The following table provides the amortized cost and fair value for the major categories of securities available for sale carried at fair value. The net unrealized gains (losses) are reported on an after-tax basis as a component of cumulative OCI. There were no securities classified as held to maturity as of the periods presented.



							Gross	Gross
							unrealized	unrealized	Fair
(in millions)						Cost	gains	losses	value

December 31, 2012

Securities of U.S. Treasury and federal agencies					$	7,099	47	-	7,146
Securities of U.S. states and political subdivisions						37,120	2,000	(444)	38,676
Mortgage-backed securities:
	Federal agencies					92,855	4,434	(4)	97,285
	Residential					14,178	1,802	(49)	15,931
	Commercial					18,438	1,798	(268)	19,968
		Total mortgage-backed securities				125,471	8,034	(321)	133,184
Corporate debt securities						20,120	1,282	(69)	21,333
Collateralized debt obligations (1)						12,726	557	(95)	13,188
Other (2)						18,410	553	(76)	18,887
			Total debt securities			220,946	12,473	(1,005)	232,414
Marketable equity securities:
	Perpetual preferred securities					1,935	281	(40)	2,176
	Other marketable equity securities					402	216	(9)	609
			Total marketable equity securities			2,337	497	(49)	2,785
				Total (3)	$	223,283	12,970	(1,054)	235,199

December 31, 2011

Securities of U.S. Treasury and federal agencies					$	6,920	59	(11)	6,968
Securities of U.S. states and political subdivisions						32,307	1,169	(883)	32,593
Mortgage-backed securities:
	Federal agencies					92,279	4,485	(10)	96,754
	Residential					16,997	1,253	(414)	17,836
	Commercial					17,829	1,249	(928)	18,150
		Total mortgage-backed securities				127,105	6,987	(1,352)	132,740
Corporate debt securities						17,921	769	(286)	18,404
Collateralized debt obligations (1)						8,650	298	(349)	8,599
Other (2)						19,739	378	(225)	19,892
			Total debt securities			212,642	9,660	(3,106)	219,196
Marketable equity securities:
	Perpetual preferred securities					2,396	185	(54)	2,527
	Other marketable equity securities					533	366	(9)	890
			Total marketable equity securities			2,929	551	(63)	3,417
				Total (3)	$	215,571	10,211	(3,169)	222,613

The following table shows the gross unrealized losses and fair value of securities in the securities available-for-sale portfolio by length of time that individual securities in each category had been in a continuous loss position. Debt securities on which we have taken credit-related OTTI write-downs are categorized as being “less than 12 months” or “12 months or more” in a continuous loss position based on the point in time that the fair value declined to below the cost basis and not the period of time since the credit-related OTTI write-down.



						Less than 12 months			12 months or more			Total
						Gross			Gross			Gross
					unrealized		Fair	unrealized		Fair	unrealized		Fair
(in millions)						losses	value		losses	value		losses	value

December 31, 2012

Securities of U.S. Treasury and federal agencies					$	-	-		-	-		-	-
Securities of U.S. states and political subdivisions						(55)	2,709		(389)	4,662		(444)	7,371
Mortgage-backed securities:
	Federal agencies					(4)	2,247		-	-		(4)	2,247
	Residential					(4)	261		(45)	1,564		(49)	1,825
	Commercial					(6)	491		(262)	2,564		(268)	3,055
		Total mortgage-backed securities				(14)	2,999		(307)	4,128		(321)	7,127
Corporate debt securities						(14)	1,217		(55)	305		(69)	1,522
Collateralized debt obligations						(2)	1,485		(93)	798		(95)	2,283
Other						(11)	2,153		(65)	1,010		(76)	3,163
			Total debt securities			(96)	10,563		(909)	10,903		(1,005)	21,466
Marketable equity securities:
	Perpetual preferred securities					(3)	116		(37)	538		(40)	654
	Other marketable equity securities					(9)	48		-	-		(9)	48
			Total marketable equity securities			(12)	164		(37)	538		(49)	702
				Total	$	(108)	10,727		(946)	11,441		(1,054)	22,168

