SUNTRUST BANKS INC, 10-Q filed on 8/1/2012
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2012
Jul. 25, 2012
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2012 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q2 
 
Entity Registrant Name
SUNTRUST BANKS INC 
 
Entity Central Index Key
0000750556 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
538,484,027 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Consolidated Statements of Income/Loss (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Interest Income
 
 
 
 
Interest and fees on loans
$ 1,263 
$ 1,299 
$ 2,563 
$ 2,613 
Interest and fees on loans held for sale
31 
22 
55 
50 
Interest and dividends on securities available for sale:
 
 
 
 
Taxable interest
153 
177 
322 
342 
Tax-exempt interest
4 
6 
8 
11 
Dividends
23 1
21 1
45 1
41 1
Trading account interest and other
18 
21 
33 
43 
Total interest income
1,492 
1,546 
3,026 
3,100 
Interest Expense
 
 
 
 
Interest on deposits
118 
162 
245 
331 
Interest on long-term debt
90 
113 
178 
237 
Interest on other borrowings
10 
12 
18 
24 
Total interest expense
218 
287 
441 
592 
Net interest income
1,274 
1,259 
2,585 
2,508 
Provision for credit losses
300 
392 
617 
839 
Net interest income after provision for credit losses
974 
867 
1,968 
1,669 
Noninterest Income
 
 
 
 
Service charges on deposit accounts
167 
170 
332 
333 
Trust and investment management income
130 
135 
260 
270 
Other charges and fees
130 
130 
245 
256 
Card fees
66 
105 
127 
205 
Investment banking income
75 
95 
147 
162 
Trading income/(loss)
70 
53 
127 
105 
Retail investment services
62 
59 
120 
117 
Mortgage production related (loss)/income
103 
4 
166 
3 
Mortgage servicing related income
70 
72 
151 
144 
Net securities gains
14 2
32 2
32 2
96 2
Other noninterest income
53 
57 
109 
104 
Total noninterest income
940 
912 
1,816 
1,795 
Noninterest Expense
 
 
 
 
Employee compensation
654 
638 
1,306 
1,256 
Employee benefits
108 
110 
254 
246 
Outside processing and software
180 
162 
356 
320 
Net occupancy expense
88 
89 
176 
178 
Regulatory assessments
60 
81 
111 
152 
Credit and collection services
61 
60 
116 
111 
Other real estate expense
52 
64 
103 
133 
Operating losses
69 
62 
129 
89 
Marketing and customer development
32 
46 
59 
84 
Equipment expense
46 
44 
91 
88 
Amortization/impairment of goodwill/intangible assets
11 
12 
22 
23 
Net (gain)/loss on extinguishment of debt
13 
(1)
13 
(2)
Other noninterest expense
172 
175 
351 
329 
Total noninterest expense
1,546 
1,542 
3,087 
3,007 
Income/(loss) before provision/(benefit) for income taxes
368 
237 
697 
457 
Provision/(benefit) for income taxes
91 
58 
160 
91 
Net income/(loss) including income attributable to noncontrolling interest
277 
179 
537 
366 
Net income attributable to noncontrolling interest
2 
1 
12 
8 
Net income/(loss)
275 
178 
525 
358 
Net income/(loss) available to common shareholders
$ 270 
$ 174 
$ 515 
$ 212 
Net income/(loss) per average common share
 
 
 
 
Diluted
$ 0.50 
$ 0.33 
$ 0.96 
$ 0.41 
Basic
$ 0.51 
$ 0.33 
$ 0.97 
$ 0.41 
Dividends declared per common share
$ 0.05 
$ 0.01 
$ 0.10 
$ 0.02 
Average common shares - diluted
537,495 
535,416 
536,951 
519,548 
Average common shares - basic
533,964 
531,792 
533,532 
515,819 
Consolidated Statements of Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dividends on common stock of The Coca-Cola Company
$ 15 
$ 14 
$ 31 
$ 28 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
2 
1 
4 
2 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
2 1
1 1
4 1
2 1
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Income (Loss), before Tax, Including Portion Attributable to Noncontrolling Interest, Available-for-sale Securities
$ 0 
$ 0 
$ 0 
$ 0 
Consolidated Statement of Comprehensive Income/(Loss) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Net income/(loss)
$ 275 
$ 178 
$ 525 
$ 358 
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax
142 
190 
192 
121 
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax
(69)
72 
(170)
(53)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax
(4)
(19)
(28)
(16)
Other Comprehensive Income (Loss), Net of Tax
69 
243 
(6)
52 
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
$ 344 
$ 421 
$ 519 
$ 410 
Consolidated Statement of Comprehensive Income/(Loss) (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax
$ 80 
$ 110 
$ 107 
$ 70 
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax Effect
(38)
41 
(96)
(31)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Tax
$ (2)
$ (12)
$ (16)
$ (10)
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Assets
 
 
Cash and due from banks
$ 5,781 
$ 3,696 
Securities purchased under agreements to resell
937 
792 
Interest-bearing deposits in other banks
21 
21 
Cash and cash equivalents
6,739 
4,509 
Trading assets
6,327 
6,279 
Securities available for sale
24,409 
28,117 
Loans Held for Sale
3,123 1
2,353 1
Loans held for investment
124,560 2
122,495 2
Allowance for loan and lease losses
(2,300)
(2,457)
Net loans
122,260 
120,038 
Premises and equipment
1,578 
1,564 
Goodwill
6,376 
6,344 
Other intangible assets
939 
1,017 
Other real estate owned
331 
479 
Other assets
6,175 
6,159 
Total assets
178,257 
176,859 
Liabilities and Shareholders' Equity
 
 
Noninterest-bearing consumer and commercial deposits
37,394 
34,359 
Interest-bearing consumer and commercial deposits
88,751 
91,252 
Total consumer and commercial deposits
126,145 
125,611 
Brokered time deposits
2,208 
2,281 
Foreign deposits
50 
30 
Total deposits
128,403 
127,922 
Funds purchased
847 
839 
Securities Sold under Agreements to Repurchase
1,583 
1,644 
Other short-term borrowings
7,098 
8,983 
Long-term Debt
13,076 3
10,908 3
Trading liabilities
1,782 
1,806 
Other liabilities
4,900 
4,691 
Total liabilities
157,689 
156,793 
Preferred stock, no par value
275 
275 
Common stock, $1.00 par value
550 
550 
Additional paid in capital
9,218 
9,306 
Retained earnings
9,443 
8,978 
Treasury stock, at cost, and other
(661)4
(792)4
AOCI, net of tax
1,743 
1,749 
Total shareholders' equity
20,568 
20,066 
Total liabilities and shareholders' equity
178,257 
176,859 
Common shares outstanding
538,398 
536,967 
Common shares authorized
750,000 
750,000 
Preferred shares outstanding
3 
3 
Preferred shares authorized
50,000 
50,000 
Treasury shares of common stock
11,522 
12,954 
Treasury Stock and Other
 
 
Liabilities and Shareholders' Equity
 
 
Treasury stock, at cost, and other
$ (707)
 
Consolidated Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Loans Held-for-sale, Fair Value Disclosure
$ 2,940,000,000 1
$ 2,141,000,000 1
Loans carried at fair value
406,000,000 
433,000,000 
Other intangible assets, MSRs at fair value
865,000,000 
921,000,000 
Trading Securities, Restricted
712,000,000 
574,000,000 
Brokered deposits
914,000,000 
1,018,000,000 
Long-term debt, fair value
2,010,000,000 2
1,997,000,000 2
Common stock, par value
$ 1.00 
$ 1.00 
Loans Receivable Held-for-sale, Net
3,123,000,000 1
2,353,000,000 1
Loans held for investment
124,560,000,000 3
122,495,000,000 3
Long-term Debt
13,076,000,000 2
10,908,000,000 2
Variable Interest Entity, Primary Beneficiary
 
 
Long-term debt, fair value
288,000,000 
289,000,000 
Loans Receivable Held-for-sale, Net
322,000,000 
315,000,000 
Loans held for investment
390,000,000 
3,322,000,000 
Long-term Debt
700,000,000 
722,000,000 
Treasury Stock and Other
 
 
Stockholders' Equity Attributable to Noncontrolling Interest
$ 111,000,000 
$ 107,000,000 
Consolidated Statements of Shareholders' Equity (USD $)
In Millions
Total
Preferred Stock
Common Stock
Additional Paid in Capital
Retained Earnings
Treasury Stock and Other
Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Dec. 31, 2010
$ 23,130 
$ 4,942 
$ 515 
$ 8,403 
$ 8,542 
$ (888)1
$ 1,616 2
Beginning Balance (in shares) at Dec. 31, 2010
 
 
500 
 
 
 
 
Net income (loss)
358 
 
 
 
358 
 
 
Other Comprehensive Income (Loss), Net of Tax
52 
 
 
 
 
 
(52)2
Change in noncontrolling interest
1 
 
 
 
 
1 1
 
Common stock dividends
(11)
 
 
 
(11)
 
 
Preferred dividends
(4)
 
 
 
(4)
 
 
U.S. Treasury preferred stock dividends
(60)
 
 
 
(60)
 
 
Accretion of discount for preferred stock issued to U.S. Treasury
 
6 
 
 
(6)
 
 
Repurchase of preferred stock
(4,850)
(4,776)
 
 
(74)
 
 
Issuance of common stock (in shares)
 
 
35 
 
 
 
 
Issuance of common stock
1,017 
 
35 
982 
 
 
 
Stock compensation expense
7 
 
 
7 
 
 
 
Restricted stock activity (in shares)
 
 
2 
 
 
 
 
Restricted stock activity
(8)
 
 
(54)
 
46 1
 
Amortization of restricted stock compensation
17 
 
 
 
 
17 1
 
Issuance of stock for employee benefit plans and other
11 
 
 
(8)
 
19 1
 
Ending Balance at Jun. 30, 2011
19,660 
172 
550 
9,330 
8,745 
(805)1
1,668 2
Ending Balance (in shares) at Jun. 30, 2011
 
 
537 
 
 
 
 
Beginning Balance at Dec. 31, 2011
20,066 
275 
550 
9,306 
8,978 
(792)1
1,749 2
Beginning Balance (in shares) at Dec. 31, 2011
 
 
537 
 
 
 
 
Net income (loss)
525 
 
 
 
525 
 
 
Other Comprehensive Income (Loss), Net of Tax
(6)
 
 
 
 
 
(6)2
Change in noncontrolling interest
4 
 
 
 
 
4 1
 
Common stock dividends
(54)
 
 
 
(54)
 
 
Preferred dividends
(6)
 
 
 
(6)
 
 
Stock compensation expense
9 
 
 
(17)
 
26 1
 
Restricted stock activity (in shares)
 
 
1 
 
 
 
 
Restricted stock activity
4 
 
 
(61)
 
65 1
 
Amortization of restricted stock compensation
15 
 
 
 
 
15 1
 
Issuance of stock for employee benefit plans and other
11 
 
 
(10)
 
21 1
 
Ending Balance at Jun. 30, 2012
$ 20,568 
$ 275 
$ 550 
$ 9,218 
$ 9,443 
$ (661)1
$ 1,743 2
Ending Balance (in shares) at Jun. 30, 2012
 
 
538 
 
 
 
 
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Common stock dividends, per share
$ 0.10 
$ 0.02 
Preferred stock dividends, per share
$ 2,033 
$ 2,022 
U.S. Treasury preferred stock dividends, per share
 
$ 1,236 
Treasury Stock, Value
$ 661,000,000 1
 
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax
2,055,000,000 
1,647,000,000 
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax
399,000,000 
479,000,000 
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax
(711,000,000)
(458,000,000)
Treasury Stock and Other
 
 
Treasury Stock, Value
707,000,000 
869,000,000 
Deferred Compensation Equity
65,000,000 
67,000,000 
Stockholders' Equity Attributable to Noncontrolling Interest
$ 111,000,000 
$ 131,000,000 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash Flows from Operating Activities:
 
 
Net income/(loss) including income attributable to noncontrolling interest
$ 537 
$ 366 
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
 
 
Depreciation, amortization, and accretion
382 
372 
Origination of Mortgage Servicing Rights (MSRs)
(161)
(136)
Provisions for credit losses and foreclosed property
706 
930 
Mortgage repurchase provision
330 
170 
Stock option compensation and amortization of restricted stock compensation
17 
24 
Net (gain)/loss on extinguishment of debt
13 
(2)
Net securities gains
(32)1
(96)1
Net gain on sale of assets
(518)
(141)
Net decrease/(increase) in loans held for sale
782 
1,718 
Net (increase)/decrease in other assets
(282)
(358)
Net increase/(decrease) in other liabilities
18 
251 
Net cash provided by operating activities
1,792 
3,098 
Cash Flows from Investing Activities:
 
 
Proceeds from maturities, calls, and paydowns of securities available for sale
3,179 
2,414 
Proceeds from sales of securities available for sale
2,210 
10,763 
Purchases of securities available for sale
(1,451)
(12,603)
Proceeds from maturities, calls, and paydowns of trading securities
0 
124 
Proceeds from sales of trading securities
0 
102 
Net (increase)/decrease in loans including purchases of loans
(4,621)
(1,109)
Proceeds from sales of loans
477 
287 
Capital expenditures
(112)
(9)
Contingent consideration and other payments related to acquisitions
(9)
(18)
Proceeds from the sale of other assets
259 
360 
Net cash (used in)/provided by investing activities
(68)
311 
Cash Flows from Financing Activities:
 
 
Net increase in total deposits
481 
1,877 
Net increase/(decrease) in funds purchased, securities sold under agreements to repurchase, and other short-term borrowings
(1,938)
162 
Proceeds from the issuance of long-term debt
4,000 
1,039 
Repayment of long-term debt
(1,991)
(1,170)
Proceeds from Stock Options Exercised
5 
0 
Excess tax benefits from stock-based compensation
9 
0 
Proceeds from the issuance of common stock
0 
1,017 
Repurchase of preferred stock
0 
(4,850)
Common and preferred dividends paid
(60)
(75)
Net cash provided by/(used in) financing activities
506 
(2,000)
Net (decrease)/increase in cash and cash equivalents
2,230 
1,409 
Cash and cash equivalents at beginning of period
4,509 
5,378 
Cash and cash equivalents at end of period
6,739 
6,787 
Supplemental Disclosures:
 
 
Loans transferred from loans held for sale to loans
31 
46 
Loans transferred from loans to loans held for sale
1,116 
198 
Loans transferred from loans and loans held for sale to other real estate owned
200 
367 
Accretion of discount for preferred stock issued to the U.S. Treasury
$ 0 
$ 80 
Significant Accounting Policies
Significant Accounting Policies
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could vary from these estimates. Certain reclassifications have been made to prior period amounts to conform to the current period presentation.
The Company evaluated subsequent events through the date its financial statements were issued.
These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. Except for accounting policies that have been recently adopted as described below, there have been no significant changes to the Company’s accounting policies as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.
Accounting Policies Recently Adopted and Pending Accounting Pronouncements
In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” The primary purpose of the ASU was to conform the language in the fair value measurements guidance in U.S. GAAP and IFRS. The ASU also clarified how to apply existing fair value measurement and disclosure requirements. Further, the ASU required additional disclosures about transfers between level 1 and 2 of the fair value hierarchy, quantitative information for level 3 inputs, and the level of the fair value measurement hierarchy for items that are not measured at fair value in the statement of financial position but for which the fair value is required to be disclosed. The ASU was effective for the interim reporting period ending March 31, 2012. The Company adopted the standard as of January 1, 2012, and the required disclosures are included in Note 12, “Fair Value Election and Measurement.” The adoption did not impact the Company’s financial position, results of operations, or EPS.
In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income.” The ASU requires presentation of the components of comprehensive income in either a continuous statement of comprehensive income or two separate but consecutive statements. The update does not change the items presented in OCI and does not affect the calculation or reporting of EPS. In December 2011, the FASB issued ASU 2011-12, “Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassification of Items out of Accumulated Other Comprehensive Income in ASU 2011-05,” which deferred the effective date for the amendments to the reclassification of items out of AOCI. In June 2012, the FASB decided that the presentation requirements deferred in ASU 2011-12 would not be reinstated. The guidance, with the exception of reclassification adjustments, was effective on January 1, 2012 and must be applied retrospectively for all periods presented. The Company adopted the standard as of January 1, 2012, and the required disclosures are included in the Consolidated Statements of Comprehensive Income. The adoption did not impact the Company’s financial position, results of operations, or EPS.
In September 2011, the FASB issued ASU 2011-08, “Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment.” The ASU amends interim and annual goodwill impairment testing requirements such that an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The guidance was effective for annual and interim goodwill impairment tests beginning on or after January 1, 2012. The Company adopted the standard as of January 1, 2012 and has applied the guidance to interim goodwill impairment testing. The adoption did not have an impact on the Company's financial position, results of operations, or EPS.

In July 2012, the FASB issued ASU 2012-02, “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment."  The ASU permits entities to perform an optional qualitative assessment for determining whether it is more likely than not that an indefinite-lived intangible asset is impaired.  The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012.  The Company is evaluating the impact of the ASU; however, it is not expected to have a significant impact on the Company's financial position, results of operations, or EPS.
Securities Available for Sale
Securities Available for Sale
NOTE 2 – SECURITIES AVAILABLE FOR SALE
Securities Portfolio Composition

 
June 30, 2012
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$214

 

$10

 

$—

 

$224

Federal agency securities
1,698

 
85

 
—

 
1,783

U.S. states and political subdivisions
359

 
19

 
6

 
372

MBS - agency
17,308

 
803

 
1

 
18,110

MBS - private
225

 
—

 
17

 
208

ABS
344

 
9

 
5

 
348

Corporate and other debt securities
42

 
3

 
—

 
45

Coke common stock
—

 
2,346

 
—

 
2,346

Other equity securities1
972

 
1

 
—

 
973

Total securities AFS

$21,162

 

$3,276

 

$29

 

$24,409

 
 
 
 
 
 
 
 
 
December 31, 2011
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$671

 

$23

 

$—

 

$694

Federal agency securities
1,843

 
89

 
—

 
1,932

U.S. states and political subdivisions
437

 
21

 
4

 
454

MBS - agency
20,480

 
743

 
—

 
21,223

MBS - private
252

 
—

 
31

 
221

CDO/CLO securities
50

 
—

 
—

 
50

ABS
460

 
11

 
7

 
464

Corporate and other debt securities
49

 
2

 
—

 
51

Coke common stock
—

 
2,099

 
—

 
2,099

Other equity securities1
928

 
1

 
—

 
929

Total securities AFS

$25,170

 

$2,989

 

$42

 

$28,117

1At June 30, 2012, other equity securities included the following securities at cost: $455 million in FHLB of Atlanta stock, $401 million in Federal Reserve Bank stock, and $116 million in mutual fund investments. At December 31, 2011, other equity securities included the following securities at cost: $342 million in FHLB of Atlanta stock, $398 million in Federal Reserve Bank stock, and $187 million in mutual fund investments.

Securities AFS that were pledged to secure public deposits, repurchase agreements, trusts, and other funds had a fair value of $7.6 billion and $9.1 billion as of June 30, 2012 and December 31, 2011, respectively. Further, under the Agreements, the Company pledged its shares of Coke common stock, which is hedged with derivative instruments, as discussed in Note 10, “Derivative Financial Instruments.” As of June 30, 2012 and December 31, 2011, there were no securities AFS pledged under which the transferee may repledge the collateral. The Company has also pledged $978 million and $770 million of certain marketable securities and cash equivalents to secure $930 million and $747 million of repurchase agreements as of June 30, 2012 and December 31, 2011, respectively.


The amortized cost and fair value of investments in debt securities at June 30, 2012 by estimated average life are shown below. Actual cash flows may differ from estimated average lives and contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.
 
