Securities (Tables)

3 Months Ended

Mar. 31, 2013

Amortized Cost and Fair Value of the Securities Available-for-Sale and Held-to-Maturity

The amortized cost and fair value of the securities available-for-sale and securities held-to-maturity portfolios are summarized in the following tables.



March 31, 2013	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in millions)
Securities available-for-sale:
U.S. Treasury	$	26,715	$	475	$	(26	)	$	27,164
U.S. Government sponsored enterprises:⁽¹⁾
Mortgage-backed securities	176		1		(2		)	175
Direct agency obligations	4,029		374		(2		)	4,401
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	15,471		536		(8		)	15,999
Collateralized mortgage obligations	4,865		130		(19		)	4,976
Direct agency obligations	1		—		—			1
Obligations of U.S. states and political subdivisions	743		30		(3		)	770
Asset backed securities collateralized by:
Residential mortgages	1		—		—			1
Commercial mortgages	180		5		—			185
Home equity	299		—		(44		)	255
Student loans	—		—		—			—
Other	102		—		(17		)	85
Corporate and other domestic debt securities	24		2		—			26
Foreign debt securities⁽²⁾⁽⁴⁾	5,267		14		(33		)	5,248
Equity securities	167		5		—			172
Total available-for-sale securities	$	58,040	$	1,572	$	(154	)	$	59,458
Securities held-to-maturity:
U.S. Government sponsored enterprises:⁽³⁾
Mortgage-backed securities	$	1,035	$	146	$	—		$	1,181
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	62		11		—			73
Collateralized mortgage obligations	261		39		—			300
Obligations of U.S. states and political subdivisions	37		2		—			39
Asset backed securities collateralized by:
Residential mortgages	39		2		—			41
Total held-to-maturity securities	$	1,434	$	200	$	—		$	1,634



December 31, 2012	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in millions)
Securities available-for-sale:
U.S. Treasury	$	34,800	$	566	$	(24	)	$	35,342
U.S. Government sponsored enterprises:⁽¹⁾
Mortgage-backed securities	166		1		(1		)	166
Direct agency obligations	4,039		364		(2		)	4,401
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	15,646		674		(6		)	16,314
Collateralized mortgage obligations	4,315		156		—			4,471
Direct agency obligations	1		—		—			1
Obligations of U.S. states and political subdivisions	877		37		(2		)	912
Asset backed securities collateralized by:
Residential mortgages	1		—		—			1
Commercial mortgages	208		6		—			214
Home equity	310		—		(52		)	258
Student loans	—		—		—			—
Other	102		—		(18		)	84
Corporate and other domestic debt securities	24		2		—			26
Foreign debt securities⁽²⁾⁽⁴⁾	5,385		16		(48		)	5,353
Equity securities	167		6		—			173
Total available-for-sale securities	$	66,041	$	1,828	$	(153	)	$	67,716
Securities held-to-maturity:
U.S. Government sponsored enterprises:⁽³⁾
Mortgage-backed securities	$	1,121	$	148	$	—		$	1,269
U.S. Government agency issued or guaranteed:
Mortgage-backed securities	66		12		—			78
Collateralized mortgage obligations	277		42		—			319
Obligations of U.S. states and political subdivisions	38		3		—			41
Asset backed securities collateralized by:
Residential mortgages	118		6		—			124
Total held-to-maturity securities	$	1,620	$	211	$	—		$	1,831


⁽¹⁾	Includes securities at amortized cost of $152 million and $153 million issued or guaranteed by FNMA at March 31, 2013 and December 31, 2012, respectively, and $24 million and $13 million issued or guaranteed by FHLMC at March 31, 2013 and December 31, 2012, respectively.


⁽²⁾	At March 31, 2013 and December 31, 2012, foreign debt securities consisted of $1.4 billion and $1.5 billion, respectively, of securities fully backed by foreign governments. The remainder of foreign debt securities represents foreign bank or corporate debt.


⁽³⁾	Includes securities at amortized cost of $477 million and $507 million issued or guaranteed by FNMA at March 31, 2013 and December 31, 2012, respectively, and $558 million and $614 million issued and guaranteed by FHLMC at March 31, 2013 and December 31, 2012, respectively.


⁽⁴⁾	We did not hold any foreign debt securities issued by the governments of Greece, Ireland, Italy, Portugal or Spain at March 31, 2013 and December 31, 2012.