December 31, 2011

Securities of U.S. Treasury and federal agencies					$	(11)	5,473		-	-		(11)	5,473
Securities of U.S. states and political subdivisions						(229)	8,501		(654)	4,348		(883)	12,849
Mortgage-backed securities:
	Federal agencies					(7)	2,392		(3)	627		(10)	3,019
	Residential					(80)	3,780		(334)	3,440		(414)	7,220
	Commercial					(157)	3,183		(771)	3,964		(928)	7,147
		Total mortgage-backed securities				(244)	9,355		(1,108)	8,031		(1,352)	17,386
Corporate debt securities						(205)	8,107		(81)	167		(286)	8,274
Collateralized debt obligations						(150)	4,268		(199)	613		(349)	4,881
Other						(55)	3,002		(170)	841		(225)	3,843
			Total debt securities			(894)	38,706		(2,212)	14,000		(3,106)	52,706
Marketable equity securities:
	Perpetual preferred securities					(13)	316		(41)	530		(54)	846
	Other marketable equity securities					(9)	61		-	-		(9)	61
			Total marketable equity securities			(22)	377		(41)	530		(63)	907
				Total	$	(916)	39,083		(2,253)	14,530		(3,169)	53,613

We do not have the intent to sell any securities included in the previous table. For debt securities included in the table, we have concluded it is more likely than not that we will not be required to sell prior to recovery of the amortized cost basis. We have assessed each security with gross unrealized losses for credit impairment. For debt securities, we evaluate, where necessary, whether credit impairment exists by comparing the present value of the expected cash flows to the securities' amortized cost basis. For equity securities, we consider numerous factors in determining whether impairment exists, including our intent and ability to hold the securities for a period of time sufficient to recover the cost basis of the securities.

See Note 1 – “Investments” for the factors that we consider in our analysis of OTTI for debt and equity securities available for sale.

Securities of U.S. Treasury and federal agencies and federal agency mortgage-backed securities (MBS) The unrealized losses associated with U.S. Treasury and federal agency securities and federal agency MBS are primarily driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government.

Securities of U.S. states and political subdivisions The unrealized losses associated with securities of U.S. states and political subdivisions are primarily driven by changes in the relationship between municipal and term funding credit curves rather than by changes to the credit quality of the underlying securities. Substantially all of these investments are investment grade. The securities were generally underwritten in accordance with our own investment standards prior to the decision to purchase. Some of these securities are guaranteed by a bond insurer, but we did not rely on this guarantee in making our investment decision. These investments will continue to be monitored as part of our ongoing impairment analysis, but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities.

Residential and commercial MBS The unrealized losses associated with private residential MBS and commercial MBS are primarily driven by changes in projected collateral losses, credit spreads and interest rates. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities and/or prepayment rates. We estimate losses to a security by forecasting the underlying mortgage loans in each transaction. We use forecasted loan performance to project cash flows to the various tranches in the structure. We also consider cash flow forecasts and, as applicable, independent industry analyst reports and forecasts, sector credit ratings, and other independent market data. Based upon our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost basis of these securities.

Corporate Debt Securities The unrealized losses associated with corporate debt securities are primarily related to unsecured debt obligations issued by various corporations. We evaluate the financial performance of each issuer on a quarterly basis to determine that the issuer can make all contractual principal and interest payments. Based upon this assessment, we expect to recover the entire amortized cost basis of these securities.

Collateralized Debt Obligations (CDOs) The unrealized losses associated with CDOs relate to securities primarily backed by commercial, residential or other consumer collateral. The unrealized losses are primarily driven by changes in projected collateral losses, credit spreads and interest rates. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities and prepayment rates. We also consider cash flow forecasts and, as applicable, independent industry analyst reports and forecasts, sector credit ratings, and other independent market data. Based upon our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost basis of these securities.

Other Debt Securities The unrealized losses associated with other debt securities primarily relate to other asset-backed securities. The losses are primarily driven by changes in projected collateral losses, credit spreads and interest rates. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities and prepayment rates. Based upon our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost basis of these securities.

Marketable Equity Securities Our marketable equity securities include investments in perpetual preferred securities, which provide attractive tax-equivalent yields. We evaluated these hybrid financial instruments with investment-grade ratings for impairment using an evaluation methodology similar to that used for debt securities. Perpetual preferred securities are not considered to be other-than-temporarily impaired if there is no evidence of credit deterioration or investment rating downgrades of any issuers to below investment grade, and we expect to continue to receive full contractual payments. We will continue to evaluate the prospects for these securities for recovery in their market value in accordance with our policy for estimating OTTI. We have recorded impairment write-downs on perpetual preferred securities where there was evidence of credit deterioration.