 
Distribution of Maturities
(Dollars in millions)
1 Year
or Less
 
1-5
Years
 
5-10
Years
 
After 10
Years
 
Total
Amortized Cost:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$12

 

$202

 

$—

 

$—

 

$214

Federal agency securities
117

 
1,372

 
95

 
114

 
1,698

U.S. states and political subdivisions
108

 
178

 
21

 
52

 
359

MBS - agency
901

 
14,304

 
1,827

 
276

 
17,308

MBS - private
—

 
136

 
89

 
—

 
225

ABS
123

 
152

 
2

 
67

 
344

Corporate and other debt securities
3

 
2

 
37

 
—

 
42

Total debt securities

$1,264

 

$16,346

 

$2,071

 

$509

 

$20,190

Fair Value:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$12

 

$212

 

$—

 

$—

 

$224

Federal agency securities
118

 
1,441

 
105

 
119

 
1,783

U.S. states and political subdivisions
111

 
191

 
21

 
49

 
372

MBS - agency
951

 
14,957

 
1,916

 
286

 
18,110

MBS - private
—

 
125

 
83

 
—

 
208

ABS
123

 
152

 
2

 
71

 
348

Corporate and other debt securities
3

 
2

 
40

 
—

 
45

Total debt securities

$1,318

 

$17,080

 

$2,167

 

$525

 

$21,090



Securities in an Unrealized Loss Position
The Company held certain investment securities having unrealized loss positions. Market changes in interest rates and credit spreads may result in temporary unrealized losses as the market price of securities fluctuates. As of June 30, 2012, the Company did not intend to sell these securities nor was it more-likely-than-not that the Company would be required to sell these securities before their anticipated recovery or maturity. The Company has reviewed its portfolio for OTTI in accordance with the accounting policies outlined in the Company's Annual Report on Form 10-K for the year ended December 31, 2011.

 
June 30, 2012
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized  
Losses
Temporarily impaired securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agency securities

$19

 

$—

 

$—

 

$—

 

$19

 

$—

U.S. states and political subdivisions
1

 
—

 
24

 
6

 
25

 
6

MBS - agency
12

 
1

 
1

 
—

 
13

 
1

ABS
—

 
—

 
12

 
3

 
12

 
3

Total temporarily impaired securities

32

 
1

 
37

 
9

 
69

 
10

Other-than-temporarily impaired securities1:
 
 
 
 
 
 
 
 
 
 
 
MBS - private
—

 
—

 
207

 
17

 
207

 
17

ABS
1

 
—

 
4

 
2

 
5

 
2

Total other-than-temporarily impaired securities
1

 
—

 
211

 
19

 
212

 
19

Total impaired securities

$33

 

$1

 

$248

 

$28

 

$281

 

$29

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2011
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
   Value   
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Temporarily impaired securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agency securities

$10

 

$—

 

$—

 

$—

 

$10

 

$—

U.S. states and political subdivisions
1

 
—

 
28

 
4

 
29

 
4

MBS - agency
224

 
—

 
1

 
—

 
225

 
—

CDO/CLO securities
50

 
—

 
—

 
—

 
50

 
—

ABS
—

 
—

 
11

 
5

 
11

 
5

Total temporarily impaired securities
285

 
—

 
40

 
9

 
325

 
9

Other-than-temporarily impaired securities1:
 
 
 
 
 
 
 
 
 
 
 
MBS - private
15

 
1

 
206

 
30

 
221

 
31

ABS
1

 
—

 
3

 
2

 
4

 
2

Total other-than-temporarily impaired securities
16

 
1

 
209

 
32

 
225

 
33

Total impaired securities

$301

 

$1

 

$249

 

$41

 

$550

 

$42

1Includes OTTI securities for which credit losses have been recorded in earnings in current or prior periods.

At June 30, 2012 and December 31, 2011, unrealized losses on securities that have been in a temporarily impaired position for longer than twelve months include municipal ARS and one ABS collateralized by 2004 vintage home equity loans. The municipal securities are backed by investment grade rated obligors; however, the fair value of these securities continues to be impacted by the lack of a functioning ARS market and the extension of time for expected refinance and repayment. No credit loss is expected on these securities. The ABS is also highly-rated, continues to receive timely principal and interest payments, and is evaluated quarterly for credit impairment. Cash flow analysis shows that the underlying collateral can withstand highly stressed loss assumptions without incurring a credit loss.

The portion of unrealized losses on securities that have been other-than-temporarily impaired that relates to factors other than credit are recorded in AOCI. Losses related to credit impairment on these securities is determined through estimated cash flow analyses and have been recorded in earnings in current or prior periods. The unrealized OTTI loss relating to private MBS as of June 30, 2012 includes purchased and retained interests from 2007 vintage securitizations. The unrealized OTTI loss relating to ABS is related to four securities within the portfolio that are 2003 and 2004 vintage home equity issuances. The expectation of cash flows for the previously impaired ABS securities has improved since the credit-related impairment was recognized, and as a result, the amount of expected credit losses was reduced, and the expected increase in cash flows is being accreted into earnings as a yield adjustment over the remaining life of the securities.



Realized Gains and Losses and Other-than-Temporarily Impaired Securities
 
Three Months Ended June 30
 
Six Months Ended June 30
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Gross realized gains

$16

 

$33

 

$36

 

$176

Gross realized losses
—

 
—

 
—

 
(78
)
OTTI
(2
)
 
(1
)
 
(4
)
 
(2
)
Net securities gains

$14

 

$32

 

$32

 

$96



The securities that gave rise to credit impairments recognized during the three and six months ended June 30, 2012 and 2011, as shown in the table below, consisted of private MBS with a fair value of $140 million and $193 million at June 30, 2012 and 2011, respectively. Credit impairment that is determined through the use of cash flow models is estimated using cash flows on security specific collateral and the transaction structure. Future expected credit losses are determined by using various assumptions, the most significant of which include default rates, prepayment rates, and loss severities. For the majority of the securities that the Company has reviewed for credit-related OTTI, credit information is available and modeled for the collateral underlying each security. As part of that analysis, the model incorporates loan level information such as loan to collateral values, FICO scores, and home price appreciation/depreciation data specific to the geography of the loan. These inputs are updated on a regular basis to ensure the most current credit and other assumptions are utilized in the analysis. If, based on this analysis, the Company does not expect to recover the entire amortized cost basis of the security, the expected cash flows are then discounted at the security’s initial effective interest rate to arrive at a present value amount. OTTI credit losses reflect the difference between the present value of cash flows expected to be collected and the amortized cost basis of these securities. During the three and six months ended June 30, 2012 and 2011, all OTTI recognized in earnings on private MBS have underlying collateral of residential mortgage loans securitized in 2007. The Company has not purchased new private MBS during the six months ended June 30, 2012, and continues to reduce existing exposure primarily through paydowns. 

 
Three Months Ended June 30
 
Six Months Ended June 30
 
2012
 
2011
 
2012
 
2011
(Dollars in millions)
MBS - Private
 
MBS - Private
 
MBS - Private
 
MBS - Private
OTTI1

$2

 

$1

 

$4

 

$2

Portion of losses recognized in OCI (before taxes)
—

 
—

 
—

 
—

Net impairment losses recognized in earnings

$2

 

$1

 

$4

 

$2

1 The initial OTTI amount represents the excess of the amortized cost over the fair value of AFS debt securities. For subsequent impairments of the same security, amount represents additional declines in the fair value subsequent to the previously recorded OTTI, if applicable, until such time the security is no longer in an unrealized loss position.

The following is a rollforward of credit losses recognized in earnings for the three and six months ended June 30, 2012 and 2011, related to securities for which some portion of the OTTI loss remains in AOCI:

 
Three Months Ended June 30
 
Six Months Ended June 30
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Balance, beginning of period

$27

 

$21

 

$25

 

$20

Additions:
 
 
 
 
 
 
 
OTTI credit losses on previously impaired securities
2

 
1

 
4

 
2

Reductions:
 
 
 
 
 
 
 
Increases in expected cash flows recognized over the remaining life of the securities
(1
)
 
(1
)
 
(1
)
 
(1
)
Balance, end of period

$28

 

$21

 

$28

 

$21




The following table presents a summary of the significant inputs used in determining the measurement of credit losses recognized in earnings for private MBS for the three and six months ended June 30:
 
 
2012
 
2011
Default rate
2 - 6%
 
4 - 8%
Prepayment rate
7 - 21%
 
12 - 22%
Loss severity
47 - 56%
 
39 - 44%

Assumption ranges represent the lowest and highest lifetime average estimates of each security for which credit losses were recognized in earnings. During the first six months of 2012, there was improvement in the default estimates for certain credit impaired bonds; however, the slower prepayment speeds and higher severity rates resulted in the recognition of additional impairment.
Loans
Loans
NOTE 3 - LOANS
Composition of Loan Portfolio
The composition of the Company's loan portfolio is shown in the following table:
(Dollars in millions)
June 30,
2012
 
December 31,
2011
Commercial loans:
 
 
 
Commercial & industrial

$52,030

 

$49,538

Commercial real estate
4,825

 
5,094

Commercial construction
959

 
1,240

Total commercial loans
57,814

 
55,872

Residential loans:
 
 
 
Residential mortgages - guaranteed
5,663

 
6,672

Residential mortgages - nonguaranteed1
24,405

 
23,243

Home equity products
15,281

 
15,765

Residential construction
853

 
980

Total residential loans
46,202

 
46,660

Consumer loans:
 
 
 
Guaranteed student loans
7,248

 
7,199

Other direct
2,225

 
2,059

Indirect
10,506

 
10,165

Credit cards
565

 
540

Total consumer loans
20,544

 
19,963

LHFI

$124,560

 

$122,495

LHFS

$3,123

 

$2,353

1Includes $405 million and $431 million of loans carried at fair value at June 30, 2012 and December 31, 2011, respectively.

During the six months ended June 30, 2012 and 2011, the Company transferred $1.1 billion and $198 million in LHFI to LHFS, and $31 million and $46 million in LHFS to LHFI, respectively. Additionally, during the six months ended June 30, 2012 and 2011, the Company sold $454 million and $277 million in loans and leases that had been held for investment at December 31, 2011 and December 31, 2010 for gains of $23 million and $10 million, respectively. There were no other material sales of LHFI during the period.

Credit Quality Evaluation
The Company evaluates the credit quality of its loan portfolio by employing a dual internal risk rating system, which assigns both PD and LGD ratings to derive expected losses. Assignment of PD and LGD ratings are predicated upon numerous factors, including consumer credit risk scores, rating agency information, borrower/guarantor financial capacity, LTV ratios, collateral type, debt service coverage ratios, collection experience, other internal metrics/analysis, and qualitative assessments.
For the commercial portfolio, the Company believes that the most appropriate credit quality indicator is the individual loan’s risk assessment expressed according to regulatory agency classification, Pass or Criticized. The Company's risk rating system is granular, with multiple risk ratings in both the Pass and Criticized categories. Pass ratings reflect relatively low expectations of default. The granularity in Pass ratings assists in the establishment of pricing, loan structures, approval requirements, reserves, and ongoing credit management requirements. Criticized assets have a higher PD. The Company conforms to the following regulatory classifications for Criticized assets: Other Assets Especially Mentioned (or Special Mention), Adversely Classified, Doubtful, and Loss. However, for the purposes of disclosure, management believes the most meaningful distinction within the Criticized categories is between Accruing Criticized (which includes Special Mention and a portion of Adversely Classified) and Non-Performing (which includes a portion of Adversely Classified, Doubtful, and Loss). This distinction identifies those relatively higher risk loans for which there is a basis to believe that the Company will collect all amounts due from those where full collection is less certain.
Risk ratings are refreshed at least annually, or more frequently as appropriate, based upon considerations such as market conditions, loan characteristics, and portfolio trends. Additionally, management routinely reviews portfolio risk ratings, trends, and concentrations to support risk identification and mitigation activities.
For consumer and residential loans, the Company monitors credit risk based on indicators such as delinquencies and FICO scores. The Company believes that consumer credit risk, as assessed by the industry-wide FICO scoring method, is a relevant credit quality indicator. Borrower-specific FICO scores are obtained at origination as part of the Company’s formal underwriting process, and refreshed FICO scores are obtained by the Company at least quarterly. In response to updates in the industry-wide FICO scoring model and to enhance the Company's ability to manage risk, the Company updated its FICO scoring model to this updated version for the Home Equity, Indirect, and Other Direct portfolios in the first quarter of 2012. This change was the primary reason for the changes in the percentage of balances across the FICO score ranges noted below. There was no impact to the Company's financial position or results of operations as a result of updating the FICO scoring model.
For government guaranteed student loans, the Company monitors the credit quality based primarily on delinquency status, as it is a more relevant indicator of credit quality due to the government guarantee. At both June 30, 2012 and December 31, 2011, 79% of the guaranteed student loan portfolio was current with respect to payments; however, the loss exposure to the Company is mitigated by the government guarantee.

LHFI by credit quality indicator are shown in the tables below:
 
Commercial & industrial
 
Commercial real estate
 
Commercial construction
(Dollars in millions)
June 30,
2012
 
December 31,
2011
 
June 30,
2012
 
December 31,
2011
 
June 30,
2012
 
December 31,
2011
Credit rating:
 
 
 
 
 
 
 
 
 
 
 
Pass

$50,130

 

$47,683

 

$3,836

 

$3,845

 

$581

 

$581

Criticized accruing
1,569

 
1,507

 
756

 
961

 
247

 
369

Criticized nonaccruing
331

 
348

 
233

 
288

 
131

 
290

Total

$52,030

 

$49,538

 

$4,825

 

$5,094

 

$959

 

$1,240

 
Residential mortgages -
   nonguaranteed 2
 
Home equity products
 
Residential construction
(Dollars in millions)
June 30,
2012
 
December 31,
2011
 
June 30,
2012
 
December 31,
2011
 
June 30,
2012
 
December 31,
2011
Current FICO score range:
 
 
 
 
 
 
 
 
 
 
 
700 and above

$17,567

 

$16,139

 

$11,583

 

$11,084

 

$613

 

$661

620 - 699
4,149

 
4,132

 
2,405

 
2,903

 
158

 
202

Below 6201
2,689

 
2,972

 
1,293

 
1,778

 
82

 
117

Total

$24,405

 

$23,243

 

$15,281

 

$15,765

 

$853

 

$980

 
Consumer - other direct
 
Consumer - indirect
 
Consumer - credit cards
(Dollars in millions)
June 30,
2012
 
December 31,
2011
 
June 30,
2012
 
December 31,
2011
 
June 30,
2012
 
December 31,
2011
Current FICO score range:
 
 
 
 
 
 
 
 
 
 
 
700 and above

$1,829

 

$1,614

 

$7,965

 

$7,397

 

$379

 

$347

620 - 699
325

 
359

 
1,886

 
1,990

 
142

 
142

Below 6201
71

 
86

 
655

 
778

 
44

 
51

Total

$2,225

 

$2,059

 

$10,506

 

$10,165

 

$565

 

$540

1For substantially all loans with refreshed FICO scores below 620, the borrower’s FICO score at the time of origination exceeded 620 but has since deteriorated as the loan has seasoned.
2Excludes $5.7 billion and $6.7 billion at June 30, 2012 and December 31, 2011, respectively, of guaranteed residential loans. At both June 30, 2012 and December 31, 2011, the majority of these loans had FICO scores of 700 and above.

The payment status for the LHFI portfolio is shown in the tables below:
 
As of June 30, 2012
(Dollars in millions)
Accruing
Current
 
Accruing
30-89 Days
Past Due
 
Accruing
90+ Days
Past Due
 
 Nonaccruing 2
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial

$51,600

 

$76

 

$23

 

$331

 

$52,030

Commercial real estate
4,582

 
8

 
2

 
233

 
4,825

Commercial construction
826

 
2

 
—

 
131

 
959

Total commercial loans
57,008

 
86

 
25

 
695

 
57,814

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - guaranteed
4,357

 
144

 
1,162

 
—

 
5,663

Residential mortgages - nonguaranteed1
22,834

 
255

 
30

 
1,286

 
24,405

Home equity products
14,828

 
151

 
—

 
302

 
15,281

Residential construction
691

 
7

 
1

 
154

 
853

Total residential loans
42,710

 
557

 
1,193

 
1,742

 
46,202

Consumer loans:
 
 
 
 
 
 
 
 
 
Guaranteed student loans
5,746

 
583

 
919

 
—

 
7,248

Other direct
2,201

 
14

 
6

 
4

 
2,225

Indirect
10,443

 
45

 
1

 
17

 
10,506

Credit cards
553

 
6

 
6

 
—

 
565

Total consumer loans
18,943

 
648

 
932

 
21

 
20,544

Total LHFI

$118,661

 

$1,291

 

$2,150

 

$2,458

 

$124,560

1Includes $405 million of loans carried at fair value.
2Total nonaccruing loans past due 90 days or more totaled $2.0 billion. Nonaccruing loans past due fewer than 90 days include modified nonaccrual loans reported as TDRs.
 


 
As of December 31, 2011
(Dollars in millions)
Accruing
Current
 
Accruing
30-89 Days
Past Due
 
Accruing
90+ Days
Past Due
 
 Nonaccruing 2
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial

$49,098

 

$80

 

$12

 

$348

 

$49,538

Commercial real estate
4,797

 
9

 
—

 
288

 
5,094

Commercial construction
943

 
7

 
—

 
290

 
1,240

Total commercial loans
54,838

 
96

 
12

 
926

 
55,872

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - guaranteed
5,394

 
176

 
1,102

 
—

 
6,672

Residential mortgages - nonguaranteed1
21,501

 
324

 
26

 
1,392

 
23,243

Home equity products
15,223

 
204

 
—

 
338

 
15,765

Residential construction
737

 
22

 
1

 
220

 
980

Total residential loans
42,855

 
726

 
1,129

 
1,950

 
46,660

Consumer loans:
 
 
 
 
 
 
 
 
 
Guaranteed student loans
5,690

 
640

 
869

 
—

 
7,199

Other direct
2,032

 
14

 
6

 
7

 
2,059

Indirect
10,074

 
66

 
5

 
20

 
10,165

Credit cards
526

 
7

 
7

 
—

 
540

Total consumer loans
18,322

 
727

 
887

 
27

 
19,963

Total LHFI

$116,015

 

$1,549

 

$2,028

 

$2,903

 

$122,495

1Includes $431 million of loans carried at fair value.
2Total nonaccruing loans past due 90 days or more totaled $2.3 billion. Nonaccruing loans past due fewer than 90 days include modified nonaccrual loans reported as TDRs.

Impaired Loans

A loan is considered impaired when it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the agreement. Commercial nonaccrual loans greater than $3 million and certain consumer, residential, and commercial loans whose terms have been modified in a TDR are individually evaluated for impairment. Smaller-balance homogeneous loans that are collectively evaluated for impairment are not included in the following tables. Additionally, the tables below exclude guaranteed student loans and guaranteed residential mortgages for which there was nominal risk of principal loss.
 
As of June 30, 2012
 
Three Months Ended
June 30, 2012
 
Six Months Ended
June 30, 2012
(Dollars in millions)
Unpaid
Principal
Balance
 
Amortized   
Cost1
 
Related
Allowance
 
Average
Amortized
Cost
 
Interest
Income
Recognized2
 
Average
Amortized
Cost
 
Interest
Income
Recognized2
Impaired loans with no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & industrial

$45

 

$37

 

$—

 

$37

 

$—

 

$38

 

$—

Commercial real estate
83

 
51

 
—

 
59

 
1

 
63

 
1

Commercial construction
28

 
17

 
—

 
28

 
—

 
32

 
—

Total commercial loans
156

 
105

 
—

 
124

 
1

 
133

 
1

Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & industrial
90

 
74

 
7

 
81

 
—

 
83

 
—

Commercial real estate
92

 
76

 
7

 
82

 
—

 
84

 
—

Commercial construction
68

 
63

 
4

 
66

 
—

 
67

 
1

Total commercial loans
250

 
213

 
18

 
229

 
—

 
234

 
1

Residential loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
2,659

 
2,255

 
238

 
2,255

 
20

 
2,260

 
42

Home equity products
577

 
534

 
92

 
535

 
7

 
539

 
13

Residential construction
274

 
227

 
25

 
232

 
3

 
237

 
5

Total residential loans
3,510

 
3,016

 
355

 
3,022

 
30

 
3,036

 
60

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Other direct
12

 
12

 
1

 
12

 
—

 
12

 
—

Indirect
14

 
14

 
—

 
14

 
1

 
15

 
1

Credit cards
25

 
25

 
7

 
25

 
—

 
26

 
1

Total consumer loans
51

 
51

 
8

 
51

 
1

 
53

 
2

Total impaired loans

$3,967

 

$3,385

 

$381

 

$3,426

 

$32

 

$3,456

 

$64

1Amortized cost reflects charge-offs that have been recognized plus other amounts that have been applied to reduce the net book balance.
2Of the interest income recognized for the three and six months ended June 30, 2012, cash basis interest income was $4 million and $8 million, respectively.
 
