Investment Securities

3 Months Ended

Mar. 31, 2012

Investment Securities [Abstract]

Investment Securities

6. Investment Securities

Investment securities include debt and equity securities classified as available for sale. The Company's investment securities, principally debt securities, are carried at fair value on the Consolidated Balance Sheets with unrealizedgains (losses) recorded in Accumulated Other Comprehensive Income (AOCI), net of income taxes. Realized gains and losses are recognized in results of operations upon disposition of the securities using the specific identification method on a trade date basis. Refer to Note 3 for a description of the Company's methodology for determining the fair value of investment securities.

The following is a summary of investment securities as of March 31, 2012 and December 31, 2011:

		2012								2011
					Gross		Gross		Estimated				Gross		Gross		Estimated
					Unrealized		Unrealized		Fair				Unrealized		Unrealized		Fair
(Millions)			Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
State and municipal obligations		$	4,788	$	130	$	(40)	$	4,878	$	4,968	$	103	$	(72)	$	4,999
U.S. Government agency
	obligations		3		―		―		3		352		2		―		354
U.S. Government treasury
	obligations		330		8		―		338		330		10		―		340
Corporate debt securities(a)			628		7		(2)		633		626		9		(3)		632
Mortgage-backed securities(b)			253		16		―		269		261		17		―		278
Equity securities(c)			90		281		―		371		95		265		―		360
Foreign government bonds and
	obligations		125		10		―		135		120		10		―		130
Other(d)			51		1		―		52		54		―		―		54
Total		$	6,268	$	453	$	(42)	$	6,679	$	6,806	$	416	$	(75)	$	7,147

(a) Each of the March 31, 2012 and December 31, 2011 balancesinclude, on a cost basis, $0.6 billion of corporate debt obligations issued under the Temporary Liquidity Guarantee Program (TLGP) that are guaranteed by the Federal Deposit Insurance Corporation (FDIC).

(b)        Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.

(c)        Primarily represents the Company's investment in the Industrial and Commercial Bank of China (ICBC).

(d) Other is comprised of investments in various mutual funds.

The following table provides information about the Company's investment securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2012 and December 31, 2011:

	2012								2011
(Millions)	Less than 12 months				12 months or more				Less than 12 months				12 months or more
				Gross				Gross				Gross				Gross
		Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
Description of Securities		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
State and municipal obligations	$	223	$	(5)	$	465	$	(35)	$	―	$	―	$	1,094	$	(72)
Corporate debt securities		16		(1)		3		(1)		15		(2)		2		(1)
Total	$	239	$	(6)	$	468	$	(36)	$	15	$	(2)	$	1,096	$	(73)

The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of March 31, 2012 and December 31, 2011:

(Dollars in millions)	Less than 12 months					12 months or more					Total
					Gross					Gross					Gross
Ratio of Fair Value to	Number of		Estimated		Unrealized	Number of		Estimated		Unrealized	Number of		Estimated		Unrealized
Amortized Cost	Securities		Fair Value		Losses	Securities		Fair Value		Losses	Securities		Fair Value		Losses
2012:
90%–100%	33	$	239	$	(6)	41	$	344	$	(18)	74	$	583	$	(24)
Less than 90%	―		―		―	10		124		(18)	10		124		(18)
Total as of March 31, 2012	33	$	239	$	(6)	51	$	468	$	(36)	84	$	707	$	(42)
2011:
90%–100%	―	$	―	$	―	114	$	884	$	(35)	114	$	884	$	(35)
Less than 90%	1		15		(2)	22		212		(38)	23		227		(40)
Total as of December 31, 2011	1	$	15	$	(2)	136	$	1,096	$	(73)	137	$	1,111	$	(75)

The gross unrealized losses areattributed to overall wider credit spreads for state and municipal securities, wider credit spreads for specific issuers, adverse changes in market benchmark interest rates, or a combination thereof, all as compared to those prevailing when the investment securities were acquired.

Overall, for the investment securities in gross unrealized loss positions identified above, (i) the Company does not intend to sell the investment securities, (ii) it is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses, and (iii) the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary impairment during thethree months ended March 31, 2012 or the year ended December 31, 2011.

Supplemental Information

Gross realized gains on sales of investment securities, included in other non-interest revenuesfor the three months endedMarch 31,2012 and 2011,were$24million and nil, respectively. There were no gross realized lossesfor the three months ended March 31, 2012 and 2011.

				Estimated
(Millions)		Cost		Fair Value
Due within 1 year	$	657	$	663
Due after 1 year but within 5 years		394		400
Due after 5 years but within 10 years		221		233
Due after 10 years		4,855		4,960
Total	$	6,127	$	6,256

The expected payments on state and municipal obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.