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Fair Value Measurement and Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2014
Fair Value Measurement and Fair Value of Financial Instruments  
Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis

 

 

 
   June 30, 2014  
(Dollars in millions)   Level 1   Level 2   Level 3   Netting
Adjustment(1)		   Fair Value  

Assets

                                

Trading account assets:

                                

U.S. Treasury

   $ —   $ 25   $ —   $ —   $ 25  

U.S. government sponsored agencies

     —     121     —     —     121  

State and municipal

     —     24     —     —     24  

Interest rate derivative contracts

     1     790     6     (150 )   647  

Commodity derivative contracts

     —     108     9     (48 )   69  

Foreign exchange derivative contracts

     —     23     2     (10 )   15  

Equity derivative contracts

     —     —     286     (246 )   40  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total trading account assets

     1     1,091     303     (454 )   941  

Securities available for sale:

                                

U.S. government sponsored agencies

     —     —     —     —     —  

Residential mortgage-backed securities:

                                

U.S. government and government sponsored agencies                        

     —     8,157     —     —     8,157  

Privately issued

     —     191     —     —     191  

Privately issued—commercial mortgage-backed securities

     —     1,813     —     —     1,813  

Collateralized loan obligations

     —     2,534     —     —     2,534  

Asset-backed and other

     —     19     —     —     19  

Other debt securities:

                                

Direct bank purchase bonds

     —     —     1,897     —     1,897  

Other

     —     4     48     —     52  

Equity securities

     7     —     —     —     7  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total securities available for sale

     7     12,718     1,945     —     14,670  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Other assets:

                                

Interest rate hedging contracts

     —     40     —     —     40  

Other derivative contracts

     —     —     2     —     2  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total other assets

     —     40     2     —     42  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total assets

   $ 8   $ 13,849   $ 2,250   $ (454 ) $ 15,653  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Percentage of Total

     — %   89 %   14 %   (3 )%   100 %

Percentage of Total Company Assets

     — %   12 %   2 %   — %   14 %

Liabilities

                                

Trading account liabilities:

                                

Interest rate derivative contracts

   $ 4   $ 667   $ —   $ (408 ) $ 263  

Commodity derivative contracts

     —     98     9     (79 )   28  

Foreign exchange derivative contracts

     —     53     2     (23 )   32  

Equity derivative contracts

     —     —     287     —     287  

Securities sold, not yet purchased

     —     54     —     —     54  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total trading account liabilities

     4     872     298     (510 )   664  

Other liabilities:

                                

FDIC clawback liability

     —     —     102     —     102  

Interest rate hedging contracts

     —     2     —     —     2  

Other derivative contracts

     —     2     3     —     5  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total other liabilities

     —     4     105     —     109  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total liabilities

   $ 4   $ 876   $ 403   $ (510 ) $ 773  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Percentage of Total

     1 %   113 %   52 %   (66 )%   100 %

Percentage of Total Company Liabilities

     — %   1 %   — %   — %   1 %
(1)
Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

 
   December 31, 2013  
(Dollars in millions)   Level 1   Level 2   Level 3   Netting
Adjustment(1)		   Fair Value  

Assets

                                

Trading account assets:

                                

U.S. Treasury

   $ —   $ 8   $ —   $ —   $ 8  

U.S. government sponsored agencies

     —     116     —     —     116  

State and municipal

     —     5     —     —     5  

Other loans

     —     140     —     —     140  

Interest rate derivative contracts

     1     705     7     (212 )   501  

Commodity derivative contracts

     —     67     9     (66 )   10  

Foreign exchange derivative contracts

     1     30     2     (18 )   15  

Equity derivative contracts

     —     —     253     (197 )   56  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total trading account assets

     2     1,071     271     (493 )   851  

Securities available for sale:

                                

U.S. government sponsored agencies

     —     73     —     —     73  

Residential mortgage-backed securities:

                                

U.S government and government sponsored agencies                        

     —     8,900     —     —     8,900  

Privately issued

     —     222     —     —     222  

Privately issued—commercial mortgage-backed securities

     —     1,870     —     —     1,870  

Collateralized loan obligations

     —     2,673     —     —     2,673  

Asset-backed and other

     —     35     —     —     35  

Other debt securities:

                                

