Investment Securities (Tables)

6 Months Ended

Jun. 30, 2014

	June 30, 2014								December 31, 2013
			Gross		Gross						Gross		Gross
	Amortized		unrealized		unrealized		Estimated		Amortized		unrealized		unrealized		Estimated
(In millions)	cost		gains		losses		fair value		cost		gains		losses		fair value


Debt
U.S. corporate	$	19,800	$	3,510	$	(91)	$	23,219	$	19,600	$	2,323	$	(217)	$	21,706
State and municipal		5,144		497		(96)		5,545		4,245		235		(191)		4,289
Residential mortgage-backed(a)		1,755		153		(30)		1,878		1,819		139		(48)		1,910
Commercial mortgage-backed		2,933		207		(42)		3,098		2,929		188		(82)		3,035
Asset-backed		7,685		33		(36)		7,682		7,373		60		(46)		7,387
Corporate – non-U.S.		1,666		179		(50)		1,795		1,741		103		(86)		1,758
Government – non-U.S.		2,011		118		(3)		2,126		2,336		81		(7)		2,410
U.S. government and
federal agency		698		50		(1)		747		752		45		(27)		770
Retained interests		60		13		-		73		64		8		-		72
Equity
Available-for-sale		215		71		(2)		284		203		51		(3)		251
Trading		53		-		-		53		74		-		-		74
Total	$	42,020	$	4,831	$	(351)	$	46,500	$	41,136	$	3,233	$	(707)	$	43,662

Substantially collateralized by U.S. mortgages. At June 30, 2014, $1,238 million related to securities issued by government-sponsored entities and $640 million related to securities of private-label issuers. Securities issued by private-label issuers are collateralized primarily by pools of individual direct mortgage loans of financial institutions.

Schedule of investments, by type and length in continuous loss position

	In loss position for
	Less than 12 months					12 months or more
			Gross					Gross
	Estimated		unrealized			Estimated		unrealized
(In millions)	fair value		losses		(a)	fair value		losses		(a)

June 30, 2014
Debt
U.S. corporate	$	234	$	(4)		$	1,523	$	(87)
State and municipal		115		(2)			766		(94)
Residential mortgage-backed		47		(1)			471		(29)
Commercial mortgage-backed		5		-			931		(42)
Asset-backed		3		-			321		(36)
Corporate – non-U.S.		20		-			444		(50)
Government – non-U.S.		984		(3)			89		-
U.S. government and federal agency		-		-			255		(1)
Retained interests		7		-			1		-
Equity		46		(2)			-		-
Total	$	1,461	$	(12)		$	4,801	$	(339)	(b)

December 31, 2013
Debt
U.S. corporate	$	2,170	$	(122)		$	598	$	(95)
State and municipal		1,076		(82)			367		(109)
Residential mortgage-backed		232		(11)			430		(37)
Commercial mortgage-backed		396		(24)			780		(58)
Asset-backed		112		(2)			359		(44)
Corporate – non-U.S.		96		(3)			454		(83)
Government – non-U.S.		1,479		(6)			42		(1)
U.S. government and federal agency		229		(27)			254		-
Retained interests		2		-			-		-
Equity		31		(3)			-		-
Total	$	5,823	$	(280)		$	3,284	$	(427)

Included gross unrealized losses related to securities that had other-than-temporary impairments previously recognized of $(66) million at June 30, 2014.
The majority relate to debt securities held to support obligations to holders of GICs and more than 70% are debt securities that were considered to be investment-grade by the major rating agencies at June 30, 2014.

Pre Tax Other Than Temporary Impairments On Investment Securities [Table Text Block]

Pre-tax, Other-Than-Temporary Impairments on Investment Securities

	Three months ended June 30				Six months ended June 30
(In millions)	2014		2013		2014		2013

Total pre-tax, OTTI recognized	$	9	$	152	$	47	$	441
Less pre-tax, OTTI recognized in AOCI		-		(19)		(4)		(30)
Pre-tax, OTTI recognized in earnings(a)	$	9	$	133	$	43	$	411

(a) Included pre-tax, other-than-temporary impairments recorded in earnings related to equity securities of $2 million and an insignificant amount in the three months ended June 30, 2014 and 2013, respectively, and $3 million and $1 million in the six months ended June 30, 2014 and 2013, respectively. The three and six months ended June 30, 2013 included $96 million related to the impairment of an investment in a Brazilian company that was fully offset by the benefit of a guarantee provided by GE.

Changes in Cumulative Cerdit Loss Impairments Recognized on Debt Securities Still Held

Changes in Cumulative Credit Loss Impairments Recognized on Debt Securities Still Held

	Three months ended June 30				Six months ended June 30
(In millions)	2014		2013		2014		2013

Cumulative credit loss impairments recognized, beginning of period	$	1,003	$	694	$	1,025	$	420
Credit loss impairments recognized on securities not previously impaired		1		122		1		385
Incremental credit loss impairments recognized on securities previously impaired		2		7		31		19
Less credit loss impairments previously recognized on securities sold during the period		(3)		(46)		(54)		(47)
Cumulative credit loss impairments recognized, end of period	$	1,003	$	777	$	1,003	$	777

Schedule of contractual maturities

Contractual Maturities of Investment in Available-for-Sale Debt Securities (Excluding Mortgage-Backed and Asset-Backed Securities)

	Amortized		Estimated
(In millions)	cost		fair value

Due
Within one year	$	1,935	$	1,942
After one year through five years		3,680		4,018
After five years through ten years		5,241		5,592
After ten years		18,463		21,880

Supplemental gross realized gains losses on available-for-sale investment securities

	Three months ended June 30				Six months ended June 30
(In millions)	2014		2013		2014		2013

Gains	$	43	$	123	$	62	$	185
Losses, including impairments		(9)		(139)		(45)		(417)
Net	$	34	$	(16)	$	17	$	(232)

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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