v2.4.0.6
Securities Available for Sale (Tables)
12 Months Ended
Dec. 31, 2011
Securities Available for Sale (Tables) [Abstract]  
Securities Available For Sale Major Categories
            
            
         GrossGross 
         unrealizedunrealizedFair
(in millions) Costgainslossesvalue
            
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
            
December 31, 2010     
            
Securities of U.S. Treasury and federal agencies$ 1,570 49 (15) 1,604
Securities of U.S. states and political subdivisions  18,923 568 (837) 18,654
Mortgage-backed securities:     
 Federal agencies  78,578 3,555 (96) 82,037
 Residential   18,294 2,398 (489) 20,203
 Commercial  12,990 1,199 (635) 13,554
  Total mortgage-backed securities  109,862 7,152 (1,220) 115,794
Corporate debt securities  9,015 1,301 (37) 10,279
Collateralized debt obligations (1)  4,638 369 (229) 4,778
Other (2)  16,063 576 (283) 16,356
   Total debt securities  160,071 10,015 (2,621) 167,465
Marketable equity securities:     
 Perpetual preferred securities  3,671 250 (89) 3,832
 Other marketable equity securities  587 771 (1) 1,357
   Total marketable equity securities  4,258 1,021 (90) 5,189
    Total (3)$ 164,329 11,036 (2,711) 172,654
            

  • Includes collateralized loan obligations with both a cost basis and fair value of $8.1 billion, at December 31, 2011, and $4.0 billion and $4.2 billion, respectively, at December 31, 2010.
  • Included in the “Other” category are asset-backed securities collateralized by auto leases or loans and cash reserves with a cost basis and fair value of $6.7 billion each at December 31, 2011, and $6.2 billion and $6.4 billion, respectively, at December 31, 2010. Also included in the "Other" category are asset-backed securities collateralized by home equity loans with a cost basis and fair value of $846 million and $932 million, respectively, at December 31, 2011, and $927 million and $1.1 billion, respectively, at December 31, 2010. The remaining balances primarily include asset-backed securities collateralized by credit cards and student loans.
  • At December 31, 2011 and 2010, we held no securities of any single issuer (excluding the U.S. Treasury and federal agencies) with a book value that exceeded 10% of stockholders' equity.
Securities Available For Sale Gross Unrealized Losses Over And Under 12 Months
               
               
       Less than 12 months 12 months or more Total
       Gross  Gross  Gross 
      unrealizedFairunrealizedFairunrealizedFair
(in millions) lossesvalue lossesvalue lossesvalue
               
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
               
December 31, 2010         
               
Securities of U.S. Treasury and federal agencies$ (15) 544  - -  (15) 544
Securities of U.S. states and political subdivisions  (322) 6,242  (515) 2,720  (837) 8,962
Mortgage-backed securities:         
 Federal agencies  (95) 8,103  (1) 60  (96) 8,163
 Residential   (35) 1,023  (454) 4,440  (489) 5,463
 Commercial  (9) 441  (626) 5,141  (635) 5,582
  Total mortgage-backed securities  (139) 9,567  (1,081) 9,641  (1,220) 19,208
Corporate debt securities  (10) 477  (27) 157  (37) 634
Collateralized debt obligations  (13) 679  (216) 456  (229) 1,135
Other  (13) 1,985  (270) 757  (283) 2,742
   Total debt securities  (512) 19,494  (2,109) 13,731  (2,621) 33,225
Marketable equity securities:         
 Perpetual preferred securities  (41) 962  (48) 467  (89) 1,429
 Other marketable equity securities  - -  (1) 7  (1) 7
   Total marketable equity securities  (41) 962  (49) 474  (90) 1,436
    Total$ (553) 20,456  (2,158) 14,205  (2,711) 34,661
Securities Available For Sale Gross Unrealized Losses By Investment Grade
             
             
        Investment grade Non-investment grade
        Gross  Gross 
        unrealizedFair unrealizedFair
(in millions) lossesvalue lossesvalue
             
