Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2011

Changes in Carrying Amount of Goodwill by Reportable Segment

The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30 are as follows:


(Dollars in millions)	Retail & Commercial		Retail Banking		Diversified Commercial Banking		CIB		W&IM		Total
Balance, January 1, 2010		$5,739		$-		$-		$223		$357		$6,319
Intersegment transfers		(5,739)		4,854		928		(43)		-		-
Contingent consideration		-		-		-		-		4		4

Balance, June 30, 2010		$-		$4,854		$928		$180		$361		$6,323


Balance, January 1, 2011		$-		$4,854		$928		$180		$361		$6,323
Contingent consideration		-		-		-		-		1		1
Purchase of the assets of asset management business		-		-		-		-		19		19

Balance, June 30, 2011		$-		$4,854		$928		$180		$381		$6,343

Changes in the Carrying Amounts of Other Intangible Assets

Changes in the carrying amounts of other intangible assets for the six months ended June 30 are as follows:

		$1,439		$1,439		$1,439		$1,439		$1,439
(Dollars in millions)	Core Deposit Intangibles		MSRs LOCOM		MSRs Fair Value		Other		Total
Balance, January 1, 2010		$104		$604		$936		$67		$1,711
Designated at fair value (transfers from amortized cost)		-		(604)		604		-		-
Amortization		(19)		-		-		(7)		(26)
MSRs originated		-		-		134		-		134
Changes in fair value:
Due to fair value election		-		-		145		-		145
Due to changes in inputs or assumptions ¹		-		-		(402)		-		(402)
Other changes in fair value ²		-		-		(119)		-		(119)

Balance, June 30, 2010		$85		$-		$1,298		$60		$1,443


Balance, January 1, 2011		$67		$-		$1,439		$65		$1,571
Amortization		(16)		-		-		(7)		(23)
MSRs originated		-		-		136		-		136
Sale of MSRs		-		-		(7)		-		(7)
Changes in fair value:
Due to changes in inputs or assumptions ¹		-		-		(51)		-		(51)
Other changes in fair value ²		-		-		(94)		-		(94)
Other		-		-		-		7		7

Balance, June 30, 2011		$51		$-		$1,423		$65		$1,539

¹ Primarily reflects changes in discount rates and prepayment speed assumptions, due to changes in interest rates.

² Represents changes due to the collection of expected cash flows, net of accretion, due to passage of time.

Key Characteristics, Inputs, and Economic Assumptions Used to Estimate the Fair Value of the Company's MSRs

A summary of the key characteristics, inputs, and economic assumptions used to estimate the fair value of the Company’s MSRs as of June 30, 2011 and December 31, 2010, and the sensitivity of the fair values to immediate 10% and 20% adverse changes in those assumptions are shown in the table below.


(Dollars in millions)	June 30, 2011		December 31, 2010
Fair value of retained MSRs		$1,423		$1,439

Prepayment rate assumption (annual)		10 %		12 %
Decline in fair value from 10% adverse change		$63		$50
Decline in fair value from 20% adverse change		103		95
Discount rate (annual)		11 %		12 %
Decline in fair value from 10% adverse change		$67		$68
Decline in fair value from 20% adverse change		129		130
Weighted-average life (in years)		6.4		6.2
Weighted-average coupon		5.3 %		5.4 %

- Definition

Tabular disclosure of all information related to the key inputs and assumptions (including, at a minimum, but not limited to, and if applicable, quantitative information about discount rates, expected prepayments including the expected weighted-average life of prepayable financial assets, and anticipated credit losses) used in measuring the fair value of assets or liabilities that relate to the transferor's continuing involvement with transferred financial assets, as of the balance sheet date.

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- Definition

Tabular disclosure of goodwill by reportable segment and in total. Disclosure details may include, but are not limited to, the carrying amount of goodwill, goodwill acquired during the year, goodwill impairment losses recognized, goodwill written-off due to the sale of a business unit, goodwill not yet allocated, and any other changes to goodwill.

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