Fair Value Measurement and Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis

	June 30, 2013
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment(1)			Fair Value
Assets
Trading account assets:
U.S. Treasury	$	—		$	4		$	—		$	—		$	4
U.S. government sponsored agencies		—			100			—			—			100
State and municipal		—			23			—			—			23
Commercial paper		—			20			—			—			20
Interest rate derivative contracts		3			790			—			(167	)		626
Commodity derivative contracts		—			106			12			(112	)		6
Foreign exchange derivative contracts		1			59			3			(23	)		40
Equity derivative contracts		—			—			167			(142	)		25
Total trading account assets		4			1,102			182			(444	)		844
Securities available for sale:
U.S. government sponsored agencies		—			364			—			—			364
Residential mortgage-backed securities:
U.S. government and government sponsored agencies		—			14,673			—			—			14,673
Privately issued		—			328			—			—			328
Commercial mortgage-backed securities		—			3,750			—			—			3,750
CLOs		—			2,445			—			—			2,445
Asset-backed and other		—			80			—			—			80
Other debt securities:
Direct bank purchase bonds		—			—			1,703			—			1,703
Other		—			93			59			—			152
Equity securities		15			—			—			—			15
Total securities available for sale		15			21,733			1,762			—			23,510
Other assets:
Interest rate hedging contracts		—			1			—			—			1
Other derivative contracts		—			—			2			—			2
Total other assets		—			1			2			—			3
Total assets	$	19		$	22,836		$	1,946		$	(444	)	$	24,357
Percentage of Total		—	%		94	%		8	%		(2	)%		100	%
Percentage of Total Company Assets		—	%		22	%		2	%		—	%		24	%
Liabilities
Trading account liabilities:
Interest rate derivative contracts	$	3		$	694		$	—		$	(404	)	$	293
Commodity derivative contracts		—			94			12			(39	)		67
Foreign exchange derivative contracts		1			24			3			(5	)		23
Equity derivative contracts		—			—			168			—			168
Securities sold, not yet purchased		—			15			—			—			15
Total trading account liabilities		4			827			183			(448	)		566
Other liabilities:
FDIC clawback liability		—			—			90			—			90
Interest rate hedging contracts		—			7			—			—			7
Other derivative contracts		—			1			4			—			5
Total other liabilities		—			8			94			—			102
Total liabilities	$	4		$	835		$	277		$	(448	)	$	668
Percentage of Total		1	%		125	%		42	%		(67	)%		100	%
Percentage of Total Company Liabilities		—	%		1	%		—	%		(1	)%		1	%

(1)

Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

	December 31, 2012
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment(1)			Fair Value
Assets
Trading account assets:
U.S. Treasury	$	—		$	1		$	—		$	—		$	1
U.S. government sponsored agencies		—			113			—			—			113
State and municipal		—			15			—			—			15
Commercial paper		—			10			—			—			10
Interest rate derivative contracts		—			1,075			—			(87	)		988
Commodity derivative contracts		—			137			30			(127	)		40
Foreign exchange derivative contracts		1			65			3			(28	)		41
Equity derivative contracts		—			—			103			(103	)		—
Total trading account assets		1			1,416			136			(345	)		1,208
Securities available for sale:
U.S. government sponsored agencies		—			885			—			—			885
Residential mortgage-backed securities:
U.S government and government sponsored agencies		—			13,333			—			—			13,333
Privately issued		—			443			—			—			443
Commercial mortgage-backed securities		—			2,971			—			—			2,971
CLOs		—			1,959			—			—			1,959
Asset-backed and other					146									146
Other debt securities:
Direct bank purchase bonds		—			—			1,438			—			1,438
Other		—			97			61			—			158
Equity securities		19			—			—			—			19
Total securities available for sale		19			19,834			1,499			—			21,352
Other assets:
Interest rate hedging contracts		—			28			—			(24	)		4
Other derivative contracts		—			1			—			(1	)		—
Total other assets		—			29			—			(25	)		4
Total assets	$	20		$	21,279		$	1,635		$	(370	)	$	22,564
Percentage of Total		—	%		94	%		7	%		(1	)%		100	%
Percentage of Total Company Assets		—	%		22	%		1	%		—	%		23	%
Liabilities
Trading account liabilities:
Interest rate derivative contracts	$	5		$	1,004		$	—		$	(407	)	$	602
Commodity derivative contracts		—			110			30			(42	)		98
Foreign exchange derivative contracts		1			61			3			—			65
Equity derivative contracts		—			—			103			—			103
Securities sold, not yet purchased		—			27			—			—			27
Total trading account liabilities		6			1,202			136			(449	)		895
Other liabilities:
FDIC clawback liability		—			—			92			—			92
Other derivative contracts		—			—			3			—			3
Total other liabilities		—			—			95			—			95
Total liabilities	$	6		$	1,202		$	231		$	(449	)	$	990
Percentage of Total		1	%		121	%		23	%		(45	)%		100	%
Percentage of Total Company Liabilities		—	%		2	%		—	%		(1	)%		1	%

(1)

Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts.