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
             
December 31, 2010      
             
Securities of U.S. Treasury and federal agencies$ (15) 544  - -
Securities of U.S. states and political subdivisions  (722) 8,423  (115) 539
Mortgage-backed securities:      
 Federal agencies  (96) 8,163  - -
 Residential  (23) 888  (466) 4,575
 Commercial  (299) 4,679  (336) 903
  Total mortgage-backed securities  (418) 13,730  (802) 5,478
Corporate debt securities  (22) 330  (15) 304
Collateralized debt obligations  (42) 613  (187) 522
Other  (180) 2,510  (103) 232
   Total debt securities  (1,399) 26,150  (1,222) 7,075
Perpetual preferred securities  (81) 1,327  (8) 102
    Total$ (1,480) 27,477  (1,230) 7,177
Debt Securities Available For Sale Contractual Maturities
                           
                           
          Remaining contractual principal 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  AmountYield  AmountYield  AmountYield  AmountYield 
                           
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%
                           
December 31, 2010                     
                           
Securities of U.S. Treasury                     
 and federal agencies$ 1,604  2.54%$ 9 5.07%$ 641 1.72%$ 852 2.94%$ 102 4.15%
Securities of U.S. states and                      
 political subdivisions  18,654  5.99   322 3.83   3,210 3.57   1,884 6.13   13,238 6.60 
Mortgage-backed securities:                     
 Federal agencies  82,037  5.01   5 6.63   28 6.58   420 5.23   81,584 5.00 
 Residential   20,203  4.98   - -   - -   341 3.20   19,862 5.01 
 Commercial  13,554  5.39   - -   1 1.38   215 5.28   13,338 5.39 
  Total mortgage-backed                      
   securities  115,794  5.05   5 6.63   29 6.38   976 4.53   114,784 5.05 
Corporate debt securities  10,279  5.94   545 7.82   3,853 6.01   4,817 5.62   1,064 6.21 
Collateralized debt obligations  4,778  0.80   - -   545 0.88   2,581 0.72   1,652 0.90 
Other  16,356  2.53   1,588 2.89   7,887 3.00   4,367 2.01   2,514 1.72 
   Total debt securities                     
    at fair value$ 167,465  4.81%$ 2,469 4.12%$ 16,165 3.72%$ 15,477 3.63%$ 133,354 5.10%
                           
Securities Available For Sale Realized Gains And Losses
         
         
      Year ended December 31,
(in millions)  2011 2010 2009
Gross realized gains$ 1,305 645 1,601
Gross realized losses  (70) (32) (160)
OTTI write-downs  (541) (692) (1,094)
 Net realized gains (losses) from    
  securities available for sale  694 (79) 347
Net realized gains (losses) from principal    
 and private equity investments  842 534 (289)
  Net realized gains from    
   debt securities and    
    equity investments$ 1,536 455 58
         
Securities Available For Sale And Nonmarketable Equity Securities Other Than Temporary Impairment
           
           
         Year ended December 31,
(in millions)   2011 2010 2009
OTTI write-downs included in earnings    
 Debt securities:    
  U.S. states and political subdivisions$ 2 16 7
  Mortgage-backed securities:    
   Federal agencies (1)  - 267 -
   Residential   252 175 595
   Commercial  101 120 137
  Corporate debt securities  3 10 69
  Collateralized debt obligations  1 15 125
  Other debt securities  64 69 79
    Total debt securities  423 672 1,012
 Equity securities:    
  Marketable equity securities:    
   Perpetual preferred securities  96 15 50
   Other marketable equity securities  22 5 32
    Total marketable equity securities  118 20 82
     Total securities available for sale  541 692 1,094
  Nonmarketable equity securities  170 248 573
      Total OTTI write-downs included in earnings$ 711 940 1,667
           

  • For the year ended December 31, 2010, amount represents OTTI recognized on federal agency MBS because we had the intent to sell, of which $252 million related to securities with a fair value of $14.5 billion that were sold subsequent to December 31, 2010.