As of December 31, 2011
 
Year Ended December 31, 2011
(Dollars in millions)
Unpaid
Principal
Balance
 
Amortized
Cost1
 
Related
Allowance
 
Average
Amortized 
Cost
 
Interest
Income
Recognized2
Impaired loans with no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial

$93

 

$73

 

$—

 

$109

 

$3

Commercial real estate
58

 
50

 
—

 
56

 
1

Commercial construction
45

 
40

 
—

 
47

 
1

Total commercial loans
196

 
163

 
—

 
212

 
5

Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial
76

 
67

 
9

 
68

 
1

Commercial real estate
111

 
82

 
15

 
103

 
2

Commercial construction
132

 
100

 
10

 
121

 
2

Total commercial loans
319

 
249

 
34

 
292

 
5

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
2,797

 
2,405

 
293

 
2,451

 
88

Home equity products
553

 
515

 
86

 
528

 
23

Residential construction
246

 
221

 
26

 
229

 
8

Total residential loans
3,596

 
3,141

 
405

 
3,208

 
119

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
12

 
12

 
1

 
13

 
1

Credit cards
27

 
27

 
8

 
26

 
2

Total consumer loans
39

 
39

 
9

 
39

 
3

Total impaired loans

$4,150

 

$3,592

 

$448

 

$3,751

 

$132

1Amortized cost reflects charge-offs that have been recognized plus other amounts that have been applied to reduce net book balance.
2Of the interest income recognized for the year ended December 31, 2011, cash basis interest income was $25 million.

Included in the impaired loan balances above were $2.6 billion of accruing TDRs at both June 30, 2012 and December 31, 2011, of which 94% and 93% were current, respectively. For further information regarding the Company’s loan impairment policy, see Note 1, “Significant Accounting Policies,” to the Company's Annual Report on Form 10-K for the year ended December 31, 2011.

Nonperforming assets are shown in the following table:
(Dollars in millions)
June 30, 2012
 
December 31, 2011
Nonaccrual/NPLs:
 
 
 
Commercial loans:
 
 
 
Commercial & industrial

$331

 

$348

Commercial real estate
233

 
288

Commercial construction
131

 
290

Residential loans:
 
 
 
Residential mortgages - nonguaranteed
1,286

 
1,392

Home equity products
302

 
338

Residential construction
154

 
220

Consumer loans:
 
 
 
Other direct
4

 
7

Indirect
17

 
20

Total nonaccrual/NPLs
2,458

 
2,903

OREO1
331

 
479

Other repossessed assets
11

 
10

Total nonperforming assets

$2,800

 

$3,392

1Does not include foreclosed real estate related to loans insured by the FHA or the VA. Proceeds due from the FHA and the VA are recorded as a receivable in other assets until the funds are received and the property is conveyed. The receivable amount related to proceeds due from the FHA or the VA totaled $124 million and $132 million at June 30, 2012 and December 31, 2011, respectively.
Restructured Loans
TDRs are loans in which the borrower is experiencing financial difficulty and the Company has granted an economic concession to the borrower that it would not otherwise consider. When loans are modified under the terms of a TDR, the Company typically offers the borrower an extension of the loan maturity date and/or a reduction in the original contractual interest rate. In certain limited situations, the Company may offer to restructure a loan in a manner that ultimately results in the forgiveness of contractually specified principal balances.
At June 30, 2012 and December 31, 2011, the Company had $4 million and $5 million, respectively, in commitments to lend additional funds to debtors owing receivables whose terms have been modified in a TDR.
The number and amortized cost of loans modified under the terms of a TDR during the three and six months ended June 30, 2012 and 2011, by type of modification, are shown in the following tables:
 
Three Months Ended June 30, 2012
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 1
 
Rate
 Modification 2
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial
80
 

$—

 

$1

 

$3

 

$4

Commercial real estate
13
 
6

 
6

 
—

 
12

Commercial construction
5
 
1

 
—

 
10

 
11

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
199
 
—

 
21

 
—

 
21

Home equity products
457
 
—

 
33

 
2

 
35

Residential construction
140
 
—

 
1

 
20

 
21

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
27
 
—

 
—

 
1

 
1

Indirect
795
 
—

 
—

 
14

 
14

Credit cards
361
 
—

 
2

 
—

 
2

Total TDRs
2,077
 

$7

 

$64

 

$50

 

$121

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2012
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 1
 
Rate
 Modification 2
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial
183
 

$—

 

$2

 

$15

 

$17

Commercial real estate
23
 
12

 
7

 
2

 
21

Commercial construction
12
 
2

 
—

 
11

 
13

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
424
 
—

 
41

 
1

 
42

Home equity products
841
 
—

 
64

 
3

 
67

Residential construction
175
 
—

 
1

 
29

 
30

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
39
 
—

 
—

 
1

 
1

Indirect
795
 
—

 
—

 
14

 
14

Credit cards
863
 
—

 
5

 
—

 
5

Total TDRs
3,355
 

$14

 

$120

 

$76

 

$210

1Restructured loans which had forgiveness of amounts contractually due under the terms of the loan typically have had multiple concessions including rate modifications and/or term extensions. The total amount of charge-offs associated with principal forgiveness was $1 million during both the three and six months ended June 30, 2012.
2Restructured loans which had a modification of the loan's contractual interest rate may also have had an extension of the loan's contractual maturity date and/or other concessions. The financial effect of modifying the interest rate on the loans modified as a TDR was immaterial to the financial statements during the three and six months ended June 30, 2012.

 
Three Months Ended June 30, 2011
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 1
 
Rate
 Modification 2
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial
56
 

$19

 

$22

 

$3

 

$44

Commercial real estate
9
 
4

 
—

 
3

 
7

Commercial construction
8
 
3

 
—

 
31

 
34

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
258
 
—

 
61

 
5

 
66

Home equity products
398
 
—

 
31

 
—

 
31

Residential construction
27
 
—

 
5

 
1

 
6

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
11
 
—

 
—

 
1

 
1

Total TDRs
767
 

$26

 

$119

 

$44

 

$189

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2011
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 1
 
Rate
 Modification 2
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial
78
 

$27

 

$22

 

$8

 

$57

Commercial real estate
25
 
22

 
16

 
15

 
53

Commercial construction
82
 
27

 
2

 
41

 
70

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
528
 
—

 
142

 
8

 
150

Home equity products
743
 
—

 
62

 
—

 
62

Residential construction
50
 
—

 
10

 
1

 
11

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
51
 
—

 
—

 
2

 
2

Total TDRs
1,557
 

$76

 

$254

 

$75

 

$405


1Restructured loans which had forgiveness of amounts contractually due under the terms of the loan typically have had multiple concessions including rate modifications and/or term extensions. The total amount of charge-offs associated with principal forgiveness during the three and six months ended June 30, 2011 was $8 million and $9 million, respectively.
2Restructured loans which had a modification of the loan's contractual interest rate may also have had an extension of the loan's contractual maturity date and/or other concessions. The financial effect of modifying the interest rate on the loans modified as a TDR was immaterial to the financial statements during the three and six months ended June 30, 2011.


The preceding tables represent loans modified under the terms of a TDR during the three and six months ended June 30, 2012 and 2011, whereas the following tables represent loans modified as a TDR over longer time periods; as specified in the tables below, that became 90 days or more delinquent during the three and six months ended June 30, 2012 and 2011, respectively.

 
Three Months Ended June 30, 2012 1
 
Six Months Ended June 30, 2012 2
(Dollars in millions)
Number of Loans
 
Amortized Cost
 
Number of Loans
 
Amortized Cost
Commercial loans:
 
 
 
 
 
 
 
Commercial & industrial
14
 

$1

 
25
 

$3

Commercial real estate
—

 
—

 
4
 
4

Commercial construction
4
 
4

 
7
 
6

Residential loans:
 
 
 
 
 
 
 
Residential mortgages
28
 
9

 
56
 
14

Home equity products
38
 
3

 
81
 
6

Residential construction
6
 
—

 
17
 
2

Consumer loans:
 
 
 
 
 
 
 
Other direct
—

 
—

 
2
 
—

Credit cards
57
 
—

 
135
 
1

Total TDRs
147
 

$17

 
327
 

$36

1For the three months ended June 30, 2012, this represents defaults on loans that were first modified between the periods April 1, 2011 and June 30, 2012.
2For the six months ended June 30, 2012, this represents defaults on loans that were first modified between the periods January 1, 2011 and June 30, 2012.


 
Three Months Ended June 30, 2011 1
 
Six Months Ended June 30, 2011 2
(Dollars in millions)
Number of Loans
 
Amortized Cost
 
Number of Loans
 
Amortized Cost
Commercial loans:
 
 
 
 
 
 
 
Commercial & industrial
10
 

$—

 
20
 

$2

Commercial real estate
2
 
1

 
6
 
1

Commercial construction
8
 
15

 
14
 
24

Residential loans:
 
 
 
 
 
 
 
Residential mortgages
94
 
23

 
334
 
75

Home equity products
47
 
4

 
111
 
11

Residential construction
8
 
1

 
23
 
5

Consumer loans:
 
 
 
 
 
 
 
Other direct
5
 
—

 
7
 
—

Total TDRs
174
 

$44

 
515
 

$118

1For the three months ended June 30, 2011, this represents defaults on loans that were first modified between the periods April 1, 2010 and June 30, 2011.
2For the six months ended June 30, 2011, this represents defaults on loans that were first modified between the periods January 1, 2010 and June 30, 2011.

The majority of loans that were modified and subsequently became 90 days or more delinquent have remained on nonaccrual status since the time of modification.

Concentrations of Credit Risk
The Company does not have a significant concentration of risk to any individual client except for the U.S. government and its agencies. However, a geographic concentration arises because the Company operates primarily in the Southeastern and Mid-Atlantic regions of the U.S. The Company engages in limited international banking activities. The Company’s total cross-border outstanding loans were $680 million and $630 million at June 30, 2012 and December 31, 2011, respectively.
The major concentrations of credit risk for the Company arise by collateral type in relation to loans and credit commitments. The only significant concentration that exists is in loans secured by residential real estate. At June 30, 2012, the Company owned $46.2 billion in residential loans, representing 37% of total LHFI, and had $12.2 billion in commitments to extend credit on home equity lines and $9.1 billion in mortgage loan commitments. Of the residential loans owned at June 30, 2012, 12% were guaranteed by a federal agency or a GSE. At December 31, 2011, the Company owned $46.7 billion in residential real estate loans, representing 38% of total LHFI, and had $12.7 billion in commitments to extend credit on home equity lines and $7.8 billion in mortgage loan commitments. Of the residential loans owned at December 31, 2011, 14% were guaranteed by a federal agency or a GSE.
Included in the residential mortgage portfolio were $14.2 billion and $14.7 billion of mortgage loans at June 30, 2012 and December 31, 2011, respectively, that included terms such as an interest only feature, a high LTV ratio, or a junior lien position that may increase the Company’s exposure to credit risk and result in a concentration of credit risk. Of these mortgage loans, $8.7 billion and $9.4 billion were interest only loans, primarily with a ten year interest only period. Approximately $1.7 billion of those interest only loans as of June 30, 2012 and $1.9 billion as of December 31, 2011, were loans with no mortgage insurance and were either first liens with combined original LTV ratios in excess of 80% or were junior liens. Additionally, the Company owned approximately $5.5 billion and $5.3 billion of amortizing loans with no mortgage insurance at both June 30, 2012 and December 31, 2011, comprised of first liens with combined original LTV ratios in excess of 80% and junior liens. Despite changes in underwriting guidelines that have curtailed the origination of high LTV loans, the balances of such loans with no mortgage insurance have increased as the benefits of mortgage insurance covering certain junior lien mortgage loans have been exhausted, resulting in the loans effectively no longer being insured.
Allowance for Credit Losses
Allowance for Credit Losses
NOTE 4 - ALLOWANCE FOR CREDIT LOSSES
The allowance for credit losses consists of the ALLL and the reserve for unfunded commitments. Activity in the allowance for credit losses is summarized in the table below:
 
Three Months Ended June 30
 
Six Months Ended June 30
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Balance at beginning of period

$2,400

 

$2,908

 

$2,505

 

$3,032

Provision for loan losses
302

 
395

 
615

 
846

Provision/(benefit) for unfunded commitments
(2
)
 
(3
)
 
2

 
(7
)
Loan charge-offs
(397
)
 
(563
)
 
(860
)
 
(1,178
)
Loan recoveries
47

 
58

 
88

 
102

Balance at end of period

$2,350

 

$2,795

 

$2,350

 

$2,795

Components:
 
 
 
 
 
 
 
ALLL

$2,300

 

$2,744

 
 
 
 
Unfunded commitments reserve1
50

 
51

 
 
 
 
Allowance for credit losses

$2,350

 

$2,795

 
 
 
 
1 The unfunded commitments reserve is recorded in other liabilities in the Consolidated Balance Sheets.

Activity in the ALLL by segment is presented in the tables below:

 
Three Months Ended June 30, 2012
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$901

 

$1,315

 

$132

 

$2,348

Provision for loan losses
49

 
230

 
23

 
302

Loan charge-offs
(94
)
 
(274
)
 
(29
)
 
(397
)
Loan recoveries
31

 
6

 
10

 
47

Balance at end of period

$887

 

$1,277

 

$136

 

$2,300

 
 
 
 
 

 

 
Three Months Ended June 30, 2011
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$1,255

 

$1,440

 

$159

 

$2,854

Provision for loan losses
124

 
252

 
19

 
395

Loan charge-offs
(220
)
 
(303
)
 
(40
)
 
(563
)
Loan recoveries
41

 
6

 
11

 
58

Balance at end of period

$1,200

 

$1,395

 

$149

 

$2,744

 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2012
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$964

 

$1,354

 

$139

 

$2,457

Provision for loan losses
87

 
488

 
40

 
615

Loan charge-offs
(220
)
 
(576
)
 
(64
)
 
(860
)
Loan recoveries
56

 
11

 
21

 
88

Balance at end of period

$887

 

$1,277

 

$136

 

$2,300

 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2011
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$1,303

 

$1,498

 

$173

 

$2,974

Provision for loan losses
232

 
574

 
40

 
846

Loan charge-offs
(405
)
 
(688
)
 
(85
)
 
(1,178
)
Loan recoveries
70

 
11

 
21

 
102

Balance at end of period

$1,200

 

$1,395

 

$149

 

$2,744




As discussed in Note 1, “Significant Accounting Policies,” to the Company's Annual Report on Form 10-K for the year ended December 31, 2011, the ALLL is composed of both specific allowances for certain nonaccrual loans and TDRs and general allowances grouped into loan pools based on similar characteristics. No allowance is required for loans carried at fair value. Additionally, the Company records an immaterial allowance for loan products that are guaranteed by government agencies, as there is nominal risk of principal loss.


The Company’s LHFI portfolio and related ALLL is shown in the tables below:
 
As of June 30, 2012
 
Commercial
 
Residential
 
Consumer
 
Total
(Dollars in millions)
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
Individually evaluated

$318

 

$18

 

$3,016

 

$355

 

$51

 

$8

 

$3,385

 

$381

Collectively evaluated
57,495

 
869

 
42,781

 
922

 
20,493

 
128

 
120,769

 
1,919

Total evaluated
57,813

 
887

 
45,797

 
1,277

 
20,544

 
136

 
124,154

 
2,300

LHFI at fair value
1

 
—

 
405

 
—

 
—

 
—

 
406

 
—

Total LHFI

$57,814

 

$887

 

$46,202

 

$1,277

 

$20,544

 

$136

 

$124,560

 

$2,300

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2011
 
Commercial
 
Residential
 
Consumer
 
Total
(Dollars in millions)
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
Individually evaluated

$412

 

$34

 

$3,141

 

$405

 

$39

 

$9

 

$3,592

 

$448

Collectively evaluated
55,458

 
930

 
43,088

 
949

 
19,924

 
130

 
118,470

 
2,009

Total evaluated
55,870

 
964

 
46,229

 
1,354

 
19,963

 
139

 
122,062

 
2,457

LHFI at fair value
2

 
—

 
431

 
—

 
—

 
—

 
433

 
—

Total LHFI

$55,872

 

$964

 

$46,660

 

$1,354

 

$19,963

 

$139

 

$122,495

 

$2,457

Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
NOTE 5 – GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
As discussed in Note 14, "Business Segment Reporting," SunTrust reorganized its management reporting structure in the first quarter of 2012 and, accordingly, its segment reporting structure and goodwill reporting units. Goodwill was reassigned to the new reporting units using a relative fair value allocation. After the allocation, Consumer Banking and Private Wealth Management's goodwill balance was comprised of $3.6 billion and $335 million previously recorded within the Retail Banking and W&IM segments, respectively. Wholesale Banking's goodwill balance was comprised of $1.3 billion, $47 million, $928 million, and $180 million previously recorded within the Retail Banking, W&IM, Diversified Commercial Banking, and CIB segments, respectively.

Goodwill is required to be tested for impairment on an annual basis or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount or indicate that it is more likely than not that a goodwill impairment exists when the carrying amount of a reporting unit is zero or negative. The Company monitored events and circumstances during the first six months of 2012, noting the Company's overall performance and stock price has improved during this period. Giving specific consideration to the changes in reporting units, the Company did not observe any qualitative factors which caused the Company to believe that goodwill is more likely than not impaired. The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2012, including the reallocation as noted above, are as follows:
(Dollars in millions)
 
Retail
Banking
 
Diversified
Commercial
Banking
 
CIB
 
W&IM
 
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Total
Balance, January 1, 2012
 

$4,854

 

$928

 

$180

 

$382

 

$—

 

$—

 

$6,344

Acquisition of FirstAgain, LLC
 
—

 
—

 
—

 
—

 
32

 
—

 
32

Intersegment transfers
 
(4,854
)
 
(928
)
 
(180
)
 
(382
)
 
3,930

 
2,414

 
—

Balance, June 30, 2012
 

$—

 

$—

 

$—

 

$—

 

$3,962

 

$2,414

 

$6,376

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2011
 

$4,854

 

$928

 

$180

 

$361

 

$—

 

$—

 

$6,323

Contingent consideration
 
—

 
—

 
—

 
1

 
—

 
—

 
1

Acquisition of certain additional
assets of CSI Capital Management
 
—

 
—

 
—

 
19

 
—

 
—

 
19

Balance, June 30, 2011
 

$4,854

 

$928

 

$180

 

$381

 

$—

 

$—

 

$6,343




Other Intangible Assets
Changes in the carrying amounts of other intangible assets for the six months ended June 30 are as follows:
 
(Dollars in millions)
Core Deposit  
Intangibles
 
MSRs -
Fair Value
 
Other
 
Total
Balance, January 1, 2012

$38

 

$921

 

$58

 

$1,017

Amortization
(11
)
 
—

 
(11
)
 
(22
)
MSRs originated
—

 
161

 
—

 
161

Changes in fair value:
 
 
 
 
 
 
 
Due to changes in inputs and assumptions 1
—

 
(102
)
 
—

 
(102
)
Other changes in fair value 2
—

 
(112
)
 
—

 
(112
)
Sale of MSRs
—

 
(3
)
 
—

 
(3
)
Balance, June 30, 2012

$27

 

$865

 

$47

 

$939

 
 
 
 
 
 
 
 
Balance, January 1, 2011

$67

 

$1,439

 

$65

 

$1,571

Amortization
(16
)
 
—

 
(7
)
 
(23
)
MSRs originated
—

 
136

 
—

 
136

Changes in fair value:
 
 
 
 
 
 
 
Due to changes in inputs and assumptions 1
—

 
(51
)
 
—

 
(51
)
Other changes in fair value 2
—

 
(94
)
 
—

 
(94
)
Sale of MSRs
—

 
(7
)
 
—

 
(7
)
Other
—

 
—

 
7

 
7

Balance, June 30, 2011

$51

 

$1,423

 

$65

 

$1,539

1 Primarily reflects changes in discount rates and prepayment speed assumptions, due to changes in interest rates.
2 Represents changes due to the collection of expected cash flows, net of accretion, due to the passage of time.