Gross Unrealized Losses and Related Fair Values

A summary of gross unrealized losses and related fair values as of March 31, 2013 and December 31, 2012 classified as to the length of time the losses have existed follows:



	One Year or Less						Greater Than One Year
March 31, 2013	Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment		Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment
	(dollars are in millions)
Securities available-for-sale:
U.S. Treasury	4	$	(7	)	$	686	6	$	(19	)	$	568
U.S. Government sponsored enterprises	13	(4		)	468		12	—			7
U.S. Government agency issued or guaranteed	39	(27		)	2,593		1	—			—
Obligations of U.S. states and political subdivisions	14	(3		)	171		1	—			6
Asset backed securities	1	—			1		15	(61		)	353
Foreign debt securities	—	—			—		9	(33		)	3,733
Securities available-for-sale	71	$	(41	)	$	3,919	44	$	(113	)	$	4,667
Securities held-to-maturity:
U.S. Government sponsored enterprises	20	$	—		$	—	48	$	—		$	—
U.S. Government agency issued or guaranteed	78	—			—		916	—			2
Obligations of U.S. states and political subdivisions	4	—			2		2	—			1
Asset backed securities	—	—			—		—	—			—
Securities held-to-maturity	102	$	—		$	2	966	$	—		$	3



	One Year or Less						Greater Than One Year
December 31, 2012	Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment		Number of Securities	Gross Unrealized Losses			Aggregate Fair Value of Investment
	(dollars are in millions)
Securities available-for-sale:
U.S. Treasury	6	$	(3	)	$	3,344	6	$	(21	)	$	587
U.S. Government sponsored enterprises	9	(3		)	431		14	—			7
U.S. Government agency issued or guaranteed	18	(6		)	1,059		—	—			—
Obligations of U.S. states and political subdivisions	14	(2		)	168		1	—			7
Asset backed securities	3	—			20		13	(70		)	354
Foreign debt securities	—	—			—		9	(48		)	3,787
Securities available-for-sale	50	$	(14	)	$	5,022	43	$	(139	)	$	4,742
Securities held-to-maturity:
U.S. Government sponsored enterprises	24	$	—		$	—	52	$	—		$	—
U.S. Government agency issued or guaranteed	75	—			—		947	—			2
Obligations of U.S. states and political subdivisions	2	—			1		1	—			—
Asset backed securities	1	—			4		2	—			7
Securities held-to-maturity	102	$	—		$	5	1,002	$	—		$	9

Realized Gains and Losses on Investment Securities Transactions Attributable to Available-for-Sale Securities

The following table summarizes realized gains and losses on investment securities transactions attributable to available-for-sale securities.



Three Months Ended March 31,	2013			2012
	(in millions)
Gross realized gains	$	124		$	70
Gross realized losses	(1		)	(40		)
Net realized gains	$	123		$	30

The following table summarizes realized gains and losses on investment securities transactions attributable to held-to-maturity securities.



Three Months Ended March 31,	2013		2012
	(in millions)
Gross realized gains	$	8	$	—
Gross realized losses	—		—
Net realized gains (losses)	$	8	$	—

Distribution of Maturities of Debt Securities with the Approximate Yield of the Portfolio

The table below also reflects the distribution of maturities of debt securities held at March 31, 2013, together with the approximate taxable equivalent yield of the portfolio. The yields shown are calculated by dividing annual interest income, including the accretion of discounts and the amortization of premiums, by the amortized cost of securities outstanding at March 31, 2013. Yields on tax-exempt obligations have been computed on a taxable equivalent basis using applicable statutory tax rates.



	Within One Year				After One But Within Five Years				After Five But Within Ten Years				After Ten Years
Taxable Equivalent Basis	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
	(dollars are in millions)
Available-for-sale:
U.S. Treasury	$	2,002	.41	%	$	19,694	.48	%	$	2,880	2.60	%	$	2,139	3.57	%
U.S. Government sponsored enterprises	50		.39		333		3.26		3,000		3.05		822		3.64
U.S. Government agency issued or guaranteed	—		—		4		4.66		88		1.88		20,245		2.79
Obligations of U.S. states and political subdivisions	—		—		49		4.20		293		4.01		401		3.68
Asset backed securities	—		—		1		1.83		11		.41		570		2.77
Other domestic debt securities	—		—		—		—		—		—		24		4.00
Foreign debt securities	665		3.48		4,602		1.87		—		—		—		—
Total amortized cost	$	2,717	1.16	%	$	24,683	.79	%	$	6,272	2.87	%	$	24,201	2.90	%
Total fair value	$	2,721			$	24,769			$	6,794			$	25,002
Held-to-maturity:
U.S. Government sponsored enterprises	$	1	7.98	%	$	5	7.68	%	$	1	7.89	%	$	1,028	6.16	%
U.S. Government agency issued or guaranteed	—		—		1		7.59		3		7.69		319		6.50
Obligations of U.S. states and political subdivisions	5		5.05		14		5.13		9		4.42		9		5.02
Asset backed securities	—		—		—		—		—		—		39		6.41
Total amortized cost	$	6	5.57	%	$	20	5.87	%	$	13	5.41	%	$	1,395	6.23	%
Total fair value	$	6			$	20			$	14			$	1,594