Investment Securities (Tables)

3 Months Ended

Mar. 31, 2012

Investment Securities [Abstract]

Investment Securities held to maturity and available for sale

	March 31, 2012										December 31, 2011
					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	$	2,559	$	29	$	—	$	—	$	2,588	$	2,560	$	35	$	—	$	—	$	2,595
Mortgage-backed securities
Residential
Agency		18,734		359		—		(17)		19,076		16,085		333		—		(3)		16,415
Non-agency non-prime		1		—		—		—		1		2		—		—		—		2
Commercial non-agency		4		—		—		(1)		3		4		—		—		(2)		2
Asset-backed securities
Collateralized debt obligations/ Collaterized loan obligations		35		13		—		—		48		52		13		—		(2)		63
Other		22		1		(5)		(1)		17		23		1		(6)		(1)		17
Obligations of state and political subdivisions		22		2		—		(1)		23		23		1		—		(1)		23
Obligations of foreign governments		8		—		—		—		8		7		—		—		—		7
Other debt securities		120		—		—		(22)		98		121		—		—		(29)		92
Total held-to-maturity	$	21,505	$	404	$	(5)	$	(42)	$	21,862	$	18,877	$	383	$	(6)	$	(38)	$	19,216
Available-for-sale (b)
U.S. Treasury and agencies	$	850	$	11	$	—	$	—	$	861	$	1,045	$	13	$	—	$	(1)	$	1,057
Mortgage-backed securities
Residential
Agency		40,276		1,017		—		(17)		41,276		39,337		981		—		(4)		40,314
Non-agency
Prime (c)		826		4		(61)		(36)		733		911		5		(63)		(50)		803
Non-prime		1,014		11		(213)		(6)		806		1,047		9		(247)		(7)		802
Commercial
Agency		131		7		—		—		138		133		7		—		—		140
Non-agency		41		1		—		(2)		40		42		2		—		(2)		42
Asset-backed securities
Collateralized debt obligations/ Collaterized loan obligations		179		33		(2)		(4)		206		180		31		(3)		(2)		206
Other		684		27		(5)		(10)		696		694		16		(5)		(24)		681
Obligations of state and political subdivisions		6,267		249		—		(7)		6,509		6,394		167		—		(22)		6,539
Obligations of foreign governments		6		—		—		—		6		6		—		—		—		6
Corporate debt securities		1,000		1		—		(116)		885		1,000		1		—		(174)		827
Perpetual preferred securities		370		33		—		(46)		357		379		25		—		(86)		318
Other investments		217		19		—		—		236		188		15		—		(1)		202
Total available-for-sale	$	51,861	$	1,413	$	(281)	$	(244)	$	52,749	$	51,356	$	1,272	$	(318)	$	(373)	$	51,937

(a) Held-to-maturity investment 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 investment 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 investment securities that have been determined to be other-than-temporarily impaired.

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

Amount of interest income from taxable and nontaxable investment securities

Three Months Ended March 31 (Dollars in Millions)	2012		2011
Taxable	$	397	$	351
Non-taxable		71		77
Total interest income from investment securities	$	468	$	428

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

Three Months Ended March 31 (Dollars in Millions)	2012		2011
Realized gains	$	9	$	1
Realized losses		—		—
Net realized gains (losses)	$	9	$	1
Income tax (benefit) on net realized gains (losses)	$	3	$	—

Accretable balance of structured investment securities and other investment securities

Three Months Ended March 31 (Dollars in Millions)	2012			2011
Balance at beginning of period	$	100		$	139
Accretion		(4	)		(5	)
Other (a)		8			(8	)
Balance at end of period	$	104		$	126

(a) 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

	2012								2011
Three Months Ended March 31 (Dollars in Millions)	Losses Recorded in Earnings		Other Gains (Losses) (b)			Total			Losses Recorded in Earnings			Other Gains (Losses) (b)			Total
Available-for-sale
Mortgage-backed securities
Non-agency residential
Prime (a)	$	(1)	$	(3	)	$	(4)		$	(1	)	$	1		$	—
Non-prime		(7)		3			(4)			(5	)		(6	)		(11	)
Commercial non-agency		—		(1	)		(1)			—			—			—
Other asset-backed securities		(1)		1			—			—			—			—
Total available-for-sale	$	(9)	$	—		$	(9	)	$	(6	)	$	(5	)	$	(11	)

(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 investment 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
March 31, 2012
Estimated lifetime prepayment rates		11	%		15	%		13	%		2	%		10	%		6	%
Lifetime probability of default rates		1			3			2			1			19			6
Lifetime loss severity rates		32			50			40			8			70			52
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

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

Three Months Ended March 31 (Dollars in Millions)	2012			2011
Balance at beginning of period	$	298		$	358
Additions to credit losses due to other-than-temporary impairments
Credit losses on securities not previously considered other-than-temporarily impaired		1			1
Decreases in expected cash flows on securities for which other-than-temporary impairment was previously recognized		8			5
Total other-than-temporary impairment on debt securities		9			6
Other changes in credit losses
Increases in expected cash flows		(6	)		(7	)
Realized losses (a)		(13	)		(17	)
Credit losses on security sales and securities expected to be sold		—			(1	)
Balance at end of period	$	288		$	339

