 
Asset-backed securities:
Student loans271 1 127 1 398 2 
Credit cards89 1 — — 89 1 
Collateralized loan obligations862 2 278 1 1,140 3 
Total asset-backed securities1,222 4 405 2 1,627 6 
Non-U.S. debt securities:
Mortgage-backed securities228 — 220 1 448 1 
Asset-backed securities672 1 109 1 781 2 
Government securities3,246 1 — — 3,246 1 
Other2,736 9 187 1 2,923 10 
Total non-U.S. debt securities6,882 11 516 3 7,398 14 
State and political subdivisions163 — 22 1 185 1 
Collateralized mortgage obligations 13 — 4 — 17 — 
Other U.S. debt securities219 — 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 securities6,056 31 1,606 13 7,662 44 
Total U.S. Treasury and federal agencies6,660 31 3,868 16 10,528 47 
Asset-backed securities:
Student loans2,003 22 778 19 2,781 41 
Credit cards— — — — — — 
Other— — — — — — 
Total asset-backed securities2,003 22 778 19 2,781 41 
Non-U.S. debt securities:
Mortgage-backed securities— — 138 6 138 6 
Asset-backed securities— — — — — — 
Government securities— — — — — — 
Other— — — 
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 December 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 December 31, 2020
(In millions)Under 1 Year1 to 5 Years6 to 10 YearsOver 10 YearsTotal
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$1,648 $1,661 $2,758 $2,771 $2,047 $2,143 $— $— $6,453 $6,575 
Mortgage-backed securities121 127 603 619 2,800 2,828 10,367 10,731 13,891 14,305 
Total U.S. Treasury and federal agencies1,769 1,788 3,361 3,390 4,847 4,971 10,367 10,731 20,344 20,880 
Asset-backed securities:
Student loans113 115 90 90 — — 110 109 313 314 
Credit cards— — — — 90 90 — — 90 90 
Collateralized loan obligations76 76 1,080 1,077 838 838 975 975 2,969 2,966 
Total asset-backed securities189 191 1,170 1,167 928 928 1,085 1,084 3,372 3,370 
Non-U.S. debt securities:
Mortgage-backed securities260 260 527 527 116 116 1,091 1,093 1,994 1,996 
Asset-backed securities337 337 1,250 1,247 272 272 435 435 2,294 2,291 
Government securities3,149 3,151 7,976 8,151 919 939 293 298 12,337 12,539 
Other1,323 1,329 9,520 9,652 1,718 1,752 168 170 12,729 12,903 
Total non-U.S. debt securities5,069 5,077 19,273 19,577 3,025 3,079 1,987 1,996 29,354 29,729 
State and political subdivisions136 136 605 626 514 559 215 227 1,470 1,548 
Collateralized mortgage obligations — — — — — — 76 78 76 78 
Other U.S. debt securities449 452 2,833 2,896 89 95 — — 3,371 3,443 
Total$7,612 $7,644 $27,242 $27,656 $9,403 $9,632 $13,730 $14,116 $57,987 $59,048 
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations$3,480 $3,512 $2,555 $2,607 $— $— $22 $21 $6,057 $6,140 
Mortgage-backed securities204 211 423 430 5,036 5,174 31,220 31,956 36,883 37,771 
Total U.S. Treasury and federal agencies3,684 3,723 2,978 3,037 5,036 5,174 31,242 31,977 42,940 43,911 
Asset-backed securities:
Student loans350 343 155 152 667 665 3,602 3,622 4,774 4,782 
Total asset-backed securities350 343 155 152 667 665 3,602 3,622 4,774 4,782 
Non-U.S. debt securities:
Mortgage-backed securities87 84 23 23 — — 193 260 303 367 
Government securities342 342 — — — — — — 342 342 
Total non-U.S. debt securities429 426 23 23 — — 193 260 645 709 
Collateralized mortgage obligations 139 150 265 266 21 21 147 164 572 601 
Total4,602 4,642 3,421 3,478 5,724 5,860 35,184 36,023 48,931 50,003 
Held-to-maturity under money market mutual fund liquidity facility3,300 3,304 — — — — — — 3,300 3,304 
Total held-to-maturity securities$7,902 $7,946 $3,421 $3,478 $5,724 $5,860 $35,184 $36,023 $52,231 $53,307 
Gains and Losses Related to Investment Securities
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, recognized under previous accounting guidance prior to the adoption of ASC 326:
Years Ended December 31,
(In millions)20192018
Gross realized gains from sales of AFS investment securities$31 $205 
Gross realized losses from sales of AFS investment securities(32)(196)
Net impairment losses:
Gross losses from OTTI— (3)
Net impairment losses
— (3)
Gains (losses) related to investment securities, net(1)6 
Net impairment losses, recognized in our consolidated statement of income, were composed of the following:
Impairment associated with adverse changes in timing of expected future cash flows— (3)
Net impairment losses$— $(3)
Schedule of Credit-Related Loss Activity Recognized in Earnings
The following table presents a roll-forward with respect to net impairment losses that had been recognized in income for the periods indicated:
Years Ended December 31,
(In millions)20192018
Balance, beginning of period $78 $77 
Additions(1):
Other-than-temporary-impairment recognized— 3 
Deductions(2):
Realized losses on securities sold or matured(8)(2)
Balance, end of period$70 $78 
1) Additions represent securities with a first time credit impairment realized or when a subsequent credit impairment has occurred.
(2) Deductions represent impairments on securities that have been sold or matured, are required to be sold, or for which management intends to sell.