Investment Securities (Tables)

12 Months Ended

Dec. 31, 2011

Investment Securities [Abstract]

Investment Securities held to maturity and Available for sale

	2011												2010
					Unrealized Losses												Unrealized Losses
(Dollars in Millions)	Amortized Cost		Unrealized Gains		Other- than- Temporary (d)			Other (e)			Fair Value		Amortized Cost		Unrealized Gains		Other- than- Temporary (d)			Other (e)			Fair Value
Held-to-maturity (a)
U.S. Treasury and agencies	$	2,560	$	35	$	–		$	–		$	2,595	$	165	$	–	$	–		$	(1	)	$	164
Mortgage-backed securities
Residential
Agency		16,085		333		–			(3	)		16,415		847		–		–			(4	)		843
Non-agency
non-prime		2		–		–			–			2		3		–		–			–			3
Commercial
non-agency		4		–		–			(2	)		2		10		–		–			(5	)		5
Asset-backed securities
Collateralized debt obligations/Collaterized loan obligations		52		13		–			(2	)		63		157		13		–			(18	)		152
Other		23		1		(6	)		(1	)		17		127		–		(1	)		(7	)		119
Obligations of state and political subdivisions		23		1		–			(1	)		23		27		1		–			(1	)		27
Obligations of foreign governments		7		–		–			–			7		7		–		–			–			7
Other debt securities		121		–		–			(29	)		92		126		–		–			(27	)		99
Total held-to-maturity	$	18,877	$	383	$	(6	)	$	(38	)	$	19,216	$	1,469	$	14	$	(1	)	$	(63	)	$	1,419
Available-for-sale (b)
U.S. Treasury and agencies	$	1,045	$	13	$	–		$	(1	)	$	1,057	$	2,559	$	6	$	–		$	(28	)	$	2,537
Mortgage-backed securities
Residential
Agency		39,337		981		–			(4	)		40,314		37,144		718		–			(159	)		37,703
Non-agency
Prime (c)		911		5		(63	)		(50	)		803		1,216		12		(86	)		(39	)		1,103
Non-prime		1,047		9		(247	)		(7	)		802		1,193		15		(243	)		(18	)		947
Commercial
Agency		133		7		–			–			140		194		5		–			(2	)		197
Non-agency		42		2		–			(2	)		42		47		3		–			–			50
Asset-backed securities
Collateralized debt obligations/Collaterized loan obligations		180		31		(3	)		(2	)		206		204		23		(2	)		(1	)		224
Other		694		16		(5	)		(24	)		681		709		23		(3	)		(9	)		720
Obligations of state and political subdivisions		6,394		167		–			(22	)		6,539		6,835		3		–			(421	)		6,417
Obligations of foreign governments		6		–		–			–			6		6		–		–			–			6
Corporate debt securities		1,000		1		–			(174	)		827		1,109		–		–			(151	)		958
Perpetual preferred securities		379		25		–			(86	)		318		456		41		–			(49	)		448
Other investments		188		15		–			(1	)		202		183		17		–			(1	)		199
Total available-for-sale	$	51,356	$	1,272	$	(318	)	$	(373	)	$	51,937	$	51,855	$	866	$	(334	)	$	(878	)	$	51,509

(a) Held-to-maturity securities are carried at historical cost adjusted for amortization of premiums and accretion of discounts and credit-related other-than-temporary impairment.

(b) Available-for-sale securities are carried at fair value with unrealized net gains or losses reported within accumulated other comprehensive income (loss) in shareholders’ equity.

(c) Prime securities are those designated as such by the issuer or those with underlying asset characteristics and/or credit enhancements consistent with securities designated as prime.

(d) Represents impairment not related to credit for those securities that have been determined to be other-than-temporarily impaired.

(e) Represents unrealized losses on securities that have not been determined to be other-than-temporarily impaired.