Direct bank purchase bonds

     —     —     1,960     —     1,960  

Other

     —     18     58     —     76  

Equity securities

     8     —     —     —     8  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total securities available for sale

     8     13,791     2,018     —     15,817  

Other assets:

                                

Interest rate hedging contracts

     —     8     —     —     8  

Other derivative contracts

     —     1     1     —     2  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total other assets

     —     9     1     —     10  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total assets

   $ 10   $ 14,871   $ 2,290   $ (493 ) $ 16,678  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Percentage of Total

     — %   89 %   14 %   (3 )%   100 %

Percentage of Total Company Assets

     — %   14 %   2 %   — %   16 %

Liabilities

                                

Trading account liabilities:

                                

Interest rate derivative contracts

   $ 3   $ 606   $ —   $ (379 ) $ 230  

Commodity derivative contracts

     —     53     8     (33 )   28  

Foreign exchange derivative contracts

     1     26     2     (11 )   18  

Equity derivative contracts

     —     —     254     —     254  

Securities sold, not yet purchased

     —     10     —     —     10  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total trading account liabilities

     4     695     264     (423 )   540  

Other liabilities:

                                

FDIC clawback liability

     —     —     96     —     96  

Interest rate hedging contracts

     —     13     —     —     13  

Other derivative contracts

     —     1     3     —     4  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total other liabilities

     —     14     99     —     113  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total liabilities

   $ 4   $ 709   $ 363   $ (423 ) $ 653  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Percentage of Total

     1 %   109 %   55 %   (65 )%   100 %

Percentage of Total Company Liabilities

     — %   1 %   — %   — %   1 %
(1)
Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.
Reconciliation of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs
For the Three Months Ended  
 
   June 30, 2014   June 30, 2013  
(Dollars in millions)   Trading
Assets		   Securities
Available
for Sale		   Other
Assets		   Trading
Liabilities		   Other
Liabilities		   Trading
Assets		   Securities
Available
for Sale		   Other
Assets		   Trading
Liabilities		   Other
Liabilities		  

Asset (liability) balance, beginning of period

   $ 273   $ 2,046   $ 1   $ (266 ) $ (103 ) $ 186   $ 1,592   $ 1   $ (187 ) $ (96 )

Total gains (losses) (realized/unrealized):

                                                              

Included in income before taxes

     35     —     1     (36 )   (2 )   (5 )   —     1     5     2  

Included in other comprehensive income

     —     7     —     —     —     —     18     —     —     —  

Purchases/additions

     —     14     —     —     —     1     192     —     —     —  

Sales

     —     —     —     (1 )   —     —     —     —     (1 )   —  

Settlements

     (5 )   (122 )   —     5     —     —     (40 )   —     —     —  
                                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Asset (liability) balance, end of period

   $ 303   $ 1,945   $ 2   $ (298 ) $ (105 ) $ 182   $ 1,762   $ 2   $ (183 ) $ (94 )
                                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                           

Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period

   $ 35   $ —   $ 1   $ (36 ) $ (2 ) $ (5 ) $ —   $ 1   $ 5   $ 2  


 

 
   For the Six Months Ended  
 
   June 30, 2014   June 30, 2013  
(Dollars in millions)   Trading
Assets		   Securities
Available
for Sale		   Other
Assets		   Trading
Liabilities		   Other
Liabilities		   Trading
Assets		   Securities
Available
for Sale		   Other
Assets		   Trading
Liabilities		   Other
Liabilities		  

Asset (liability) balance, beginning of period

   $ 271   $ 2,018   $ 1   $ (264 ) $ (99 ) $ 136   $ 1,499   $ —   $ (136 ) $ (95 )

Total gains (losses) (realized/unrealized):

                                                              

Included in income before taxes

     36     —     1     (37 )   (6 )   42     —     1     (43 )   1  

Included in other comprehensive income

     —     15     —     —     —     —     37     —     —     —  

Purchases/additions

     3     137     —     —     —     4     329     1     —     —  

Sales

     —     —     —     (4 )   —     —     (14 )   —     (4 )   —  

Settlements

     (7 )   (225 )   —     7     —     —     (89 )   —     —     —  
                                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Asset (liability) balance, end of period

   $ 303   $ 1,945   $ 2   $ (298 ) $ (105 ) $ 182   $ 1,762   $ 2   $ (183 ) $ (94 )
                                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                           

Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period

   $ 36   $ —   $ 1   $ (37 ) $ (6 ) $ 42   $ —   $ 1   $ (43 ) $ 1  
Significant Unobservable Inputs Level 3 Assets and Liabilities
  June 30, 2014  
(Dollars in millions)   Level 3 Fair
Value		   Valuation Technique(s)   Significant Unobservable Input(s)   Range of Inputs   Weighted
Average		  

Securities available for sale:

                            

Direct bank purchase bonds

   $ 1,897   Return on equity   Market-required return on capital     8.0 - 10.0 %   9.9 %

 

             Probability of default     0.0 - 8.0 %   0.5 %

 

             Loss severity     10.0 - 60.0 %   31.6 %

Other liabilities:

                            

FDIC clawback liability

   $ 102   Discounted cash flow   Probability of default     0.1 - 100.0 %   56.2 %

 

             Loss severity     0.0 - 100.0 %   40.0 %
Financial Assets Measured at Fair Value on Nonrecurring Basis

  Loss for the
Three Months
Ended
June 30, 2014		   Loss for the
Six Months
Ended
June 30, 2014		  
(Dollars in millions)   Fair
Value		   Level 1   Level 2   Level 3  

Loans:

                                      

Impaired loans

   $ 198   $ —   $ —   $ 198   $ (6 ) $ (35 )

Other assets:

                                      

OREO

     14     —     —     14     (1 )   (3 )
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 212   $ —   $ —   $ 212   $ (7 ) $ (38 )
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

 
   June 30, 2013    
    
  
 
   Loss for the
Three Months
Ended
June 30, 2013		   Loss for the
Six Months
Ended
June 30, 2013		  
(Dollars in millions)   Fair
Value		   Level 1   Level 2   Level 3  

Loans:

                                      

Impaired loans

   $ 91   $ —   $ —   $ 91   $ (11 ) $ (23 )

Other assets:

                                      

OREO

     37     —     —     37     (3 )   (6 )
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 128   $ —   $ —   $ 128   $ (14 ) $ (29 )
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           
Carrying Amount and Estimated Fair Value of Financial Instruments
  June 30, 2014  
(Dollars in millions)   Carrying
Amount		   Fair
Value		   Level 1   Level 2   Level 3  

Assets

                                

Cash and cash equivalents

   $ 4,329   $ 4,329   $ 4,329   $ —   $ —  

Securities held to maturity

     8,177     8,251     —     8,251     —  

Loans held for investment, net of allowance for loan losses(1)

     70,988     71,934     —     —     71,934  

FDIC indemnification asset

     101     11     —     —     11  

Other assets

     4     4     —     —     4  

Liabilities

    
 		    
 		    
 		    
 		    
 		  

Deposits

   $ 81,566   $ 81,713   $ —   $ 81,713   $ —  

Commercial paper and other short-term borrowings

     2,870     2,870     —     2,870     —  

Long-term debt

     6,995     7,167     —     7,167     —  

Off-Balance Sheet Instruments

    
 		    
 		    
 		    
 		    
 		  

Commitments to extend credit and standby and commercial letters of credit

   $ 290   $ 290   $ —   $ —   $ 290  
(1)
Excludes lease financing, net of related allowance.

 
   December 31, 2013  
(Dollars in millions)   Carrying
Amount		   Fair
Value		   Level 1   Level 2   Level 3  

Assets

                                

Cash and cash equivalents

   $ 6,203   $ 6,203   $ 6,203   $ —   $ —  

Securities held to maturity

     6,509     6,439     —     6,439     —  

Loans held for investment, net of allowance for loan losses(1)

     66,898     68,132     —     —     68,132  

FDIC indemnification asset

     141     95     —     —     95  

Other assets

     3     3     —     —     3  

Liabilities

    
 		    
 		    
 		    
 		    
 		  

Deposits

   $ 80,101   $ 80,228   $ —   $ 80,228   $ —  

Commercial paper and other short-term borrowings

     2,563     2,563     —     2,563     —  

Long-term debt

     6,547     6,709     —     6,709     —  

Off-Balance Sheet Instruments

    
 		    
 		    
 		    
 		    
 		  

Commitments to extend credit and standby and commercial letters of credit

   $ 273   $ 273   $ —   $ —   $ 273  
(1)
Excludes lease financing, net of related allowance.