Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table displays our assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis as of September 30, 2014 and December 31, 2013:

Table 12.1: Assets and Liabilities Measured at Fair Value on a Recurring Basis



	September 30, 2014
	Fair Value Measurements Using
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Assets
Securities available for sale:
U.S. Treasury debt obligations	$	4,261	$	0	$	0	$	4,261
U.S. agency debt obligations	0		1		0		1
Corporate debt securities guaranteed by U.S. government agencies	0		595		384		979
RMBS	0		23,826		657		24,483
CMBS	0		5,483		303		5,786
Other ABS	0		2,973		110		3,083
Other securities	112		948		12		1,072
Total securities available for sale	4,373		33,826		1,466		39,665
Other assets:
Consumer MSRs	0		0		58		58
Derivative assets⁽¹⁾	0		785		51		836
Retained interests in securitizations	0		0		203		203
Total assets	$	4,373	$	34,611	$	1,778	$	40,762
Liabilities
Other liabilities:
Derivative liabilities⁽¹⁾	$	1	$	329	$	39	$	369
Total liabilities	$	1	$	329	$	39	$	369



	December 31, 2013
	Fair Value Measurements Using
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Assets
Securities available for sale:
U.S. Treasury debt obligations	$	833	$	0	$	0	$	833
U.S. agency debt obligations	0		1		0		1
Corporate debt securities guaranteed by U.S. government agencies	0		307		927		1,234
RMBS	0		23,775		1,304		25,079
CMBS	0		5,267		739		6,006
Other ABS	0		6,793		343		7,136
Other securities	127		1,367		17		1,511
Total securities available for sale	960		37,510		3,330		41,800
Other assets:
Consumer MSRs	0		4		69		73
Derivative assets⁽¹⁾	3		906		50		959
Retained interests in securitizations	0		0		199		199
Total assets	$	963	$	38,420	$	3,648	$	43,031
Liabilities
Other liabilities:
Derivative liabilities⁽¹⁾	$	4	$	668	$	38	$	710
Total liabilities	$	4	$	668	$	38	$	710

__________


⁽¹⁾	Does not reflect $3 million and $1 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of September 30, 2014 and December 31, 2013, respectively. Non-performance risk is reflected in other assets/liabilities on the balance sheet and offset through the income statement in other income.

Schedule of Level 3 Inputs Reconciliation for Assets

Table 12.2: Level 3 Recurring Fair Value Rollforward



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2014
																										Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2014⁽³⁾
			Total Gains (Losses) (Realized/Unrealized)
(Dollars in millions)	Balance, July 1, 2014		Included in Net Income⁽¹⁾			Included in OCI			Purchases		Sales			Issuances		Settlements			Transfers Into Level 3⁽²⁾		Transfers Out of Level 3⁽²⁾			Balance, September 30, 2014
Assets:
Securities available for sale:
Corporate debt securities guaranteed by U.S. government agencies	$	739	$	(5	)	$	3		$	0	$	(91	)	$	0	$	(16	)	$	0	$	(246	)	$	384	$	(1	)
RMBS	836		16			3			42		0			0		(24		)	79		(295		)	657		16
CMBS	449		0			(2		)	158		0			0		(34		)	0		(268		)	303		0
Other ABS	175		1			3			0		0			0		0			9		(78		)	110		1
Other securities	20		(1		)	0			0		0			0		(7		)	0		0			12		(1		)
Total securities available for sale	2,219		11			7			200		(91		)	0		(81		)	88		(887		)	1,466		15
Other assets:
Consumer MSRs	57		(2		)	0			0		0			4		(1		)	0		0			58		(2		)
Derivative assets	50		2			0			0		0			6		(8		)	0		1			51		2
Retained interest in securitizations	195		8			0			0		0			0		0			0		0			203		8
Liabilities:
Other liabilities:
Derivative liabilities	37		4			0			0		0			4		(6		)	0		0			39		4



