Securities (Tables)

6 Months Ended

Jun. 30, 2011

Securities

Amortized Cost and Approximate Fair Values of Securities Available for Sale

	June 30, 2011
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
	(Dollars in millions)
Securities available for sale:
U.S. government-sponsored entities ("GSE")	$	76	$	2	$	—	$	78
Mortgage-backed securities issued by GSE		15,254		84		107		15,231
States and political subdivisions		1,904		39		121		1,822
Non-agency mortgage-backed securities		521		—		97		424
Other securities		197		—		—		197
Covered securities		1,262		399		4		1,657
Total securities available for sale	$	19,214	$	524	$	329	$	19,409

	December 31, 2010
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
	(Dollars in millions)
Securities available for sale:
GSE securities	$	102	$	1	$	—	$	103
Mortgage-backed securities issued by GSE		18,663		42		361		18,344
States and political subdivisions		2,051		19		161		1,909
Non-agency mortgage-backed securities		635		—		120		515
Other securities		734		27		2		759
Covered securities		1,234		307		2		1,539
Total securities available for sale	$	23,419	$	396	$	646	$	23,169

Amortized Cost and Approximate Fair Values of Securities Held to Maturity

June 30, 2011
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
	(Dollars in millions)
Securities held to maturity:
Mortgage-backed securities issued by GSE	$	7,943	$	53	$	—	$	7,996
States and political subdivisions		36		—		—		36
Other securities		573		1		1		573
Total securities held to maturity	$	8,552	$	54	$	1	$	8,605

Gross Realized Gains and Losses and Other-than-temporary Impairments Recognized in Net Income

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
	(Dollars in millions)
Gross gains	$	17		$	226		$	38		$	231
Gross losses		(1	)		(2	)		(1	)		(4	)
Net realized gains/(losses)		16			224			37			227
Other-than-temporary impairment ("OTTI") recognized on non-agency mortgage-backed securities:
Total OTTI on non-agency mortgage-backed securities		(10	)		(37	)		(11	)		(49	)
Non-credit portion recognized in other comprehensive income (1)		(8	)		32			(28	)		38
Total OTTI on non-agency mortgage-backed securities recognized in net income		(18	)		(5	)		(39	)		(11	)
Net securities gains/(losses)	$	(2	)	$	219		$	(2	)	$	216

(1) A negative balance is the result of additional credit losses currently recognized in earnings that were previously recognized in other comprehensive income.

Schedule of Credit Losses on Other-Than-Temporarily Impaired Non-Agency Mortgage-Backed Securities where Portion of Unrealized Loss was Recognized In Other Comprehensive Income

	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011			2010
	(Dollars in millions)
Balance at beginning of period	$	51		$	8	$	30		$	2
Credit losses on securities not previously considered other-than-temporarily impaired		—			1		—			2
Credit losses on securities for which OTTI was previously recognized		18			4		39			9
Reductions for securities sold/settled during the period		(6	)		—		(6	)		—
Balance at end of period	$	63		$	13	$	63		$	13

Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity

	June 30, 2011
	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in millions)
Due in one year or less	$	43	$	43	$	—	$	—
Due after one year through five years		59		63		—		—
Due after five years through ten years		633		650		—		—
Due after ten years		18,284		18,458		8,552		8,605
Total debt securities		19,019		19,214		8,552		8,605
Total securities with no stated maturity		195		195		—		—
Total securities	$	19,214	$	19,409	$	8,552	$	8,605

Gross Unrealized Losses and Fair Values of Investments by Investment Category and Length of Time

	June 30, 2011
	Less than 12 months				12 months or more				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in millions)
Securities available for sale:
Mortgage-backed securities issued by GSE	$	10,312	$	107	$	—	$	—	$	10,312	$	107
States and political subdivisions		258		7		655		114		913		121
Non-agency mortgage-backed securities		—		—		424		97		424		97
Other securities		1		—		—		—		1		—
Covered securities		49		4		—		—		49		4
Total	$	10,620	$	118	$	1,079	$	211	$	11,699	$	329
	June 30, 2011
	Less than 12 months				12 months or more				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in millions)
Securities held to maturity:
States and political subdivisions	$	32	$	—	$	—	$	—	$	32	$	—
Other securities		59		1		—		—		59		1
Total	$	91	$	1	$	—	$	—	$	91	$	1
	December 31, 2010
	Less than 12 months				12 months or more				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in millions)
Securities available for sale:
GSE securities	$	50	$	—	$	—	$	—	$	50	$	—
Mortgage-backed securities issued by GSE		15,438		361		—		—		15,438		361
States and political subdivisions		694		21		735		140		1,429		161
Non-agency mortgage-backed securities		—		—		506		120		506		120
Other securities		535		2		2		—		537		2
Covered securities		79		2		—		—		79		2
Total	$	16,796	$	386	$	1,243	$	260	$	18,039	$	646

Schedule of Non-Investment Grade Securities with Significant Unrealized Losses

	June 30, 2011
	Amortized Cost		Fair Value		Unrealized Loss			Credit Loss Recognized
	(Dollars in millions)
Security
RMBS 1	$	91	$	59	$	(32	)	$	(10	)
RMBS 2		118		100		(18	)		(25	)
RMBS 3		102		88		(14	)		(3	)