Reconciliation of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

	For the Three Months Ended
	June 30, 2013														June 30, 2012
(Dollars in millions)	Trading Assets			Securities Available for Sale			Other Assets		Trading Liabilities			Other Liabilities			Trading Assets			Securities Available for Sale		Trading Liabilities			Other Liabilities
Asset (liability) balance, beginning of period	$	186		$	1,592		$	1	$	(187	)	$	(96	)	$	153		$	43	$	(153	)	$	(63	)
Total gains (losses) (realized/unrealized):
Included in income before taxes		(5	)		—			1		5			2			(34	)		—		34			(9	)
Included in other comprehensive income		—			18			—		—			—			—			1		—			—
Purchases/additions		1			192			—		—			—			2			1,090		(2	)		—
Sales		—			—			—		(1	)		—			(3	)		—		3			—
Settlements		—			(40	)		—		—			—			—			—		—			—
Asset (liability) balance, end of period	$	182		$	1,762		$	2	$	(183	)	$	(94	)	$	118		$	1,134	$	(118	)	$	(72	)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	(5	)	$	—		$	1	$	5		$	2		$	(34	)	$	—	$	34		$	(9	)

	For the Six Months Ended
	June 30, 2013													June 30, 2012
(Dollars in millions)	Trading Assets		Securities Available for Sale			Other Assets		Trading Liabilities			Other Liabilities			Trading Assets			Securities Available for Sale			Trading Liabilities			Other Liabilities
Asset (liability) balance, beginning of period	$	136	$	1,499		$	—	$	(136	)	$	(95	)	$	—		$	48		$	—		$	(51	)
Total gains (losses) (realized/unrealized):
Included in income before taxes		42		—			1		(43	)		1			(34	)		—			34			(21	)
Included in other comprehensive income		—		37			—		—			—			—			(4	)		—			—
Purchases/additions		4		329			1		—			—			2			1,090			(2	)		—
Sales		—		(14	)		—		(4	)		—			(3	)		—			3			—
Settlements		—		(89	)		—		—			—			—			—			—			—
Transfers into Level 3		—		—			—		—			—			153			—			(153	)		—
Asset (liability) balance, end of period	$	182	$	1,762		$	2	$	(183	)	$	(94	)	$	118		$	1,134		$	(118	)	$	(72	)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	42	$	—		$	1	$	(43	)	$	1		$	(34	)	$	—		$	34		$	(21	)

Significant Unobservable Inputs Level 3 Assets and Liabilities

	June 30, 2013
(Dollars in millions)	Level 3 Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range of Inputs			Weighted Average
Securities available for sale:
Direct bank purchase bonds	$	1,703	Return on equity	Market-required return on capital		8.0 - 10.0	%		10.0	%
				Probability of default		0.0 - 8.0	%		0.6	%
				Loss severity		10.0 - 75.0	%		34.7	%
Other liabilities:
FDIC clawback liability	$	90	Discounted cash flow	Probability of default		0.1 - 100.0	%		55.5	%
				Loss severity		20.0 - 100.0	%		43.3	%

Financial Assets Measured at Fair Value on Nonrecurring Basis

	June 30, 2013
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Loss for the Three Months Ended June 30, 2013			Loss for the Six Months Ended June 30, 2013
Loans:
Impaired loans	$	91	$	—	$	—	$	91	$	(11	)	$	(23	)
Other assets:
OREO		37		—		—		37		(3	)		(6	)
Total	$	128	$	—	$	—	$	128	$	(14	)	$	(29	)

	June 30, 2012
(Dollars in millions)	Fair Value		Level 1		Level 2		Level 3		Loss for the Three Months Ended June 30, 2012			Loss for the Six Months Ended June 30, 2012
Loans:
Impaired loans	$	114	$	—	$	—	$	114	$	(33	)	$	(36	)
Other assets:
OREO		66		—		—		66		(9	)		(17	)
Private equity investments		—		—		—		—		—			(2	)
Total	$	180	$	—	$	—	$	180	$	(42	)	$	(55	)

Carrying Amount and Estimated Fair Value of Financial Assets and Liabilities Not Measured At Fair Value in the Balance Sheet But For Which Fair Value is Required To Be Disclosed

	June 30, 2013
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	3,354	$	3,354	$	3,354	$	—	$	—
Securities held to maturity		905		891		—		891		—
Loans held for investment, net of allowance for loan losses(1)		64,243		65,964		—		—		65,964
FDIC indemnification asset		233		131		—		—		131
Other assets		2		2		—		—		2
Liabilities
Deposits	$	77,310	$	77,512	$	—	$	77,512	$	—
Commercial paper and other short-term borrowings		3,792		3,792		—		3,792		—
Long-term debt		6,058		6,184		—		6,184		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	277	$	277	$	—	$	—	$	277

(1)

Excludes lease financing, net of related allowance.

	December 31, 2012
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	5,491	$	5,491	$	5,491	$	—	$	—
Securities held to maturity		1,103		1,135		—		1,135		—
Loans held for investment, net of allowance for loan losses(1)		58,284		59,613		—		—		59,613
FDIC indemnification asset		338		151		—		—		151
Other assets		3		3		—		—		3
Liabilities
Deposits	$	74,255	$	74,524	$	—	$	74,524	$	—
Commercial paper and other short-term borrowings		1,363		1,363		—		1,363		—
Long-term debt		5,622		5,861		—		5,861		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	262	$	262	$	—	$	—	$	262

(1)

Excludes lease financing, net of related allowance.