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2013
			Total Gains (Losses) (Realized/Unrealized)																						Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2013⁽³⁾

(Dollars in millions)	Balance, July 1, 2013		Included in Net Income⁽¹⁾			Included in OCI			Purchases		Sales		Issuances		Settlements			Transfers Into Level 3⁽²⁾		Transfers Out of Level 3⁽²⁾			Balance, September 30, 2013
Assets:
Securities available for sale:
Corporate debt securities guaranteed by U.S. government agencies	$	832	$	0		$	4		$	61	$	0	$	0	$	(19	)	$	47	$	1		$	926	$	0
RMBS	1,535		(6		)	57			85		0		0		(72		)	152		(430		)	1,321		(5		)
CMBS	461		0			(2		)	96		0		0		(4		)	48		(295		)	304		0
Other ABS	109		0			6			129		0		0		0			84		(15		)	313		0
Other securities	16		0			0			30		0		0		(6		)	0		(2		)	38		0
Total securities available for sale	2,953		(6		)	65			401		0		0		(101		)	331		(741		)	2,902		(5		)
Other assets:
Consumer MSRs	61		(5		)	0			0		0		4		(2		)	0		0			58		(5		)
Derivative assets	72		(13		)	0			0		0		4		(3		)	0		(6		)	54		(13		)
Retained interest in securitizations	198		3			0			0		0		0		0			0		0			201		3
Liabilities:
Other liabilities:
Derivative liabilities	42		4			0			0		0		3		(9		)	0		(1		)	39		4



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2014
			Total Gains (Losses) (Realized/Unrealized)																						Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2014⁽³⁾

(Dollars in millions)	Balance, January 1, 2014		Included in Net Income⁽¹⁾			Included in OCI		Purchases		Sales			Issuances		Settlements			Transfers Into Level 3⁽²⁾		Transfers Out of Level 3⁽²⁾			Balance, September 30, 2014
Assets:
Securities available for sale:
Corporate debt securities guaranteed by U.S. government agencies	$	927	$	(5	)	$	18	$	0	$	(203	)	$	0	$	(55	)	$	64	$	(362	)	$	384	$	(1	)
RMBS	1,304		53			39		1,022		0			0		(156		)	199		(1,804		)	657		53
CMBS	739		0			3		192		0			0		(64		)	66		(633		)	303		0
Other ABS	343		4			13		0		0			0		(2		)	52		(300		)	110		4
Other securities	17		(1		)	0		0		0			0		(7		)	3		0			12		(1		)
Total securities available for sale	3,330		51			73		1,214		(203		)	0		(284		)	384		(3,099		)	1,466		55
Other assets:
Consumer MSRs	69		(19		)	0		0		0			11		(3		)	0		0			58		(19		)
Derivative assets	50		5			0		0		0			13		(14		)	0		(3		)	51		5
Retained interest in securitizations	199		4			0		0		0			0		0			0		0			203		4
Liabilities:
Other liabilities:
Derivative liabilities	38		8			0		0		0			8		(14		)	0		(1		)	39		8



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2013
			Total Gains (Losses) (Realized/Unrealized)																							Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2013⁽³⁾

(Dollars in millions)	Balance, January 1, 2013		Included in Net Income⁽¹⁾			Included in OCI			Purchases		Sales			Issuances		Settlements			Transfers Into Level 3⁽²⁾		Transfers Out of Level 3⁽²⁾			Balance, September 30, 2013
Assets:
Securities available for sale:
Corporate debt securities guaranteed by U.S. government agencies	$	650	$	0		$	(31	)	$	272	$	0		$	0	$	(47	)	$	125	$	(43	)	$	926	$	0
RMBS	1,335		(16		)	141			277		0			0		(217		)	681		(880		)	1,321		(21		)
CMBS	587		0			(49		)	643		(10		)	0		(31		)	168		(1,004		)	304		0
Other ABS	102		(1		)	12			169		(41		)	0		(2		)	98		(24		)	313		(1		)
Other securities	15		0			0			30		0			0		(6		)	1		(2		)	38		0
Total securities available for sale	2,689		(17		)	73			1,391		(51		)	0		(303		)	1,073		(1,953		)	2,902		(22		)
Other assets:
Consumer MSRs	55		25			0			0		0			9		(5		)	0		(26		)	58		25
Derivative assets	90		(20		)	0			0		0			8		(15		)	0		(9		)	54		(20		)
Retained interest in securitization	204		(3		)	0			0		0			0		0			0		0			201		(3		)
Liabilities:
Other liabilities:
Derivative liabilities	38		15			0			0		0			13		(25		)	0		(2		)	39		15