OTHER SECURITIES AVAILABLE FOR SALE MATTERS The fair values of our investment securities could decline in the future if the underlying performance of the collateral for the residential and commercial MBS or other securities deteriorate and our credit enhancement levels do not provide sufficient protection to our contractual principal and interest. As a result, there is a risk that significant OTTI may occur in the future.

The following table shows the gross unrealized losses and fair value of debt and perpetual preferred securities available for sale by those rated investment grade and those rated less than investment grade, according to their lowest credit rating by Standard & Poor's Rating Services (S&P) or Moody's Investors Service (Moody's). Credit ratings express opinions about the credit quality of a security. Securities rated investment grade, that is those rated BBB- or higher by S&P or Baa3 or higher by Moody's, are generally considered by the rating agencies and market participants to be low credit risk. Conversely, securities rated below investment grade, labeled as “speculative grade” by the rating agencies, are considered to be distinctively higher credit risk than investment grade securities. We have also included securities not rated by S&P or Moody's in the table below based on the internal credit grade of the securities (used for credit risk management purposes) equivalent to the credit rating assigned by major credit agencies. The unrealized losses and fair value of unrated securities categorized as investment grade based on internal credit grades were $19 million and $2.0 billion, respectively, at December 31, 2012, and $207 million and $6.2 billion, respectively, at December 31, 2011. If an internal credit grade was not assigned, we categorized the security as non-investment grade.



						Investment grade		Non-investment grade
						Gross		Gross
						unrealized	Fair	unrealized	Fair
(in millions)						losses	value	losses	value

December 31, 2012

Securities of U.S. Treasury and federal agencies					$	-	-	-	-
Securities of U.S. states and political subdivisions						(378)	6,839	(66)	532
Mortgage-backed securities:
	Federal agencies					(4)	2,247	-	-
	Residential					(3)	78	(46)	1,747
	Commercial					(31)	2,110	(237)	945
		Total mortgage-backed securities				(38)	4,435	(283)	2,692
Corporate debt securities						(19)	1,112	(50)	410
Collateralized debt obligations						(49)	2,065	(46)	218
Other						(49)	3,034	(27)	129
			Total debt securities			(533)	17,485	(472)	3,981
Perpetual preferred securities						(40)	654	-	-
				Total	$	(573)	18,139	(472)	3,981

December 31, 2011

Securities of U.S. Treasury and federal agencies					$	(11)	5,473	-	-
Securities of U.S. states and political subdivisions						(781)	12,093	(102)	756
Mortgage-backed securities:
	Federal agencies					(10)	3,019	-	-
	Residential					(39)	2,503	(375)	4,717
	Commercial					(429)	6,273	(499)	874
		Total mortgage-backed securities				(478)	11,795	(874)	5,591
Corporate debt securities						(165)	7,156	(121)	1,118
Collateralized debt obligations						(185)	4,597	(164)	284
Other						(186)	3,458	(39)	385
			Total debt securities			(1,806)	44,572	(1,300)	8,134
Perpetual preferred securities						(53)	833	(1)	13
				Total	$	(1,859)	45,405	(1,301)	8,147

The following table shows the remaining contractual maturities and contractual yields (taxable-equivalent basis) of debt securities available for sale. The remaining contractual principal maturities for MBS do not consider prepayments. Remaining expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations before the underlying mortgages mature.



											Remaining contractual maturity
							Weighted-								After one year				After five years
						Total		average			Within one year			through five years				through ten years					After ten years
(in millions)						amount		yield			Amount	Yield			Amount	Yield			Amount	Yield			Amount	Yield

