Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table provides a summary of our assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2013 and December 31, 2012 (dollars in millions):

	Fair Value Hierarchy
	Level 1		Level 2		Level 3
March 31, 2013
Assets:
Agency securities	$	—	$	76,295	$	—
Interest rate swaps	—		56		—
Payer swaptions	—		332		—
Other derivative instruments	—		92		—
Total	$	—	$	76,775	$	—
Liabilities:
Debt of consolidated VIEs	$	—	$	862	$	—
Obligation to return U.S. Treasury securities borrowed under reverse repurchase agreements	12,548		—		—
Interest rate swaps	—		1,100		—
Other derivative instruments	—		117		—
Total	$	12,548	$	2,079	$	—
December 31, 2012
Assets:
Agency securities	$	—	$	85,245	$	—
Interest rate swaps	—		14		—
Payer swaptions	—		171		—
Other derivative instruments	—		116		—
Total	$	—	$	85,546	$	—
Liabilities:
Debt of consolidated VIEs	$	—	$	937	$	—
Obligation to return U.S. Treasury securities borrowed under reverse repurchase agreements	11,763		—		—
Interest rate swaps	—		1,243		—
Other derivative instruments	—		21		—
Total	$	11,763	$	2,201	$	—

We elected the option to account for debt of consolidated VIEs at fair value with changes in fair value reflected in earnings during the period in which they occur, because we believe this election more appropriately reflects our financial position as both the consolidated agency securities and consolidated debt are presented in a consistent manner, at fair value, on our consolidated balance sheets. We estimate the fair value of the consolidated debt based on a market approach using Level 2 inputs from third-party pricing services and dealer quotes.