__________


⁽¹⁾	Gains (losses) related to Level 3 Consumer MSRs, derivative assets and derivative liabilities, and retained interests in securitizations are reported in other non-interest income, which is a component of non-interest income.


⁽²⁾	The transfers out of Level 3 for the three and nine months ended September 30, 2014 and 2013 were primarily driven by greater consistency among multiple pricing sources. The transfers into Level 3 were primarily driven by less consistency among vendor pricing on individual securities.

⁽³⁾

The amount presented for unrealized gains (losses) for assets still held as of the reporting date primarily represents impairments for securities available for sale, accretion on certain fixed maturity securities, change in fair value of derivative instruments and mortgage servicing rights transaction. Impairment is reported in total other-than-temporary impairment as a component of non-interest income.

Schedule of Level 3 Inputs Reconciliation for Liabilities

The tables below present a reconciliation for all assets and liabilities measured and recognized at fair value on a recurring basis using significant unobservable inputs (Level 3). When assets and liabilities are transferred between levels, we recognize the transfer as of the end of the period.

Table 12.2: Level 3 Recurring Fair Value Rollforward



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2014
																										Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2014⁽³⁾
			Total Gains (Losses) (Realized/Unrealized)
(Dollars in millions)	Balance, July 1, 2014		Included in Net Income⁽¹⁾			Included in OCI			Purchases		Sales			Issuances		Settlements			Transfers Into Level 3⁽²⁾		Transfers Out of Level 3⁽²⁾			Balance, September 30, 2014
Assets:
Securities available for sale:
Corporate debt securities guaranteed by U.S. government agencies	$	739	$	(5	)	$	3		$	0	$	(91	)	$	0	$	(16	)	$	0	$	(246	)	$	384	$	(1	)
RMBS	836		16			3			42		0			0		(24		)	79		(295		)	657		16
CMBS	449		0			(2		)	158		0			0		(34		)	0		(268		)	303		0
Other ABS	175		1			3			0		0			0		0			9		(78		)	110		1
Other securities	20		(1		)	0			0		0			0		(7		)	0		0			12		(1		)
Total securities available for sale	2,219		11			7			200		(91		)	0		(81		)	88		(887		)	1,466		15
Other assets:
Consumer MSRs	57		(2		)	0			0		0			4		(1		)	0		0			58		(2		)
Derivative assets	50		2			0			0		0			6		(8		)	0		1			51		2
Retained interest in securitizations	195		8			0			0		0			0		0			0		0			203		8
Liabilities:
Other liabilities:
Derivative liabilities	37		4			0			0		0			4		(6		)	0		0			39		4



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2013
			Total Gains (Losses) (Realized/Unrealized)																						Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2013⁽³⁾