December 31, 2012

Securities of U.S. Treasury
	and federal agencies				$	7,146		1.59	%	$	376	0.43	%	$	661	1.24	%	$	6,109	1.70	%	$	-	-	%
Securities of U.S. states and
	political subdivisions					38,676		5.29			1,861	2.61			11,620	2.18			3,380	5.51			21,815	7.15
Mortgage-backed securities:
	Federal agencies					97,285		3.82			1	5.40			106	4.87			1,144	3.41			96,034	3.83
	Residential					15,931		4.38			-	-			-	-			569	2.06			15,362	4.47
	Commercial					19,968		5.33			-	-			78	3.69			101	2.84			19,789	5.35
		Total mortgage-backed
			securities			133,184		4.12			1	5.40			184	4.37			1,814	2.95			131,185	4.13
Corporate debt securities						21,333		4.26			1,037	4.29			12,792	3.19			6,099	6.14			1,405	5.88
Collateralized debt
	obligations					13,188		1.35			44	0.96			1,246	0.71			7,376	1.01			4,522	2.08
Other						18,887		1.85			1,715	1.14			9,589	1.75			3,274	2.11			4,309	2.14
			Total debt securities
				at fair value	$	232,414		3.91	%	$	5,034	2.28	%	$	36,092	2.37	%	$	28,052	3.07	%	$	163,236	4.44	%

December 31, 2011

Securities of U.S. Treasury
	and federal agencies				$	6,968		0.91	%	$	57	0.48	%	$	6,659	0.84	%	$	194	2.73	%	$	58	3.81	%
Securities of U.S. states and
	political subdivisions					32,593		4.94			520	3.02			11,679	2.90			2,692	5.31			17,702	6.28
Mortgage-backed securities:
	Federal agencies					96,754		4.39			1	6.47			442	4.02			1,399	3.07			94,912	4.42
	Residential					17,836		4.51			-	-			-	-			640	1.88			17,196	4.61
	Commercial					18,150		5.40			-	-			-	-			87	3.33			18,063	5.41
		Total mortgage-backed
			securities			132,740		4.55			1	6.47			442	4.02			2,126	2.72			130,171	4.58
Corporate debt securities						18,404		4.64			815	5.57			11,022	3.40			4,691	6.67			1,876	6.38
Collateralized debt obligations						8,599		1.10			-	-			540	1.61			6,813	1.00			1,246	1.42
Other						19,892		1.89			506	2.29			12,963	1.75			3,149	2.04			3,274	2.29
			Total debt securities
				at fair value	$	219,196		4.12	%	$	1,899	3.85	%	$	43,305	2.36	%	$	19,665	3.31	%	$	154,327	4.72	%

The following table shows the gross realized gains and losses on sales and OTTI write-downs related to the securities available-for-sale portfolio, which includes marketable equity securities, as well as net realized gains and losses on nonmarketable equity investments (see Note 7 – Other Assets).

The following table shows the detail of total OTTI write-downs included in earnings for debt securities, marketable securities and nonmarketable equity investments.


								Year ended December 31,
(in millions)								2012	2011	2010
OTTI write-downs included in earnings
	Debt securities:
		U.S. states and political subdivisions					$	16	2	16
		Mortgage-backed securities:
			Federal agencies (1)					-	-	267
			Residential					84	252	175
			Commercial					86	101	120
		Corporate debt securities						11	3	10
		Collateralized debt obligations						1	1	15
		Other debt securities						42	64	69
				Total debt securities				240	423	672
	Equity securities:
		Marketable equity securities:
			Perpetual preferred securities					12	96	15
			Other marketable equity securities					4	22	5
				Total marketable equity securities				16	118	20
					Total securities available for sale			256	541	692
		Nonmarketable equity investments						160	170	248
						Total OTTI write-downs included in earnings	$	416	711	940

The following table shows the detail of OTTI write-downs on debt securities available for sale included in earnings and the related changes in OCI for the same securities.


					Year ended December 31,
(in millions)						2012	2011	2010
OTTI on debt securities
	Recorded as part of gross realized losses:
		Credit-related OTTI			$	237	422	400
		Intent-to-sell OTTI (1)				3	1	272
			Total recorded as part of gross realized losses			240	423	672
	Changes to OCI for increase (decrease) in non-credit-related OTTI (2):
		U.S. states and political subdivisions				1	(1)	(4)
		Residential mortgage-backed securities				(178)	(171)	(326)
		Commercial mortgage-backed securities				(88)	105	138
		Corporate debt securities				1	2	(1)
		Collateralized debt obligations				(1)	4	54
		Other debt securities				28	(13)	(33)
			Total changes to OCI for non-credit-related OTTI			(237)	(74)	(172)
				Total OTTI losses recorded on debt securities	$	3	349	500

