Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Assets And Liabilities Recorded At Fair Value On A Recurring Basis

The following tables present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of June 30, 2012 and December 31, 2011.



(in millions)	Total		Level 1		Level 2		Level 3
June 30, 2012
Trading securities:
Deferred compensation plan assets	$	86	$	86	$	—	$	—
Residential mortgage-backed securities (a)	7		—		7		—
Other government-sponsored enterprise securities	2		—		2		—
State and municipal securities	43		—		43		—
Total trading securities	138		86		52		—
Investment securities available-for-sale:
U.S. Treasury and other U.S. government agency securities	20		20		—		—
Residential mortgage-backed securities (a)	9,564		—		9,564		—
State and municipal securities (b)	24		—		—		24
Corporate debt securities:
Auction-rate debt securities	1		—		—		1
Other corporate debt securities	46		—		46		—
Equity and other non-debt securities:
Auction-rate preferred securities	215		—		—		215
Money market and other mutual funds	70		70		—		—
Total investment securities available-for-sale	9,940		90		9,610		240
Derivative assets:
Interest rate contracts	593		—		593		—
Energy derivative contracts	190		—		190		—
Foreign exchange contracts	31		—		31		—
Warrants	3		—		—		3
Total derivative assets	817		—		814		3
Total assets at fair value	$	10,895	$	176	$	10,476	$	243
Derivative liabilities:
Interest rate contracts	$	247	$	—	$	247	$	—
Energy derivative contracts	189		—		189		—
Foreign exchange contracts	26		—		26		—
Total derivative liabilities	462		—		462		—
Deferred compensation plan liabilities	86		86		—		—
Total liabilities at fair value	$	548	$	86	$	462	$	—


(a)	Residential mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.


(b)	Primarily auction-rate securities.



(in millions)	Total		Level 1		Level 2		Level 3
December 31, 2011
Trading securities:
Deferred compensation plan assets	$	90	$	90	$	—	$	—
Residential mortgage-backed securities (a)	2		—		2		—
Other government-sponsored enterprise securities	9		—		9		—
State and municipal securities	12		—		12		—
Corporate debt securities	1		—		1		—
Other securities	1		1		—		—
Total trading securities	115		91		24		—
Investment securities available-for-sale:
U.S. Treasury and other U.S. government agency securities	20		20		—		—
Residential mortgage-backed securities (a)	9,512		—		9,512		—
State and municipal securities (b)	24		—		—		24
Corporate debt securities:
Auction-rate debt securities	1		—		—		1
Other corporate debt securities	46		—		46		—
Equity and other non-debt securities:
Auction-rate preferred securities	408		—		—		408
Money market and other mutual funds	93		93		—		—
Total investment securities available-for-sale	10,104		113		9,558		433
Derivative assets:
Interest rate contracts	602		—		602		—
Energy derivative contracts	115		—		115		—
Foreign exchange contracts	40		—		40		—
Warrants	3		—		—		3
Total derivative assets	760		—		757		3
Total assets at fair value	$	10,979	$	204	$	10,339	$	436
Derivative liabilities:
Interest rate contracts	$	253	$	—	$	253	$	—
Energy derivative contracts	115		—		115		—
Foreign exchange contracts	35		—		35		—
Other	6		—		—		6
Total derivative liabilities	409		—		403		6
Deferred compensation plan liabilities	90		90		—		—
Total liabilities at fair value	$	499	$	90	$	403	$	6


(a)	Residential mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.


(b)	Primarily auction-rate securities.

Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three- and six-month periods ended June 30, 2012 and 2011.