Mortgage Servicing Rights
The Company retains MSRs from certain of its sales or securitizations of residential mortgage loans. MSRs on residential mortgage loans are the only servicing assets capitalized by the Company and are classified within intangible assets on the Company’s Consolidated Balance Sheets.
Income earned by the Company on its MSRs is derived primarily from contractually specified mortgage servicing fees and late fees, net of curtailment costs. Such income earned for the three months ended June 30, 2012 and 2011 was $80 million and $94 million, respectively, and $163 million and $186 million for the six months ended June 30, 2012 and 2011, respectively. These amounts are reported in mortgage servicing related income in the Consolidated Statements of Income.
As of June 30, 2012 and December 31, 2011, the total unpaid principal balance of mortgage loans serviced was $153.4 billion and $157.8 billion, respectively. Included in these amounts were $118.9 billion and $124.1 billion as of June 30, 2012 and December 31, 2011, respectively, of loans serviced for third parties. During the six months ended June 30, 2012, the Company sold MSRs on residential loans with an unpaid principal balance of $1.4 billion. Because MSRs are reported at fair value, the sale did not have a material impact on mortgage servicing related income.

At the end of each quarter, the Company determines the fair value of the MSRs using a valuation model that calculates the present value of the estimated future net servicing income. The model incorporates a number of assumptions as MSRs do not trade in an active and open market with readily observable prices. The Company determines fair value using market based prepayment rates, discount rates, and other assumptions that are compared to various sources of market data including independent third party valuations and industry surveys. Senior management and the valuation committee review all significant assumptions quarterly since many factors can affect the fair value of MSRs. Changes in the valuation model inputs and assumptions are reported in the periods' results.

A summary of the key characteristics, inputs, and economic assumptions used to estimate the fair value of the Company’s MSRs as of June 30, 2012 and December 31, 2011, and the sensitivity of the fair values to immediate 10% and 20% adverse changes in those assumptions are shown in the table below. Substantially all of the decrease in fair value during the six months ended June 30, 2012 was driven by a 4% decline in the principal balance of loans serviced for others and a decrease in prevailing interest rates during the six months ended June 30, 2012.
(Dollars in millions)
June 30, 2012
 
December 31, 2011
Fair value of retained MSRs

$865

 

$921

Prepayment rate assumption (annual)
20
%
 
20
%
Decline in fair value from 10% adverse change

$55

 

$52

Decline in fair value from 20% adverse change
100

 
98

Discount rate (annual)
11
%
 
11
%
Decline in fair value from 10% adverse change

$31

 

$33

Decline in fair value from 20% adverse change
60

 
63

Weighted-average life (in years)
4.2

 
4.3

Weighted-average coupon
5.0
%
 
5.2
%


The above sensitivities are hypothetical and should be used with caution. As the amounts indicate, changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. Additionally, the sensitivities above do not include the effect of hedging activity undertaken by the Company to offset changes in the fair value of MSRs. See Note 10, “Derivative Financial Instruments,” for further information regarding these hedging transactions.
Certain Transfers of Financial Assets and Variable Interest Entities
Accounting for Certain Loans and Debt Securities Acquired in Transfer Disclosure [Text Block]
NOTE 6 - CERTAIN TRANSFERS OF FINANCIAL ASSETS AND VARIABLE INTEREST ENTITIES
Certain Transfers of Financial Assets and related Variable Interest Entities
As discussed in Note 11, “Certain Transfers of Financial Assets and Variable Interest Entities,” to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2011, the Company has transferred loans and securities in sale or securitization transactions in which the Company has, or had, continuing involvement. Except as specifically noted herein, the Company is not required to provide additional financial support to any of the entities to which the Company has transferred financial assets, nor has the Company provided any support it was not otherwise obligated to provide.
When evaluating transfers and other transactions with VIEs for consolidation, the Company first determines if it has a VI in the VIE. A VI is typically in the form of securities representing retained interests in the transferred assets and, at times, servicing rights and collateral manager fees. If the Company has a VI in the entity, it then evaluates whether or not it has both (1) the power to direct the activities that most significantly impact the economic performance of the VIE, and (2) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE to determine if the Company should consolidate the VIE.
Below is a summary of transfers of financial assets to VIEs for which the Company has retained some level of continuing involvement and supplements Note 11, “Certain Transfers of Financial Assets and Variable Interest Entities,” to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2011.
Residential Mortgage Loans
The Company typically transfers first lien residential mortgage loans in conjunction with Ginnie Mae, Fannie Mae, and Freddie Mac securitization transactions whereby the loans are exchanged for cash or securities that are readily redeemed for cash proceeds and servicing rights. The Company sold residential mortgage loans to these entities, which resulted in pre-tax gains of $236 million, and $107 million, including servicing rights for the three months ended June 30, 2012 and 2011, respectively and $460 million and $118 million for the six months ended June 30, 2012 and 2011, respectively. These gains are included within mortgage production related income/(loss) in the Consolidated Statements of Income. These gains include the change in value of the loans as a result of changes in interest rates from the time the related IRLCs were issued to the borrowers but do not include the results of hedging activities initiated by the Company to mitigate this market risk. See Note 10, “Derivative Financial Instruments,” for further discussion of the Company’s hedging activities. As seller, the Company has made certain representations and warranties with respect to the originally transferred loans, including those transferred under Ginnie Mae, Fannie Mae, and Freddie Mac programs, and those representations and warranties are discussed in Note 11, “Reinsurance Arrangements and Guarantees.”
In a limited number of securitizations, the Company has received securities representing retained interests in the transferred loans in addition to cash and servicing rights in exchange for the transferred loans. The received securities are carried at fair value as either trading assets or securities AFS. As of June 30, 2012 and December 31, 2011, the fair value of securities received totaled $96 million and $104 million, respectively, and were valued using a third party pricing service.
The Company evaluated these securitization transactions for consolidation under the VIE consolidation guidance. As servicer of the underlying loans, the Company is generally deemed to have power over the securitization. However, if a single party, such as the issuer or the master servicer, effectively controls the servicing activities or has the unilateral ability to terminate the Company as servicer without cause, then that party is deemed to have power. In almost all of its securitization transactions, the Company does not have power over the VIE as a result of these rights held by the master servicer. In certain transactions, the Company does have power as the servicer; however, the Company does not also have an obligation to absorb losses or the right to receive benefits that could potentially be significant to the securitization. The absorption of losses and the receipt of benefits would generally manifest itself through the retention of senior or subordinated interests. Total assets as of June 30, 2012 and December 31, 2011 of the unconsolidated trusts in which the Company has a VI are $484 million and $529 million, respectively. No events have occurred during the six months ended June 30, 2012 that would change the Company's previous conclusion that it is not the primary beneficiary of any of these securitization entities.
The Company’s maximum exposure to loss related to the unconsolidated VIEs in which it holds a VI is comprised of the loss of value of any interests it retains and any repurchase obligations it incurs as a result of a breach of its representations and warranties. Discussion of the Company's representations and warranties is included in Note 11, “Reinsurance Arrangements and Guarantees.”
Commercial and Corporate Loans
The Company has involvement with CLO entities that own commercial leveraged loans and bonds, certain of which were transferred by the Company to the CLOs. In addition to retaining certain securities issued by the CLOs, the Company also acts as collateral manager for these CLOs. The securities retained by the Company and the fees received as collateral manager represent a VI in the CLOs, which are considered to be VIEs. The Company has determined that it is the primary beneficiary of, and thus, has consolidated one of these CLOs as it has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses and the right to receive benefits from the entity that could potentially be significant to the CLO. The Company's involvement with the CLO includes receiving fees for its duties as collateral manager, including eligibility for performance fees as well as ownership in one of the senior interests in the CLO and certain preference shares of the CLO. Substantially all of the assets and liabilities of the CLO are loans and issued debt, respectively. The loans are classified within LHFS at fair value and the debt is included within long-term debt at fair value on the Company’s Consolidated Balance Sheets (see Note 12, “Fair Value Election and Measurement,” for a discussion of the Company’s methodologies for estimating the fair values of these financial instruments). At June 30, 2012, the Company’s Consolidated Balance Sheets reflected $322 million of loans held by the CLO and $288 million of debt issued by the CLO. At December 31, 2011, the Company’s Consolidated Balance Sheets reflected $315 million of loans held by the CLO and $289 million of debt issued by the CLO. The Company is not obligated, contractually or otherwise, to provide financial support to this VIE nor has it previously provided support to this VIE. Further, creditors of the VIE have no recourse to the general credit of the Company, as the liabilities of the CLO are paid only to the extent of available cash flows from the CLO’s assets.
For the remaining CLOs, which are also considered to be VIEs, the Company has determined that it is not the primary beneficiary as it does not have an obligation to absorb losses or the right to receive benefits from the entities that could potentially be significant to the VIE. The Company's preference share exposure was valued at $2 million as of June 30, 2012 and December 31, 2011. The Company’s only remaining involvement with these VIEs was through its collateral manager role. The Company receives fees for managing the assets of these vehicles; these fees are considered adequate compensation and are commensurate with the level of effort required to provide such services. The fees received by the Company from these entities are recorded as trust and investment management income in the Consolidated Statements of Income. Senior fees earned by the Company are generally not considered at risk; however, subordinate fees earned by the Company are subject to the availability of cash flows and to the priority of payments. At June 30, 2012 and December 31, 2011, the Company’s Consolidated Balance Sheets did not include $1.9 billion and 2.0 billion, respectively, of estimated assets and $1.8 billion and $1.9 billion, respectively, of estimated liabilities. The Company is not obligated to provide any support to these entities, nor has it previously provided support to these entities. No events occurred during the six months ended June 30, 2012 that would change the Company’s previous conclusion that it is not the primary beneficiary of any of these securitization entities.
Student Loans
In 2006, the Company completed a securitization of government-guaranteed student loans through a transfer of loans to a securitization SPE, which previously qualified as a QSPE, and retained the related residual interest in the SPE. The Company concluded that this securitization of government-guaranteed student loans (the “Student Loan entity”) should be consolidated. At June 30, 2012 and December 31, 2011, the Company’s Consolidated Balance Sheets reflected $416 million and $438 million, respectively, of assets held by the Student Loan entity and $412 million and $433 million, respectively, of debt issued by the Student Loan entity.
Payments from the assets in the SPE must first be used to settle the obligations of the SPE, with any remaining payments remitted to the Company as the owner of the residual interest. To the extent that losses occur on the SPE’s assets, the SPE has recourse to the federal government as the guarantor up to a maximum guarantee amount of 97%. Losses in excess of the government guarantee reduce the amount of available cash payable to the Company as the owner of the residual interest. To the extent that losses result from a breach of the master servicer’s servicing responsibilities, the SPE has recourse to the Company; the SPE may require the Company to repurchase the loan from the SPE at par value. If the breach was caused by the subservicer, the Company has recourse to seek reimbursement from the subservicer up to the guaranteed amount. The Company’s maximum exposure to loss related to the SPE is represented by the potential losses resulting from a breach of servicing responsibilities. To date, all loss claims filed with the guarantor that have been denied due to servicing errors have either been cured or reimbursement has been provided to the Company by the subservicer.
CDO Securities
The Company has transferred bank trust preferred securities in securitization transactions. The Company is not obligated to provide any support to these entities and its maximum exposure to loss at June 30, 2012 and December 31, 2011 includes current senior interests held in trading securities, which had a fair value of $43 million.
As discussed further in Note 12, "Fair Value Election and Measurement," the Company values these interests by constructing a pricing matrix of values based on a range of overcollateralization levels that are derived from discussions with the dealer community along with limited trade data. The price derived from the matrix is then adjusted for each security based on deal specific factors such as the percentage of collateral that is considered to be at heightened risk for future deferral or default, and collateral specific prepayment expectations, among other factors. The underlying collateral of the VIEs is highly concentrated, and as a result, the default or deferral of certain large exposures adversely impacts the value of the interests. From a sensitivity analysis of the overcolleralization, the Company estimates that if each of the VIEs in which the Company holds retained positions experienced one to three additional large deferrals or defaults of an underlying collateral obligation, the fair value of the retained ARS would decline $9 million to $28 million, respectively.
At June 30, 2012 and December 31, 2011, the total assets of the trust preferred CDO entities in which the Company has remaining exposure to loss were $1.2 billion. The Company determined that it was not the primary beneficiary of any of these VIEs as the Company lacks the power to direct the significant activities of any of the VIEs. No events occurred during the six months ended June 30, 2012 that changed either the Company’s sale accounting or the Company’s conclusions that it is not the primary beneficiary of these VIEs.
The following tables present certain information related to the Company’s asset transfers in which it has continuing economic involvement.
 
Three Months Ended June 30
 
Six Months Ended June 30
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Cash flows on interests held:
 
 
 
 
 
 
 
  Residential Mortgage Loans

$8

 

$13

 

$15

 

$28

  Commercial and Corporate Loans
—

 
1

 
—

 
1

  CDO Securities
1

 
—

 
1

 
1

    Total cash flows on interests held

$9

 

$14

 

$16

 

$30

Servicing or management fees:
 
 
 
 
 
 
 
  Residential Mortgage Loans

$1

 

$1

 

$1

 

$2

  Commercial and Corporate Loans
2

 
2

 
5

 
5

  CDO Securities
—

 
—

 
—

 
—

    Total servicing or management fees

$3

 

$3

 

$6

 

$7

 
 
 
 
 
 
 
 


Portfolio balances and delinquency balances based on accruing loans 90 days or more past due and all nonaccrual loans as of June 30, 2012 and December 31, 2011 and net charge-offs related to managed portfolio loans (both those that are owned or consolidated by the Company and those that have been transferred) for the three and six months ended June 30, 2012 and 2011 are as follows:

 
Portfolio Balance
 
Past Due
 
 
Net Charge-offs
 
June 30, 2012
 
December 31, 2011
 
June 30, 2012
 
December 31, 2011
 
 
For the Three Months
Ended June 30
 
For the Six Months
Ended June 30
 
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Type of loan:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial

$57,814

 

$55,872

 

$720

 

$938

 
 

$63

 

$179

 

$164

 

$335

Residential
46,202

 
46,660

 
2,935

 
3,079

 
 
268

 
297

 
565

 
677

Consumer
20,544

 
19,963

 
953

 
914

 
 
19

 
29

 
43

 
64

Total loan portfolio
124,560

 
122,495

 
4,608

 
4,931

 
 
350

 
505

 
772

 
1,076

Managed securitized loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
1,920

 
1,978

 
20

 
43

 
 
—

 
—

 
—

 
—

Residential
110,031

 
114,342

 
2,642

1 
3,310

1 
 
9

 
15

 
16

 
27

Total managed loans

$236,511

 

$238,815

 

$7,270

 

$8,284

 
 

$359

 

$520

 

$788

 

$1,103

1Excludes loans that have completed the foreclosure or short sale process (i.e., involuntary prepayments).

Other Variable Interest Entities
In addition to the Company’s involvement with certain VIEs related to transfers of financial assets, the Company also has involvement with VIEs from other business activities as further discussed in Note 11, “Certain Transfers of Financial Assets and Variable Interest Entities,” to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2011.
Three Pillars Funding, LLC
The Company previously assisted in providing liquidity to select corporate clients by directing them to a multi-seller CP conduit, Three Pillars. Three Pillars provided financing for direct purchases of financial assets originated and serviced by the Company’s corporate clients by issuing CP. The Company was the primary beneficiary of Three Pillars.
In January 2012, the Company initiated the process of liquidating Three Pillars. As of June 30, 2012, all commitments and outstanding loans of Three Pillars have been transferred to the Bank. Three Pillars' CP has been repaid in full and the remaining other assets and liabilities are immaterial to the Company's Consolidated Balance Sheets.
Total Return Swaps
The Company has involvement with various VIEs related to its TRS business. At June 30, 2012 and December 31, 2011, the Company had $1.9 billion and $1.7 billion, respectively, in senior financing outstanding to VIEs, which were classified within trading assets on the Consolidated Balance Sheets and carried at fair value. These VIEs had entered into TRS contracts with the Company with outstanding notional amounts of $1.9 billion and $1.6 billion at June 30, 2012 and December 31, 2011, respectively, and the Company had entered into mirror TRS contracts with its third parties with the same outstanding notional amounts. At June 30, 2012, the fair values of these TRS assets and liabilities were $29 million and $25 million, respectively, and at December 31, 2011, the fair values of these TRS assets and liabilities were $20 million and $17 million, respectively, reflecting the pass-through nature of these structures. The notional amounts of the TRS contracts with the VIEs represent the Company’s maximum exposure to loss, although such exposure to loss has been mitigated via the TRS contracts with the third parties. The Company has not provided any support to the VIE that it was not contractually obligated to for the six months ended June 30, 2012 and 2011. For additional information on the Company’s TRS with these VIEs, see Note 10, “Derivative Financial Instruments.”
Community Development Investments
As part of its community reinvestment initiatives, the Company invests almost exclusively within its footprint in multi-family affordable housing developments and other community development entities as a limited and/or general partner and/or a debt provider. The Company receives tax credits for various investments. The Company has determined that the related partnerships are VIEs. For partnerships where the Company operates strictly as the general partner, the Company consolidates these partnerships on its Consolidated Balance Sheets. As the general partner, the Company typically guarantees the tax credits due to the limited partner and is responsible for funding construction and operating deficits. As of June 30, 2012 and December 31, 2011, total assets, which consist primarily of fixed assets and cash attributable to the consolidated partnerships, were $5 million and total liabilities, excluding intercompany liabilities, were $1 million. Security deposits from the tenants are recorded as liabilities on the Company’s Consolidated Balance Sheets. The Company maintains separate cash accounts to fund these liabilities and these assets are considered restricted. The tenant liabilities and corresponding restricted cash assets were not material as of June 30, 2012 and December 31, 2011. While the obligations of the general partner are generally non-recourse to the Company, as the general partner, the Company may from time to time step in when needed to fund deficits. During the three and six months ended June 30, 2012 and 2011, the Company did not provide any significant amount of funding as the general partner or to cover any deficits the partnerships may have generated.
For other partnerships, the Company acts only in a limited partnership capacity. The Company has determined that it is not the primary beneficiary of these partnerships. The general partner or an affiliate of the general partner provides guarantees to the limited partner, which protects the Company from losses attributable to operating deficits, construction deficits, and tax credit allocation deficits. Partnership assets of $1.2 billion in these partnerships were not included in the Consolidated Balance Sheets at June 30, 2012 and December 31, 2011. These limited partner interests had carrying values of $189 million and $194 million at June 30, 2012 and December 31, 2011, respectively, and are recorded in other assets in the Company’s Consolidated Balance Sheets. The Company’s maximum exposure to loss for these limited partner investments totaled $454 million and $472 million at June 30, 2012 and December 31, 2011, respectively. The Company’s maximum exposure to loss would be borne by the loss of the limited partnership equity investments along with $238 million and $249 million of loans, interest-rate swaps, or letters of credit issued by the Company to the limited partnerships at June 30, 2012 and December 31, 2011, respectively. The difference between the maximum exposure to loss and the investment and loan balances is primarily attributable to the unfunded equity commitments. Unfunded equity commitments are amounts that the Company has committed to the partnerships upon the partnerships meeting certain conditions. When these conditions are met, the Company will invest these additional amounts in the partnerships.
Additionally, the Company invests in funds whose purpose is to invest in affordable housing developments as the limited partner investor. The Company owns minority and noncontrolling interests in these funds. As of June 30, 2012 and December 31, 2011, the Company's investment in these funds totaled $67 million and $68 million, respectively, and the Company's maximum exposure to loss on its equity investments, which is comprised of its investments in the funds plus any additional unfunded equity commitments, was $106 million and $108 million, respectively.
When the Company owns both the limited partner and general partner interests or acts as the indemnifying party, the Company consolidates the partnerships. As of June 30, 2012 and December 31, 2011, total assets, which consist primarily of fixed assets and cash, attributable to the consolidated non-VIE partnerships were $349 million and $360 million, respectively, and total liabilities, excluding intercompany liabilities, primarily representing third party borrowings, were $104 million and $107 million, respectively. See Note 12, “Fair Value Election and Measurement,” for further discussion on the impact of impairment charges on affordable housing partnership investments.
Registered and Unregistered Funds Advised by RidgeWorth
RidgeWorth, a registered investment advisor and majority owned subsidiary of the Company, serves as the investment advisor for various private placement, common and collective funds, and registered mutual funds (collectively the “Funds”). The Company evaluates these Funds to determine if the Funds are VIEs. In February 2010, the FASB issued guidance that defers the application of the existing VIE consolidation guidance for investment funds meeting certain criteria. All of the registered and unregistered Funds advised by RidgeWorth meet the scope exception criteria and thus are not evaluated for consolidation under the guidance. Accordingly, the Company continues to apply the consolidation guidance in effect prior to the issuance of the existing guidance to interests in funds that qualify for the deferral.
The Company has concluded that some of the Funds are VIEs. However, the Company has concluded that it is not the primary beneficiary of these funds as the Company does not absorb a majority of the expected losses nor expected returns of the funds. The Company’s exposure to loss is limited to the investment advisor and other administrative fees it earns and if applicable, any equity investments. The total unconsolidated assets of these funds as of June 30, 2012 and December 31, 2011 were $1.0 billion and $1.1 billion, respectively.
The Company does not have any contractual obligation to provide monetary support to any of the Funds. The Company did not provide any significant support, contractual or otherwise, to the Funds during the three and six months ended June 30, 2012 and 2011.
Net Income/(Loss) Per Common Share
Net Income/(Loss) Per Share
NOTE 7 – NET INCOME PER COMMON SHARE
Equivalent shares of 26 million and 32 million related to common stock options and common stock warrants outstanding as of June 30, 2012 and 2011, respectively, were excluded from the computations of diluted income per average common share because they would have been anti-dilutive.
A reconciliation of the difference between average basic common shares outstanding and average diluted common shares outstanding for the three and six months ended June 30, 2012 and 2011 is included below. Additionally, included below is a reconciliation of net income to net income available to common shareholders. 
 