(Dollars in millions)	Balance, July 1, 2013		Included in Net Income⁽¹⁾			Included in OCI			Purchases		Sales		Issuances		Settlements			Transfers Into Level 3⁽²⁾		Transfers Out of Level 3⁽²⁾			Balance, September 30, 2013
Assets:
Securities available for sale:
Corporate debt securities guaranteed by U.S. government agencies	$	832	$	0		$	4		$	61	$	0	$	0	$	(19	)	$	47	$	1		$	926	$	0
RMBS	1,535		(6		)	57			85		0		0		(72		)	152		(430		)	1,321		(5		)
CMBS	461		0			(2		)	96		0		0		(4		)	48		(295		)	304		0
Other ABS	109		0			6			129		0		0		0			84		(15		)	313		0
Other securities	16		0			0			30		0		0		(6		)	0		(2		)	38		0
Total securities available for sale	2,953		(6		)	65			401		0		0		(101		)	331		(741		)	2,902		(5		)
Other assets:
Consumer MSRs	61		(5		)	0			0		0		4		(2		)	0		0			58		(5		)
Derivative assets	72		(13		)	0			0		0		4		(3		)	0		(6		)	54		(13		)
Retained interest in securitizations	198		3			0			0		0		0		0			0		0			201		3
Liabilities:
Other liabilities:
Derivative liabilities	42		4			0			0		0		3		(9		)	0		(1		)	39		4



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2014
			Total Gains (Losses) (Realized/Unrealized)																						Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2014⁽³⁾

(Dollars in millions)	Balance, January 1, 2014		Included in Net Income⁽¹⁾			Included in OCI		Purchases		Sales			Issuances		Settlements			Transfers Into Level 3⁽²⁾		Transfers Out of Level 3⁽²⁾			Balance, September 30, 2014
Assets:
Securities available for sale:
Corporate debt securities guaranteed by U.S. government agencies	$	927	$	(5	)	$	18	$	0	$	(203	)	$	0	$	(55	)	$	64	$	(362	)	$	384	$	(1	)
RMBS	1,304		53			39		1,022		0			0		(156		)	199		(1,804		)	657		53
CMBS	739		0			3		192		0			0		(64		)	66		(633		)	303		0
Other ABS	343		4			13		0		0			0		(2		)	52		(300		)	110		4
Other securities	17		(1		)	0		0		0			0		(7		)	3		0			12		(1		)
Total securities available for sale	3,330		51			73		1,214		(203		)	0		(284		)	384		(3,099		)	1,466		55
Other assets:
Consumer MSRs	69		(19		)	0		0		0			11		(3		)	0		0			58		(19		)
Derivative assets	50		5			0		0		0			13		(14		)	0		(3		)	51		5
Retained interest in securitizations	199		4			0		0		0			0		0			0		0			203		4
Liabilities:
Other liabilities:
Derivative liabilities	38		8			0		0		0			8		(14		)	0		(1		)	39		8



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2013
			Total Gains (Losses) (Realized/Unrealized)																							Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of September 30, 2013⁽³⁾

(Dollars in millions)	Balance, January 1, 2013		Included in Net Income⁽¹⁾			Included in OCI			Purchases		Sales			Issuances		Settlements			Transfers Into Level 3⁽²⁾		Transfers Out of Level 3⁽²⁾			Balance, September 30, 2013
Assets:
Securities available for sale:
Corporate debt securities guaranteed by U.S. government agencies	$	650	$	0		$	(31	)	$	272	$	0		$	0	$	(47	)	$	125	$	(43	)	$	926	$	0
RMBS	1,335		(16		)	141			277		0			0		(217		)	681		(880		)	1,321		(21		)
CMBS	587		0			(49		)	643		(10		)	0		(31		)	168		(1,004		)	304		0
Other ABS	102		(1		)	12			169		(41		)	0		(2		)	98		(24		)	313		(1		)
Other securities	15		0			0			30		0			0		(6		)	1		(2		)	38		0
Total securities available for sale	2,689		(17		)	73			1,391		(51		)	0		(303		)	1,073		(1,953		)	2,902		(22		)
Other assets:
Consumer MSRs	55		25			0			0		0			9		(5		)	0		(26		)	58		25
Derivative assets	90		(20		)	0			0		0			8		(15		)	0		(9		)	54		(20		)
Retained interest in securitization	204		(3		)	0			0		0			0		0			0		0			201		(3		)
Liabilities:
Other liabilities:
Derivative liabilities	38		15			0			0		0			13		(25		)	0		(2		)	39		15

__________


⁽¹⁾	Gains (losses) related to Level 3 Consumer MSRs, derivative assets and derivative liabilities, and retained interests in securitizations are reported in other non-interest income, which is a component of non-interest income.


