Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2012

Accumulated Other Comprehensive Income

14.    Accumulated Other Comprehensive Income

Accumulated other comprehensive income includes certain items that are reported directly within a separate component of shareholders’ equity. The following tables present changes in accumulated other comprehensive income balances.

Three Months Ended September 30,	2012			2011
	(in millions)
Unrealized gains on securities available-for-sale, not other-than temporarily impaired:
Balance at beginning of period	$	1,004		$	239
Other comprehensive income for period:
Net unrealized holding gains arising during period, net of tax of $89 million and $470 million, respectively		126			683
Reclassification adjustment for gains realized in net income, net of tax of $(20) million and $(20) million, respectively		(29	)		(28	)
Total other comprehensive income for period		97			655
Balance at end of period		1,101			894
Unrealized losses on derivatives designated as cash flow hedges:
Balance at beginning of period		(229	)		(104	)
Other comprehensive income (loss) for period:
Net gains (losses) arising during period, net of tax of $6 million and $(86) million, respectively		9			(126	)
Reclassification adjustment for losses realized in net income, net of tax of $2 million and $2 million, respectively		2			2
Total other comprehensive income (loss) for period		11			(124	)
Balance at end of period		(218	)		(228	)
Pension and postretirement benefit liability:
Balance at beginning of period		(11	)		(7	)
Balance at end of period		(11	)		(7	)
Total accumulated other comprehensive income at end of period	$	872		$	659

Nine Months Ended September 30,	2012			2011
	(in millions)
Unrealized gains on securities available-for-sale, not other-than temporarily impaired:
Balance at beginning of period	$	883		$	97
Other comprehensive income for period:
Net unrealized holding gains arising during period, net of tax of $217 million and $602 million, respectively		303			858
Reclassification adjustment for gains realized in net income, net of tax of $(60) million and $(43) million, respectively		(85	)		(61	)
Total other comprehensive income for period		218			797
Balance at end of period		1,101			894
Unrealized gains (losses) on other-than-temporarily impaired debt securities available-for-sale:
Balance at beginning of period		-			(1	)
Other comprehensive income for period:
Reclassification adjustment for losses realized in net income, net of tax of less than $1 million		-			1
Total other comprehensive income (loss) for period		-			1
Balance at end of period		-			-
Unrealized gains (losses) on other-than-temporarily impaired debt securities held-to-maturity:
Balance at beginning of period		-			(153	)
Other comprehensive income for period:
Net unrealized other-than-temporary impairment arising during period		-			11
Adjustment to reverse other-than-temporary impairment due to deconsolidation of VIE		-			142
Total other comprehensive income for period		-			153
Balance at end of period		-			-
Unrealized losses on derivatives designated as cash flow hedges:
Balance at beginning of period		(229	)		(87	)
Other comprehensive loss for period:
Net gains (losses) arising during period, net of tax of $1 million and $(114) million, respectively		4			(146	)
Reclassification adjustment for losses realized in net income, net of tax of $5 million and $4 million, respectively		7			5
Total other comprehensive income (loss) for period		11			(141	)
Balance at end of period		(218	)		(228	)
Pension and postretirement benefit liability:
Balance at beginning of period		(12	)		(9	)
Other comprehensive income for period:
Amortization of prior service cost and transition obligation included in net income, net of tax of less than $1 million in 2012 and 2011		1			2
Total other comprehensive income for period		1			2
Balance at end of period		(11	)		(7	)
Total accumulated other comprehensive income at end of period	$	872		$	659