 
Three Months Ended June 30
 
Six Months Ended June 30
(In millions, except per share data)
 
2012
 
2011
 
2012
 
2011
Net income
 

$275

 

$178

 

$525

 

$358

Preferred dividends
 
(3
)
 
(2
)
 
(6
)
 
(4
)
Dividends and accretion of discount on preferred stock issued to the U.S. Treasury
 
—

 
—

 
—

 
(66
)
Accretion associated with repurchase of preferred stock issued to the U.S. Treasury
 
—

 
—

 
—

 
(74
)
Dividends and undistributed earnings allocated to unvested shares
 
(2
)
 
(2
)
 
(4
)
 
(2
)
Net income available to common shareholders
 

$270

 

$174

 

$515

 

$212

Average basic common shares
 
534

 
532

 
534

 
516

Effect of dilutive securities:
 
 
 
 
 
 
 
 
Stock options
 
1

 
1

 
1

 
2

Restricted stock
 
2

 
2

 
2

 
2

Average diluted common shares
 
537

 
535

 
537

 
520

Net income per average common share - diluted
 

$0.50

 

$0.33

 

$0.96

 

$0.41

Net income per average common share - basic
 

$0.51

 

$0.33

 

$0.97

 

$0.41

Income Taxes
Income Taxes
NOTE 8 - INCOME TAXES
The provision for income taxes was $91 million and $58 million for the three months ended June 30, 2012 and 2011, respectively, representing an effective tax rate of 25% for each of these periods. The provision for income taxes was $160 million and $91 million for the six months ended June 30, 2012 and 2011, respectively, representing effective tax rates of 23% and 20%, respectively. The Company calculated income taxes for the three and six months ended June 30, 2012 and 2011 based on actual year-to-date results. Interest and penalties related to tax matters are recorded as a component of the income tax provision.

Employee Benefit Plans
Employee Benefit Plans
NOTE 9 - EMPLOYEE BENEFIT PLANS
The Company sponsors various short-term incentive and LTI plans for eligible employees. The Company delivers LTIs through various incentive programs, including stock options, RSUs, restricted stock, and LTI cash. Awards under the LTI cash plan generally cliff vest over a period of three years from the date of the award and are paid in cash. AIP is the Company's short-term cash incentive plan for key employees that provides for potential annual cash awards based on the Company's performance and/or the achievement of business unit and individual performance objectives. The Company's AIP plan includes a higher number of eligible employees that previously received compensation under other incentive plans, including MIP. Compensation expense for the AIP and LTI cash plans was $40 million and $32 million for the three months ended June 30, 2012 and 2011, respectively, and $77 million and $60 million for the six months ended June 30, 2012 and 2011, respectively.
Previously, TARP prohibited the payment of any bonus, incentive compensation or stock option award to the Company's five NEOs and certain other highly-compensated executives. As a result, beginning in January 2010, the Company paid additional base salary amounts in the form of stock (salary shares) to the NEOs and some of the other employees who were among the next 20 most highly-compensated employees. The Company did this each pay period in the form of stock units under the SunTrust Banks, Inc. 2009 Stock Plan (the "2009 Stock Plan") until the Company repaid TARP. The Company settled the stock units in cash; for the 2010 salary shares, one half was settled on March 31, 2011 and one half was settled on March 31, 2012. The 2011 salary shares were settled on March 30, 2011, the date the Company repaid the U.S. government's TARP investment. The amount paid upon settlement of the stock units was equal to the value of a share of SunTrust common stock on the settlement date. The value of salary shares paid was $4 million and $7 million in 2012 and 2011, respectively.

Stock-Based Compensation
The Company provides stock-based awards through the SunTrust Banks Inc. 2009 Stock Plan (as amended and restated effective January 1, 2011) under which the Compensation Committee of the Board of Directors has the authority to grant stock options, restricted stock, and RSUs to key employees of the Company, some of which may have performance or other conditions such as vesting tied to the Company's total shareholder return relative to a peer group or vesting tied to the achievement of a ROA target.
The Company granted 1,665,570 shares of restricted stock and 1,690,515 RSUs during the first six months of 2012. The weighted average grant-date fair value of these awards was $21.80 and $20.77 per share, respectively. The Company also granted 859,390 shares of stock options with a weighted average exercise price of $21.92. The fair value of options granted during the first six months of 2012 and 2011 was $7.83 and $10.97 per share, respectively. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model using the following assumptions:
 
 
Six Months Ended June 30
 
2012
 
2011
Dividend yield
0.91
%
 
0.67
%
Expected stock price volatility
39.88

 
34.73

Risk-free interest rate (weighted average)
1.07

 
2.61

Expected life of options
6 years

 
6 years



Stock-based compensation expense recognized in noninterest expense was as follows:
 
 
Three Months Ended June 30
 
Six Months Ended June 30
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Stock-based compensation expense:
 
 
 
 
 
 
 
Stock options

$2

 

$5

 

$6

 

$8

Restricted stock
8

 
8

 
15

 
17

RSUs
4

 
8

 
18

 
8

Total stock-based compensation expense

$14

 

$21

 

$39

 

$33



The recognized stock-based compensation tax benefit was $6 million and $8 million for the three months ended June 30, 2012 and 2011, respectively, and $15 million and $12 million for the six months ended June 30, 2012 and 2011, respectively.


Retirement Plans
Certain Retirement Plans were amended in 2011 to cease all future benefit accruals as disclosed in Note 16, “Employee Benefit Plans,” to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2011. SunTrust did not contribute to either of its noncontributory qualified retirement plans ("Retirement Benefits Plans") in the first six months of 2012. The expected long-term rate of return on plan assets for the Retirement Benefit Plans is 7.00% for 2012.
Anticipated employer contributions/benefit payments for 2012 are $28 million for the SERP. For the three and six months ended June 30, 2012, the actual contributions/benefit payments were $1 million and $2 million, respectively.
SunTrust contributed less than $1 million to the Postretirement Welfare Plan during the three and six months ended June 30, 2012. Additionally, SunTrust expects to receive a Medicare Part D Subsidy reimbursement for 2012 in the amount of $3 million. The expected pre-tax long-term rate of return on plan assets for the Postretirement Welfare Plan is 6.25% for 2012.

Components of net periodic benefit cost were as follows:

 
Three Months Ended June 30
 
2012
 
2011
(Dollars in millions)
Retirement Benefits
 
Other Postretirement
Benefits
 
Retirement Benefits
 
Other Postretirement
Benefits
Service cost

$—

 

$—

 

$17

 

$—

Interest cost
31

 
1

 
32

 
2

Expected return on plan assets
(43
)
 
(1
)
 
(47
)
 
(2
)
Amortization of prior service credit
—

 
—

 
(4
)
 
—

Recognized net actuarial loss
6

 
—

 
11

 
—

Net periodic (benefit)/cost

($6
)
 

$—

 

$9

 

$—


 
Six Months Ended June 30
 
2012
 
2011
(Dollars in millions)
Retirement Benefits
 
Other Postretirement
Benefits
 
Retirement Benefits
 
Other Postretirement
Benefits
Service cost

$—

 

$—

 

$35

 

$—

Interest cost
60

 
3

 
64

 
5

Expected return on plan assets
(86
)
 
(3
)
 
(94
)
 
(4
)
Amortization of prior service credit
—

 
—

 
(9
)
 
—

Recognized net actuarial loss
12

 
—

 
21

 
—

Net periodic (benefit)/cost

($14
)
 

$—

 

$17

 

$1

Derivative Financial Instruments
Derivative Financial Instruments
NOTE 10 - DERIVATIVE FINANCIAL INSTRUMENTS
The Company enters into various derivative financial instruments, both in a dealer capacity to facilitate client transactions and as an end user as a risk management tool. When derivatives have been entered into with clients, the Company generally manages the risk associated with these derivatives within the framework of its VAR approach that monitors total exposure daily and seeks to manage the exposure on an overall basis. Derivatives are used as a risk management tool to hedge the Company’s balance sheet exposure to changes in identified cash flow and fair value risks, either economically or in accordance with hedge accounting provisions. The Company’s Corporate Treasury function is responsible for employing the various hedge accounting strategies to manage these objectives and all derivative activities are monitored by ALCO. The Company may also enter into derivatives, on a limited basis, in consideration of trading opportunities in the market. Additionally, as a normal part of its operations, the Company enters into IRLCs on mortgage loans that are accounted for as freestanding derivatives and has certain contracts containing embedded derivatives that are carried, in their entirety, at fair value. All freestanding derivatives and any embedded derivatives that the Company bifurcates from the host contracts are carried at fair value in the Consolidated Balance Sheets in trading assets, other assets, trading liabilities, or other liabilities. The associated gains and losses are either recognized in AOCI, net of tax, or within the Consolidated Statements of Income depending upon the use and designation of the derivatives.
Credit and Market Risk Associated with Derivatives
Derivatives expose the Company to credit risk. The Company minimizes the credit risk of derivatives by entering into transactions with high credit-quality counterparties with defined exposure limits that are reviewed periodically by the Company’s Credit Risk Management division. The Company’s derivatives may also be governed by an ISDA master agreement, and depending on the nature of the derivative, bilateral collateral agreements are typically in place as well. When the Company has more than one outstanding derivative transaction with a single counterparty and there exists a legally enforceable master netting agreement with that counterparty, the Company considers its exposure to the counterparty to be the net market value of all positions with that counterparty adjusted for held and posted collateral, if such net value is an asset to the Company. As of June 30, 2012, net derivative asset positions to which the Company was exposed to risk of its counterparties were $2.3 billion, representing the $3.4 billion of derivative gains adjusted for collateral of $1.1 billion that the Company holds in relation to these gain positions. As of December 31, 2011, net derivative asset positions to which the Company was exposed to risk of its counterparties were $2.4 billion, representing $3.6 billion of derivative gains, adjusted for collateral of $1.2 billion that the Company holds in relation to these gain positions.
Derivatives also expose the Company to market risk. Market risk is the adverse effect that a change in market factors, such as interest rates, currency rates, equity prices, or implied volatility, has on the value of a derivative. The Company manages the market risk associated with its derivatives by establishing and monitoring limits on the types and degree of risk that may be undertaken. The Company continually measures this risk associated with its derivatives designated as trading instruments using a VAR methodology.
Derivative instruments are priced with observable market assumptions at a mid-market valuation point, with appropriate valuation adjustments for liquidity and credit risk. For purposes of valuation adjustments to its derivative positions, the Company has evaluated liquidity premiums that may be demanded by market participants, as well as the credit risk of its counterparties and its own credit. The Company has considered factors such as the likelihood of default by itself and its counterparties, its net exposures, and remaining maturities in determining the appropriate fair value adjustments to recognize. Generally, the expected loss of each counterparty is estimated using the Company’s internal risk rating system. The risk rating system utilizes counterparty-specific probabilities of default and LGD estimates to derive the expected loss. For counterparties that are rated by national rating agencies, those ratings are also considered in estimating the credit risk. Additionally, counterparty exposure is evaluated by offsetting positions that are subject to master netting arrangements, as well as considering the amount of marketable collateral securing the position. All counterparties are explicitly approved, as are defined exposure limits. Counterparties are regularly reviewed and appropriate business action is taken to adjust the exposure to certain counterparties, as necessary. This approach is also used by the Company to estimate its own credit risk on derivative liability positions. The Company adjusted the net fair value of its derivative contracts for estimates of net counterparty credit risk by approximately $32 million and $36 million as of June 30, 2012 and December 31, 2011, respectively.
The majority of the Company’s derivatives contain contingencies that relate to the creditworthiness of the Bank. These contingencies, which are contained in industry standard master trading agreements, may be considered events of default. Should the Bank be in default under any of these provisions, the Bank’s counterparties would be permitted under such master agreements to close-out net at amounts that would approximate the then-fair values of the derivatives and the offsetting of the amounts would produce a single sum due by one party to the other. The counterparties would have the right to apply any collateral posted by the Bank against any net amount owed by the Bank. Additionally, certain of the Company’s derivative liability positions, totaling $1.2 billion in fair value at both June 30, 2012 and December 31, 2011 contain provisions conditioned on downgrades of the Bank’s credit rating. These provisions, if triggered, would either give rise to an ATE that permits the counterparties to close-out net and apply collateral or, where a CSA is present, require the Bank to post additional collateral. Collateral posting requirements generally result from differences in the fair value of the net derivative liability compared to specified collateral thresholds at different ratings levels of the Bank, both of which are negotiated provisions within each CSA. At June 30, 2012, the Bank carried senior long-term debt ratings of A3/BBB+ from three of the major ratings agencies. At the current rating level, ATEs have been triggered for approximately $10 million in fair value liabilities as of June 30, 2012. For illustrative purposes, if the Bank were downgraded to Baa3/BBB-, ATEs would be triggered in derivative liability contracts that had a total fair value of $4 million at June 30, 2012, against which the Bank had posted collateral of $1 million; ATEs do not exist at lower ratings levels. At June 30, 2012, $1.2 billion in fair value of derivative liabilities were subject to CSAs, against which the Bank has posted $1.2 billion in collateral, primarily in the form of cash. If requested by the counterparty pursuant to the terms of the CSA, the Bank would be required to post estimated additional collateral against these contracts at June 30, 2012 of $15 million if the Bank were downgraded to Baa3/BBB-, and any further downgrades to Ba1/BB+ or below would require the posting of an additional $8 million. Such collateral posting amounts may be more or less than the Bank’s estimates based on the specified terms of each CSA as to the timing of a collateral calculation and whether the Bank and its counterparties differ on their estimates of the fair values of the derivatives or collateral.

Notional and Fair Value of Derivative Positions
The following tables present the Company’s derivative positions at June 30, 2012 and December 31, 2011. The notional amounts in the tables are presented on a gross basis and have been classified within Asset Derivatives or Liability Derivatives based on the estimated fair value of the individual contract at June 30, 2012 and December 31, 2011. Gross positive and gross negative fair value amounts associated with respective notional amounts are presented without consideration of any netting agreements. For contracts constituting a combination of options that contain a written option and a purchased option (such as a collar), the notional amount of each option is presented separately, with the purchased notional amount generally being presented as an Asset Derivative and the written notional amount being presented as a Liability Derivative. The fair value of a combination of options is generally presented as a single value with the purchased notional amount if the combined fair value is positive, and with the written notional amount, if the combined fair value is negative.
 
As of June 30, 20121
 
 
Asset Derivatives
 
Liability Derivatives
 
(Dollars in millions)
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
 
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
 
Derivatives designated in cash flow hedging relationships 2
Equity contracts hedging:
Securities AFS
Trading assets
 

$1,547

  

$—

 
Trading liabilities
 

$1,547

  

$349

  
Interest rate contracts hedging:
Floating rate loans
Trading assets
 
13,350

  
854

 
Trading liabilities
 
—

  
—

  
Total
 
 
14,897

  
854

 
 
 
1,547

  
349

  
Derivatives designated in fair value hedging relationships 3
Interest rate contracts covering:
Fixed rate debt
Trading assets
 
1,000

 
63

 
Trading liabilities
 
—

 
—

  
Total
 
 
1,000

 
63

 
 
 
—

 
—

  
Derivatives not designated as hedging instruments 4
Interest rate contracts covering:
Fixed rate debt
Trading assets
 
437

  
7

 
Trading liabilities
 
60

  
10

  
MSRs
Other assets
 
13,558

  
416

 
Other liabilities
 
4,860

  
36

  
LHFS, IRLCs, LHFI-FV
Other assets
 
2,922

 
9

 
Other liabilities
 
7,485

5 
51

  
Trading activity 6
Trading assets
 
87,129

 
6,429

 
Trading liabilities
 
95,911

 
6,094

  
Foreign exchange rate contracts covering:
Commercial loans
Trading assets
 
33

  
1

 
Trading liabilities
 
—

  
—

  
Trading activity
Trading assets
 
2,489

  
63

 
Trading liabilities
 
2,712

  
64

  
Credit contracts covering:
Loans
Other assets
 
60

  
1

 
Other liabilities
 
368

  
5

  
Trading activity
Trading assets
 
2,044

7 
34

 
Trading liabilities
 
2,035

7 
28

  
Equity contracts - Trading activity 6
Trading assets
 
12,883

 
1,348

 
Trading liabilities
 
15,807

 
1,464

  
Other contracts:
IRLCs and other
Other assets
 
6,402

  
135

 
Other liabilities
 
134

8 
3

8 
Trading activity
Trading assets
 
310

  
26

 
Trading liabilities
 
285

  
26

  
Total
 
 
128,267

  
8,469

 
 
 
129,657

  
7,781

  

Total derivatives
 
 

$144,164

  

$9,386

 
 
 

$131,204

  

$8,130

  
1 The Company offsets cash collateral paid to and received from derivative counterparties when the derivative contracts are subject to ISDA master netting arrangements and meet the derivative offsetting requirements. The effects of offsetting on the Company's Consolidated Balance Sheets as of June 30, 2012 are presented in Note 12, "Fair Value Election and Measurement."
2 See “Cash Flow Hedges” in this Note for further discussion.
3 See “Fair Value Hedges” in this Note for further discussion.
4 See “Economic Hedging and Trading Activities” in this Note for further discussion.
5 Amount includes $1.2 billion of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative asset or liability associated with the one day lag is included in the fair value column of this table.
6 Amounts include $20.3 billion and $0.6 billion of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative assets/liabilities associated with the one day lag are included in the fair value column of this table.
7 Asset and liability amounts include $2 million and $5 million, respectively, of notional from purchased and written credit risk participation agreements, respectively, whose notional is calculated as the notional of the derivative participated adjusted by the relevant RWA conversion factor.
8 Includes a $3 million derivative liability recognized in other liabilities in the Consolidated Balance Sheets, related to a notional amount of $134 million. The notional amount is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009 as discussed in Note 11, “Reinsurance Arrangements and Guarantees.”
 