 

Debt Securities Available For Sale Other Than Temporary Impairment
          
          
       Year ended December 31,
(in millions)  20112010 2009
OTTI on debt securities    
 Recorded as part of gross realized losses:    
  Credit-related OTTI$ 422 400 982
  Intent-to-sell OTTI (1)  1 272 30
   Total recorded as part of gross realized losses  423 672 1,012
 Recorded directly to OCI for non-credit-related impairment:    
  U.S. states and political subdivisions  (1) (4) 3
  Residential mortgage-backed securities  (171) (326) 1,124
  Commercial mortgage-backed securities  105 138 179
  Corporate debt securities  2 (1) (2)
  Collateralized debt obligations  4 54 20
  Other debt securities  (13) (33) 16
   Total recorded directly to OCI for increase (decrease) in non-credit-related impairment (2)  (74) (172) 1,340
    Total OTTI losses recorded on debt securities$ 349 500 2,352
          

  • For the year ended December 31, 2010, amount includes $252 million related to securities with a fair value of $14.5 billion that were sold subsequent to December 31, 2010.
  • Represents amounts recorded to OCI on debt securities in periods OTTI write-downs have occurred. Changes in fair value in subsequent periods on such securities, to the extent additional credit-related OTTI did not occur, are not reflected in this total. Increases represent OTTI write-downs recorded to OCI on debt securities in the periods non-credit related impairment has occurred. Decreases represent partial recoveries in the fair value of securities due to factors other than credit, where the increase in fair value was not sufficient to recover the full amount of the unrealized loss on such securities.

 

 

Credit Loss Component Of Credit-Impaired Debt Securities
          
          
       Year ended December 31,
(in millions) 2011 2010 2009
Credit loss component, beginning of year$ 1,043 1,187471
Additions:    
 Initial credit impairments  87 122 625
 Subsequent credit impairments  335 278 357
  Total additions  422 400 982
Reductions:    
 For securities sold  (160) (263) (255)
 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) (1)
 For recoveries of previous credit impairments (1)  (31) (37) (10)
  Total reductions  (193) (544) (266)
Credit loss component, end of year$ 1,272 1,043 1,187
          

  • Recoveries of previous credit impairments result from increases in expected cash flows subsequent to credit loss recognition. Such recoveries are reflected prospectively as interest yield adjustments using the effective interest method.

 

Credit Loss Component Of Residential Mortgage Backed Securities Inputs To Measure
           
           
      Year ended December 31,
($ in millions)  2011  2010 2009
Credit impairment losses on residential MBS     
 Investment grade$ 5  524
 Non-investment grade  247  170567
     Total credit impairment losses on residential MBS$ 252  175 591
           
Significant inputs (non-agency – non-investment grade MBS)     
Expected remaining life of loan losses (1):     
 Range (2) 0-48%1-430-58
 Credit impairment distribution (3):     
  0 - 10% range  42  52 56
  10 - 20% range  18  29 27
  20 - 30% range  28  17 12
  Greater than 30%  12  2 5
 Weighted average (4)  12  9 11
Current subordination levels (5):     
 Range (2) 0-25 0-250-44
 Weighted average (4)  4  7 8
Prepayment speed (annual CPR (6)):     
 Range (2) 3-19 2-275-25
 Weighted average (4)  11 14 11
           

  • Represents future expected credit losses on underlying pool of loans expressed as a percentage of total current outstanding loan balance.
  • Represents the range of inputs/assumptions based upon the individual securities within each category.
  • Represents distribution of credit impairment losses recognized in earnings categorized based on range of expected remaining life of loan losses. For example 42% of credit impairment losses recognized in earnings for the year ended December 31, 2011, had expected remaining life of loan loss assumptions of 0 to 10%.
  • Calculated by weighting the relevant input/assumption for each individual security by current outstanding amortized cost basis of the security.
  • Represents current level of credit protection (subordination) for the securities, expressed as a percentage of total current underlying loan balance.
  • Constant prepayment rate.