Investment Securities (Tables)

6 Months Ended

Jun. 30, 2012

Investment Securities [Abstract]

Investment Securities held to maturity and available for sale

	June 30, 2012												December 31, 2011
					Unrealized Losses												Unrealized Losses
(Dollars in Millions)	Amortized Cost		Unrealized Gains		Other-than- Temporary (e)			Other (f)			Fair Value		Amortized Cost		Unrealized Gains		Other-than- Temporary (e)			Other (f)			Fair Value
Held-to-maturity (a)
U.S. Treasury and agencies	$	2,558	$	27	$	—		$	—		$	2,585	$	2,560	$	35	$	—		$	—		$	2,595
Mortgage-backed securities
Residential
Agency		31,873		439		—			(8	)		32,304		16,085		333		—			(3	)		16,415
Non-agency non-prime (d)		1		—		—			—			1		2		—		—			—			2
Commercial non-agency		4		—		—			(1	)		3		4		—		—			(2	)		2
Asset-backed securities
Collateralized debt obligations/ Collaterized loan obligations		31		13		—			—			44		52		13		—			(2	)		63
Other		20		2		(5	)		(1	)		16		23		1		(6	)		(1	)		17
Obligations of state and political subdivisions		21		2		—			—			23		23		1		—			(1	)		23
Obligations of foreign governments		8		—		—			—			8		7		—		—			—			7
Other debt securities		119		—		—			(22	)		97		121		—		—			(29	)		92
Total held-to-maturity	$	34,635	$	483	$	(5	)	$	(32	)	$	35,081	$	18,877	$	383	$	(6	)	$	(38	)	$	19,216
Available-for-sale (b)
U.S. Treasury and agencies	$	786	$	14	$	—		$	—		$	800	$	1,045	$	13	$	—		$	(1	)	$	1,057
Mortgage-backed securities
Residential
Agency		27,255		826		—			(2	)		28,079		39,337		981		—			(4	)		40,314
Non-agency
Prime (c)		785		5		(51	)		(26	)		713		911		5		(63	)		(50	)		803
Non-prime (d)		976		13		(188	)		(5	)		796		1,047		9		(247	)		(7	)		802
Commercial
Agency		124		8		—			—			132		133		7		—			—			140
Non-agency		39		1		(1	)		(2	)		37		42		2		—			(2	)		42
Asset-backed securities
Collateralized debt obligations/ Collaterized loan obligations		128		21		(1	)		(4	)		144		180		31		(3	)		(2	)		206
Other		681		28		(4	)		(9	)		696		694		16		(5	)		(24	)		681
Obligations of state and political subdivisions		6,215		298		—			(3	)		6,510		6,394		167		—			(22	)		6,539
Obligations of foreign governments		6		—		—			—			6		6		—		—			—			6
Corporate debt securities		951		—		—			(120	)		831		1,000		1		—			(174	)		827
Perpetual preferred securities		333		23		—			(25	)		331		379		25		—			(86	)		318
Other investments		220		18		—			—			238		188		15		—			(1	)		202
Total available-for-sale	$	38,499	$	1,255	$	(245	)	$	(196	)	$	39,313	$	51,356	$	1,272	$	(318	)	$	(373	)	$	51,937

(a) Held-to-maturity investment securities are carried at historical cost or at fair value at the time of transfer from the available-for-sale to held-to-maturity category, 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 at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads). When the Company determines the designation, prime securities typically have a weighted average credit score of 725 or higher and a loan-to-value of 80 percent or lower; however, other pool characteristics may result in designations that deviate from these credit score and loan-to-value thresholds.

(d) Includes all securities not meeting the conditions to be designated as prime.

