EX-12.2 10 f65508exv12w2.htm EXHIBIT 12.2 exv12w2
 
Exhibit 12.2
 
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
 
                                                         
    Nine Months
 		       
    Ended September 30,     Year Ended December 31,  
    2008(1)     2007     2007(1)     2006     2005     2004     2003  
    (dollars in millions)  
 
Net income (loss) before cumulative effect of changes in accounting principles
  $ (26,267 )   $ (642 )   $ (3,094 )   $ 2,327     $ 2,172     $ 2,603     $ 4,809  
Add:
                                                       
Income tax expense (benefit)
    6,517       (1,257 )     (2,883 )     (45 )     358       609       2,198  
Minority interests in earnings of consolidated subsidiaries
    8       22       (8 )     58       96       129       157  
Low-income housing tax credit partnerships
    346       354       469       407       320       282       199  
Total interest expense
    25,380       29,099       38,482       37,270       29,899       26,566       26,509  
Interest factor in rental expenses
    6       5       7       6       6       6       5  
                                                         
Earnings, as adjusted
  $ 5,990     $ 27,581     $ 32,973     $ 40,023     $ 32,851     $ 30,195     $ 33,877  
                                                         
Fixed charges:
                                                       
Total interest expense
  $ 25,380     $ 29,099     $ 38,482     $ 37,270     $ 29,899     $ 26,566     $ 26,509  
Interest factor in rental expenses
    6       5       7       6       6       6       5  
Capitalized interest
    —       —       —       —       —       1       —  
Preferred stock dividends(2)
    503       286       398       270       260       260       315  
                                                         
Total fixed charges including preferred stock dividends
  $ 25,889     $ 29,390     $ 38,887     $ 37,546     $ 30,165     $ 26,833     $ 26,829  
                                                         
Ratio of earnings to combined fixed charges and preferred stock dividends(3)
    —       —       —       1.07       1.09       1.13       1.26  
                                                         
(1)  For the ratio of earnings to combined fixed charges and preferred stock dividends to equal 1.00, earnings, as adjusted must increase by $19.9 billion and $1.8 billion for the nine months ended September 30, 2008 and September 30, 2007, respectively. For the ratio of earnings to combined fixed charges and preferred stock dividends to equal 1.00, earnings, as adjusted must increase by $5.9 billion for the year ended December 31, 2007.
(2)  Preferred stock dividends represent pre-tax earnings required to cover any preferred stock dividend requirements computed using our effective tax rate, whenever there is an income tax provision, for the relevant periods.
(3)  Ratio of earnings to combined fixed charges and preferred stock dividends is computed by dividing earnings, as adjusted by total fixed charges including preferred stock dividends.