⁽²⁾	The transfers out of Level 3 for the three and nine months ended September 30, 2014 and 2013 were primarily driven by greater consistency among multiple pricing sources. The transfers into Level 3 were primarily driven by less consistency among vendor pricing on individual securities.

⁽³⁾

Schedule of Assets Measured at Fair Value on Recurring Basis Quantitative Information

Table 12.3: Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information about Level 3 Fair Value Measurements

(Dollars in millions)

Fair Value at September 30,
2014

Significant

Valuation

Techniques

Significant

Unobservable

Inputs

Range

Weighted

Average

Assets:

Securities available for sale:

RMBS

657

Discounted cash flows (3rd party pricing)

Yield
Constant prepayment rate
Default rate
Loss severity

0-23%
0-23%
0-11%
0-80%

6%
3%
5%
49%

CMBS

303

Discounted cash flows (3rd party pricing)

Yield
Constant prepayment rate

0-4%
0-100%

1%
4%

Other ABS

110

Discounted cash flows (3rd party pricing)

Yield
Constant prepayment rate
Default rate
Loss severity

5-7%
0-4%
3-10%
49-88%

6%
3%
6%
75%

U.S. government guaranteed debt and other securities

396

Discounted cash flows (3rd party pricing)

Yield

1-3%

Other assets:

Consumer MSRs

Discounted cash flows

Total prepayment rate
Discount rate
Servicing cost ($ per loan)

10-27%
10-21%
$62.07-$185.22

16%
13%
$75.95

Derivative assets

Discounted cash flows

Swap rates

Retained interests in securitization⁽¹⁾

203

Discounted cash flows

Life of receivables (months) Constant prepayment rate
Discount rate
Default rate
Loss severity

28-82
1-11%
4-12%
2-7%
17-111%

N/A

Liabilities:

Other liabilities:

Derivative liabilities

Discounted cash flows

Swap rates

Quantitative Information about Level 3 Fair Value Measurements

(Dollars in millions)

Fair Value at December 31,
2013

Significant

Valuation

Techniques

Significant

Unobservable

Inputs

Range

Weighted

Average

Assets:

Securities available for sale:

RMBS

1,304

Discounted cash flows (3rd party pricing)

Yield
Constant prepayment rate
Default rate
Loss severity

0-23%
0-21%
0-18%
0-95%

5%
5%
8%
49%

CMBS

739

Discounted cash flows (3rd party pricing)

Yield
Constant prepayment rate

1-4%
0-20%

2%
3%

Other ABS

343

Discounted cash flows (3rd party pricing)

Yield
Constant prepayment rate
Default rate
Loss severity

1-8%
1-6%
1-19%
44-80%

3%
2%
12%
69%

U.S. government guaranteed debt and other securities

944

Discounted cash flows (3rd party pricing)

Yield

0-3%

Other assets:

Consumer MSRs

Discounted cash flows

Total prepayment rate
Discount rate
Servicing cost ($ per loan)

9-32%
10-17%
$81.39-$393.52

14%
11%
$89.32

Derivative assets

Discounted cash flows

Swap rates

3-4%

Retained interests in securitization⁽¹⁾

199

Discounted cash flows

Life of receivables (months) Constant prepayment rate
Discount rate
Default rate
Loss severity

34-101
2-7%
5-14%
2-7%
15-89%

N/A

Liabilities:

Other liabilities:

Derivative liabilities

Discounted cash flows

Swap rates

3-4%

__________


⁽¹⁾	Due to the nature of the various mortgage securitization structures in which we have retained interests, it is not meaningful to present a consolidated weighted average for the significant unobservable inputs.

