Fair Values of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2012

Fair Values of Assets and Liabilities [Abstract]

Valuation assumption ranges for Level 3 available-for-sale investment securities

	Minimum			Maximum			Average
Residential Prime Non-Agency Mortgage-Backed Securities (a)
Estimated lifetime prepayment rates		3	%		23	%		13	%
Lifetime probability of default rates		–			14			2
Lifetime loss severity rates		9			80			40
Discount margin		3			30			7
Residential Non-Prime Non-Agency Mortgage-Backed Securities
Estimated lifetime prepayment rates		1	%		13	%		6	%
Lifetime probability of default rates		–			20			7
Lifetime loss severity rates		8			88			54
Discount margin		4			40			10
Commercial Non-Agency Mortgage-Backed Securities
Estimated lifetime prepayment rates		–	%		9	%		2	%
Lifetime probability of default rates		3			15			7
Lifetime loss severity rates		50			80			57
Discount margin		3			30			14
Collateralized Debt/Loan Obligation Asset-Backed Securities
Estimated lifetime prepayment rates		–	%		16	%		4	%
Lifetime probability of default rates		2			28			6
Lifetime loss severity rates		30			90			50
Discount margin		1			98			15
Other Asset-Backed Securities
Estimated lifetime prepayment rates		2	%		10	%		4	%
Lifetime probability of default rates		–			38			14
Lifetime loss severity rates		40			100			75
Discount margin		3			40			17

(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.

Valuation assumption ranges for MSRs

	Minimum			Maximum			Average
Expected prepayment		14	%		32	%		19	%
Discount rate		10			14			10

Valuation assumption ranges for derivative commitments

	Minimum			Maximum			Average
Expected loan close rate		26	%		100	%		77	%
Inherent MSR value (basis points per loan)		63			204			113

Estimated fair values of financial instruments

	March 31, 2012										December 31, 2011
	Carrying Amount		Fair Value								Carrying Amount		Fair Value
(Dollars in Millions)			Level 1		Level 2		Level 3		Total
Financial Assets
Cash and due from banks	$	9,561	$	9,561	$	—	$	—	$	9,561	$	13,962	$	13,962
Federal funds sold and securities purchased under resale agreements		124		—		124		—		124		64		64
Investment securities held-to-maturity		21,505		2,447		19,321		94		21,862		18,877		19,216
Mortgages held for sale (a)		2		—		—		2		2		3		3
Other loans held for sale		196		—		—		197		197		228		228
Loans		207,274		—		—		209,026		209,026		205,082		206,646
Other financial instruments		6,105		—		1,268		4,885		6,153		6,095		6,140
Financial Liabilities
Deposits		233,553		—		233,930		—		233,930		230,885		231,184
Short-term borrowings		27,454		—		27,594		—		27,594		30,468		30,448
Long-term debt		30,395		—		30,947		—		30,947		31,953		32,664

(a) Balance excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.

Balances of assets and liabilities measured at fair value on a recurring basis

(Dollars in Millions)	Level 1		Level 2		Level 3		Netting			Total
March 31, 2012
Available-for-sale securities
U.S. Treasury and agencies	$	543	$	318	$	—	$	—		$	861
Mortgage-backed securities
Residential
Agency		—		41,276		—		—			41,276
Non-agency
Prime		—		—		733		—			733
Non-prime		—		—		806		—			806
Commercial
Agency		—		138		—		—			138
Non-agency		—		—		40		—			40
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		—		87		119		—			206
Other		—		584		112		—			696
Obligations of state and political subdivisions		—		6,509		—		—			6,509
Obligations of foreign governments		—		6		—		—			6
Corporate debt securities		—		876		9		—			885
Perpetual preferred securities		—		357		—		—			357
Other investments		225		11		—		—			236
Total available-for-sale		768		50,162		1,819		—			52,749
Mortgage loans held for sale		—		5,062		—		—			5,062
Mortgage servicing rights		—		—		1,737		—			1,737
Derivative assets		—		587		1,146		(304	)		1,429
Other assets		119		630		—		—			749
Total	$	887	$	56,441	$	4,702	$	(304	)	$	61,726
Derivative liabilities	$	—	$	2,197	$	57	$	(1,798	)	$	456
Other liabilities		114		476		—		—			590
Total	$	114	$	2,673	$	57	$	(1,798	)	$	1,046
December 31, 2011
Available-for-sale securities
U.S. Treasury and agencies	$	562	$	495	$	—	$	—		$	1,057
Mortgage-backed securities
Residential
Agency		—		40,314		—		—			40,314
Non-agency
Prime		—		—		803		—			803
Non-prime		—		—		802		—			802
Commercial
Agency		—		140		—		—			140
Non-agency		—		—		42		—			42
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		—		86		120		—			206
Other		—		564		117		—			681
Obligations of state and political subdivisions		—		6,539		—		—			6,539
Obligations of foreign governments		—		6		—		—			6
Corporate debt securities		—		818		9		—			827
Perpetual preferred securities		—		318		—		—			318
Other investments		193		9		—		—			202
Total available-for-sale		755		49,289		1,893		—			51,937
Mortgage loans held for sale		—		6,925		—		—			6,925
Mortgage servicing rights		—		—		1,519		—			1,519
Derivative assets		—		632		1,281		(294	)		1,619
Other assets		146		467		—		—			613
Total	$	901	$	57,313	$	4,693	$	(294	)	$	62,613
Derivative liabilities	$	—	$	2,501	$	53	$	(1,889	)	$	665
Other liabilities		75		538		—		—			613
Total	$	75	$	3,039	$	53	$	(1,889	)	$	1,278

Changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

(Dollars in Millions)	Beginning of Period Balance		Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)			Purchases		Sales			Principal Payments			Issuances			Settlements			End of Period Balance		Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period
2012
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime	$	803	$	—		$	16		$	—	$	(48	)	$	(38	)	$	—		$	—		$	733	$	13
Non-prime		802		(3	)		37			—		—			(30	)		—			—			806		37
Commercial non-agency		42		—			—			—		—			(2	)		—			—			40		—
Asset-backed securities
Collateralized debt obligations/ Collateralized loan obligations		120		5			(1	)		—		—			(5	)		—			—			119		(1	)
Other		117		3			1			—		—			(9	)		—			—			112		1
Corporate debt securities		9		—			—			—		—			—			—			—			9		—
Total available-for-sale		1,893		5	(a)		53	(d)		—		(48	)		(84	)		—			—			1,819		50
Mortgage servicing rights		1,519		(56	)(b)		—			13		—			—			261	(e)		—			1,737		(56	)(b)
Net derivative assets and liabilities		1,228		331	(c)		—			—		—			—			—			(470	)		1,089		(461	)(f)
2011
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime	$	1,103	$	2		$	46		$	—	$	(115	)	$	(73	)	$	—		$	—		$	963	$	38
Non-prime		947		—			51			—		(12	)		(39	)		—			—			947		51
Commercial non-agency		50		—			1			—		—			(1	)		—			—			50		—
Asset-backed securities
Collateralized debt obligations/ Collateralized loan obligations		135		4			9			—		—			(6	)		—			—			142		9
Other		133		4			3			—		—			(7	)		—			—			133		3
Corporate debt securities		9		—			—			—		—			—			—			—			9		—
Total available-for-sale		2,377		10	(g)		110	(d)		—		(127	)		(126	)		—			—			2,244		101
Mortgage servicing rights		1,837		16	(b)		—			7		—			—			213	(e)		—			2,073		16	(b)
Net derivative assets and liabilities		851		43	(h)		—			—		(1	)		—			—			(146	)		747		(139	)(i)

(a) Approximately $(9) million included in securities gains (losses) and $14 million included in interest income.

(b) Included in mortgage banking revenue.

(c) Approximately $(22) million included in other noninterest income and $353 million included in mortgage banking revenue.

(d) Included in changes in unrealized gains and losses on securities available-for-sale.

(e) Represents MSRs capitalized during the period.

(f) Approximately $(103) million included in other noninterest income and $(358) million included in mortgage banking revenue.

(g) Approximately $(6) million included in securities gains (losses) and $16 million included in interest income.

(h) Approximately $(5) million included in other noninterest income and $48 million included in mortgage banking revenue.

(i) Approximately $(129) million included in other noninterest income and $(10) million included in mortgage banking revenue.

Adjusted carrying values for assets measured at fair value on a nonrecurring basis

	March 31, 2012								December 31, 2011
(Dollars in Millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Loans (a)	$	—	$	—	$	58	$	58	$	—	$	—	$	168	$	168
Other assets (b)		—		—		138		138		—		—		310		310

(a) Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off.

(b) Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.

Losses recognized related to nonrecurring fair value measurements of individual assets or portfolios

(Dollars in Millions)	2012		2011
Loans (a)	$	18	$	15
Other assets (b)		47		87

(a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off.

(b) Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.

Difference between the aggregate fair value carrying amount of MLFHS and aggregate unpaid principal amount

	March 31, 2012							December 31, 2011
(Dollars in Millions)	Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal			Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal
Total loans	$	5,062	$	4,882	$	180		$	6,925	$	6,635	$	290
Nonaccrual loans		10		15		(5	)		10		15		(5	)
Loans 90 days or more past due		2		3		(1	)		3		4		(1	)