Noninterest Expense (Tables)

12 Months Ended

Dec. 31, 2010

Noninterest expense [Abstract]

Noninterest Expense

Year ended December 31, (in millions)	2010		2009		2008
Compensation expense(a)	$	28,124	$	26,928	$	22,746
Noncompensation expense:
Occupancy expense		3,681		3,666		3,038
Technology, communications and equipment expense		4,684		4,624		4,315
Professional and outside services		6,767		6,232		6,053
Marketing		2,446		1,777		1,913
Other expense(b)(c)(d)		14,558		7,594		3,740
Amortization of intangibles		936		1,050		1,263
Total noncompensation expense		33,072		24,943		20,322
Merger costs		—		481		432
Total noninterest expense	$	61,196	$	52,352	$	43,500

(a)	2010 includes a payroll tax expense related to the United Kingdom (“U.K.”) Bank Payroll Tax on certain compensation awarded from December 9, 2009, to April 5, 2010, to relevant banking employees.
(b)	In 2010, 2009 and 2008, included litigation expense of $7.4 billion, $161 million and a net benefit of $781 million, respectively.
(c)	Includes foreclosed property expense of $1.0 billion, $1.4 billion and $213 million in 2010, 2009 and 2008, respectively.
(d)	Expense for 2009 included a $675 million FDIC special assessment.

Merger and acquisition cost

	2009							2008
	Bear			Washington				Bear		Washington
Year ended December 31, (in millions)	Stearns			Mutual		Total		Stearns		Mutual		Total
Expense category
Compensation	$	(9	)	$	256	$	247	$	181	$	113	$	294
Occupancy		(3	)		15		12		42		—		42
Technology and communications and other		38			184		222		85		11		96
Total(a)(b)	$	26		$	455	$	481	$	308	$	124	$	432

(a)	With the exception of occupancy- and technology-related write-offs, all of the costs in the table required the expenditure of cash.
(b)	There were no merger costs for 2010.

Merger reserve balance

	2010									2009									2008
	Bear			Washington						Bear			Washington						Bear			Washington
Year ended December 31, (in millions)	Stearns			Mutual			Total			Stearns			Mutual			Total			Stearns			Mutual			Total
Merger reserve balance, beginning of period	$	32		$	57		$	89		$	327		$	441		$	768		$	—		$	—		$	—
Recorded as merger costs(a)		—			—			—			26			455			481			308			124			432
Recorded as goodwill		—			—			—			(5	)		—			(5	)		1,112			435			1,547
Utilization of merger reserve		(32	)		(57	)		(89	)		(316	)		(839	)		(1,155	)		(1,093	)		(118	)		(1,211	)
Merger reserve balance, end of period	$	—		$	—		$	—		$	32		$	57		$	89		$	327		$	441		$	768

(a) There were no merger costs for 2010.