v2.4.0.6
Securities Available for Sale (Tables)
3 Months Ended
Mar. 31, 2012
Securities Available for Sale (Tables) [Abstract]  
Securities Available For Sale Major Categories
            
            
         GrossGross 
         unrealizedunrealizedFair
(in millions) Costgainslossesvalue
            
March 31, 2012     
            
Securities of U.S. Treasury and federal agencies$ 4,642 43 (7) 4,678
Securities of U.S. states and political subdivisions  33,809 915 (487) 34,237
Mortgage-backed securities:     
 Federal agencies  98,409 4,293 (37) 102,665
 Residential  16,491 1,582 (244) 17,829
 Commercial  17,758 1,504 (605) 18,657
  Total mortgage-backed securities  132,658 7,379 (886) 139,151
Corporate debt securities  19,274 1,034 (135) 20,173
Collateralized debt obligations (1)  9,031 366 (234) 9,163
Other (2)   19,426 456 (171) 19,711
   Total debt securities  218,840 10,193 (1,920) 227,113
Marketable equity securities:     
 Perpetual preferred securities  2,224 224 (43) 2,405
 Other marketable equity securities  511 238 (1) 748
   Total marketable equity securities  2,735 462 (44) 3,153
    Total $ 221,575 10,655 (1,964) 230,266
            
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 $ 215,571 10,211 (3,169) 222,613
            

  • Includes collateralized loan obligations with a cost basis and fair value of $8.5 billion and $8.6 billion, respectively, at March 31, 2012, and $8.1 billion for both cost basis and fair value, at December 31, 2011.
  • 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 $6.9 billion and $7.0 billion, respectively, at March 31, 2012, and $6.7 billion and $6.7 billion, respectively, at December 31, 2011. Also included in the "Other" category are asset-backed securities collateralized by home equity loans with a cost basis and fair value of $829 million and $955 million, respectively, at March 31, 2012, and $846 million and $932 million, respectively, at December 31, 2011. The remaining balances primarily include asset-backed securities collateralized by credit cards and student loans.

 

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
               
March 31, 2012         
               
Securities of U.S. Treasury and federal agencies$ (7) 3,562  - -  (7) 3,562
Securities of U.S. states and political subdivisions  (77) 3,059  (410) 4,072  (487) 7,131
Mortgage-backed securities:         
 Federal agencies  (35) 9,621  (2) 761  (37) 10,382
 Residential  (8) 971  (236) 3,565  (244) 4,536
 Commercial  (46) 717  (559) 4,295  (605) 5,012
  Total mortgage-backed securities  (89) 11,309  (797) 8,621  (886) 19,930
Corporate debt securities  (63) 2,143  (72) 256  (135) 2,399
Collateralized debt obligations  (54) 2,622  (180) 771  (234) 3,393
Other   (41) 2,819  (130) 679  (171) 3,498
   Total debt securities  (331) 25,514  (1,589) 14,399  (1,920) 39,913
Marketable equity securities:         
 Perpetual preferred securities  (12) 236  (31) 543  (43) 779
 Other marketable equity securities  - -  (1) 3  (1) 3
   Total marketable equity securities  (12) 236  (32) 546  (44) 782
    Total$ (343) 25,750  (1,621) 14,945  (1,964) 40,695
               
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
Securities Available For Sale Gross Unrealized Losses By Investment Grade
             
             
        Investment grade Non-investment grade
        Gross  Gross 
        unrealizedFair unrealizedFair
(in millions) lossesvalue lossesvalue
             
March 31, 2012      
             
Securities of U.S. Treasury and federal agencies$ (7) 3,562  - -
Securities of U.S. states and political subdivisions  (410) 6,614  (77) 517
Mortgage-backed securities:      
 Federal agencies  (37) 10,382  - -
 Residential  (7) 963  (237) 3,573
 Commercial  (231) 4,012  (374) 1,000
  Total mortgage-backed securities  (275) 15,357  (611) 4,573
Corporate debt securities  (38) 1,705  (97) 694
Collateralized debt obligations  (102) 3,131  (132) 262
Other  (144) 3,351  (27) 147
   Total debt securities  (976) 33,720  (944) 6,193
Perpetual preferred securities  (41) 765  (2) 14
    Total$ (1,017) 34,485  (946) 6,207
             
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
Debt Securities Available For Sale Contractual Maturities
                           
                           
          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  AmountYield  AmountYield  AmountYield  AmountYield 
                           