The following table presents a rollforward of the credit loss component recognized in earnings for debt securities we still own (referred to as “credit-impaired” debt securities). The credit loss component of the amortized cost represents the difference between the present value of expected future cash flows discounted using the security's current effective interest rate and the amortized cost basis of the security prior to considering credit losses. OTTI recognized in earnings for credit-impaired debt securities is presented as additions and is classified into one of two components based upon whether the current period is the first time the debt security was credit-impaired (initial credit impairment) or if the debt security was previously credit-impaired (subsequent credit impairments). The credit loss component is reduced if we sell, intend to sell or believe we will be required to sell previously credit-impaired debt securities. Additionally, the credit loss component is reduced if we receive or expect to receive cash flows in excess of what we previously expected to receive over the remaining life of the credit-impaired debt security, the security matures or is fully written down.

Changes in the credit loss component of credit-impaired debt securities that were recognized in earnings and related to securities that we do not intend to sell were:


			Year ended December 31,
(in millions)				2012	2011	2010
Credit loss component, beginning of year			$	1,272	1,043	1,187
Additions:
	Initial credit impairments			55	87	122
	Subsequent credit impairments			182	335	278
		Total additions		237	422	400
Reductions:
	For securities sold			(194)	(160)	(263)
	For securities derecognized due to changes in consolidation status of variable interest entities			-	(2)	(242)
	Due to change in intent to sell or requirement to sell			-	-	(2)
	For recoveries of previous credit impairments (1)			(26)	(31)	(37)
		Total reductions		(220)	(193)	(544)
Credit loss component, end of year			$	1,289	1,272	1,043

To determine credit impairment losses for asset-backed securities (e.g., residential MBS, commercial MBS), we estimate expected future cash flows of the security by estimating the expected future cash flows of the underlying collateral and applying those collateral cash flows, together with any credit enhancements such as subordinated interests owned by third parties, to the security. The expected future cash flows of the underlying collateral are determined using the remaining contractual cash flows adjusted for future expected credit losses (which consider current delinquencies and nonperforming assets (NPAs), future expected default rates and collateral value by vintage and geographic region) and prepayments. The expected cash flows of the security are then discounted at the security's current effective interest rate to arrive at a present value amount. Total credit impairment losses on residential MBS that we do not intend to sell are shown in the table below. The table also presents a summary of the significant inputs considered in determining the measurement of the credit loss component recognized in earnings for residential MBS.


				Year ended December 31,
($ in millions)					2012		2011	2010
Credit impairment losses on residential MBS
	Investment grade			$	-		5	5
	Non-investment grade				84		247	170
			Total credit impairment losses on residential MBS	$	84		252	175

Significant inputs (non-agency – non-investment grade MBS)
Expected remaining life of loan loss rate (1):
	Range (2)				1-44	%	0-48	1-43
	Credit impairment loss rate distribution (3):
		0 - 10% range			77		42	52
		10 - 20% range			11		18	29
		20 - 30% range			4		28	17
		Greater than 30%			8		12	2
	Weighted average loss rate (4)				8		12	9
Current subordination levels (5):
	Range (2)				0-57		0-25	0-25
	Weighted average (4)				2		4	7
Prepayment speed (annual CPR (6)):
	Range (2)				5-29		3-19	2-27
	Weighted average (4)				15		11	14

Total credit impairment losses on commercial MBS that we do not intend to sell were $86 million, $101 million, and $120 million for the years ended December 31, 2012, 2011 and 2010, respectively. Significant inputs considered in determining the credit impairment losses for commercial MBS are the expected remaining life of loan loss rates and current subordination levels. Prepayment activity on commercial MBS does not significantly impact the determination of their credit impairment because, unlike residential MBS, commercial MBS experience significantly lower prepayments due to certain contractual restrictions, impacting the borrower's ability to prepay the mortgage. The expected remaining life of loan loss rates for commercial MBS with credit impairment losses ranged from 3% to 18%, 4% to 18%, and 2% to 15%, while the current subordination level ranges were 0% to 13%, 3% to 15%, and 3% to 13% for the years ended December 31, 2012, 2011 and 2010, respectively.