As of December 31, 20111
 
 
Asset Derivatives
 
Liability Derivatives
 
(Dollars in millions)
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
 
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
 
Derivatives designated in cash flow hedging relationships 2
Equity contracts hedging:
Securities AFS
Trading assets
 

$1,547

  

$—

 
Trading liabilities
 

$1,547

  

$189

  
Interest rate contracts hedging:
Floating rate loans
Trading assets
 
14,850

  
1,057

 
Trading liabilities
 
—

 
—

  
Total
 
 
16,397

 
1,057

 
 
 
1,547

 
189

  
Derivatives designated in fair value hedging relationships 3
Interest rate contracts covering:
Securities AFS
Trading assets
 
—

 
—

 
Trading liabilities
 
450

 
1

  
Fixed rate debt
Trading assets
 
1,000

 
56

 
Trading liabilities
 
—

 
—

  
Total
 
 
1,000

 
56

 
 
 
450

 
1

  
Derivatives not designated as hedging instruments 4
Interest rate contracts covering:
Fixed rate debt
Trading assets
 
437

  
13

 
Trading liabilities
 
60

  
9

  
MSRs
Other assets
 
28,800

  
472

 
Other liabilities
 
2,920

  
29

  
LHFS, IRLCs, LHFI-FV
Other assets
 
2,657

 
19

 
Other liabilities
 
6,228

5 
54

  
Trading activity
Trading assets
 
113,420

6 

6,226

 
Trading liabilities
 
101,042

  
5,847

  
Foreign exchange rate contracts covering:
Foreign-denominated debt and commercial loans
Trading assets
 
33

   
1

 
Trading liabilities
 
460

  
129

  
Trading activity
Trading assets
 
2,532

   
127

 
Trading liabilities
 
2,739

  
125

  
Credit contracts covering:
Loans
Trading assets
 
45

   
1

 
Trading liabilities
 
308

  
3

  
Trading activity
Trading assets
 
1,841

7 

28

 
Trading liabilities
 
1,809

7 
23

  
Equity contracts - Trading activity
Trading assets
 
10,168

6 

1,013

 
Trading liabilities
 
10,445

   
1,045

  
Other contracts:
IRLCs and other
Other assets
 
4,909

  
84

 
Other liabilities
 
139

8 
22

8 
Trading activity
Trading assets
 
207

  
23

 
Trading liabilities
 
203

   
23

  
Total
 
 
165,049

 
8,007

 
 
 
126,353

 
7,309

  
Total derivatives
 
 

$182,446

 

$9,120

 
 
 

$128,350

 

$7,499

  
1 The Company offsets cash collateral paid to and received from derivative counterparties when the derivative contracts are subject to ISDA master netting arrangements and meet the derivative offsetting requirements. The effects of offsetting on the Company's Consolidated Balance Sheets as of December 31, 2011 are presented in Note 12, "Fair Value Election and Measurement."
2 See “Cash Flow Hedges” in this Note for further discussion.
3 See "Fair Value Hedges" in this Note for further discussion.
4 See “Economic Hedging and Trading Activities” in this Note for further discussion.
5 Amount includes $1.2 billion of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative liability associated with the one day lag is included in the fair value column of this table unless immaterial.
6 Amounts include $16.7 billion and $0.6 billion of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative asset associated with the one day lag is included in the fair value column of this table unless immaterial.
7 Asset and liability amounts include $2 million and $6 million, respectively, of notional from purchased and written interest rate swap risk participation agreements, respectively, whose notional is calculated as the notional of the interest rate swap participated adjusted by the relevant RWA conversion factor.
8 Includes a $22 million derivative liability recognized in other liabilities in the Consolidated Balance Sheets, related to a notional amount of $134 million. The notional amount is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009 as discussed in Note 11, “Reinsurance Arrangements and Guarantees.”
Impact of Derivatives on the Consolidated Statements of Income and Shareholders’ Equity
The impacts of derivatives on the Consolidated Statements of Income and the Consolidated Statements of Shareholders’ Equity for the three and six months ended June 30, 2012 and 2011 are presented below. The impacts are segregated between those derivatives that are designated in hedging relationships and those that are used for economic hedging or trading purposes, with further identification of the underlying risks in the derivatives and the hedged items, where appropriate. The tables do not disclose the financial impact of the activities that these derivative instruments are intended to hedge, for both economic hedges and those instruments designated in formal, qualifying hedging relationships.  
 
 
Three Months Ended June 30, 2012
(Dollars in millions)
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships
Equity contracts hedging Securities AFS

($103
)
 
 
 

$—

Interest rate contracts hedging Floating rate loans1
117

 
Interest and fees on loans
 
83

Total

$14

 
 
 

$83

 
 
 
 
 
 
 
Six Months Ended June 30, 2012
(Dollars in millions)
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships
   Equity contracts hedging Securities AFS

($161
)
 
 
 

$—

   Interest rate contracts hedging Floating rate loans1
167

 
Interest and fees on loans
 
166

Total

$6

 
 
 

$166

1 During the three and six months ended June 30, 2012, the Company also reclassified $37 million and $105 million, respectively, in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.

 
 
Three Months Ended June 30, 2012
(Dollars in millions)
Amount of gain/(loss)
on Derivatives
recognized in Income
 
Amount of gain/(loss)
on related Hedged Items
recognized in Income
 
Amount of gain/(loss)
recognized in
Income on Hedges
(Ineffective Portion)
Derivatives in fair value hedging relationships1
Interest rate contracts hedging Fixed rate debt

$8

 

($8
)
 

$—

Interest rate contracts hedging Securities AFS
—

 
—

 
—

Total

$8

 

($8
)
 

$—

 
 
 
 
 
 
 
Six Months Ended June 30, 2012
(Dollars in millions)
Amount of gain/(loss)
on Derivatives
recognized in Income
 
Amount of gain/(loss)
on related Hedged Items
recognized in Income
 
Amount of gain/(loss)
recognized in
Income on Hedges
(Ineffective Portion)
Derivatives in fair value hedging relationships1
   Interest rate contracts hedging Fixed rate debt

$7

 

($7
)
 

$—

   Interest rate contracts hedging Securities AFS
1

 
(1
)
 
—

Total

$8

 

($8
)
 

$—

1 Amounts are recognized in trading income in the Consolidated Statements of Income.
 
(Dollars in millions)
Classification of gain/(loss)
recognized in Income on Derivatives
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Three Months Ended
June 30, 2012
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Six Months Ended
June 30, 2012
Derivatives not designated as hedging instruments
 
 
Interest rate contracts covering:
 
 
 
 
 
Fixed rate debt
Trading income
 

($2
)
 

($1
)
MSRs
Mortgage servicing related income
 
269

 
196

LHFS, IRLCs, LHFI-FV
Mortgage production related income
 
(135
)
 
(170
)
Trading activity
Trading income
 
27

 
54

Foreign exchange rate contracts covering:
 
 
 
 
 
Commercial loans and foreign-denominated debt
Trading income
 
115

 
130

Trading activity
Trading income
 
11

 
14

Credit contracts covering:
 
 
 
 
 
Loans
Other income 1
 
(1
)
 
(4
)
Trading activity
Trading income
 
6

 
12

Equity contracts - trading activity
Trading income
 
10

 
13

Other contracts:
 
 
 
 
 
IRLCs
Mortgage production related income
 
257

 
442

Total
 
 

$557

 

$686

1 For the six months ended June 30, 2012, losses of $3 million were recorded in trading income.

The impacts of derivatives on the Consolidated Statements of Income and the Consolidated Statements of Shareholders’ Equity for the three and six months ended June 30, 2011 are presented below:
 
Three Months Ended June 30, 2011
(Dollars in millions)
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships
Equity contracts hedging Securities AFS

$6

 
 
 

$—

Interest rate contracts hedging Floating rate loans1
261

 
Interest and fees on loans
 
105

Total

$267

 
 
 

$105

 
 
 
 
 
 
 
Six Months Ended June 30, 2011
(Dollars in millions)
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships
   Equity contracts hedging Securities AFS

($10
)
 
 
 

$—

   Interest rate contracts hedging Floating rate loans1
234

 
Interest and fees on loans
 
218

Total

$224

 
 
 

$218

1 During the three and six months ended June 30, 2011, the Company also reclassified $49 million and $90 million in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.

 
Three Months Ended June 30, 2011
(Dollars in millions)
Amount of gain/(loss) on Derivatives recognized in Income
 
Amount of gain/(loss)
on related Hedged Items
recognized in Income
 
Amount of gain/(loss) recognized in Income on Hedges (Ineffective Portion)
Derivatives in fair value hedging relationships
   Interest rate contracts hedging Fixed rate debt1

$15

 

($15
)
 

$—

 
 
 
 
 
 
 
Six Months Ended June 30, 2011
(Dollars in millions)
Amount of gain/(loss) on Derivatives recognized in Income
 
Amount of gain/(loss)
on related Hedged Items
recognized in Income
 
Amount of gain/(loss) recognized in Income on Hedges (Ineffective Portion)
Derivatives in fair value hedging relationships
   Interest rate contracts hedging Fixed rate debt1

$15

 

($15
)
 

$—

1 Amounts are recognized in trading income in the Consolidated Statements of Income.

(Dollars in millions)
Classification of gain/(loss)
recognized in Income on Derivatives
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Three Months Ended
June 30, 2011
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Six Months Ended
June 30, 2011
Derivatives not designated as hedging instruments
 
 
Interest rate contracts covering:
 
 
 
 
 
Fixed rate debt
Trading income
 

$—

 

$1

MSRs
Mortgage servicing related income
 
134

 
91

LHFS, IRLCs, LHFI-FV
Mortgage production related income
 
(67
)
 
(93
)
Trading activity
Trading income
 
33

 
37

Foreign exchange rate contracts covering:
 
 

 

Commercial loans and foreign-denominated debt
Trading income
 
29

 
110

Trading activity
Trading income
 
(5
)
 
(6
)
Credit contracts covering:
 
 

 

Loans
Trading income
 
—

 
(1
)
Trading activity
Trading income
 
4

 
8

Equity contracts - trading activity
Trading income
 
5

 
8

Other contracts:
 
 

 

IRLCs
Mortgage production related income
 
48

 
84

Total
 
 

$181

 

$239


Credit Derivatives
As part of its trading businesses, the Company enters into contracts that are, in form or substance, written guarantees: specifically, CDS, swap participations, and TRS. The Company accounts for these contracts as derivatives and, accordingly, recognizes these contracts at fair value, with changes in fair value recognized in trading income in the Consolidated Statements of Income.
The Company writes CDS, which are agreements under which the Company receives premium payments from its counterparty for protection against an event of default of a reference asset. In the event of default under the CDS, the Company would either net cash settle or make a cash payment to its counterparty and take delivery of the defaulted reference asset, from which the Company may recover all, a portion, or none of the credit loss, depending on the performance of the reference asset. Events of default, as defined in the CDS agreements, are generally triggered upon the failure to pay and similar events related to the issuer(s) of the reference asset. As of June 30, 2012, all written CDS contracts reference single name corporate credits or corporate credit indices. When the Company has written CDS, it has generally entered into offsetting CDS for the underlying reference asset, under which the Company paid a premium to its counterparty for protection against an event of default on the reference asset. The counterparties to these purchased CDS are generally of high creditworthiness and typically have ISDA master agreements in place that subject the CDS to master netting provisions, thereby mitigating the risk of non-payment to the Company. As such, at June 30, 2012, the Company did not have any significant risk of making a non-recoverable payment on any written CDS. During 2012 and 2011, the only instances of default on written CDS were driven by credit indices with constituent credit default. In all cases where the Company made resulting cash payments to settle, the Company collected like amounts from the counterparties to the offsetting purchased CDS. At June 30, 2012, the written CDS had remaining terms ranging from less than one year to nine years. The maximum guarantees outstanding at June 30, 2012 and December 31, 2011, as measured by the gross notional amounts of written CDS, were $117 million and $167 million, respectively. At June 30, 2012 and December 31, 2011, the gross notional amounts of purchased CDS contracts, which represent benefits to, rather than obligations of, the Company, were $125 million and $175 million, respectively. The fair values of written CDS were $1 million and $4 million at June 30, 2012 and December 31, 2011, respectively, and the fair values of purchased CDS were $2 million and $6 million at June 30, 2012 and December 31, 2011, respectively.
The Company has also entered into TRS contracts on loans. The Company’s TRS business consists of matched trades, such that when the Company pays depreciation on one TRS, it receives the same amount on the matched TRS. As such, the Company does not have any long or short exposure, other than credit risk of its counterparty which is mitigated through collateralization. The Company typically receives initial cash collateral from the counterparty upon entering into the TRS and is entitled to additional collateral if the fair value of the underlying reference assets deteriorates. At June 30, 2012 and December 31, 2011, there were $1.9 billion and $1.6 billion of outstanding and offsetting TRS notional balances, respectively. The fair values of the TRS derivative assets and liabilities at June 30, 2012 were $29 million and $25 million, respectively, and related collateral held at June 30, 2012 was $283 million. The fair values of the TRS derivative assets and liabilities at December 31, 2011 were $20 million and $17 million, respectively, and related collateral held at December 31, 2011 was $285 million.
The Company writes risk participations, which are credit derivatives, whereby the Company has guaranteed payment to a dealer counterparty in the event that the counterparty experiences a loss on a derivative, such as an interest rate swap, due to a failure to pay by the counterparty’s customer (the “obligor”) on that derivative. The Company monitors its payment risk on its risk participations by monitoring the creditworthiness of the obligors, which is based on the normal credit review process the Company would have performed had it entered into the derivatives directly with the obligors. The obligors are all corporations or partnerships. However, the Company continues to monitor the creditworthiness of its obligors and the likelihood of payment could change at any time due to unforeseen circumstances. To date, no material losses have been incurred related to the Company’s written risk participations. At June 30, 2012, the remaining terms on these risk participations generally ranged from one year to eleven years with a weighted average on the maximum estimated exposure of 4.1 years. The Company’s maximum estimated exposure to written risk participations, as measured by projecting a maximum value of the guaranteed derivative instruments based on interest rate curve simulations and assuming 100% default by all obligors on the maximum values, was approximately $42 million and $57 million at June 30, 2012 and December 31, 2011, respectively. The fair values of the written risk participations were not material at both June 30, 2012 and December 31, 2011. As part of its trading activities, the Company may enter into purchased risk participations, but such activity is not matched, as discussed herein related to CDS or TRS.

Cash Flow Hedges
The Company utilizes a comprehensive risk management strategy to monitor sensitivity of earnings to movements in interest rates. Specific types of funding and principal amounts hedged are determined based on prevailing market conditions and the shape of the yield curve. In conjunction with this strategy, the Company may employ various interest rate derivatives as risk management tools to hedge interest rate risk from recognized assets and liabilities or from forecasted transactions. The terms and notional amounts of derivatives are determined based on management’s assessment of future interest rates, as well as other factors. At June 30, 2012, the Company’s outstanding interest rate hedging relationships include interest rate swaps that have been designated as cash flow hedges of probable forecasted transactions related to recognized floating rate loans.
Interest rate swaps have been designated as hedging the exposure to the benchmark interest rate risk associated with floating rate loans. At June 30, 2012, the maximum range of hedge maturities for hedges of floating rate loans was one to five years, with the weighted average being 2.9 years. Ineffectiveness on these hedges was not material during the three and six months ended June 30, 2012 and 2011. As of June 30, 2012, $278 million, net of tax, of the deferred net gains on derivatives that are recognized in AOCI are expected to be reclassified to net interest income over the next twelve months in connection with the recognition of interest income on these hedged items. The amount to be reclassified into income includes both active and terminated or de-designated cash flow hedges. The Company may choose to terminate or de-designate a hedging relationship in this program due to a change in the risk management objective for that specific hedge item, which may arise in conjunction with an overall balance sheet management strategy.
During the third quarter of 2008, the Company executed the Agreements on 30 million common shares of Coke. A consolidated subsidiary of SunTrust owns 22.9 million Coke common shares and a consolidated subsidiary of the Bank owns 7.1 million Coke common shares. These two subsidiaries entered into separate derivative contracts on their respective holdings of Coke common shares with a large, unaffiliated financial institution (the “Counterparty”). Execution of the Agreements (including the pledges of the Coke common shares pursuant to the terms of the Agreements) did not constitute a sale of the Coke common shares under U.S. GAAP for several reasons, including that ownership of the common shares was not legally transferred to the Counterparty. The Agreements were zero-cost equity collars at inception, which caused the Agreements to be derivatives in their entirety. The Company has designated the Agreements as cash flow hedges of the Company’s probable forecasted sales of its Coke common shares, which are expected to occur between 6.5 years and 7 years from the Agreements’ effective date, for overall price volatility below the strike prices on the floor (purchased put) and above the strike prices on the ceiling (written call). Although the Company is not required to deliver its Coke common shares under the Agreements, the Company has asserted that it is probable that it will sell all of its Coke common shares at or around the settlement date of the Agreements. The Federal Reserve’s approval for Tier 1 capital treatment was significantly based on this expected disposition of the Coke common shares under the Agreements or in another market transaction. Both the sale and the timing of such sale remain probable to occur as designated. At least quarterly, the Company assesses hedge effectiveness and measures hedge ineffectiveness with the effective portion of the changes in fair value of the Agreements recognized in AOCI and any ineffective portions recognized in trading income. None of the components of the Agreements’ fair values are excluded from the Company’s assessments of hedge effectiveness. Potential sources of ineffectiveness include changes in market dividends and certain early termination provisions. During the three and six months ended June 30, 2012 and 2011, the Company recognized ineffectiveness gains of approximately $1 million, respectively. Ineffectiveness gains were recognized in trading income. Other than potential measured hedge ineffectiveness, no amounts are expected to be reclassified from AOCI over the next twelve months and any remaining amounts recognized in AOCI will be reclassified to earnings when the probable forecasted sales of the Coke common shares occur.

Fair Value Hedges
During 2011, the Company entered into interest rate swap agreements, as part of the Company’s risk management objectives for hedging its exposure to changes in fair value due to changes in interest rates. These hedging arrangements converted Company-issued fixed rate senior long-term debt to floating rates. Consistent with this objective, the Company reflects the accrued contractual interest on the hedged item and the related swaps as part of current period interest. There were no components of derivative gains or losses excluded in the Company’s assessment of hedge effectiveness related to the fair value hedges.

Economic Hedging and Trading Activities
In addition to designated hedging relationships, the Company also enters into derivatives as an end user as a risk management tool to economically hedge risks associated with certain non-derivative and derivative instruments, along with entering into derivatives in a trading capacity with its clients.
The primary risks that the Company economically hedges are interest rate risk, foreign exchange risk, and credit risk. Economic hedging objectives are accomplished by entering into offsetting derivatives either on an individual basis, or collectively on a macro basis, and generally accomplish the Company’s goal of mitigating the targeted risk. To the extent that specific derivatives are associated with specific hedged items, the notional amounts, fair values, and gains/(losses) on the derivatives are illustrated in the tables in this footnote.
•
The Company utilizes interest rate derivatives to mitigate exposures from various instruments.
◦
The Company is subject to interest rate risk on its fixed rate debt. As market interest rates move, the fair value of the Company’s debt is affected. To protect against this risk on certain debt issuances that the Company has elected to carry at fair value, the Company has entered into pay variable-receive fixed interest rate swaps that decrease in value in a rising rate environment and increase in value in a declining rate environment.
◦
The Company is exposed to risk on the returns of certain of its brokered deposits that are carried at fair value. To hedge against this risk, the Company has entered into interest rate derivatives that mirror the risk profile of the returns on these instruments.
◦
The Company is exposed to interest rate risk associated with MSRs, which the Company hedges with a combination of mortgage and interest rate derivatives, including forward and option contracts, futures, and forward rate agreements.
◦
The Company enters into mortgage and interest rate derivatives, including forward contracts, futures, and option contracts to mitigate interest rate risk associated with IRLCs and mortgage LHFS. The Company also previously entered into derivative contracts on mortgage LHFI reported at fair value, but there were none outstanding during 2012.
•
The Company was exposed to foreign exchange rate risk associated with certain senior notes denominated in pound sterling. This risk was economically hedged with cross currency swaps, which received pound sterling and paid U.S. dollars. During the three months ended June 30, 2012, this debt and the related hedges matured. Interest expense on the Consolidated Statements of Income reflects only the contractual interest rate on the debt based on the average spot exchange rate during the applicable period, while fair value changes on the derivatives and valuation adjustments on the debt are both recognized within trading income.
•
The Company enters into CDS to hedge credit risk associated with certain loans held within its Wholesale Banking segment. The Company accounts for these contracts as derivatives and, accordingly, recognizes these contracts at fair value, with changes in fair value recognized in other income in the Consolidated Statements of Income.
•
Trading activity, as illustrated in the tables within this footnote, primarily includes interest rate swaps, equity derivatives, CDS, futures, options and foreign currency contracts. These derivatives are entered into in a dealer capacity to facilitate client transactions or are utilized as a risk management tool by the Company as an end user in certain macro-hedging strategies. The macro-hedging strategies are focused on managing the Company’s overall interest rate risk exposure that is not otherwise hedged by derivatives or in connection with specific hedges and, therefore, the Company does not specifically associate individual derivatives with specific assets or liabilities.
Reinsurance Arrangements and Guarantees
Reinsurance Arrangements and Guarantees
NOTE 11 – REINSURANCE ARRANGEMENTS AND GUARANTEES
Reinsurance
The Company provides mortgage reinsurance on certain mortgage loans through contracts with several primary mortgage insurance companies. Under these contracts, the Company provides aggregate excess loss coverage in a mezzanine layer in exchange for a portion of the pool’s mortgage insurance premium. As of June 30, 2012 and December 31, 2011, approximately $7.0 billion and $8.0 billion, respectively, of mortgage loans were covered by such mortgage reinsurance contracts. The reinsurance contracts are intended to place limits on the Company’s maximum exposure to losses by defining the loss amounts ceded to the Company as well as by establishing trust accounts for each contract. The trust accounts, which are comprised of funds contributed by the Company plus premiums earned under the reinsurance contracts, are maintained to fund claims made under the reinsurance contracts. If claims exceed funds held in the trust accounts, the Company does not intend to make additional contributions beyond future premiums earned under the existing contracts.
At June 30, 2012 and December 31, 2011, the total loss exposure ceded to the Company was approximately $275 million and $309 million, respectively; however, the maximum amount of loss exposure based on funds held in each separate trust account, including net premiums due to the trust accounts, was limited to $27 million. Of this amount, $24 million of losses have been reserved for as of June 30, 2012, reducing the Company’s net remaining loss exposure to $3 million. The reinsurance reserve was $38 million as of December 31, 2011. The decrease in the reserve balance was due to claim payments made to the primary mortgage insurance companies since December 31, 2011. The Company’s evaluation of the required reserve amount includes an estimate of claims to be paid by the trust in relation to loans in default and an assessment of the sufficiency of future revenues, including premiums and investment income on funds held in the trusts, to cover future claims. Future reported losses may exceed $3 million since future premium income will increase the amount of funds held in the trust; however, future cash losses, net of premium income, are not expected to exceed $3 million. The amount of future premium income is limited to the population of loans currently outstanding since additional loans are not being added to the reinsurance contracts; future premium income could be further curtailed to the extent the Company agrees to relinquish control of other individual trusts to the mortgage insurance companies. Premium income, which totaled $3 million and $6 million, for the three months ended June 30, 2012 and 2011, respectively and $8 million and $14 million for the six months ended June 30, 2012 and 2011, respectively, is reported as part of other noninterest income. The related provision for losses, which totaled $3 million and $6 million, for the three months ended June 30, 2012 and 2011, respectively, and $9 million and $13 million for the six months ended June 30, 2012 and 2011, respectively, is reported as part of other noninterest expense.

