Allowance For Credit Losses (Tables)

6 Months Ended

Jun. 30, 2012

Loans, Allowance for Credit Losses and Loans Held for Sale [Abstract]

Analysis of the allowance for credit losses

	Three Months Ended June  30,						Six Months Ended June  30,
	2012			2011			2012			2011
	(in millions)
Balance at beginning of period	$	603		$	771		$	743		$	852
Provision for credit losses		89			95			89			93
Charge-offs		(91	)		(133	)		(253	)		(225	)
Recoveries		18			14			40			27
Balance at end of period	$	619		$	747		$	619		$	747

Summary of Changes in the allowance for credit losses and the related loan balance by product

	Commercial												Consumer
	Construction and Other Real Estate			Business Banking and Middle Market Enterprises			Global banking			Other Comm’l			Residential Mortgage, Excl Home Equity Mortgages			Home Equity Mortgages			Credit Card			Other Consumer			Total
	(in millions)
Three Months Ended June 30, 2012:
Allowance for credit losses – beginning of period	$	205		$	76		$	25		$	20		$	182		$	43		$	35		$	17		$	603
Provision charged to income		(5	)		15			19			(7	)		24			34			9			-			89
Charge offs		(2	)		(13	)		-			-			(23	)		(30	)		(16	)		(7	)		(91	)
Recoveries		-			2			-			5			5			-			3			3			18
Net charge offs		(2	)		(11	)		-			5			(18	)		(30	)		(13	)		(4	)		(73	)
Allowance for credit losses – end of period	$	198		$	80		$	44		$	18		$	188		$	47		$	31		$	13		$	619
Ending balance: collectively evaluated for impairment	$	87		$	73		$	31		$	17		$	95		$	43		$	25		$	13		$	384
Ending balance: individually evaluated for impairment(1)		111			7			13			1			93			4			6			-			235
Total allowance for credit losses	$	198		$	80		$	44		$	18		$	188		$	47		$	31		$	13		$	619
Loans:
Collectively evaluated for impairment	$	7,386		$	11,141		$	14,928		$	3,055		$	13,243		$	2,441		$	765		$	651		$	53,610
Individually evaluated for impairment		591			115			114			87			660			14			18			-			1,599
Loans carried at the lower of amortized cost or fair value less cost to sell		-			-			-			-			855			-			-			-			855
Total loans	$	7,977		$	11,256		$	15,042		$	3,142		$	14,758		$	2,455		$	783		$	651		$	56,064
Three Months Ended June 30, 2011:
Allowance for credit losses – beginning of period	$	217		$	119		$	111		$	23		$	161		$	68		$	48		$	24		$	771
Provision charged to income		49			(8	)		(1	)		-			27			12			12			4			95
Charge offs		(39	)		(19	)		-			(2	)		(28	)		(18	)		(19	)		(8	)		(133	)
Recoveries		2			4			-			-			2			-			3			3			14
Net charge offs		(37	)		(15	)		-			(2	)		(26	)		(18	)		(16	)		(5	)		(119	)
Allowance for credit losses – end of period	$	229		$	96		$	110		$	21		$	162		$	62		$	44		$	23		$	747
Ending balance: collectively evaluated for impairment	$	120		$	79		$	39		$	17		$	99		$	58		$	37		$	23		$	472
Ending balance: individually evaluated for impairment(1)		109			17			71			4			63			4			7			-			275
Total allowance for credit losses	$	229		$	96		$	110		$	21		$	162		$	62		$	44		$	23		$	747
Loans:
Collectively evaluated for impairment	$	7,213		$	8,475		$	10,529		$	2,547		$	12,840		$	3,598		$	1,164		$	925		$	47,291
Individually evaluated for impairment		698			156			74			101			482			9			23			-			1,543
Loans carried at the lower of amortized cost or fair value less cost to sell		-			-			-			-			778			-			-			-			778
Total loans	$	7,911		$	8,631			10,603		$	2,648		$	14,100		$	3,607		$	1,187		$	925		$	49,612
Six Months Ended June 30, 2012:
Allowance for credit losses – beginning of period	$	212		$	78		$	131		$	21		$	192		$	52		$	39		$	18		$	743
Provision charged to income		(25	)		21			(3	)		(9	)		39			42			20			4			89
Charge offs		(3	)		(23	)		(84	)		-			(49	)		(47	)		(33	)		(14	)		(253	)
Recoveries		14			4			-			6			6			-			5			5			40
Net charge offs		11			(19	)		(84	)		6			(43	)		(47	)		(28	)		(9	)		(213	)
Allowance for credit losses – end of period	$	198		$	80		$	44		$	18		$	188		$	47		$	31		$	13		$	619
Six Months Ended June 30, 2011:
Allowance for credit losses – beginning of period	$	243		$	132		$	116		$	32		$	167		$	77		$	58		$	27		$	852
Provision charged to income		21			(9	)		(6	)		(10	)		46			23			20			8			93
Charge offs		(43	)		(33	)		-			(2	)		(54	)		(38	)		(40	)		(15	)		(225	)
Recoveries		8			6			-			1			3			-			6			3			27
Net charge offs		(35	)		(27	)		-			(1	)		(51	)		(38	)		(34	)		(12	)		(198	)
Allowance for credit losses – end of period	$	229		$	96		$	110		$	21		$	162		$	62		$	44		$	23		$	747

⁽¹⁾  For consumer loans, these amounts represent TDR Loans for which we evaluate reserves using a discounted cash flow methodology. Each loan is individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow analysis is then applied to these groups of TDR Loans.