Amount of interest income from taxable and nontaxable investment securities

Year Ended December 31 (Dollars in Millions)	2011		2010		2009
Taxable	$	1,517	$	1,292	$	1,295
Non-taxable		303		309		311
Total interest income from investment securities	$	1,820	$	1,601	$	1,606

Amount of gross gains and losses realized through sales of available for sale investment securities

Year Ended December 31 (Dollars in Millions)	2011			2010			2009
Realized gains	$	11		$	21		$	150
Realized losses		(7	)		(8	)		(3	)
Net realized gains (losses)	$	4		$	13		$	147
Income tax (benefit) on net realized gains (losses)	$	2		$	5		$	56

Accretable balance of structured investment securities and other investment securities

Year Ended December 31 (Dollars in Millions)	2011			2010			2009
Balance at beginning of period	$	139		$	292		$	349
Impact of other-than-temporary impairment accounting change		–			–			(124	)
Adjusted balance at beginning of period		139			292			225
Additions (a)		–			66			127
Disposals (b)		–			(219	)		–
Accretion		(17	)		(29	)		(6	)
Other (c)		(22	)		29			(54	)
Balance at end of period	$	100		$	139		$	292

(a) Primarily resulted from the exchange of certain SIVs for the underlying investment securities.

(b) Primarily resulted from the sale of securities covered under loss sharing agreements with the FDIC and the exchange of certain SIVs for the underlying investment securities.

(c) Primarily represents changes in projected future cash flows related to variable rates on certain investment securities.

Summary of other than temporary impairment by investment category

	2011									2010									2009
Year Ended December 31 (Dollars in Millions)	Losses Recorded in Earnings			Other Gains (Losses) (b)			Total			Losses Recorded in Earnings			Other Gains (Losses) (b)			Total			Losses Recorded in Earnings			Other Gains (Losses) (b)			Total
Held-to-maturity
Other asset-backed securities	$	–		$	–		$	–		$	(2	)	$	–		$	(2	)	$	–		$	–		$	–
Total held-to-maturity	$	–		$	–		$	–		$	(2	)	$	–		$	(2	)	$	–		$	–		$	–
Available-for-sale
Mortgage-backed securities
Non-agency residential
Prime (a)	$	(3	)	$	(5	)	$	(8	)	$	(5	)	$	(10	)	$	(15	)	$	(13	)	$	(182	)	$	(195	)
Non-prime		(24	)		(23	)		(47	)		(63	)		(60	)		(123	)		(151	)		(304	)		(455	)
Commercial non-agency		–			–			–			–			–			–			(1	)		(1	)		(2	)
Asset-backed securities
Collateralized debt obligations/Collaterized loan obligations		–			–			–			(6	)		(1	)		(7	)		(17	)		(3	)		(20	)
Other		(4	)		3			(1	)		(13	)		4			(9	)		(186	)		88			(98	)
Obligations of state and political subdivisions		(4	)		–			(4	)		–			–			–			–			–			–
Corporate debt securities		–			–			–			–			–			–			(7	)		–			(7	)
Perpetual preferred securities		–			–			–			(1	)		–			(1	)		(223	)		–			(223	)
Other debt securities		–			–			–			(1	)		1			–			–			–			–
Total available-for-sale	$	(35	)	$	(25	)	$	(60	)	$	(89	)	$	(66	)	$	(155	)	$	(598	)	$	(402	)	$	(1,000	)

(a) Prime securities are those designated as such by the issuer or those with underlying asset characteristics and/or credit enhancements consistent with securities designated as prime.

(b) Represents the non-credit portion of other-than-temporary impairment recorded in other comprehensive income for securities determined to be other-than-temporarily impaired during the period.