Schedule of Liabilities Measured at Fair Value on Recurring Basis Quantitative Information

Table 12.3: Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information about Level 3 Fair Value Measurements

(Dollars in millions)

Fair Value at September 30,
2014

Significant

Valuation

Techniques

Significant

Unobservable

Inputs

Range

Weighted

Average

Assets:

Securities available for sale:

RMBS

657

Discounted cash flows (3rd party pricing)

Yield
Constant prepayment rate
Default rate
Loss severity

0-23%
0-23%
0-11%
0-80%

6%
3%
5%
49%

CMBS

303

Discounted cash flows (3rd party pricing)

Yield
Constant prepayment rate

0-4%
0-100%

1%
4%

Other ABS

110

Discounted cash flows (3rd party pricing)

Yield
Constant prepayment rate
Default rate
Loss severity

5-7%
0-4%
3-10%
49-88%

6%
3%
6%
75%

U.S. government guaranteed debt and other securities

396

Discounted cash flows (3rd party pricing)

Yield

1-3%

Other assets:

Consumer MSRs

Discounted cash flows

Total prepayment rate
Discount rate
Servicing cost ($ per loan)

10-27%
10-21%
$62.07-$185.22

16%
13%
$75.95

Derivative assets

Discounted cash flows

Swap rates

Retained interests in securitization⁽¹⁾

203

Discounted cash flows

Life of receivables (months) Constant prepayment rate
Discount rate
Default rate
Loss severity

28-82
1-11%
4-12%
2-7%
17-111%

N/A

Liabilities:

Other liabilities:

Derivative liabilities

Discounted cash flows

Swap rates

Quantitative Information about Level 3 Fair Value Measurements

(Dollars in millions)

Fair Value at December 31,
2013

Significant

Valuation

Techniques

Significant

Unobservable

Inputs

Range

Weighted

Average

Assets:

Securities available for sale:

RMBS

1,304

Discounted cash flows (3rd party pricing)

Yield
Constant prepayment rate
Default rate
Loss severity

0-23%
0-21%
0-18%
0-95%

5%
5%
8%
49%

CMBS

739

Discounted cash flows (3rd party pricing)

Yield
Constant prepayment rate

1-4%
0-20%

2%
3%

Other ABS

343

Discounted cash flows (3rd party pricing)

Yield
Constant prepayment rate
Default rate
Loss severity

1-8%
1-6%
1-19%
44-80%

3%
2%
12%
69%

U.S. government guaranteed debt and other securities

944

Discounted cash flows (3rd party pricing)

Yield

0-3%

Other assets:

Consumer MSRs

Discounted cash flows

Total prepayment rate
Discount rate
Servicing cost ($ per loan)

9-32%
10-17%
$81.39-$393.52

14%
11%
$89.32

Derivative assets

Discounted cash flows

Swap rates

3-4%

Retained interests in securitization⁽¹⁾

199

Discounted cash flows

Life of receivables (months) Constant prepayment rate
Discount rate
Default rate
Loss severity

34-101
2-7%
5-14%
2-7%
15-89%

N/A

Liabilities:

Other liabilities:

Derivative liabilities

Discounted cash flows

Swap rates

3-4%

__________


⁽¹⁾	Due to the nature of the various mortgage securitization structures in which we have retained interests, it is not meaningful to present a consolidated weighted average for the significant unobservable inputs.

Schedule of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents the carrying amount of the assets measured at fair value on a nonrecurring basis and still held as of September 30, 2014 and December 31, 2013, and for which a nonrecurring fair value measurement was recorded during the nine and twelve months then ended:

Table 12.4: Nonrecurring Fair Value Measurements Related to Assets Still Held at Period End



	September 30, 2014
	Estimated Fair Value Hierarchy						Total
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Assets:
Loans held for investment	$	0	$	0	$	120	$	120
Loans held for sale	0		98		0		98
Other assets⁽¹⁾	0		0		63		63
Total	$	0	$	98	$	183	$	281



	December 31, 2013
	Estimated Fair Value Hierarchy						Total
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Assets:
Loans held for investment	$	0	$	0	$	84	$	84
Loans held for sale	0		145		0		145
Other assets⁽¹⁾	0		0		64		64
Total	$	0	$	145	$	148	$	293

__________


⁽¹⁾	Includes foreclosed property and repossessed assets of $51 million and long-lived assets held for sale of $12 million as of September 30, 2014. Comparatively, includes foreclosed property and repossessed assets of $42 million and long-lived assets held for sale of $22 million as of December 31, 2013.

