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Investment Securities | 6 Months Ended
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Jun. 30, 2012
Investment Securities [Abstract] |
Investment Securities | 5. Investment Securities Investment securities include debt and equity securities classified as available for sale. The Company's investment securities, principally debt securities, are carried at fair value on the Consolidated Balanc e Sheets with unrealized gains (losses) recorded in Accumulated Other Comprehensive Income (AOCI), net of income taxes. Realized gains and losses are recognized in results of operations upon disposition of the securities using the specific identification method on a trade date basis. Refer to Note 2 for a description of the Company's methodology for de termining the fair value of investment securities. The following is a summary of investment securities as of June 30, 2012 and December 31, 2011:
|  |  | 2012 |  | 2011
|  |  |  |  |  |  | Gross |  |  | Gross |  |  | Estimated |  |  |  |  |  | Gross |  |  | Gross |  |  | Estimated
|  |  |  |  |  | Unrealized |  | Unrealized |  |  | Fair |  |  |  | Unrealized |  | Unrealized |  |  | Fair
(Millions) |  |  | Cost |  | Gains |  | Losses |  |  | Value |  | Cost |  | Gains |  | Losses |  |  | Value
State and municipal obligations |  | $ | 4,643 |  | $ | 157 |  | $ | (21) |  | $ | 4,779 |  | $ | 4,968 |  | $ | 103 |  | $ | (72) |  | $ | 4,999
U.S. Government agency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| obligations |  |  | 3 |  |  | ― |  |  | ― |  |  | 3 |  |  | 352 |  |  | 2 |  |  | ― |  |  | 354
U.S. Government treasury |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| obligations |  |  | 330 |  |  | 9 |  |  | ― |  |  | 339 |  |  | 330 |  |  | 10 |  |  | ― |  |  | 340
Corporate debt securities(a) |  |  | 471 |  |  | 5 |  |  | (2) |  |  | 474 |  |  | 626 |  |  | 9 |  |  | (3) |  |  | 632
Mortgage-backed securities(b) |  |  | 241 |  |  | 17 |  |  | ― |  |  | 258 |  |  | 261 |  |  | 17 |  |  | ― |  |  | 278
Equity securities(c) |  |  | 81 |  |  | 209 |  |  | ― |  |  | 290 |  |  | 95 |  |  | 265 |  |  | ― |  |  | 360
Foreign government bonds and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| obligations |  |  | 118 |  |  | 12 |  |  | ― |  |  | 130 |  |  | 120 |  |  | 10 |  |  | ― |  |  | 130
Other(d) |  |  | 52 |  |  | 1 |  |  | ― |  |  | 53 |  |  | 54 |  |  | ― |  |  | ― |  |  | 54
Total |  | $ | 5,939 |  | $ | 410 |  | $ | (23) |  | $ | 6,326 |  | $ | 6,806 |  | $ | 416 |  | $ | (75) |  | $ | 7,147
(a) T he June 30, 2012 and December 31, 2011 balances include, on a cost basis, $400 m illion and $550 m illion, respectively, of corporate debt obligations issued under the Temporary Li quidity Guarantee Program that are guaranteed by the Federal Deposit Insurance Corporation (FDIC). (b) Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. (c) Primarily r epresents the Company's investment in the Industrial and Commercial Bank of China (ICBC). (d) Other comprises investments in various mutual funds. The following table provides information about the Company's investment securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2012 and December 31, 2011:
|  | 2012 |  | 2011
|  | Less than 12 months |  | 12 months or more |  | Less than 12 months |  | 12 months or more
|  |  |  |  |  | Gross |  |  |  |  |  | Gross |  |  |  |  |  | Gross |  |  |  |  |  | Gross
|  |  | Estimated |  | Unrealized |  | Estimated |  | Unrealized |  |  | Estimated |  | Unrealized |  | Estimated |  | Unrealized
Description of Securities (Millions) |  |  | Fair Value |  | Losses |  | Fair Value |  | Losses |  |  | Fair Value |  | Losses |  | Fair Value |  | Losses
State and municipal obligations |  | $ | 96 |  | $ | (1) |  | $ | 351 |  | $ | (20) |  | $ | ― |  | $ | ― |  | $ | 1,094 |  | $ | (72)