Summary of ranges used in valuation of non-agency mortgage-backed securities other than temporarily impaired

	Prime									Non-Prime
	Minimum			Maximum			Average			Minimum			Maximum			Average
December 31, 2011
Estimated lifetime prepayment rates		4	%		15	%		14	%		2	%		11	%		6	%
Lifetime probability of default rates		2			9			3			1			20			5
Lifetime loss severity rates		40			50			46			8			70			52
December 31, 2010
Estimated lifetime prepayment rates		4	%		14	%		13	%		1	%		12	%		6	%
Lifetime probability of default rates		3			9			3			1			20			8
Lifetime loss severity rates		40			55			41			37			71			55

Credit losses on non-agency mortgage backed and other debt securities

Year Ended December 31 (Dollars in Millions)	2011			2010			2009
Balance at beginning of period	$	358		$	335		$	299
Additions to credit losses due to other-than-temporary impairments
Credit losses on securities not previously considered other-than-temporarily impaired		7			19			94
Decreases in expected cash flows on securities for which other-than-temporary impairment was previously recognized		28			72			148
Total other-than-temporary impairment on debt securities		35			91			242
Other changes in credit losses
Increases in expected cash flows		(21	)		(26	)		(49	)
Realized losses (a)		(73	)		(60	)		(30	)
Credit losses on security sales and securities expected to be sold		(1	)		–			(127	)
Other		–			18			–
Balance at end of period	$	298		$	358		$	335

(a) Primarily represents principal losses allocated to mortgage and asset-backed securities in the Company’s portfolio under the terms of the securitization transaction documents.

Gross unrealized losses and fair value of the Company's investments with unrealized losses

	Less Than 12 Months					12 Months or Greater						Total
(Dollars in Millions)	Fair Value		Unrealized Losses				Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Held-to-maturity
Mortgage-backed securities
Residential
Agency	$	697	$	(3	)		$	–	$	–		$	697	$	(3	)
Non-agency non-prime (a)		–		–				1		–			1		–
Commercial non-agency		–		–				3		(2	)		3		(2	)
Asset-backed securities
Collateralized debt obligations/Collaterized loan obligations		–		–				29		(2	)		29		(2	)
Other		–		–				14		(7	)		14		(7	)
Obligations of state and political subdivisions		–		–				9		(1	)		9		(1	)
Other debt securities		–		–				92		(29	)		92		(29	)
Total held-to-maturity	$	697	$	(3	)		$	148	$	(41	)	$	845	$	(44	)
Available-for-sale
U.S. Treasury and agencies	$	22	$	(1	)		$	–	$	–		$	22	$	(1	)
Mortgage-backed securities
Residential
Agency		2,689		(3	)			676		(1	)		3,365		(4	)
Non-agency (a)
Prime (b)		102		(6	)			649		(107	)		751		(113	)
Non-prime		47		(4	)			685		(250	)		732		(254	)
Commercial non-agency		21		(2	)			1		–			22		(2	)
Asset-backed securities
Collateralized debt obligations/Collaterized loan obligations		14		(2	)			9		(3	)		23		(5	)
Other		497		(14	)			116		(15	)		613		(29	)
Obligations of state and political subdivisions		73		–				879		(22	)		952		(22	)
Obligations of foreign governments		6		–				–		–			6		–
Corporate debt securities		156		(1	)			580		(173	)		736		(174	)
Perpetual preferred securities		78		(19	)			162		(67	)		240		(86	)
Other investments		1		–				2		(1	)		3		(1	)
Total available-for-sale	$	3,706	$	(52	)		$	3,759	$	(639	)	$	7,465	$	(691	)

(a) The Company has $367 million of unrealized losses on residential non-agency mortgage-backed securities. Credit-related other-than-temporary impairment on these securities may occur if there is further deterioration in underlying collateral pool performance. Borrower defaults may increase if current economic conditions persist or worsen. Additionally, further deterioration in home prices may increase the severity of projected losses.

(b) Prime securities are those designated as such by the issuer or those with underlying asset characteristics and/or credit enhancements consistent with securities designated as prime.