Schedule of Earnings Related to Assets Measured at Fair Value on Nonrecurring Basis

The following table presents total nonrecurring fair value measurements for the period, included in earnings, attributable to the change in fair value relating to assets that are still held at September 30, 2014 and 2013.

Table 12.5: Nonrecurring Fair Value Measurements Included in Earnings Related to Assets Still Held at Period End



	Total Gains (Losses)
	Nine Months Ended September 30,
(Dollars in millions)	2014			2013
Assets:
Loans held for investment	$	(19	)	$	(27	)
Loans held for sale	0			0
Other assets⁽¹⁾	(6		)	(16		)
Total	$	(25	)	$	(43	)

__________


⁽¹⁾	Includes the gains and losses related to foreclosed property and repossessed assets and long-lived assets held for sale.

Schedule of Fair Value of Financial Instruments

The following reflects the fair value of financial instruments, whether or not recognized on the consolidated balance sheets at fair value, as of September 30, 2014 and December 31, 2013:

Table 12.6: Fair Value of Financial Instruments



	September 30, 2014				Estimated Fair Value Hierarchy
(Dollars in millions)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	6,148	$	6,148	$	6,148	$	0	$	0
Restricted cash for securitization investors	405		405		405		0		0
Securities available for sale	39,665		39,665		4,373		33,826		1,466
Securities held to maturity	22,182		22,928		0		22,770		158
Net loans held for investment	197,380		201,441		0		0		201,441
Loans held for sale	427		431		0		431		0
Interest receivable	1,268		1,268		0		1,268		0
Derivative assets	836		836		0		785		51
Retained interests in securitizations	203		203		0		0		203
Financial liabilities:
Non-interest bearing deposits	$	25,388	$	25,388	$	25,388	$	0	$	0
Interest-bearing deposits	178,876		172,688		0		11,341		161,347
Securitized debt obligations	10,508		10,654		0		10,654		0
Senior and subordinated notes	18,534		19,075		0		19,075		0
Federal funds purchased and securities loaned or sold under agreements to repurchase	2,330		2,330		2,330		0		0
Other borrowings	10,871		10,876		0		10,876		0
Interest payable	249		249		0		249		0
Derivative liabilities	369		369		1		329		39



	December 31, 2013				Estimated Fair Value Hierarchy
(Dollars in millions)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	6,291	$	6,291	$	6,291	$	0	$	0
Restricted cash for securitization investors	874		874		874		0		0
Securities available for sale	41,800		41,800		960		37,510		3,330
Securities held to maturity	19,132		19,185		0		18,895		290
Net loans held for investment	192,884		198,138		0		0		198,138
Loans held for sale	218		219		0		219		0
Interest receivable	1,418		1,418		0		1,418		0
Derivatives assets	959		959		3		906		50
Retained interests in securitizations	199		199		0		0		199
Financial liabilities:
Non-interest bearing deposits	$	22,643	$	22,643	$	22,643	$	0	$	0
Interest-bearing deposits	181,880		175,516		0		14,346		161,170
Securitized debt obligations	10,289		11,081		0		10,835		246
Senior and subordinated notes	13,134		13,715		0		13,715		0
Federal funds purchased and securities loaned or sold under agreements to repurchase	915		915		915		0		0
Other borrowings	16,316		16,324		0		16,324		0
Interest payable	307		307		0		307		0
Derivatives liabilities	710		710		4		668		38

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details