Investment Securities (Tables)

9 Months Ended

Sep. 30, 2011

Investment Securities

Schedule Of Marketable Securities

	September 30, 2011								December 31, 2010
	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	$	5,287	$	80	$	2	$	5,365	$	7,505	$	74	$	2	$	7,577
Mortgage-backed securities		27,373		660		7		28,026		23,398		325		83		23,640
Asset-backed securities:
Student loans(1)		17,111		80		658		16,533		14,975		92		652		14,415
Credit cards		10,450		60		15		10,495		7,578		56		31		7,603
Sub-prime		1,931		2		447		1,486		2,161		3		346		1,818
Other		3,288		172		122		3,338		2,550		175		156		2,569
Total asset-backed securities		32,780		314		1,242		31,852		27,264		326		1,185		26,405
Non-U.S. debt securities:
Mortgage-backed securities		9,363		99		70		9,392		6,258		82		46		6,294
Asset-backed securities		3,790		2		11		3,781		1,790		13		17		1,786
Government securities		3,014		—		—		3,014		2,915		—		—		2,915
Other		1,066		42		9		1,099		990		34		2		1,022
Total non-U.S. debt securities		17,233		143		90		17,286		11,953		129		65		12,017
State and political subdivisions		6,853		198		155		6,896		6,706		102		204		6,604
Collateralized mortgage obligations		3,105		46		59		3,092		1,828		49		16		1,861
Other U.S. debt securities		3,127		148		14		3,261		2,438		116		18		2,536
U.S. equity securities		606		2		—		608		1,115		—		—		1,115
Non-U.S. equity securities		209		1		1		209		122		5		1		126
Total	$	96,573	$	1,592	$	1,570	$	96,595	$	82,329	$	1,126	$	1,574	$	81,881
Held to maturity:
U.S. Treasury and federal agencies:
Mortgage-backed securities	$	299	$	21			$	320	$	413	$	26			$	439
Asset-backed securities		38		—	$	4		34		64		—	$	5		59
Non-U.S. debt securities:
Mortgage-backed securities		5,174		112		215		5,071		6,332		166		160		6,338
Asset-backed securities		574		16		3		587		646		18		3		661
Government securities		3		—		—		3		—		—		—		—
Other		193		—		16		177		208		—		2		206
Total non-U.S. debt securities		5,944		128		234		5,838		7,186		184		165		7,205
State and political subdivisions		113		3		—		116		134		3		—		137
Collateralized mortgage obligations		3,624		227		57		3,794		4,452		328		44		4,736
Total	$	10,018	$	379	$	295	$	10,102	$	12,249	$	541	$	214	$	12,576

⁽¹⁾ Substantially composed of securities guaranteed by the federal government with respect to the payment of principal and interest.

Schedule Of Contractual Maturities Of Debt Securities

(In millions)	Under 1 Year		1 to 5 Years		6 to 10 Years		Over 10 Years
Available for sale:
U.S. Treasury and federal agencies:
Direct obligations	$	1,966	$	1,095	$	1,589	$	715
Mortgage-backed securities		3		1,672		10,407		15,944
Asset-backed securities:
Student loans		134		4,715		7,883		3,801
Credit cards		1,961		6,294		2,240		—
Sub-prime		781		153		10		542
Other		133		1,730		1,118		357
Total asset-backed securities		3,009		12,892		11,251		4,700
Non-U.S. debt securities:
Mortgage-backed securities		293		1,957		266		6,876
Asset-backed securities		53		949		2,320		459
Government securities		3,014		—		—		—
Other		38		942		118		1
Total non-U.S. debt securities		3,398		3,848		2,704		7,336
State and political subdivisions		467		2,742		2,743		944
Collateralized mortgage obligations		68		1,419		562		1,043
Other U.S. debt securities		242		2,156		824		39
Total	$	9,153	$	25,824	$	30,080	$	30,721
Held to maturity:
U.S. Treasury and federal agencies:
Mortgage-backed securities			$	67	$	73	$	159
Asset-backed securities				—		—		38
Non-U.S. debt securities:
Mortgage-backed securities	$	1,245		558		44		3,327
Asset-backed securities		47		292		235		—
Government securities		3		—		—		—
Other		—		176		—		17
Total non-U.S. debt securities		1,295		1,026		279		3,344
State and political subdivisions		57		56		—		—
Collateralized mortgage obligations		358		1,789		347		1,130
Total	$	1,710	$	2,938	$	699	$	4,671

Critical Estimates Used In Roll Rate Analysis

	Sub-Prime ARM			Alt-A			Non-Agency Prime
December 31, 2010:
Prepayment rate		2-3	%		7	%		7-10	%
Cumulative loss estimates		33			21			13
Loss severity(1)		67			49			49
Peak-to-trough housing price decline(2)		35-40			35-40			35-40

⁽¹⁾  Loss severity rates consider the initial loan-to-value ratio, lien position, geography, expected collateral value and other factors.