(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	$	2,612	$	(17	)		$	11	$	—		$	2,623	$	(17	)
Non-agency non-prime (a)		—		—				1		—			1		—
Commercial non-agency		—		—				2		(1	)		2		(1	)
Asset-backed securities
Collateralized debt obligations/Collaterized loan obligations		—		—				6		—			6		—
Other		—		—				13		(6	)		13		(6	)
Obligations of state and political subdivisions		—		—				9		(1	)		9		(1	)
Other debt securities		—		—				99		(22	)		99		(22	)
Total held-to-maturity	$	2,612	$	(17	)		$	141	$	(30	)	$	2,753	$	(47	)
Available-for-sale
U.S. Treasury and agencies	$	33	$	—			$	—	$	—		$	33	$	—
Mortgage-backed securities
Residential
Agency		3,779		(16	)			572		(1	)		4,351		(17	)
Non-agency (a)
Prime (b)		84		(5	)			599		(92	)		683		(97	)
Non-prime		36		(3	)			684		(216	)		720		(219	)
Commercial non-agency		20		(2	)			1		—			21		(2	)
Asset-backed securities
Collateralized debt obligations/Collaterized loan obligations		15		(2	)			10		(4	)		25		(6	)
Other		23		(2	)			51		(13	)		74		(15	)
Obligations of state and political subdivisions		123		(1	)			183		(6	)		306		(7	)
Obligations of foreign governments		6		—				—		—			6		—
Corporate debt securities		56		—				637		(116	)		693		(116	)
Perpetual preferred securities		95		(2	)			186		(44	)		281		(46	)
Other investments		—		—				3		—			3		—
Total available-for-sale	$	4,270	$	(33	)		$	2,926	$	(492	)	$	7,196	$	(525	)

(a) The Company has $316 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 the 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 March 31, 2012 (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	$	182	$	183		.4		1.72	%	$	50	$	50		.8		.61	%
Maturing after one year through five years		531		536		1.8		.94			2,449		2,478		1.9		1.00
Maturing after five years through ten years		50		54		7.9		4.12			–		–		–		–
Maturing after ten years		87		88		11.0		2.81			60		60		12.9		2.08
Total	$	850	$	861		2.8		1.48	%	$	2,559	$	2,588		2.2		1.02	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	1,081	$	1,081		.7		2.13	%	$	160	$	160		.5		1.54	%
Maturing after one year through five years		34,167		35,028		3.3		2.62			15,729		16,009		3.8		2.44
Maturing after five years through ten years		6,152		6,025		6.8		2.31			2,331		2,380		5.6		1.66
Maturing after ten years		888		859		12.4		1.81			519		531		12.0		1.43
Total	$	42,288	$	42,993		3.9		2.54	%	$	18,739	$	19,080		4.2		2.31	%
Asset-Backed Securities (a)
Maturing in one year or less	$	25	$	35		.6		15.32	%	$	11	$	14		.9		1.30	%
Maturing after one year through five years		195		213		3.8		10.81			17		15		3.6		.93
Maturing after five years through ten years		634		646		8.0		3.37			9		11		7.6		.86
Maturing after ten years		9		8		11.6		12.61			20		25		22.4		.96
Total	$	863	$	902		6.9		5.49	%	$	57	$	65		10.5		1.00	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	86	$	86		.5		1.82	%	$	–	$	–		.4		8.31	%
Maturing after one year through five years		4,431		4,611		4.0		6.77			7		7		3.5		7.13
Maturing after five years through ten years		1,580		1,648		5.7		6.82			1		2		6.6		7.68
Maturing after ten years		170		164		19.7		8.05			14		14		14.9		5.54
Total	$	6,267	$	6,509		4.8		6.75	%	$	22	$	23		11.0		6.14	%
Other Debt Securities
Maturing in one year or less	$	116	$	110		.2		6.24	%	$	5	$	4		.6		1.31	%
Maturing after one year through five years		–		–		–		–			94		89		4.0		1.38
Maturing after five years through ten years		25		24		5.6		6.38			29		13		8.6		1.26
Maturing after ten years		1,148		997		27.6		3.63			–		–		–		–
Total	$	1,289	$	1,131		24.7		3.92	%	$	128	$	106		4.9		1.35	%
Other Investments	$	304	$	353		11.5		3.47	%	$	–	$	–		–		–	%
Total investment securities (d)	$	51,861	$	52,749		4.6		3.13	%	$	21,505	$	21,862		4.0		2.15	%

(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 politcal 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 politicial 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 5.2 years at December 31, 2011, with a corresponding weighted-average yield of 3.19 percent. The weighted-average maturity of the held-to-maturity investment securities was 3.9 years at December 31, 2011, with a corresponding weighted-average yield of 2.21 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 investment securities are computed based on amortized cost balances. Average yield and maturity calculations exclude equity securities that have no stated yield or maturity.

	March 31, 2012					December 31, 2011
(Dollars in Millions)	Amortized Cost		Percent of Total			Amortized Cost		Percent of Total
U.S. Treasury and agencies	$	3,409		4.6	%	$	3,605		5.1	%
Mortgage-backed securities		61,027		83.2			57,561		82.0
Asset-backed securities		920		1.3			949		1.4
Obligations of state and political subdivisions		6,289		8.6			6,417		9.1
Other debt securities and investments		1,721		2.3			1,701		2.4
Total investment securities	$	73,366		100.0	%	$	70,233		100.0	%