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

6 Months Ended

Jun. 30, 2012

Fair Value Measurement and Fair Value of Financial Instruments [Abstract]

Financial assets and liabilities measured at fair value on a recurring basis

	June 30, 2012
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment(1)			Fair Value
Assets
Trading account assets:
U.S. Treasury	$	—		$	63		$	—		$	—		$	63
U.S. government sponsored agencies		—			78			—			—			78
State and municipal		—			60			—			—			60
Commercial paper		—			10			—			—			10
Interest rate derivative contracts		—			997			—			(89	)		908
Commodity derivative contracts		—			224			25			(200	)		49
Foreign exchange derivative contracts		2			97			4			(36	)		67
Equity derivative contracts		—			—			89			(87	)		2
Credit derivative contracts		—			3			—			(3	)		—
Total trading account assets		2			1,532			118			(415	)		1,237
Securities available for sale:
U.S. government sponsored agencies		—			5,459			—			—			5,459
Residential mortgage-backed securities:
U.S. government and government sponsored agencies		—			11,337			—			—			11,337
Privately issued		—			623			—			—			623
Commercial mortgage-backed securities		—			1,554			—			—			1,554
Other debt securities		—			352			1,134			—			1,486
Equity securities		86			—			—			—			86
Total securities available for sale		86			19,325			1,134			—			20,545
Other assets:
Interest rate hedging contracts		—			25			—			(20	)		5
Total other assets		—			25			—			(20	)		5
Total assets	$	88		$	20,882		$	1,252		$	(435	)	$	21,787
Percentage of Total		—			96	%		6	%		(2	)%		100	%
Percentage of Total Company Assets		—			24	%		1	%		—			25	%
Liabilities
Trading account liabilities:
Interest rate derivative contracts	$	5		$	935		$	—		$	(371	)	$	569
Commodity derivative contracts		—			187			25			(31	)		181
Foreign exchange derivative contracts		2			99			4			(5	)		100
Equity derivative contracts		—			—			89			—			89
Securities sold, not yet purchased		—			37			—			—			37
Total trading account liabilities		7			1,258			118			(407	)		976
Other liabilities		—			—			72			—			72
Total liabilities	$	7		$	1,258		$	190		$	(407	)	$	1,048
Percentage of Total		1	%		120	%		18	%		(39	)%		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.

	December 31, 2011
(Dollars in millions)	Level 1			Level 2			Level 3			Netting Adjustment(1)			Fair Value
Assets
Trading account assets:
U.S. Treasury	$	14		$	—		$	—		$	—		$	14
U.S. government sponsored agencies		17			—			—			—			17
State and municipal		—			17			—			—			17
Commercial paper		—			30			—			—			30
Interest rate derivative contracts		1			921			—			(85	)		837
Commodity derivative contracts		—			250			—			(165	)		85
Foreign exchange derivative contracts		1			87			—			(40	)		48
Equity derivative contracts		—			87			—			—			87
Total trading account assets		33			1,392			—			(290	)		1,135
Securities available for sale:
U.S. government sponsored agencies		6,997			—			—			—			6,997
Residential mortgage-backed securities:
U.S government and government sponsored agencies		—			13,485			—			—			13,485
Privately issued		—			738			—			—			738
Commercial mortgage-backed securities		—			1,060			—			—			1,060
Other debt securities		—			425			47			—			472
Equity securities		80			—			1			—			81
Total securities available for sale		7,077			15,708			48			—			22,833
Other assets:
Interest rate hedging contracts		—			3			—			(3	)		—
Total other assets		—			3			—			(3	)		—
Total assets	$	7,110		$	17,103		$	48		$	(293	)	$	23,968
Percentage of Total		30	%		71	%		—			(1	)%		100	%
Percentage of Total Company Assets		8	%		19	%		—			—			27	%
Liabilities
Trading account liabilities:
Interest rate derivative contracts	$	4		$	865		$	—		$	(228	)	$	641
Commodity derivative contracts		—			247			—			(43	)		204
Foreign exchange derivative contracts		1			94			—			(7	)		88
Equity derivative contracts		—			87			—			—			87
Securities sold, not yet purchased		20			—			—			—			20
Total trading account liabilities		25			1,293			—			(278	)		1,040
Other liabilities		—			10			51			—			61
Total liabilities	$	25		$	1,303		$	51		$	(278	)	$	1,101
Percentage of Total		2	%		119	%		5	%		(25	)%		100	%
Percentage of Total Company Liabilities		—			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 the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs

	For the Three Months Ended
	June 30, 2012											June 30, 2011
(Dollars in millions)	Trading Assets			Securities Available for Sale		Trading Liabilities			Other Liabilities			Securities Available for Sale			Trading Liabilities			Other Liabilities
Asset (liability) balance, beginning of period	$	153		$	43	$	(153	)	$	(63	)	$	49		$	(10	)	$	(47	)
Total gains (losses) (realized/unrealized):
Included in income before taxes		(34	)		—		34			(9	)		—			2			6
Included in other comprehensive income		—			1		—			—			(1	)		—			—
Purchases/additions		2			1,090		(2	)		—			—			—			—
Sales		(3	)		—		3			—			—			—			—
Transfers into Level 3		—			—		—			—			—			—			—
Asset (liability) balance, end of period	$	118		$	1,134	$	(118	)	$	(72	)	$	48		$	(8	)	$	(41	)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	(34	)	$	—	$	34		$	(9	)	$	—		$	2		$	6

	For the Six Months Ended
	June 30, 2012												June 30, 2011
(Dollars in millions)	Trading Assets			Securities Available for Sale			Trading Liabilities			Other Liabilities			Securities Available for Sale			Trading Liabilities			Other Liabilities
Asset (liability) balance, beginning of period	$	—		$	48		$	—		$	(51	)	$	8		$	(14	)	$	(36	)
Total gains (losses) (realized/unrealized):
Included in income before taxes		(34	)		—			34			(21	)		—			6			(5	)
Included in other comprehensive income		—			(4	)		—			—			(1	)		—			—
Purchases/additions		2			1,090			(2	)		—			42			—			—
Sales		(3	)		—			3			—			(1	)		—			—
Transfers into Level 3		153			—			(153	)		—			—			—			—
Asset (liability) balance, end of period	$	118		$	1,134		$	(118	)	$	(72	)	$	48		$	(8	)	$	(41	)
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period	$	(34	)	$	—		$	34		$	(21	)	$	—		$	6		$	(5	)

Financial assets measures at fair value on a nonrecurring basis

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

	June 30, 2011								Loss for the Three Months Ended June 30, 2011			Loss for the Six Months Ended June 30, 2011
(Dollars in millions)	Carrying Value		Level 1		Level 2		Level 3
Loans:
Impaired loans	$	254	$	—	$	—	$	254	$	(5	)	$	(51	)
Other assets:
OREO		103		—		—		103		(9	)		(19	)
Total	$	357	$	—	$	—	$	357	$	(14	)	$	(70	)

Carrying value and estimated fair value of certain financial instruments held by the Company

	June 30, 2012
(Dollars in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	2,921	$	2,921	$	2,921	$	—	$	—
Securities held to maturity		2,345		2,536		—		2,536		—
Loans held for investment, net of allowance for loan losses (1)		52,648		53,460		—		—		53,460
FDIC indemnification asset		449		238		—		—		238
Liabilities
Deposits	$	63,443	$	63,697	$	—	$	63,697	$	—
Commercial paper and other short-term borrowings		3,035		3,035		—		3,035		—
Long-term debt		6,444		6,614		—		6,614		—
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	285	$	285	$	—	$	—	$	285

⁽¹⁾ Excludes lease financing, net of related allowance.

	December 31, 2011
(Dollars in millions)	Carrying Amount		Fair Value
Assets
Cash and cash equivalents	$	4,195	$	4,195
Securities held to maturity		1,273		1,429
Loans held for investment, net of allowance for loan losses (1)		51,823		52,423
FDIC indemnification asset		598		409
Liabilities
Deposits	$	64,420	$	64,420
Commercial paper and other short-term borrowings		3,683		3,684
Long-term debt		6,684		6,798
Off-Balance Sheet Instruments
Commitments to extend credit and standby and commercial letters of credit	$	287	$	287

⁽¹⁾ Excludes lease financing, net of related allowance.