			Net Realized/Unrealized Gains (Losses)
	Balance at Beginning of Period		Recorded in Earnings				Recorded in Other Comprehensive Income (Pre-tax)											Balance at End of Period

(in millions)			Realized		Unrealized					Purchases		Sales			Settlements
Three Months Ended June 30, 2012
Investment securities available-for-sale:
State and municipal securities (a)	$	23	$	—	$	—	$	2	(b)	$	—	$	(1	)	$	—		$	24
Auction-rate debt securities	1		—		—		—			—		—			—			1
Auction-rate preferred securities (c)	320		6		—		7		(b)	—		(118		)	—			215
Total investment securities available-for-sale (c)	344		6		—		9		(b)	—		(119		)	—			240
Derivative assets:
Warrants (d)	3		2		1		—			—		(3		)	—			3

Three Months Ended June 30, 2011
Trading securities:
State and municipal securities	$	—	$	—	$	—	$	—		$	2	$	—		$	—		$	2
Investment securities available-for-sale:
State and municipal securities (a)	26		—		—		—			—		—			—			26
Auction-rate debt securities	1		—		—		—			—		—			—			1
Other corporate debt securities	1		—		—		—			—		—			—			1
Auction-rate preferred securities (c)	504		4		—		8		(b)	—		(79		)	—			437
Total investment securities available-for-sale (c)	532		4		—		8		(b)	—		(79		)	—			465
Derivative assets:
Warrants (d)	8		5		—		—			—		(5		)	—			8
Derivative liabilities:
Other	2		—		—		—			—		—			(1		)	1


(a)	Primarily auction-rate securities.


(b)	Recorded in "net unrealized gains (losses) on investment securities available-for-sale" in other comprehensive income.


(c)	Realized and unrealized gains and losses due to changes in fair value recorded in "net securities gains (losses)" on the consolidated statements of comprehensive income.


(d)	Realized and unrealized gains and losses due to changes in fair value recorded in "other noninterest income" on the consolidated statements of comprehensive income.



			Net Realized/Unrealized Gains (Losses)
	Balance at Beginning of Period		Recorded in Earnings					Recorded in Other Comprehensive Income (Pre-tax)												Balance at End of Period

(in millions)			Realized		Unrealized							Purchases		Sales			Settlements
Six Months Ended June 30, 2012
Investment securities available-for-sale:
State and municipal securities (a)	$	24	$	—	$	—		$	1		(b)	$	—	$	(1	)	$	—		$	24
Auction-rate debt securities	1		—		—			—				—		—			—			1
Auction-rate preferred securities (c)	408		11		—			11			(b)	—		(215		)	—			215
Total investment securities available-for-sale (c)	433		11		—			12			(b)	—		(216		)	—			240
Derivative assets:
Warrants (d)	3		3		1			—				—		(4		)	—			3
Derivative liabilities:
Other	6		—		—			—				—		—			(6		)	—

Six Months Ended June 30, 2011
Trading securities:
State and municipal securities	$	—	$	—	$	—		$	—			$	2	$	—		$	—		$	2
Other securities	1		—		—			—				—		(1		)	—			—
Total trading securities	1		—		—			—				2		(1		)	—			2
Investment securities available-for-sale:
State and municipal securities (a)	39		—		—			—				—		(13		)	—			26
Auction-rate debt securities	1		—		—			—				—		—			—			1
Other corporate debt securities	1		—		—			—				—		—			—			1
Auction-rate preferred securities (c)	570		7		—			(3		)	(b)	—		(137		)	—			437
Total investment securities available-for-sale (c)	611		7		—			(3		)	(b)	—		(150		)	—			465
Derivative assets:
Warrants (d)	7		7		1			—				—		(7		)	—			8
Derivative liabilities:
Other (c)	1		—		(1		)	—				—		—			(1		)	1


(a)	Primarily auction-rate securities.


(b)	Recorded in "net unrealized gains (losses) on investment securities available-for-sale" in other comprehensive income.


(c)	Realized and unrealized gains and losses due to changes in fair value recorded in "net securities gains (losses)" on the consolidated statements of comprehensive income.


(d)	Realized and unrealized gains and losses due to changes in fair value recorded in "other noninterest income" on the consolidated statements of comprehensive income.

Assets And Liabilities Recorded At Fair Value On A Nonrecurring Basis

All assets recorded at fair value on a nonrecurring basis were classified as Level 3 at June 30, 2012 and December 31, 2011 and are presented in the following table. No liabilities were recorded at fair value on a nonrecurring basis at June 30, 2012 and December 31, 2011.