Corporate debt securities |  |  | 15 |  |  | (1) |  |  | 3 |  |  | (1) |  |  | 15 |  |  | (2) |  |  | 2 |  |  | (1)
Total |  | $ | 111 |  | $ | (2) |  | $ | 354 |  | $ | (21) |  | $ | 15 |  | $ | (2) |  | $ | 1,096 |  | $ | (73)
The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of June 30, 2012 and December 31, 2011:
|  | Less than 12 months |  | 12 months or more |  | Total
|  |  |  |  |  |  |  | Gross |  |  |  |  |  |  |  | Gross |  |  |  |  |  |  |  | Gross
Ratio of Fair Value to |  | Number of |  | Estimated |  | Unrealized |  | Number of |  | Estimated |  | Unrealized |  | Number of |  | Estimated |  | Unrealized
Amortized Cost (Dollars in millions) |  | Securities |  | Fair Value |  | Losses |  | Securities |  | Fair Value |  | Losses |  | Securities |  | Fair Value |  | Losses
2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
90%–100% |  | 15 |  | $ | 111 |  | $ | (2) |  | 31 |  | $ | 281 |  | $ | (8) |  | 46 |  | $ | 392 |  | $ | (10)
Less than 90% |  | ― |  |  | ― |  |  | ― |  | 6 |  |  | 73 |  |  | (13) |  | 6 |  |  | 73 |  |  | (13)
Total as of June 30, 2012 |  | 15 |  | $ | 111 |  | $ | (2) |  | 37 |  | $ | 354 |  | $ | (21) |  | 52 |  | $ | 465 |  | $ | (23)
2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
90%–100% |  | ― |  | $ | ― |  | $ | ― |  | 114 |  | $ | 884 |  | $ | (35) |  | 114 |  | $ | 884 |  | $ | (35)
Less than 90% |  | 1 |  |  | 15 |  |  | (2) |  | 22 |  |  | 212 |  |  | (38) |  | 23 |  |  | 227 |  |  | (40)
Total as of December 31, 2011 |  | 1 |  | $ | 15 |  | $ | (2) |  | 136 |  | $ | 1,096 |  | $ | (73) |  | 137 |  | $ | 1,111 |  | $ | (75)
The gross unrealized losses are attributed to overall wider credit spreads for s tate and municipal securities, wide r credit spreads for specific issuers, adverse changes in market benchmark interest rates, or a combination thereof, all as compared to those prevailing wh en the investment securities were acquired. Overall, for the investment securities in gross unrealized loss positions identified above, (i) the Company does not intend to sell the investment securities, (ii) it is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses and (iii) the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary impairment during the six months ended June 30, 2012 or the year ended December 31, 2011. Supplemental Information Gross realized gains on sales of investment securities, included in other non-interest revenues for the three and six months ended June 30, 2012, were $26 million and $52 million, respectively (there were no gross realized gains for the three and six months ended June 30, 2011). Gross realized losses on sales of investment securities, included in other non-interest revenues for both the three and six months ended June 30, 2012, were $1 million (there were no gross realized losses for the three and six months ended June 30, 2011). Contractual ma turities of investment securities, excluding equity securities and other securities, as of June 30, 2012 were as follows:
|  |  |  |  |  |  | Estimated
(Millions) |  | Cost |  | Fair Value
Due within 1 year |  | $ | 545 |  | $ | 549
Due after 1 year but within 5 years |  |  | 358 |  |  | 366
Due after 5 years but within 10 years |  |  | 176 |  |  | 187
Due after 10 years |  |  | 4,727 |  |  | 4,881
Total |  | $ | 5,806 |  | $ | 5,983
The expected payments on state and municipal obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.

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- Definition Tabular disclosure of available-for-sale securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS115-1/124-1 -Paragraph 17 -Subparagraph a, b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 19, 20, 21 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-1 -Paragraph 21 -Subparagraph a, b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563 + Details
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