Investment Securities

	Available-for-Sale									Held-to-Maturity
At December 31, 2011 (Dollars in Millions)	Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (e)			Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (e)
U.S. Treasury and Agencies
Maturing in one year or less	$	394	$	395		.3		2.06	%	$	–	$	–		–		–	%
Maturing after one year through five years		541		547		2.0		.93			2,500		2,535		2.2		.99
Maturing after five years through ten years		48		53		8.2		4.25			–		–		–		–
Maturing after ten years		62		62		11.1		3.15			60		60		13.2		1.87
Total	$	1,045	$	1,057		2.2		1.64	%	$	2,560	$	2,595		2.4		1.01	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	672	$	673		.6		2.47	%	$	220	$	218		.5		1.55	%
Maturing after one year through five years		32,056		32,917		3.5		2.74			13,940		14,230		3.7		2.53
Maturing after five years through ten years		6,975		6,775		7.0		2.24			1,412		1,440		5.6		1.68
Maturing after ten years		1,767		1,736		12.7		1.74			519		531		11.4		1.47
Total	$	41,470	$	42,101		4.4		2.61	%	$	16,091	$	16,419		4.0		2.40	%
Asset-Backed Securities (a)
Maturing in one year or less	$	13	$	22		.2		9.71	%	$	2	$	2		.1		1.01	%
Maturing after one year through five years		151		154		3.4		12.53			34		36		2.5		1.01
Maturing after five years through ten years		693		694		7.9		3.08			17		18		6.6		.85
Maturing after ten years		17		17		12.7		11.10			22		24		22.5		1.01
Total	$	874	$	887		7.1		4.97	%	$	75	$	80		9.3		.98	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	99	$	99		.7		1.66	%	$	–	$	–		.5		8.32	%
Maturing after one year through five years		3,981		4,087		4.1		6.76			5		6		3.1		8.47
Maturing after five years through ten years		2,008		2,063		5.7		6.79			3		3		5.8		5.27
Maturing after ten years		306		290		21.1		7.48			15		14		15.1		5.51
Total	$	6,394	$	6,539		5.4		6.73	%	$	23	$	23		11.0		6.16	%
Other Debt Securities
Maturing in one year or less	$	69	$	54		.4		5.74	%	$	1	$	1		.3		.84	%
Maturing after one year through five years		–		–		–		–			99		85		4.1		1.42
Maturing after five years through ten years		25		22		5.8		6.38			28		13		8.8		1.18
Maturing after ten years		1,201		968		29.4		3.87			–		–		–		–
Total	$	1,295	$	1,044		27.4		4.02	%	$	128	$	99		5.1		1.36	%
Other Investments	$	278	$	309		13.1		3.87	%	$	–	$	–		–		–	%
Total investment securities (d)	$	51,356	$	51,937		5.2		3.19	%	$	18,877	$	19,216		3.9		2.21	%

(a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities anticipating future prepayments.

(b) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, yield to maturity if purchased at par or a discount.

(c) Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and contractual maturity for securities with a fair value equal to or below par.

(d) The weighted-average maturity of the available-for-sale investment securities was 7.4 years at December 31, 2010, with a corresponding weighted-average yield of 3.41 percent. The weighted-average maturity of the held-to-maturity investment securities was 6.3 years at December 31, 2010, with a corresponding weighted-average yield of 2.07 percent.

(e) Average yields are presented on a fully-taxable equivalent basis under a tax rate of 35 percent. Yields on available-for-sale and held-to-maturity securities are computed based on amortized cost balances. Average yield and maturity calculations exclude equity securities that have no stated yield or maturity.

	2011					2010
At December 31, (Dollars in Millions)	Amortized Cost		Percent of Total			Amortized Cost		Percent of Total
U.S. Treasury and agencies	$	3,605		5.1	%	$	2,724		5.1	%
Mortgage-backed securities		57,561		82.0			40,654		76.2
Asset-backed securities		949		1.4			1,197		2.3
Obligations of state and political subdivisions		6,417		9.1			6,862		12.9
Other debt securities and investments		1,701		2.4			1,887		3.5
Total investment securities	$	70,233		100.0	%	$	53,324		100.0	%