Income taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income taxes [Abstract]

Components of income tax expense (benefit)

The components of income tax expense (benefit) were as follows:

	Year Ended December 31
	2011			2010		2009
	(In thousands)
Current
Federal	$	277,631		$	250,489	$	52,792
State and city		53,566			55,071		4,107
Total current		331,197			305,560		56,899
Deferred
Federal		34,325			47,123		67,372
State and city		(401	)		3,945		15,129
Total deferred		33,924			51,068		82,501
Total income taxes applicable to pre-tax income	$	365,121		$	356,628	$	139,400

Schedule of income tax expense benefit reconciliation

Total income taxes differed from the amount computed by applying the statutory federal income tax rate to pre-tax income as follows:

	Year Ended December 31
	2011			2010			2009
	(In thousands)
Income taxes at statutory federal income tax rate	$	428,610		$	382,476		$	181,752
Increase (decrease) in taxes:
Tax-exempt income		(33,799	)		(32,466	)		(31,071	)
State and city income taxes, net of federal income tax effect		34,557			38,360			12,503
Low income housing credits		(40,763	)		(29,882	)		(20,749	)
Non-taxable gain on acquisition		(22,725	)		—			—
Other		(759	)		(1,860	)		(3,035	)
	$	365,121		$	356,628		$	139,400

Deferred tax assets (liabilities)

Deferred tax assets (liabilities) were comprised of the following at December 31:

	2011			2010			2009
	(In thousands)
Losses on loans and other assets	$	896,219		$	550,970		$	642,427
Postretirement and other employee benefits		39,992			28,135			25,770
Incentive compensation plans		49,183			27,388			27,835
Interest on loans		46,965			43,563			35,772
Retirement benefits		147,997			42,422			34,851
Stock-based compensation		78,014			70,641			69,881
Unrealized investment losses		50,528			54,557			140,821
Depreciation and amortization		9,563			13,332			6,274
Other		99,012			51,768			40,281
Gross deferred tax assets		1,417,473			882,776			1,023,912
Leasing transactions		(294,150	)		(294,510	)		(306,799	)
Capitalized servicing rights		(17,603	)		(14,739	)		(8,412	)
Interest on subordinated note exchange		(11,275	)		(13,534	)		(15,051	)
Other		(48,803	)		(36,080	)		(32,617	)
Gross deferred tax liabilities		(371,831	)		(358,863	)		(362,879	)
Net deferred tax asset	$	1,045,642		$	523,913		$	661,033

Reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:

	Federal, State and Local Tax			Accrued Interest			Unrecognized Income Tax Benefits
	(In thousands)
Gross unrecognized tax benefits at January 1, 2009	$	38,287		$	17,556		$	55,843
Increases in unrecognized tax benefits as a result of tax positions taken during 2009		400			—			400
Increases in unrecognized tax benefits as a result of tax positions taken during prior years		—			3,675			3,675
Decreases in unrecognized tax benefits because applicable returns are no longer subject to examination		(9,902	)		(1,392	)		(11,294	)
Decreases in unrecognized tax benefits as a result of settlements with taxing authorities		(825	)		(331	)		(1,156	)
Unrecognized tax benefits acquired in a business combination		337			—			337
Gross unrecognized tax benefits at December 31, 2009		28,297			19,508			47,805
Increases in unrecognized tax benefits as a result of tax positions taken during prior years		—			11,468			11,468
Decreases in unrecognized tax benefits because applicable returns are no longer subject to examination		(1,403	)		(670	)		(2,073	)
Decreases in unrecognized tax benefits as a result of settlements with taxing authorities		(967	)		(549	)		(1,516	)
Decreases in unrecognized tax benefits as a result of tax positions taken in prior years		(1,074	)		(9,061	)		(10,135	)
Gross unrecognized tax benefits at December 31, 2010		24,853			20,696			45,549
Increases in unrecognized tax benefits as a result of tax positions taken during 2011		4,659			—			4,659
Decreases in unrecognized tax benefits as a result of settlements with taxing authorities		(9,742	)		(5,497	)		(15,239	)
Decreases in unrecognized tax benefits as a result of tax positions taken in prior years		—			(1,645	)		(1,645	)
Decreases in unrecognized tax benefits because applicable returns are no longer subject to examination		(8,471	)		(8,201	)		(16,672	)
Unrecognized tax benefits acquired in a business combination		7,034			3,924			10,958
Gross unrecognized tax benefits at December 31, 2011	$	18,333		$	9,277			27,610
Less: Federal, state and local income tax benefits								(9,018	)
Net unrecognized tax benefits at December 31, 2011 that, if recognized, would impact the effective income tax rate							$	18,592