March 31, 2012                     
                           
Securities of U.S. Treasury                     
 and federal agencies$ 4,678  0.97%$ 57 0.50%$ 4,170 0.81%$ 416 2.41%$ 35 3.96%
Securities of U.S. states and                      
 political subdivisions  34,237  4.85   1,040 3.57   11,500 2.29   3,036 5.39   18,661 6.41 
Mortgage-backed securities:                     
 Federal agencies  102,665  4.26   1 6.19   265 4.33   1,294 3.09   101,105 4.27 
 Residential  17,829  4.45   - -   - -   661 2.20   17,168 4.54 
 Commercial  18,657  5.40   - -   16 5.46   116 3.44   18,525 5.41 
  Total mortgage-backed                      
   securities  139,151  4.44   1 6.19   281 4.39   2,071 2.82   136,798 4.46 
Corporate debt securities  20,173  4.50   737 5.26   12,219 3.29   5,275 6.54   1,942 6.29 
Collateralized debt                     
 obligations  9,163  1.09   - -   570 1.17   7,299 1.00   1,294 1.55 
Other   19,711  1.76   450 0.38   12,210 1.64   3,780 2.02   3,271 2.09 
   Total debt securities                     
    at fair value$ 227,113  4.07%$ 2,285 3.41%$ 40,950 2.24%$ 21,877 3.32%$ 162,001 4.64%
                           
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%
                           
Securities Available For Sale Realized Gains And Losses
        
        
     Quarter ended March 31,
(in millions)  2012 2011
Gross realized gains$ 281 70
Gross realized losses  (4) (42)
OTTI write-downs  (51) (80)
 Net realized gains (losses) from securities available for sale  226 (52)
Net realized gains from private equity investments  131 239
  Net realized gains from debt securities and equity investments$ 357 187
        
Securities Available For Sale And Nonmarketable Equity Securities Other Than Temporary Impairment
          
          
       Quarter ended March 31,
(in millions)   2012 2011
OTTI write-downs included in earnings   
 Debt securities:   
  U.S. states and political subdivisions$ - -
  Mortgage-backed securities:   
   Residential   14 62
   Commercial  30 14
  Corporate debt securities  1 -
  Collateralized debt obligations  - -
  Other debt securities  5 4
    Total debt securities  50 80
 Equity securities:   
  Marketable equity securities:   
   Perpetual preferred securities  1 -
    Total marketable equity securities  1 -
     Total securities available for sale  51 80
  Nonmarketable equity securities  14 41
      Total OTTI write-downs included in earnings$ 65 121
          
Debt Securities Available For Sale Other Than Temporary Impairment
         
         
      Quarter ended March 31,
(in millions)   2012 2011
OTTI on debt securities   
 Recorded as part of gross realized losses:   
  Credit-related OTTI$ 50 79
  Intent-to-sell OTTI   - 1
   Total recorded as part of gross realized losses  50 80
 Recorded directly to OCI for non-credit-related impairment:   
  U.S. states and political subdivisions  - -
  Residential mortgage-backed securities  (9) (104)
  Commercial mortgage-backed securities  (6) (53)
  Corporate debt securities  (1) -
  Other debt securities  1 1
   Total recorded directly to OCI for increase (decrease) in non-credit-related impairment (1)  (15) (156)
    Total OTTI losses (gains) recorded on debt securities$ 35 (76)
         

  • 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
         
         
      Quarter ended March 31,
(in millions) 2012 2011
Credit loss component, beginning of period$ 1,272 1,043
Additions:   
 Initial credit impairments  5 11
 Subsequent credit impairments  45 68
  Total additions  50 79
Reductions:   
 For securities sold  (12) (23)
 For recoveries of previous credit impairments (1)  (8) (12)
  Total reductions  (20) (35)
Credit loss component, end of period$ 1,302 1,087
         

  • 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
          
          
      Quarter ended March 31,
($ in millions)  2012  2011
Credit impairment losses on residential MBS    
 Investment grade$ -  5
 Non-investment grade  14  57
  Total credit impairment losses on residential MBS$ 14  62
          
Significant inputs (non-agency – non-investment grade MBS)    
Expected remaining life of loan losses (1):    
 Range (2) 1-44%2-26
 Credit impairment distribution (3):    
  0 - 10% range  46  57
  10 - 20% range  11  25
  20 - 30% range  1  18
  Greater than 30%  42  -
 Weighted average (4)  9  9
Current subordination levels (5):    
 Range (2) 0-57 0-11
 Weighted average (4)  2  5
Prepayment speed (annual CPR (6)):    
 Range (2) 5-29 5-15
 Weighted average (4)  15  10
          
          

  • 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, 46% of credit impairment losses recognized in earnings for the quarter ended March 31, 2012, 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.