Guarantees
The Company has undertaken certain guarantee obligations in the ordinary course of business. The issuance of a guarantee imposes an obligation for the Company to stand ready to perform and should certain triggering events occur, it also imposes an obligation to make future payments. Payments may be in the form of cash, financial instruments, other assets, shares of stock, or provisions of the Company’s services. The following discussion appends and updates certain guarantees disclosed in Note 18, “Reinsurance Arrangements and Guarantees,” to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2011. The Company has also entered into certain contracts that are similar to guarantees, but that are accounted for as derivatives (see Note 10, “Derivative Financial Instruments”).

Letters of Credit
Letters of credit are conditional commitments issued by the Company generally to guarantee the performance of a client to a third party in borrowing arrangements, such as CP, bond financing, and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to clients and may be reduced by selling
participations to third parties. The Company issues letters of credit that are classified as financial standby, performance standby, or commercial letters of credit.

As of June 30, 2012 and December 31, 2011, the maximum potential amount of the Company’s obligation was $4.8 billion and $5.2 billion, respectively, for financial and performance standby letters of credit. The Company has recorded $104 million and $105 million in other liabilities in the Consolidated Balance Sheets for unearned fees related to these letters of credit as of June 30, 2012 and December 31, 2011, respectively. The Company’s outstanding letters of credit generally have a term of less than one year but may extend longer. If a letter of credit is drawn upon, the Company may seek recourse through the client’s underlying obligation. If the client’s line of credit is also in default, the Company may take possession of the collateral securing the line of credit, where applicable. The Company monitors its credit exposure under standby letters of credit in the same manner as it monitors other extensions of credit in accordance with credit policies. Some standby letters of credit are designed to be drawn upon and others are drawn upon only under circumstances of dispute or default in the underlying transaction to which the Company is not a party. In all cases, the Company holds the right to reimbursement from the applicant and may or may not also hold collateral to secure that right. An internal assessment of the PD and loss severity in the event of default is assessed consistent with the methodologies used for all commercial borrowers. The management of credit risk regarding letters of credit leverages the risk rating process to focus higher visibility on the higher risk and higher dollar letters of credit. The associated reserve is a component of the unfunded commitment reserve recorded in other liabilities in the Consolidated Balance Sheets and included in the allowance for credit losses as disclosed in Note 4, “Allowance for Credit Losses.”

Loan Sales
STM, a consolidated subsidiary of SunTrust, originates and purchases residential mortgage loans, a portion of which are sold to outside investors in the normal course of business, through a combination of whole loan sales to GSEs, Ginnie Mae, and non-agency investors. Prior to 2008, the Company also sold loans through a limited amount of Company sponsored securitizations. When mortgage loans are sold, representations and warranties regarding certain attributes of the loans sold are made to these third party purchasers. Subsequent to the sale, if a material underwriting deficiency or documentation defect is discovered, STM may be obligated to repurchase the mortgage loan or to reimburse the investor for losses incurred (make whole requests) if such deficiency or defect cannot be cured by STM within the specified period following discovery. Defects in the securitization process or breaches of underwriting and servicing representations and warranties can result in loan repurchases, as well as adversely affect the valuation of MSRs, servicing advances, or other mortgage loan related exposures, such as OREO. These representations and warranties may extend through the life of the mortgage loan. STM’s risk of loss under its representations and warranties is largely driven by borrower payment performance since investors will perform extensive reviews of delinquent loans as a means of mitigating losses.
Loan repurchase requests generally arise from loans sold during the period from January 1, 2005 to June 30, 2012, which totaled $256.5 billion at the time of sale, consisting of $197.3 billion and $30.3 billion of agency and non-agency loans, respectively, as well as $28.9 billion of loans sold to Ginnie Mae. The composition of the remaining outstanding balance by vintage and type of buyer as of June 30, 2012 is shown in the following table:
 
 
Remaining Outstanding Balance by Year of Sale
(Dollars in billions)
2005
 
2006
 
2007
 
2008
 
2009
 
2010
 
2011
 
2012
 
Total    
GSE1

$3.7

 

$4.4

 

$8.7

 

$8.8

 

$20.8

 

$12.4

 

$12.5

 

$9.7

 

$81.0

Ginnie Mae1
0.7

 
0.5

 
0.5

 
2.4

 
5.1

 
3.7

 
2.9

 
2.3

 
18.1

Non-agency
3.9

 
5.6

 
4.2

 
—

 
—

 
—

 
—

 
—

 
13.7

Total

$8.3

 

$10.5

 

$13.4

 

$11.2

 

$25.9

 

$16.1

 

$15.4

 

$12.0

 

$112.8

1 Balances based on loans serviced by the Company.

Non-agency loan sales include whole loans and loans sold in private securitization transactions. While representations and warranties have been made related to these sales, they differ in many cases from those made in connection with loans sold to the GSEs in that non-agency loans may not be required to meet the same underwriting standards and, in addition to identifying a representation or warranty breach, non-agency investors are generally required to demonstrate that the alleged breach was material, and that it caused the investors' loss. Loans sold to Ginnie Mae are insured by either the FHA or VA. As servicer, we may elect to repurchase delinquent loans in accordance with Ginnie Mae guidelines; however, the loans continue to be insured. Although we indemnify the FHA and VA for losses related to loans not originated in accordance with their guidelines, such occurrences have historically been limited and the repurchase liability for loans sold to Ginnie Mae is immaterial. As discussed
in Note 13, "Contingencies," during the second quarter the Company was informed of the commencement of an investigation by the HUD regarding origination practices for FHA loans.
Although the timing and volume has varied, repurchase and make whole requests have increased over the past several years. Repurchase requests from GSEs and non-agency investors were $937 million during the six months ended June 30, 2012 and $1.7 billion, $1.1 billion, and $1.1 billion during the years ended 2011, 2010, and 2009, respectively, and on a cumulative basis since 2005 totaled $6.2 billion, which includes Ginnie Mae repurchase requests. The majority of these requests are from GSEs, with a limited number of requests having been received from non-agency investors. Repurchase requests from non-agency investors were $6 million during the six months ended June 30, 2012 and $50 million, $55 million, and $99 million during the years ended December 31, 2011, 2010, and 2009, respectively. Additionally, repurchase requests related to loans originated during 2006 - 2008 have consistently comprised the vast majority of total repurchase requests during the past three years. The repurchase and make whole requests received have been primarily due to material breaches of representations related to compliance with the applicable underwriting standards, including borrower misrepresentation and appraisal issues. STM performs a loan by loan review of all requests and demands have been contested to the extent they are not considered valid. At June 30, 2012, the unpaid principal balance of loans related to unresolved requests previously received from investors was $652 million, comprised of $642 million from the GSEs and $10 million from non-agency investors. Comparable amounts at December 31, 2011, were $590 million, comprised of $578 million from the GSEs and $12 million from non-agency investors.
The Company uses the best information available when estimating its mortgage repurchase liability. As of June 30, 2012 and December 31, 2011, the Company's estimate of the liability for incurred losses related to all vintages of mortgage loans sold totaled $434 million and $320 million, respectively. The liability is recorded in other liabilities in the Consolidated Balance Sheets, and the related repurchase provision is recognized in mortgage production related income in the Consolidated Statements of Income.
A significant degree of judgment is used to estimate the mortgage repurchase liability. This estimation process is inherently uncertain and subject to imprecision; consequently, there is a range of reasonably possible loss in excess of the recorded repurchase liability. Based on an analysis of the assumptions used to estimate the repurchase liability related to loans sold prior to 2009, the Company estimates that it is reasonably possible that the estimated liability, as of June 30, 2012, could exceed the current repurchase liability by $0 to $500 million. This estimate is subject to revision due to changes in borrower default levels, investor request criteria and behavior, repurchase rates, and home values. This estimate of reasonably possible incremental loss does not pertain to non-agency investors or to loans sold after 2008 due to the limited amount of historical repurchase requests and loss experience the Company has realized on these more recent vintages; therefore, the Company is unable to estimate a reasonably possible range of loss for loans sold to non-agency investors or for loans sold subsequent to 2008. The following table summarizes the changes in the Company’s reserve for mortgage loan repurchases:
 
Three Months Ended June 30
 
Six Months Ended June 30
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Balance at beginning of period

$383

 

$270

 

$320

 

$265

Repurchase provision
155

 
90

 
330

 
170

Charge-offs
(104
)
 
(61
)
 
(216
)
 
(136
)
Balance at end of period

$434

 

$299

 

$434

 

$299



During the six months ended June 30, 2012 and 2011, the Company repurchased or otherwise settled mortgages with unpaid principal balances of $368 million and $246 million, respectively, related to investor demands. As of June 30, 2012 and December 31, 2011, the carrying value of outstanding repurchased mortgage loans, net of any allowance for loan losses, totaled $294 million and $252 million, respectively, of which $128 million and $134 million, respectively, were nonperforming.
As of June 30, 2012, the Company maintained a reserve for costs associated with foreclosure delays of loans serviced for GSEs. The Company normally retains servicing rights when loans are transferred. As servicer, the Company makes representations and warranties that it will service the loans in accordance with investor servicing guidelines and standards which include collection and remittance of principal and interest, administration of escrow for taxes and insurance, advancing principal, interest, taxes, insurance, and collection expenses on delinquent accounts, loss mitigation strategies including loan modifications, and foreclosures. STM recognizes a liability for contingent losses when MSRs are sold, which totaled $10 million and $8 million as of June 30, 2012 and December 31, 2011, respectively.
Contingent Consideration
The Company has contingent payment obligations related to certain business combination transactions. Payments are calculated using certain post-acquisition performance criteria. The potential obligation and amount recorded as a liability representing the fair value of the contingent payments was $32 million and $10 million as of June 30, 2012 and December 31, 2011, respectively. If required, these contingent payments will be payable over the next three years.

Visa
The Company issues and acquires credit and debit card transactions through Visa. The Company is a defendant, along with Visa and MasterCard International (the “Card Associations”), as well as several other banks, in one of several antitrust lawsuits challenging the practices of the Card Associations (the “Litigation”). The Company entered into judgment and loss sharing agreements with Visa and certain other banks in order to apportion financial responsibilities arising from any potential adverse judgment or negotiated settlements related to the Litigation. Additionally, in connection with Visa's restructuring in 2007, a provision of the original Visa By-Laws, Section 2.05j, was restated in Visa's certificate of incorporation. Section 2.05j contains a general indemnification provision between a Visa member and Visa, and explicitly provides that after the closing of the restructuring, each member's indemnification obligation is limited to losses arising from its own conduct and the specifically defined Litigation.
As of June 30, 2012, Visa had funded $8.1 billion into an escrow account, established for the purpose of funding judgments in, or settlements of, the Litigation. Agreements associated with Visa's IPO have provisions that Visa will first use the funds in the escrow account to pay for future settlements of, or judgments in the Litigation. If the escrow account is insufficient to cover the Litigation losses, then Visa will issue additional Class A shares (“loss shares”). The proceeds from the sale of the loss shares would then be deposited in the escrow account. The issuance of the loss shares will cause a dilution of Visa's Class B shares as a result of an adjustment to lower the conversion factor of the Class B shares to Class A shares. Visa U.S.A.'s members are responsible for any portion of the settlement or loss on the Litigation after the escrow account is depleted and the value of the Class B shares is fully-diluted. In May 2009, the Company sold its 3.2 million Visa Inc. Class B shares to another financial institution (“the Counterparty”) and entered into a derivative with the Counterparty. The Company received $112 million and recognized a gain of $112 million in connection with these transactions. Under the derivative, the Counterparty is compensated by the Company for any decline in the conversion factor as a result of the outcome of the Litigation. Conversely, the Company is compensated by the Counterparty for any increase in the conversion factor. The amount of payments made or received under the derivative is a function of the 3.2 million shares sold to the Counterparty, the change in conversion rate, and Visa’s share price. The Counterparty, as a result of its ownership of the Class B shares, is impacted by dilutive adjustments to the conversion factor of the Class B shares caused by the Litigation losses. The conversion factor at the inception of the derivative in May 2009 was 0.6296 and as of June 30, 2012 the conversion factor had decreased to 0.4254 due to Visa’s funding of the litigation escrow account. The decreases in the conversion factor triggered payments by the Company to the Counterparty of $23 million, $8 million, and $17 million, during the six months ending June 30, 2012, and for the years ended 2011 and 2010, respectively. The estimated fair value of the derivative liability recorded as of June 30, 2012 and December 31, 2011 was $3 million and $22 million, respectively.
In July 2012, the Card Associations and defendants signed a memorandum of understanding to enter into a settlement agreement to resolve the plaintiffs' claims in the Litigation. Visa's share of the claims represents approximately $4.4 billion which will be paid from its litigation escrow account. As the escrow account is sufficient to cover the expected liability, the Company does not expect the conversion ratio to decrease below the 0.4254 ratio as of June 30, 2012, and thus, is not expecting any additional payments to the Counterparty, other than certain fixed charges included in the liability, which are payable until the final settlement occurs.

Tax Credits Sold
SunTrust Community Capital, a SunTrust subsidiary, previously obtained state and federal tax credits through the construction and development of affordable housing properties and continues to obtain state and federal tax credits through investments in affordable housing developments. SunTrust Community Capital or its subsidiaries are limited and/or general partners in various partnerships established for the properties. Some of the investments that generate state tax credits may be sold to outside investors. As of June 30, 2012, SunTrust Community Capital has completed six sales containing guarantee provisions stating that SunTrust Community Capital will make payment to the outside investors if the tax credits become ineligible. SunTrust Community Capital also guarantees that the general partner under the transaction will perform on the delivery of the credits. The guarantees are expected to expire within a ten year period from inception. As of June 30, 2012, the maximum potential amount that SunTrust Community Capital could be obligated to pay under these guarantees is $37 million; however, SunTrust Community Capital can seek recourse against the general partner. Additionally, SunTrust Community Capital can seek reimbursement from cash flow and residual values of the underlying affordable housing properties provided that the properties retain value. As of June 30, 2012 and December 31, 2011, $4 million and $5 million, respectively, was accrued representing the remainder of tax credits to be delivered, and were recorded in other liabilities in the Consolidated Balance Sheets.

Other
In the normal course of business, the Company enters into indemnification agreements and provides standard representations and warranties in connection with numerous transactions. These transactions include those arising from securitization activities, underwriting agreements, merger and acquisition agreements, loan sales, contractual commitments, payment processing, sponsorship agreements, and various other business transactions or arrangements. The extent of the Company’s obligations under these indemnification agreements depends upon the occurrence of future events; therefore, the Company’s potential future liability under these arrangements is not determinable.

Fair Value Election and Measurement
Fair Value Election and Measurement
NOTE 12 - FAIR VALUE ELECTION AND MEASUREMENT
The Company carries certain assets and liabilities at fair value on a recurring basis and appropriately classifies them as level 1, 2, or 3 within the fair value hierarchy. The Company’s recurring fair value measurements are based on a requirement to carry such assets and liabilities at fair value or the Company’s election to carry certain financial assets and liabilities at fair value. Assets and liabilities that are required to be carried at fair value on a recurring basis include trading securities, securities AFS, and derivative financial instruments. Assets and liabilities that the Company has elected to carry at fair value on a recurring basis include certain LHFS and LHFI, MSRs, certain brokered time deposits, and certain issuances of fixed rate debt.
In certain circumstances, fair value enables a company to more accurately align its financial performance with the economic value of actively traded or hedged assets or liabilities. Fair value also enables a company to mitigate the non-economic earnings volatility caused from financial assets and liabilities being carried at different bases of accounting, as well as, to more accurately portray the active and dynamic management of a company’s balance sheet.
Depending on the nature of the asset or liability, the Company uses various valuation techniques and assumptions when estimating fair value. The assumptions used to estimate the value of an instrument have varying degrees of impact to the overall fair value of the asset or liability. This process has involved the gathering of multiple sources of information, including broker quotes, values provided by pricing services, trading activity in other similar securities, market indices, pricing matrices along with employing various modeling techniques, such as discounted cash flow analyses, in arriving at the best estimate of fair value. Any model used to produce material financial reporting information is required to have a satisfactory independent review performed on an annual basis, or more frequently, when significant modifications to the functionality of the model are made. This review is performed by an internal group that separately reports to the Corporate Risk Function.

The Company has formal processes and controls in place to ensure the appropriateness of all fair value estimates. For fair values obtained from a third party, there is an internal independent price validation function within the Finance organization that provides oversight for fair value estimates. For level 2 instruments and certain level 3 instruments, the validation generally involves evaluating pricing received from two or more other third party pricing sources that are widely used by market participants. The Company classifies instruments as level 2 in the fair value hierarchy when it is able to determine that external pricing sources are using similar instruments trading in the markets as the basis for estimating fair value. One way the Company determines this is by the number of pricing services that will provide a quote on the instrument along with the range of values provided by those pricing services. A wide range of quoted values may indicate that significant adjustments to the trades in the market are being made by the pricing services. The Company maintains a cross-functional approach when estimating the fair value for level 3 instruments that are internally valued since the selection of unobservable inputs is subjective. This approach includes input and sign off on assumptions from not only the related line of business, but also from risk management and finance, to ultimately arrive at a consensus estimate of the instrument's fair value after evaluating all available information pertaining to fair value. Inputs, assumptions and overall conclusions on internally priced level 3 valuations are formally documented on a quarterly basis.
The classification of an instrument as level 3 versus 2 involves judgment and is based on a variety of subjective factors to assess whether a market is inactive, resulting in the application of significant unobservable assumptions to value a financial instrument. A market is considered inactive if significant decreases in the volume and level of activity for the asset or liability have been observed. In determining whether a market is inactive, the Company evaluates such factors as the number of recent transactions in either the primary or secondary markets, whether price quotations are current, the nature of the market participants, the variability of price quotations, the significance of bid/ask spreads, declines in (or the absence of) new issuances and the availability of public information. Inactive markets necessitate the use of additional judgment when valuing financial instruments, such as pricing matrices, cash flow modeling, and the selection of an appropriate discount rate. The assumptions used to estimate the value of an instrument where the market was inactive are based on the Company’s assessment of the assumptions a market participant would use to value the instrument in an orderly transaction and include considerations of illiquidity in the current market environment.
Recurring Fair Value Measurements
The following tables present certain information regarding assets and liabilities measured at fair value on a recurring basis and the changes in fair value for those specific financial instruments in which fair value has been elected.
 
