Acquisition and Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2012

Acquisition and Discontinued Operations [Abstract]

Components of Income (Loss) from Discontinued Operations, Net of Taxes, of Education Lending Business

	Three months ended March 31,
in millions	2012		2011
Net interest income	$	31	$	36
Provision for loan and lease losses		4		32
Net interest income (expense) after provision for loan and lease losses		27		4
Noninterest income		(18)		(10)
Noninterest expense		9		11
Income (loss) before income taxes		—		(17)
Income taxes		—		(6)
Income (loss) from discontinued operations, net of taxes (a)		—	$	(11)

(a) Includes after-tax charges of $14 million and $13 million for the three-month periods ended March 31, 2012 and 2011, respectively, determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.

Components of Assets and Liabilities of Education Lending Business

		0000000000		0000000000		0000000000
in millions	March 31, 2012		December 31, 2011		March 31, 2011
Trust loans at fair value	$	2,714	$	2,726	$	3,065
Portfolio loans at fair value		74		76		—
Loans, net of unearned income of ($2), ($2) and $1		2,927		3,010		3,239
Less: Allowance for loan and lease losses		90		104		111
Net loans		5,625		5,708		6,193
Loans held for sale		—		—		14
Trust accrued income and other assets at fair value		112		121		153
Total assets	$	5,737	$	5,829	$	6,360
Trust accrued expense and other liabilities at fair value	$	30	$	28	$	34
Trust securities at fair value		2,512		2,522		2,894
Total liabilities	$	2,542	$	2,550	$	2,928

Quantitative Information about Level 3 Fair Value Measurements

March 31, 2012 dollars in millions	Fair Value of Level 3 Assets and Liabilities		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Trust loans and	$	2,714	Discounted cash flow	Prepayment speed		4.00 - 26.00% (10.22%)
portfolio loans				Expected credit losses		2.00 - 80.00% (52.34%)
accounted for at fair				Discount rate		2.50 - 8.40% (4.70%)
value				Expected defaults		3.75 - 40.00% (18.58%)
Trust securities		2,512	Discounted cash flow	Discount rate		1.80 - 7.20% (4.10%)

Consolidated trusts' assets and liabilities at fair value and contractual values

		0000000000		0000000000
March 31, 2012 in millions	Contractual Amount		Fair Value
ASSETS
Portfolio loans	$	72	$	74
Trust loans		2,809		2,714
Trust other assets		33		33
LIABILITIES
Trust securities	$	2,878	$	2,512
Trust other liabilities		30		30

Consolidated assets and liabilities at fair value on a recurring basis

		0000000000		0000000000		0000000000		0000000000
March 31, 2012 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans		—		—	$	74	$	74
Trust loans		—		—		2,714		2,714
Trust other assets		—		—		33		33
Total assets on a recurring basis at fair value		—		—	$	2,821	$	2,821
LIABILITIES MEASURED ON A RECURRING BASIS
Trust securities		—		—	$	2,512	$	2,512
Trust other liabilities		—		—		30		30
Total liabilities on a recurring basis at fair value		—		—	$	2,542	$	2,542

Change in the fair values of the Level 3 consolidated education loan securitization trusts and the portfolio loans

		00000000		00000000		00000000		00000000		00000000
in millions	Portfolio Student Loans		Trust Student Loans		Trust Other Assets		Trust Securities		Trust Other Liabilities
Balance at January 1, 2012	$	76	$	2,726	$	34	$	2,522	$	28
Gains (losses) recognized in earnings (a)		(1)		74		—		91		—
Purchases		—		—		—		—		—
Sales		—		—		—		—		—
Issuances		—		—		—		—		—
Settlements		(1)		(86)		(1)		(101)		2
Balance at March 31, 2012	$	74	$	2,714	$	33	$	2,512	$	30

(a) Gains (losses) on the Trust Student Loans and Trust Securities were driven primarily by fair value adjustments.

Components of Income (Loss) from Discontinued Operations, Net of Taxes, of Austin Capital Management

		00000000		00000000
	Three months ended March 31,
in millions	2012		2011
Noninterest income		—	$	1
Noninterest expense	$	8		1
Income (loss) before income taxes		(8)		—
Income taxes		(3)		—
Income (loss) from discontinued operations, net of taxes	$	(5)		—

Components of Assets and Liabilities of Austin Capital Management

		00000000		00000000		00000000
in millions	March 31, 2012		December 31, 2011		March 31, 2011
Cash and due from banks	$	30	$	31	$	33
Accrued income and other assets		1		—		—
Total assets	$	31	$	31	$	33
Accrued expense and other liabilities	$	7		—	$	1
Total liabilities	$	7		—	$	1

Combined Results of Discontinued Operations

	Three months ended March 31,
in millions	2012		2011
Net interest income	$	31	$	36
Provision for loan and lease losses		4		32
Net interest income (expense) after provision for loan and lease losses		27		4
Noninterest income		(18)		(9)
Noninterest expense		17		12
Income (loss) before income taxes		(8)		(17)
Income taxes		(3)		(6)
Income (loss) from discontinued operations, net of taxes (a)	$	(5)	$	(11)

(a) Includes after-tax charges of $14 million and $13 million for the three-month periods ended March 31, 2012 and 2011, respectively, determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.

Combined Assets and Liabilities of Discontinued Operations

		0000000000		0000000000		0000000000
in millions	March 31, 2012		December 31, 2011		March 31, 2011
Cash and due from banks	$	30	$	31	$	33
Trust loans at fair value		2,714		2,726		3,065
Portfolio loans at fair value		74		76		—
Loans, net of unearned income of ($2), ($2) and $1		2,927		3,010		3,239
Less: Allowance for loan and lease losses		90		104		111
Net loans		5,625		5,708		6,193
Loans held for sale		—		—		14
Trust accrued income and other assets at fair value		113		121		153
Total assets	$	5,768	$	5,860	$	6,393
Trust accrued expense and other liabilities at fair value	$	30	$	28	$	34
Accrued expense and other liabilities		7		—		1
Trust securities at fair value		2,512		2,522		2,894
Total liabilities	$	2,549	$	2,550	$	2,929