The following table presents our effective tax rates.


	2012					2011
	(dollars are in millions)
Three Months Ended September 30,
Tax expense (benefit) at the U.S. federal statutory income tax rate	$	(278	)	(35.0	)%	$	101		35.0	%
Increase (decrease) in rate resulting from:
State and local taxes, net of federal benefit		14		1.8			5		1.8
Valuation allowance on deferred tax assets		-		-			8		2.7
Non-deductible expense accrual related to certain regulatory matters		280		35.3			-		-
Non-deductible goodwill related to sale of branches		33		4.2			-		-
Validation of current liability accounts		(34	)	(4.3	)		-		-
Tax exempt interest income		(6	)	(.8	)		(3	)	(1.0	)
Low income housing and other tax credits		(21	)	(2.6	)		(21	)	(7.0	)
Foreign tax credits and other credits		(8	)	(1.0	)		(8	)	(3.4	)
Impact of foreign operations		8		1.0			31		11.2
Uncertain tax provision reserves		(9	)	(1.1	)		6		1.9
Other		8		1.0			(2	)	(.7	)

Effective tax rate	$	(12	)	(1.5	)%	$	117		40.5	%

Nine Months Ended September 30,
Tax expense (benefit) at the U.S. federal statutory income tax rate	$	(328	)	(35.0	)%	$	235		35.0	%
Increase (decrease) in rate resulting from:
State and local taxes, net of federal benefit		23		2.5			42		6.0
Change in tax rate used to value deferred taxes		(10	)	(1.1	)		-		-
Valuation allowance on deferred tax assets		-		-			(135	)	(19.3	)
Non-deductible expense accrual related to certain regulatory matters		525		56.0			-		-
Non-deductible goodwill related to sale of branches		139		14.8			-		-
Validation of current liability accounts		22		2.3			-		-
Tax exempt interest income		(11	)	(1.2	)		(8	)	(1.1	)
Low income housing and other tax credits		(63	)	(6.7	)		(63	)	(9.0	)
Foreign tax credits and other credits		(23	)	(2.5	)		(20	)	(3.0	)
Impact of foreign operations		23		2.5			43		6.3
Uncertain tax provision		57		6.1			151		21.5
Other		3		.4			(7	)	(.9	)

Effective tax rate	$	357		38.1	%	$	238		35.5	%