Securities (Tables)

6 Months Ended

Jun. 30, 2012

Securities

Amortized Cost, Gross Unrealized Gains and Losses and Approximate Fair Values of Securities Available for Sale

			Amortized		Gross Unrealized				Fair
June 30, 2012			Cost		Gains		Losses		Value
			(Dollars in millions)
Securities available for sale:
	U.S. government-sponsored entities (“GSE”)		$	348	$	—	$	—	$	348
	Mortgage-backed securities issued by GSE			20,484		380		8		20,856
	States and political subdivisions			1,982		120		120		1,982
	Non-agency mortgage-backed securities			333		2		33		302
	Other securities			1		—		—		1
	Covered securities			1,190		388		—		1,578
		Total securities available for sale	$	24,338	$	890	$	161	$	25,067

			Amortized		Gross Unrealized				Fair
December 31, 2011			Cost		Gains		Losses		Value
			(Dollars in millions)
Securities available for sale:
	GSE securities		$	305	$	1	$	—	$	306
	Mortgage-backed securities issued by GSE			17,940		199		7		18,132
	States and political subdivisions			1,977		91		145		1,923
	Non-agency mortgage-backed securities			423		—		55		368
	Other securities			7		—		—		7
	Covered securities			1,240		343		6		1,577
		Total securities available for sale	$	21,892	$	634	$	213	$	22,313

Amortized Cost and Approximate Fair Values of Securities Held to Maturity

			Amortized		Gross Unrealized				Fair
June 30, 2012			Cost		Gains		Losses		Value
			(Dollars in millions)
Securities held to maturity:
	GSE securities		$	500	$	2	$	—	$	502
	Mortgage-backed securities issued by GSE			11,326		172		1		11,497
	States and political subdivisions			34		1		—		35
	Other securities			716		1		7		710
		Total securities held to maturity	$	12,576	$	176	$	8	$	12,744

			Amortized		Gross Unrealized				Fair
December 31, 2011			Cost		Gains		Losses		Value
			(Dollars in millions)
Securities held to maturity:
	GSE securities		$	500	$	—	$	—	$	500
	Mortgage-backed securities issued by GSE			13,028		32		23		13,037
	States and political subdivisions			35		—		2		33
	Other securities			531		1		4		528
		Total securities held to maturity	$	14,094	$	33	$	29	$	14,098

Gross Realized Gains and Loses

	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2012		2011		2012		2011
	(Dollars in millions)
Gross gains	$	―	$	17	$	―	$	38
Gross losses		―		(1)		(4)		(1)
Net realized gains (losses)	$	―	$	16	$	(4)	$	37

Schedule of Credit Losses on Other-Than-Temporarily Impaired Non-Agency Mortgage-Backed Securities where Portion of Unrealized Loss was Recognized In Other Comprehensive Income

	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2012		2011		2012		2011
	(Dollars in millions)
Balance at beginning of period	$	114	$	51	$	129	$	30
Credit losses on securities for which OTTI was previously recognized		2		18		3		39
Reductions for securities sold/settled during the period		(4)		(6)		(20)		(6)
Balance at end of period	$	112	$	63	$	112	$	63

Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity

		Available for Sale				Held to Maturity
		Amortized		Fair		Amortized		Fair
June 30, 2012		Cost		Value		Cost		Value
		(Dollars in millions)
Due in one year or less		$	185	$	185	$	1	$	1
Due after one year through five years			195		199		―		―
Due after five years through ten years			635		668		501		502
Due after ten years			23,323		24,015		12,074		12,241
	Total debt securities	$	24,338	$	25,067	$	12,576	$	12,744

Gross Unrealized Losses and Fair Values of Investments by Investment Category and Length of Time

			Less than 12 months				12 months or more				Total
			Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
June 30, 2012			Value		Losses		Value		Losses		Value		Losses
			(Dollars in millions)
Securities available for sale:
	GSE securities		$	215	$	—	$	—	$	—	$	215	$	—
	Mortgage-backed securities issued by GSE			2,453		8		1		—		2,454		8
	States and political subdivisions			69		3		536		117		605		120
	Non-agency mortgage-backed securities			—		—		244		33		244		33
	Covered securities			13		—		—		—		13		—
		Total	$	2,750	$	11	$	781	$	150	$	3,531	$	161

Securities held to maturity:
	Mortgage-backed securities issued by GSE		$	1,048	$	1	$	254	$	—	$	1,302	$	1
	States and political subdivisions			1		—		2		—		3		—
	Other securities			557		7		—		—		557		7
		Total	$	1,606	$	8	$	256	$	—	$	1,862	$	8

			Less than 12 months				12 months or more				Total
			Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2011			Value		Losses		Value		Losses		Value		Losses
			(Dollars in millions)
Securities available for sale:
	GSE securities		$	24	$	—	$	—	$	—	$	24	$	—
	Mortgage-backed securities issued by GSE			3,098		7		—		—		3,098		7
	States and political subdivisions			16		3		702		142		718		145
	Non-agency mortgage-backed securities			—		—		368		55		368		55
	Covered securities			29		6		—		—		29		6
		Total	$	3,167	$	16	$	1,070	$	197	$	4,237	$	213

Securities held to maturity:
	GSE securities		$	250	$	—	$	—	$	—	$	250	$	—
	Mortgage-backed securities issued by GSE			7,770		23		—		—		7,770		23
	States and political subdivisions			33		2		—		—		33		2
	Other securities			207		4		—		—		207		4
		Total	$	8,260	$	29	$	—	$	—	$	8,260	$	29

Schedule of Non-Investment Grade Securities with Significant Unrealized Losses

				Cumulative
		Amortized		Credit Loss		Adjusted		Fair		Unrealized
June 30, 2012		Cost		Recognized		Amortized Cost		Value		Loss
				(Dollars in millions)
Security:
	RMBS 1	$	124	$	(33)	$	91	$	76	$	(15)