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

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

Amount of interest income from taxable and non-taxable investment securities

(Dollars in Millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Taxable	$	400	$	382	$	797	$	733
Non-taxable		70		77		141		154
Total interest income from investment securities	$	470	$	459	$	938	$	887

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

(Dollars in Millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Realized gains	$	21	$	1	$	30	$	2
Realized losses		—		—		—		—
Net realized gains (losses)	$	21	$	1	$	30	$	2
Income tax (benefit) on net realized gains (losses)	$	8	$	1	$	11	$	1

Accretable balance of structured investment securities and other investment securities

(Dollars in Millions)	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Balance at beginning of period	$	104		$	126		$	100		$	139
Accretion		(4	)		(4	)		(8	)		(9	)
Other (a)		(7	)		(5	)		1			(13	)
Balance at end of period	$	93		$	117		$	93		$	117

(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 June 30 (Dollars in Millions)		Losses Recorded in Earnings			Other Gains (Losses) (c)			Total			Losses Recorded in Earnings			Other Gains (Losses) (c)			Total
Available-for-sale
Mortgage-backed securities
Non-agency residential
Prime (a)		$	(2	)	$	(6	)	$	(8	)	$	(1	)	$	(4	)	$	(5	)
Non-prime (b)			(10	)		7			(3	)		(7	)		(6	)		(13	)
Commercial non-agency			(1	)		—			(1	)		—			—			—
Other asset-backed securities			—			—			—			(1	)		—			(1	)
Perpetual preferred securities			(27	)		—			(27	)		—			—			—
Total available-for-sale		$	(40	)	$	1		$	(39	)	$	(9	)	$	(10	)	$	(19	)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) 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.

	2012									2011
Six Months Ended June 30 (Dollars in Millions)	Losses Recorded in Earnings			Other Gains (Losses) (c)			Total			Losses Recorded in Earnings			Other Gains (Losses) (c)			Total
Available-for-sale
Mortgage-backed securities
Non-agency residential
Prime (a)	$	(3	)	$	(9	)	$	(12	)	$	(2	)	$	(3	)	$	(5	)
Non-prime (b)		(17	)		10			(7	)		(12	)		(12	)		(24	)
Commercial non-agency		(1	)		(1	)		(2	)		—			—			—
Other asset-backed securities		(1	)		1			—			(1	)		—			(1	)
Perpetual preferred securities		(27	)		—			(27	)		—			—			—
Total available-for-sale	$	(49	)	$	1		$	(48	)	$	(15	)	$	(15	)	$	(30	)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) 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 (a)									Non-Prime (b)
	Minimum			Maximum			Average			Minimum			Maximum			Average
June 30, 2012
Estimated lifetime prepayment rates		3	%		18	%		13	%		2	%		10	%		7	%
Lifetime probability of default rates		1			8			3			2			20			5
Lifetime loss severity rates		32			55			39			45			88			54
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

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

Changes in the credit losses on debt securities excluding perpetual preferred securities

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	288		$	339		$	298		$	358
Additions to credit losses due to other-than-temporary impairments
Credit losses on securities not previously considered other-than-temporarily impaired		2			1			3			2
Decreases in expected cash flows on securities for which other-than-temporary impairment was previously recognized		11			8			19			13
Total other-than-temporary impairment on debt securities		13			9			22			15
Other changes in credit losses
Increases in expected cash flows		(8	)		(10	)		(14	)		(17	)
Realized losses (a)		(16	)		(19	)		(29	)		(36	)
Credit losses on security sales and securities expected to be sold		—			—			—			(1	)
Balance at end of period	$	277		$	319		$	277		$	319

(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	$	3,744	$	(8	)	$	16	$	—		$	3,760	$	(8	)
Non-agency non-prime (a)(c)		—		—			1		—			1		—
Commercial non-agency		—		—			2		(1	)		2		(1	)
Asset-backed securities
Collateralized debt obligations/Collaterized loan obligations		—		—			4		—			4		—
Other		1		—			12		(6	)		13		(6	)
Obligations of state and political subdivisions		—		—			5		—			5		—
Other debt securities		—		—			98		(22	)		98		(22	)
Total held-to-maturity	$	3,745	$	(8	)	$	138	$	(29	)	$	3,883	$	(37	)
Available-for-sale
U.S. Treasury and agencies	$	2	$	—		$	—	$	—		$	2	$	—
Mortgage-backed securities
Residential
Agency		2,893		(1	)		528		(1	)		3,421		(2	)
Non-agency (a)
Prime (b)		12		—			650		(77	)		662		(77	)
Non-prime (c)		8		(2	)		668		(191	)		676		(193	)
Commercial non-agency		19		(3	)		1		—			20		(3	)
Asset-backed securities
Collateralized debt obligations/Collaterized loan obligations		21		(2	)		12		(3	)		33		(5	)
Other		20		(2	)		53		(11	)		73		(13	)
Obligations of state and political subdivisions		29		—			126		(3	)		155		(3	)
Obligations of foreign governments		6		—			—		—			6		—
Corporate debt securities		77		—			639		(120	)		716		(120	)
Perpetual preferred securities		22		—			133		(25	)		155		(25	)
Other investments		1		—			3		—			4		—
Total available-for-sale	$	3,110	$	(10	)	$	2,813	$	(431	)	$	5,923	$	(441	)