(in millions)	Level 3
June 30, 2012
Loans:
Commercial	$	118
Real estate construction	58
Commercial mortgage	246
Lease financing	3
Total loans	425
Nonmarketable equity securities	1
Other real estate	15
Loan servicing rights	3
Total assets at fair value	$	444

December 31, 2011
Loans:
Commercial	$	164
Real estate construction	87
Commercial mortgage	302
Lease financing	3
International	8
Total loans	564
Nonmarketable equity securities	1
Other real estate	29
Loan servicing rights	3
Total assets at fair value	$	597

Quantitative Information About Level 3 Measurements

The following table presents quantitative information related to the significant unobservable inputs utilized in the Corporation's Level 3 recurring fair value measurements as of June 30, 2012. No liabilities were recorded as Level 3 at June 30, 2012.



			Discounted Cash Flow Model
			Unobservable Input
June 30, 2012	Fair Value (in millions)		Discount Rate	Workout Period (in years)
State and municipal securities (a)	$	24	6% - 9%	4 - 5
Equity and other non-debt securities:
Auction-rate preferred securities	215		3% - 7%	2 - 5


(a)	Primarily auction-rate securities.

Estimated Fair Values Of Financial Instruments Not Recorded At Fair Value In Their Entirety On A Recurring Basis

The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis on the Corporation’s consolidated balance sheets are as follows:



	Carrying Amount			Estimated Fair Value
(in millions)				Total			Level 1		Level 2		Level 3
June 30, 2012
Assets
Cash and due from banks	$	1,076		$	1,076		$	1,076	$	—	$	—
Interest-bearing deposits with banks	3,065			3,065			3,065		—		—
Loans held-for-sale	32			32			—		32		—
Total loans, net of allowance for loan losses (a)	43,325			43,592			—		—		43,592
Customers’ liability on acceptances outstanding	18			18			18		—		—
Nonmarketable equity securities (b)	14			27			—		—		27
Liabilities
Demand deposits (noninterest-bearing)	21,330			21,330			—		21,330		—
Interest-bearing deposits	22,013			22,013			—		22,013		—
Customer certificates of deposit	6,045			6,046			—		6,046		—
Total deposits	49,388			49,389			—		49,389		—
Short-term borrowings	83			83			83		—		—
Acceptances outstanding	18			18			18		—		—
Medium- and long-term debt	4,742			4,655			—		4,655		—
Credit-related financial instruments	(113		)	(113		)	—		—		(113		)

December 31, 2011
Assets
Cash and due from banks	$	982		$	982		$	982	$	—	$	—
Interest-bearing deposits with banks	2,574			2,574			2,574		—		—
Loans held-for-sale	34			34			—		34		—
Total loans, net of allowance for loan losses (a)	41,953			42,233			—		—		42,233
Customers’ liability on acceptances outstanding	22			22			22		—		—
Nonmarketable equity securities (b)	16			27			—		—		27
Liabilities
Demand deposits (noninterest-bearing)	19,764			19,764			—		19,764		—
Interest-bearing deposits	22,183			22,183			—		22,183		—
Customer certificates of deposit	5,808			5,809			—		5,809		—
Total deposits	47,755			47,756			—		47,756		—
Short-term borrowings	70			70			70		—		—
Acceptances outstanding	22			22			22		—		—
Medium- and long-term debt	4,944			4,794			—		4,794		—
Credit-related financial instruments	(101		)	(101		)	—		—		(101		)


(a)	Included $425 million and $564 million of impaired loans recorded at fair value on a nonrecurring basis at June 30, 2012 and December 31, 2011, respectively.


(b)	Included $1 million of nonmarketable equity securities recorded at fair value on a nonrecurring basis at both June 30, 2012 and December 31, 2011.

- Definition

Tabular disclosure of assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods. Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-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 Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 33

-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 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-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 820

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 6

-Footnote 4

-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 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19190-110258

+ Details