⁽²⁾  Management's expectation of the Case-Shiller National Home Price Index.

Schedule Of Gross Pretax Unrealized Losses On Investment Securities

	Less than 12 months				12 months or longer				Total
September 30, 2011 (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	$	1,873	$	1	$	75	$	1	$	1,948	$	2
Mortgage-backed securities		1,716		5		388		2		2,104		7
Asset-backed securities:
Student loans		2,258		14		10,360		644		12,618		658
Credit cards		2,336		7		1,530		8		3,866		15
Sub-prime		17		2		1,440		445		1,457		447
Other		939		16		1,146		106		2,085		122
Total asset-backed securities		5,550		39		14,476		1,203		20,026		1,242
Non-U.S. debt securities:
Mortgage-backed securities		4,769		38		1,050		32		5,819		70
Asset-backed securities		2,118		5		47		6		2,165		11
Other		243		9		—		—		243		9
Total non-U.S. debt securities		7,130		52		1,097		38		8,227		90
State and political subdivisions		463		6		1,524		149		1,987		155
Collateralized mortgage obligations		1,670		53		32		6		1,702		59
Other U.S. debt securities		331		4		61		10		392		14
Non-U.S. equity securities		5		1		—		—		5		1
Total	$	18,738	$	161	$	17,653	$	1,409	$	36,391	$	1,570
Held to maturity:
Asset-backed securities					$	34	$	4	$	34	$	4
Non-U.S. debt securities:
Mortgage-backed securities	$	245	$	14		1,319		201		1,564		215
Asset-backed securities		—		—		65		3		65		3
Other		—		—		145		16		145		16
Total non-U.S. debt securities		245		14		1,529		220		1,774		234
Collateralized mortgage obligations		770		38		234		19		1,004		57
Total	$	1,015	$	52	$	1,797	$	243	$	2,812	$	295

	Less than 12 months				12 months or longer				Total
December 31, 2010 (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					$	153	$	2	$	153	$	2
Mortgage-backed securities	$	6,639	$	81		431		2		7,070		83
Asset-backed securities:
Student loans		1,980		25		8,457		627		10,437		652
Credit cards		1,268		5		2,396		26		3,664		31
Sub-prime		—		—		1,769		346		1,769		346
Other		269		3		1,122		153		1,391		156
Total asset-backed securities		3,517		33		13,744		1,152		17,261		1,185
Non-U.S. debt securities:
Mortgage-backed securities		2,621		22		370		24		2,991		46
Asset-backed securities		—		—		54		17		54		17
Other		348		2		—		—		348		2
Total non-U.S. debt securities		2,969		24		424		41		3,393		65
State and political subdivisions		1,097		19		1,967		185		3,064		204
Collateralized mortgage obligations		494		5		109		11		603		16
Other U.S. debt securities		330		7		61		11		391		18
Non-U.S. equity securities		8		1		—		—		8		1
Total	$	15,054	$	170	$	16,889	$	1,404	$	31,943	$	1,574
Held to maturity:
Asset-backed securities					$	53	$	5	$	53	$	5
Non-U.S. debt securities:
Mortgage-backed securities	$	1,445	$	72		862		88		2,307		160
Asset-backed securities		—		—		68		3		68		3
Other		206		2		—		—		206		2
Total non-U.S. debt securities		1,651		74		930		91		2,581		165
Collateralized mortgage obligations		125		2		575		42		700		44
Total	$	1,776	$	76	$	1,558	$	138	$	3,334	$	214

Gains And Losses Related To Investment Securities

	Three Months  Ended September 30,						Nine Months  Ended September 30,
(In millions)	2011			2010			2011			2010
Gross realized gains from sales of available-for-sale securities	$	24		$	110		$	93		$	313
Gross realized losses from sales of available-for-sale securities		(9)			(19	)		(12)			(27	)
Gross losses from other-than-temporary impairment		(25	)		(132	)		(104	)		(612	)
Losses not related to credit		15			58			48			388
Net impairment losses		(10	)		(74	)		(56	)		(224	)
Gains related to investment securities, net	$	5		$	17		$	25		$	62
Impairment associated with expected credit losses	$	(7	)	$	(71	)	$	(36	)	$	(201	)
Impairment associated with management's intent to sell the impaired securities prior to their recovery in value		—			(1	)		(8	)		(1	)
Impairment associated with adverse changes in timing of expected future cash flows		(3	)		(2	)		(12	)		(22	)
Net impairment losses	$	(10	)	$	(74	)	$	(56	)	$	(224	)

Schedule Of Credit-Related Loss Activity Recognized In Earnings

(In millions)	2011			2010
Beginning balance	$	63		$	175
Plus expected credit-related losses for which other-than-temporary impairment was not previously recognized		9			87
Plus expected credit-related losses for which other-than-temporary impairment was previously recognized		39			136
Less losses realized for securities sold		(13	)		(8	)
Less losses related to securities intended or required to be sold		(2	)		(1	)
Ending balance	$	96		$	389