(a) The Company has $270 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 at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(c) Includes all securities not meeting the conditions to be designated as prime.

Investment securities

	Available-for-Sale									Held-to-Maturity
At June 30, 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	$	117	$	117		.3		1.71	%	$	50	$	50		.6		.61	%
Maturing after one year through five years		518		523		1.5		.94			2,448		2,475		1.7		1.00
Maturing after five years through ten years		141		149		7.6		3.26			–		–		–		–
Maturing after ten years		10		11		11.1		2.89			60		60		12.7		1.97
Total	$	786	$	800		2.6		1.50	%	$	2,558	$	2,585		1.9		1.01	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	3,177	$	3,180		.7		1.66	%	$	170	$	170		.5		1.61	%
Maturing after one year through five years		20,983		21,713		3.1		2.69			30,208		30,616		3.4		2.31
Maturing after five years through ten years		4,503		4,350		6.6		2.42			1,304		1,322		6.5		1.33
Maturing after ten years		516		514		12.4		1.87			196		200		11.2		1.39
Total	$	29,179	$	29,757		3.5		2.53	%	$	31,878	$	32,308		3.5		2.26	%
Asset-Backed Securities (a)
Maturing in one year or less	$	17	$	27		.4		18.86	%	$	11	$	14		.7		1.29	%
Maturing after one year through five years		150		166		3.1		12.23			14		12		3.6		.94
Maturing after five years through ten years		635		641		7.7		3.27			9		11		7.0		.87
Maturing after ten years		7		6		11.8		10.88			17		23		22.4		.95
Total	$	809	$	840		6.8		5.32	%	$	51	$	60		9.9		1.00	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	79	$	79		.3		2.00	%	$	–	$	–		.1		8.33	%
Maturing after one year through five years		4,979		5,211		3.9		6.79			6		7		3.3		7.21
Maturing after five years through ten years		1,083		1,147		5.7		6.77			1		2		8.1		7.74
Maturing after ten years		74		73		20.7		9.37			14		14		14.9		5.40
Total	$	6,215	$	6,510		4.3		6.76	%	$	21	$	23		10.9		6.10	%
Other Debt Securities
Maturing in one year or less	$	31	$	31		.2		6.04	%	$	3	$	2		.5		1.22	%
Maturing after one year through five years		–		–		–		–			95		90		3.7		1.38
Maturing after five years through ten years		–		–		–		–			29		13		8.3		1.20
Maturing after ten years		926		806		25.6		3.61			–		–		–		–
Total	$	957	$	837		24.8		3.69	%	$	127	$	105		4.7		1.33	%
Other Investments	$	553	$	569		20.4		3.65	%	$	–	$	–		–		–	%
Total investment securities (d)	$	38,499	$	39,313		4.5		3.29	%	$	34,635	$	35,081		3.4		2.16	%

(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, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity. Average yield and maturity calculations exclude equity securities that have no stated yield or maturity.

	June 30, 2012					December 31, 2011
(Dollars in Millions)	Amortized Cost		Percent of Total			Amortized Cost		Percent of Total
U.S. Treasury and agencies	$	3,344		4.6	%	$	3,605		5.1	%
Mortgage-backed securities		61,057		83.5			57,561		82.0
Asset-backed securities		860		1.2			949		1.4
Obligations of state and political subdivisions		6,236		8.5			6,417		9.1
Other debt securities and investments		1,637		2.2			1,701		2.4
Total investment securities	$	73,134		100.0	%	$	70,233		100.0	%