Note 5—Variable Interest Entities

The Company has interests in various entities that are considered to be variable interest entities (VIEs). Generally, a VIE is a corporation, partnership, trust or any other legal structure where the equity investors do not have sufficient equity at risk in the entity to allow the entity to independently finance its activities, lack the power to direct the significant activities of the entity through voting or similar rights, or do not have an obligation to absorb the entity's losses or the right to receive the entity's returns. The Company's investments in VIEs primarily consist of equity investments in low income housing credit (LIHC) structures, renewable energy projects and leasing trusts involved in railcar leasing, which are designed to generate returns principally through the realization of federal tax credits and deductions. For further information related to the Company's consolidated VIEs and those that were not consolidated, see Note 7 to the consolidated financial statements in the Company's 2012 Form 10-K.

Consolidated VIEs

At June 30, 2013, assets of $292 million and liabilities of $7 million were consolidated by the Company on its consolidated balance sheet related to two LIHC investment fund structures because the Company sponsors, manages and syndicates the funds. The assets are included in other assets as well as interest-bearing deposits in banks, the liabilities are primarily included in long-term debt, and third-party investor interests are included in stockholder's equity as noncontrolling interests. Neither creditors nor equity investors in the LIHC investments have any recourse to the general credit of the Company, and the Company's creditors do not have any recourse to the assets of the consolidated LIHC investments.

At June 30, 2013, the Company consolidated $156 million of assets related to trusts that own and lease renewable energy facilities because the Company directs the significant activities of these trusts. The assets are included in loans held for investment on the Company's consolidated balance sheets. At June 30, 2013, the Company also consolidated $97 million in assets related to trusts that own and lease railcars because the Company directs the significant activities of these trusts. The assets are primarily included in other assets on the Company's consolidated balance sheets.

For the three and six months ended June 30, 2013, the Company recorded $6 million and $11 million, respectively, of revenue related to its consolidated VIEs in other noninterest income and interest income on loans on the Company's consolidated statements of income. For the three and six months ended June 30, 2013, the Company recorded $7 million and $14 million, respectively, of expenses related to its consolidated VIEs. For the three and six months ended June 30, 2012, the Company recorded $8 million and $15 million, respectively, of expenses related to its consolidated VIEs. These expenses are included in other noninterest expense on the Company's consolidated statements of income.

Unconsolidated VIEs in which the Company has a Variable Interest

The following table presents the Company's carrying amounts and maximum exposure to loss related to its involvement with the unconsolidated VIEs at June 30, 2013. The maximum exposure to loss represents the carrying amount of the Company's involvement plus any legally binding unfunded commitments in the unlikely event that all of the assets in the VIEs become worthless.

	June 30, 2013

(Dollars in millions)	Total Assets		Total Liabilities		Maximum Exposure to Loss
LIHC investments	$	906	$	377	$	906
Renewable energy investments		497		—		497
Private capital investments		18		—		19

Total unconsolidated VIEs	$	1,421	$	377	$	1,422