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Securities Available for Sale
 12 Months Ended
Dec. 31, 2012
Securities Available For Sale  
Securities Available For Sale

5.        Securities Available for Sale.

The following tables present information about the Company's available for sale securities:

 

      At December 31, 2012
      Amortized Cost  Gross Unrealized Gains Gross Unrealized Losses Other-than-Temporary Impairment Fair Value
     (dollars in millions)
Debt securities available for sale:          
 U.S. government and agency securities:          
  U.S. Treasury securities$ 14,351$ 109$ 2$ —$ 14,458
  U.S. agency securities  15,330  122  3  —  15,449
    Total U.S. government and agency securities  29,681  231  5  —  29,907
 Corporate and other debt:          
  Commercial mortgage-backed securities:          
   Agency   2,197  6  4  —  2,199
   Non-Agency   160  —  —  —  160
  Auto loan asset-backed securities   1,993  4  1  —  1,996
  Corporate bonds  2,891  13  3  —  2,901
  FFELP student loan asset-backed securities(1)  2,675  23  —  —  2,698
    Total Corporate and other debt  9,916  46  8  —  9,954
Total debt securities available for sale  39,597  277  13  —  39,861
Equity securities available for sale  15  —  7  —  8
Total$ 39,612$ 277$ 20$ —$ 39,869
               
               
(1)Amounts are backed by a guarantee from the U.S. Department of Education of at least 95% of the principal balance and interest on such loans.
  
  
      At December 31, 2011
      Amortized Cost  Gross Unrealized Gains Gross Unrealized Losses Other-than-Temporary Impairment Fair Value
     (dollars in millions)
Debt securities available for sale:          
 U.S. government and agency securities:          
  U.S. Treasury securities$ 13,240$ 182$ —$ —$ 13,422
  U.S. agency securities  16,083  54  20  —  16,117
 Corporate and other debt(1)  944  —  3  —  941
Total debt securities available for sale  30,267  236  23  —  30,480
Equity securities available for sale  15  —  —  —  15
Total$ 30,282$ 236$ 23$ —$ 30,495
               
               
(1)Amounts represent FFELP student loan asset-backed securities, in which the loans are backed by a guarantee from the U.S. Department of Education of
 at least 95% of the principal balance and interest on such loans.

The tables below present the fair value of investments in securities available for sale that are in an unrealized loss position:

 

     Less than 12 Months  12 Months or Longer Total
At December 31, 2012 Fair Value  Gross Unrealized Losses Fair Value  Gross Unrealized Losses Fair Value  Gross Unrealized Losses
    (dollars in millions)
Debt securities available for sale:            
 U.S. government and agency securities:            
  U.S. Treasury securities$ 1,012$ 2$ —$ —$ 1,012$ 2
  U.S. agency securities  1,534  3  27  —  1,561  3
   Total U.S. government and agency securities  2,546  5  27  —  2,573  5
 Corporate and other debt:            
  Commercial mortgage-backed securities:            
   Agency  1,057  4  —  —  1,057  4
  Auto loan asset-backed securities   710  1  —  —  710  1
  Corporate bonds  934  3  —  —  934  3
   Total Corporate and other debt  2,701  8  —  —  2,701  8
Total debt securities available for sale  5,247  13  27  —  5,274  13
Equity securities available for sale  8  7  —  —  8  7
Total$ 5,255$ 20$ 27$ —$ 5,282$ 20
                
     Less than 12 Months  12 Months or Longer Total
At December 31, 2011 Fair Value  Gross Unrealized Losses Fair Value  Gross Unrealized Losses Fair Value  Gross Unrealized Losses
    (dollars in millions)
Debt securities available for sale:            
 U.S. government and agency securities:            
  U.S. agency securities$ 6,250$ 15$ 1,492$ 5$ 7,742$ 20
 Corporate and other debt  679  3  —  —  679  3
Total$ 6,929$ 18$ 1,492$ 5$ 8,421$ 23

Gross unrealized losses are recorded in Accumulated other comprehensive income.


For debt securities available for sale in an unrealized loss position, the Company does not intend to sell these securities or expect to be required to sell these securities prior to recovery of the amortized cost basis. In addition, the Company does not expect the U.S. government and agency securities to experience a credit loss given the explicit and implicit guarantee provided by the U.S. government. The Company believes that the debt securities with an unrealized loss in Accumulated other comprehensive income were not other-than-temporarily impaired at December 31, 2012 and 2011.

 

For equity securities available for sale in an unrealized loss position, the Company does not intend to sell these securities or expect to be required to sell these securities prior to the recovery of the amortized cost basis. The Company believes that the equity securities with an unrealized loss in Accumulated other comprehensive income were not other-than-temporarily impaired at December 31, 2012.

The following table presents the amortized cost and fair value of debt securities available for sale by contractual maturity dates at December 31, 2012.

 

At December 31, 2012 Amortized Cost Fair Value Annualized Average Yield
    (dollars in millions)
U.S. government and agency securities:      
 U.S. Treasury securities:     
   Due within 1 year$ 753$ 757 0.8%
   After 1 year but through 5 years  13,492  13,592 0.7%
   After 5 years  106  109 1.5%
    Total  14,351  14,458  
 U.S. agency securities:     
   After 5 years  15,330  15,449 1.0%
    Total  15,330  15,449  
    Total U.S. government and agency securities  29,681  29,907 0.9%
          
Corporate and other debt:      
 Commercial mortgage-backed securities:      
  Agency:     
   After 1 year but through 5 years  353  354 1.0%
   After 5 years  1,844  1,845 1.3%
    Total  2,197  2,199  
  Non-Agency:     
   After 5 years  160  160 0.7%
    Total  160  160  
 Auto loan asset-backed securities:      
   After 1 year but through 5 years  1,642  1,645 0.7%
   After 5 years  351  351 0.7%
    Total  1,993  1,996  
 Corporate bonds:      
   Due within 1 year  153  153 0.7%
   After 1 year but through 5 years  2,589  2,599 1.1%
   After 5 years  149  149 1.2%
    Total  2,891  2,901  
 FFELP student loan asset-backed securities:      
   After 1 year but through 5 years  94  95 0.9%
   After 5 years  2,581  2,603 1.1%
    Total  2,675  2,698  
    Total Corporate and other debt  9,916  9,954 1.0%
          
    Total debt securities available for sale$ 39,597$ 39,861 0.9%

See Note 7 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, auto loan asset-backed securities and FFELP student loan asset-backed securities.

The following table presents information pertaining to sales of securities available for sale during 2012, 2011 and 2010:

 

  2012 2011 2010
  (dollars in millions)
Gross realized gains$ 88$ 145$ 102
       
Gross realized losses$ 10$ 2$ —
       
Proceeds of sales of securities available for sale$ 10,398$ 17,085$ 670

Gross realized gains and losses are recognized in Other revenues in the consolidated statements of income.