 
 
Fair Value Measurements at
June 30, 2012
Using
(Dollars in millions)
Assets/Liabilities    
 
Quoted Prices In Active
Markets for
Identical
Assets/Liabilities    
(Level 1)
 
Significant
Other
Observable    
Inputs
(Level 2)
 
Significant
Unobservable    
Inputs
(Level 3)
Assets

 

 

 

Trading assets:

 

 

 

U.S. Treasury securities

$125

 

$125

 

$—

 

$—

Federal agency securities
521

 
—

 
521

 
—

U.S. states and political subdivisions
58

 
—

 
58

 
—

MBS - agency
371

 
—

 
371

 
—

MBS - private
1

 
—

 
—

 
1

CDO/CLO securities
45

 
—

 
2

 
43

ABS
37

 
—

 
32

 
5

Corporate and other debt securities
560

 
—

 
560

 
—

CP
113

 
—

 
113

 
—

Equity securities
91

 
91

 
—

 
—

Derivative contracts
3,127

 
208

 
2,919

 
—

Trading loans
2,215

 
—

 
2,215

 
—

Gross trading assets
7,264

 
424

 
6,791

 
49

Offsetting collateral 1
(937
)
 
 
 
 
 
 
Total trading assets
6,327

 
 
 
 
 
 
Securities AFS:

 

 

 

U.S. Treasury securities
224

 
224

 
—

 
—

Federal agency securities
1,783

 
—

 
1,783

 
—

U.S. states and political subdivisions
372

 
—

 
317

 
55

MBS - agency
18,110

 
—

 
18,110

 
—

MBS - private
208

 
—

 
—

 
208

ABS
348

 
—

 
331

 
17

Corporate and other debt securities
45

 
—

 
40

 
5

Coke common stock
2,346

 
2,346

 
—

 
—

   Other equity securities 2
973

 
116

 
—

 
857

Total securities AFS
24,409

 
2,686

 
20,581

 
1,142

LHFS:

 

 

 

Residential loans
2,618

 
—

 
2,616

 
2

Corporate and other loans
322

 
—

 
322

 
—

Total LHFS
2,940

 
—

 
2,938

 
2

LHFI
406

 
—

 
—

 
406

MSRs
865

 
—

 
—

 
865

Other assets 3
552

 
2

 
415

 
135

Liabilities

 

 

 

Trading liabilities:

 

 

 

U.S. Treasury securities
330

 
330

 
—

 
—

Corporate and other debt securities
301

 
—

 
301

 
—

Equity securities
22

 
22

 
—

 
—

Derivative contracts
2,337

 
—

 
1,988

 
349

Gross trading liabilities
2,990

 
352

 
2,289

 
349

Offsetting collateral 1
(1,208
)
 
 
 
 
 
 
Total trading liabilities
1,782

 
 
 
 
 
 
Brokered time deposits
914

 
—

 
914

 
—

Long-term debt
2,010

 
—

 
2,010

 
—

Other liabilities 3,4
109

 
1

 
82

 
26

1Amount represents the cash collateral received from or deposited with derivative counterparties. Amount is offset with derivatives in the Consolidated Balance Sheets as of June 30, 2012.
2Includes at cost, $455 million of FHLB of Atlanta stock, $401 million of Federal Reserve Bank stock, and $116 million in mutual fund investments.
3These amounts include IRLCs and derivative financial instruments entered into by the Mortgage line of business to hedge its interest rate risk.
4These amounts include the derivative associated with the Company's sale of Visa shares during the year ended December 31, 2009, certain CDS, and the contingent consideration obligation related to an acquisition.
 
 
 
Fair Value Measurements at
December 31, 2011
Using
 
(Dollars in millions)
Assets/Liabilities
 
Quoted Prices
In Active
Markets for
Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
U.S. Treasury securities

$144

 

$144

 

$—

 

$—

Federal agency securities
478

 
—

 
478

 
—

U.S. states and political subdivisions
54

 
—

 
54

 
—

MBS - agency
412

 
—

 
412

 
—

MBS - private
1

 
—

 
—

 
1

CDO/CLO securities
45

 
—

 
2

 
43

ABS
37

 
—

 
32

 
5

Corporate and other debt securities
344

 
—

 
344

 
—

CP
229

 
—

 
229

 
—

Equity securities
91

 
91

 
—

 
—

Derivative contracts
3,444

 
306

 
3,138

 
—

Trading loans
2,030

 
—

 
2,030

 
—

Gross trading assets
7,309

 
541

 
6,719

 
49

Offsetting collateral 1
(1,030
)
 
 
 
 
 
 
Total trading assets
6,279

 
 
 
 
 
 
Securities AFS:
 
 
 
 
 
 
 
U.S. Treasury securities
694

 
694

 
—

 
—

Federal agency securities
1,932

 
—

 
1,932

 
—

U.S. states and political subdivisions
454

 
—

 
396

 
58

MBS - agency
21,223

 
—

 
21,223

 
—

MBS - private
221

 
—

 
—

 
221

CDO/CLO securities
50

 
—

 
50

 
—

ABS
464

 
—

 
448

 
16

Corporate and other debt securities
51

 
—

 
46

 
5

Coke common stock
2,099

 
2,099

 
—

 
—

      Other equity securities 2
929

 
188

 
—

 
741

Total securities AFS
28,117

 
2,981

 
24,095

 
1,041

LHFS:
 
 
 
 
 
 
 
Residential loans
1,826

 
—

 
1,825

 
1

Corporate and other loans
315

 
—

 
315

 
—

Total LHFS
2,141

 
—

 
2,140

 
1

LHFI
433

 
—

 
—

 
433

MSRs
921

 
—

 
—

 
921

Other assets 3
554

 
7

 
463

 
84

Liabilities
 
 
 
 
 
 
 
Trading liabilities:
 
 
 
 
 
 
 
U.S. Treasury securities
569

 
569

 
—

 
—

Corporate and other debt securities
77

 
—

 
77

 
—

Equity securities
37

 
37

 
—

 
—

Derivative contracts
2,293

 
174

 
1,930

 
189

Gross trading liabilities
2,976

 
780

 
2,007

 
189

Offsetting collateral 1
(1,170
)
 
 
 
 
 
 
Total trading liabilities
1,806

 
 
 
 
 
 
Brokered time deposits
1,018

 
—

 
1,018

 
—

Long-term debt
1,997

 
—

 
1,997

 
—

Other liabilities 3,4
84

 
1

 
61

 
22

1Amount represents the cash collateral received from or deposited with derivative counterparties. Amount is offset with derivatives in the Consolidated Balance Sheets as of December 31, 2011.
2 Includes at cost, $342 million of FHLB of Atlanta stock, $398 million of Federal Reserve Bank stock, and $187 million in mutual fund investments.
3These amounts include IRLCs and derivative financial instruments entered into by the Mortgage line of business to hedge its interest rate risk.
4These amounts include the derivative associated with the Company's sale of Visa shares during the year ended December 31, 2009.



The following tables present the difference between the aggregate fair value and the unpaid principal balance of trading loans, LHFS, LHFI, brokered time deposits, and long-term debt instruments for which the FVO has been elected. For LHFS and LHFI for which the FVO has been elected, the tables also include the difference between aggregate fair value and the unpaid principal balance of loans that are 90 days or more past due, as well as loans in nonaccrual status.
 
(Dollars in millions)
Aggregate
Fair Value
June 30, 2012
 
Aggregate
Unpaid Principal
Balance under FVO
June 30, 2012
 
Fair Value
Over/(Under)
Unpaid Principal
Trading loans

$2,215

 

$2,197

 

$18

LHFS
2,939

 
2,819

 
120

Nonaccrual loans
1

 
8

 
(7
)
LHFI
386

 
407

 
(21
)
Past due loans of 90 days or more
1

 
2

 
(1
)
Nonaccrual loans
19

 
42

 
(23
)
Brokered time deposits
914

 
914

 
—

Long-term debt
2,010

 
1,900

 
110

(Dollars in millions)
Aggregate
Fair Value
December 31, 2011
 
Aggregate
Unpaid Principal
Balance under FVO
December 31, 2011
 
Fair Value
Over/(Under)
Unpaid Principal
Trading loans

$2,030

 

$2,010

 

$20

LHFS
2,139

 
2,077

 
62

Past due loans of 90 days or more
1

 
1

 
—

Nonaccrual loans
1

 
8

 
(7
)
LHFI
407

 
439

 
(32
)
Past due loans of 90 days or more
1

 
2

 
(1
)
Nonaccrual loans
25

 
48

 
(23
)
Brokered time deposits
1,018

 
1,011

 
7

Long-term debt
1,997

 
1,901

 
96


The following tables present the change in fair value during the three and six months ended June 30, 2012 and 2011 of financial instruments for which the FVO has been elected, as well as MSRs. The tables do not reflect the change in fair value attributable to the related economic hedges the Company used to mitigate the market-related risks associated with the financial instruments. The changes in the fair value of economic hedges are also recognized in trading income, mortgage production related income, or mortgage servicing related income, as appropriate, and are designed to partially offset the change in fair value of the financial instruments referenced in the tables below. The Company’s economic hedging activities are deployed at both the instrument and portfolio level.

 
 
Fair Value Gain/(Loss) for the Three Months Ended
June 30, 2012, for Items Measured at Fair Value  Pursuant to Election of the FVO
 
Fair Value Gain/(Loss) for the Six Months Ended
June 30, 2012, for Items Measured at Fair Value  Pursuant to Election of the FVO
(Dollars in millions)
 
Trading income
 
Mortgage
Production
Related
Income 1
 
Mortgage
Servicing
Related
Income
 
Total
Changes in
Fair Values  
Included in
Current-
Period
Earnings 2
 
Trading income
 
Mortgage
Production
Related
Income 1
 
Mortgage
Servicing
Related
Income
 
Total
Changes in
Fair Values  
Included in
Current-
Period
Earnings 2
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading loans
 

$8

 

$—

 

$—

 

$8

 

$16

 

$—

 

$—

 

$16

LHFS
 
(2
)
 
248

 
—

 
246

 
5

 
403

 
—

 
408

LHFI
 
1

 
5

 
—

 
6

 
1

 
2

 
—

 
3

MSRs
 
—

 
20

 
(281
)
 
(261
)
 
—

 
30

 
(214
)
 
(184
)
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokered time deposits
 
7

 
—

 
—

 
7

 
7

 
—

 
—

 
7

Long-term debt
 
(10
)
 
—

 
—

 
(10
)
 
(14
)
 
—

 
—

 
(14
)
1For the three and six months ended June 30, 2012, income related to LHFS includes $58 million and $131 million, respectively, related to MSRs recognized upon the sale of loans reported at fair value. For the three and six months ended June 30, 2012, income related to MSRs includes $20 million and $30 million, respectively, of MSRs recognized upon the sale of loans reported at LOCOM.
2Changes in fair value for the three and six months ended June 30, 2012 exclude accrued interest for the period then ended. Interest income or interest expense on trading loans, LHFS, LHFI, brokered time deposits, and long-term debt that have been elected to be carried at fair value are recorded in interest income or interest expense in the Consolidated Statements of Income.


 
 
Fair Value Gain/(Loss) for the Three Months Ended
June 30, 2011, for Items Measured at Fair Value Pursuant to Election of the FVO
 
Fair Value Gain/(Loss) for the Six Months Ended
June 30, 2011, for Items Measured at Fair Value Pursuant to Election of the FVO
(Dollars in millions)
 
Trading income
 
Mortgage
Production
Related
Income 1
 
Mortgage
Servicing
Related
Income
 
Total
Changes in
Fair Values  
Included in
Current
Period
Earnings 2
 
Trading income
 
Mortgage
Production
Related
Income 1
 
Mortgage
Servicing
Related
Income
 
Total
Changes in
Fair Values  
Included in
Current
Period
Earnings 2
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading loans
 

$5

 

$—

 

$—

 

$5

 

$12

 

$—

 

$—

 

$12

LHFS
 
(4
)
 
119

 
—

 
115

 
(2
)
 
149

 
—

 
147

LHFI
 
—

 
—

 
—

 
—

 
3

 
(4
)
 
—

 
(1
)
MSRs
 
—

 
2

 
(162
)
 
(160
)
 
—

 
4

 
(145
)
 
(141
)
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokered time deposits
 
8

 
—

 
—

 
8

 
(3
)
 
—

 
—

 
(3
)
Long-term debt
 
(21
)
 
—

 
—

 
(21
)
 
(38
)
 
—

 
—

 
(38
)
1For the three and six months ended June 30, 2011, income related to LHFS includes $46 million and $132 million related to MSRs recognized upon the sale of loans reported at fair value. For the three and six months ended June 30, 2011, income related to MSRs includes $2 million and $4 million of MSRs recognized upon the sale of loans reported at LOCOM. These MSRs are included in the table since the Company elected to report MSRs recognized in 2009 and beyond using the fair value method. Previously, MSRs were reported under the amortized cost method.
2Changes in fair value for the three and six months ended June 30, 2011 exclude accrued interest for the period then ended. Interest income or interest expense on trading loans, LHFS, LHFI, brokered time deposits, and long-term debt that have been elected to be carried at fair value are recorded in interest income or interest expense in the Consolidated Statements of Income.

The following is a discussion of the valuation techniques and inputs used in developing fair value measurements for assets and liabilities classified as level 2 or 3 that are measured at fair value on a recurring basis, based on the class as determined by the nature and risks of the instrument.
Trading Assets and Securities Available for Sale
Unless otherwise indicated, trading assets are priced by the trading desk and securities AFS are valued by an independent third party pricing service.

Federal agency securities
The Company includes in this classification securities issued by federal agencies and GSEs. Agency securities consist of debt obligations issued by HUD, FHLB, and other agencies or collateralized by loans that are guaranteed by the SBA and are, therefore, backed by the full faith and credit of the U.S. government. For SBA instruments, the Company estimated fair value based on pricing from observable trading activity for similar securities or obtained fair values from a third party pricing service; accordingly, the Company has classified these instruments as level 2.
U.S. states and political subdivisions
The Company’s investments in U.S. states and political subdivisions (collectively “municipals”) include obligations of county and municipal authorities and agency bonds, which are general obligations of the municipality or are supported by a specified revenue source. Holdings were geographically dispersed, with no significant concentrations in any one state or municipality. Additionally, all but an immaterial amount of AFS municipal obligations classified as level 2 are highly rated or are otherwise collateralized by securities backed by the full faith and credit of the federal government.
Level 3 municipal securities includes ARS purchased since the auction rate market began failing in February 2008 and have been considered level 3 securities due to the significant decrease in the volume and level of activity in these markets, which has necessitated the use of significant unobservable inputs into the Company’s valuations. Municipal ARS are classified as securities AFS. These securities were valued using comparisons to similar ARS for which auctions are currently successful and/or to longer term, non-ARS issued by similar municipalities. The Company also evaluated the relative strength of the municipality and made appropriate downward adjustments in price based on the credit rating of the municipality as well as the relative financial strength of the insurer on those bonds. Although auctions for several municipal ARS have been operating successfully, ARS owned by the Company at June 30, 2012 continued to be classified as level 3 as they are those ARS for which the auctions continued to fail; accordingly, due to the uncertainty around the success rates for auctions and the absence of any successful auctions for these identical securities, the Company continued to price the ARS below par.
Level 3 AFS municipal bond securities also include bonds that are only redeemable with the issuer at par and cannot be traded in the market. As such, no significant observable market data for these instruments is available. To estimate pricing on these securities, the Company utilized a third party municipal bond yield curve for the lowest investment grade bonds and priced each bond based on the yield associated with that maturity.
MBS – agency
MBS – agency includes pass-through securities and collateralized mortgage obligations issued by GSEs and U.S. government agencies, such as Fannie Mae, Freddie Mac, and Ginnie Mae. Each security contains a guarantee by the issuing GSE or agency. For agency MBS, the Company estimated fair value based on pricing from observable trading activity for similar securities or obtained fair values from a third party pricing service; accordingly, the Company has classified these as level 2.
MBS – private
Private MBS includes purchased interests in third party securitizations, as well as retained interests in Company-sponsored securitizations of residential mortgages. Generally, the Company attempts to obtain pricing for its securities from an independent pricing service or third party brokers who have experience in valuing certain investments. This pricing may be used as either direct support for the Company’s valuations or used to validate outputs from its own proprietary models. The Company evaluates third party pricing to determine the reasonableness of the information relative to changes in market data, such as any recent trades, market information received from outside market participants and analysts, and/or changes in the underlying collateral performance. As liquidity returns to these markets, the Company has seen more pricing information from third parties and a reduction in the need to use pricing models to estimate fair value. Even though limited third party pricing has been available, the Company continued to classify private MBS as level 3, as the Company believes that this third party pricing relied on significant unobservable assumptions, as evidenced by a persistently wide bid-ask price range and variability in pricing from the pricing services, particularly for the vintage and exposures held by the Company.
Securities that are classified as AFS and are in an unrealized loss position are included as part of the Company's quarterly OTTI evaluation process. See Note 2, “Securities Available for Sale,” for details regarding assumptions used to assess impairment and impairment amounts recognized through earnings on private MBS during the three and six months ended June 30, 2012 and 2011.

CDO/CLO Securities
Level 2 securities AFS at December 31, 2011 consisted of a senior interest in a third party CLOs for which independent broker pricing based on market trades and/or from new issuance of similar assets is readily available. This interest was repaid in full by the issuer during the three months ended June 30, 2012. The Company’s investments in level 3 trading CDOs consisted of senior ARS interests in Company-sponsored securitizations of trust preferred collateral. These auctions continue to fail and the Company continues to make significant adjustments to valuation assumptions based on information available from observable secondary market trading of similar term securities; therefore, the Company continued to classify these as level 3 investments. During the three months ended June 30, 2012, the Company began valuing these interests by constructing a pricing matrix of values based on a range of overcollateralization levels that are derived from discussions with the dealer community along with limited trade data. The price derived from the matrix is then adjusted for each security based on deal specific factors such as the percentage of collateral that is considered to be at heightened risk for future deferral or default, and collateral specific prepayment expectations, among other factors. See Note 6, "Certain Transfers of Financial Assets and Variable Interest Entities," for discussion of the sensitivity of these interests to changes in the assumptions.
Asset-backed securities
Level 2 ABS classified as securities AFS are primarily interests collateralized by third party securitizations of 2009 through 2011 vintage auto loans. These ABS are either publicly traded or are 144A privately placed bonds. The Company utilizes an independent pricing service to obtain fair values for publicly traded securities and similar securities for estimating the fair value of the privately placed bonds. No significant unobservable assumptions were used in pricing the auto loan ABS; therefore, the Company classified these bonds as level 2. Additionally, the Company classified $32 million of trading ARS and $71 million of AFS ARS collateralized by government guaranteed student loans as level 2 due to observable market trades and bids for similar senior securities. Student loan ABS held by the Company are generally collateralized by FFELP student loans, the majority of which benefit from a maximum guarantee amount of 97%. For valuations of subordinate securities in the same structure, the Company adjusts valuations on the senior securities based on the likelihood that the issuer will refinance in the near term, a security’s level of subordination in the structure, and/or the perceived risk of the issuer as determined by credit ratings or total leverage of the trust. These adjustments may be significant; therefore, the subordinate student loan ARS held as trading assets continue to be classified as level 3.
Corporate and other debt securities
Corporate debt securities are predominantly comprised of senior and subordinate debt obligations of domestic corporations and are classified as level 2. Other debt securities in level 3 include bonds that are redeemable with the issuer at par and cannot be traded in the market; as such, no significant observable market data for these instruments is available.
Commercial paper
From time to time, the Company trades third party CP that is generally short-term in nature (less than 30 days) and highly rated. The Company estimates the fair value of the CP that it trades based on observable pricing from executed trades of similar instruments; thus, CP is classified as level 2.
Equity securities
Level 3 equity securities classified as securities AFS include, as of June 30, 2012 and December 31, 2011, $856 million and $740 million, respectively, of FHLB stock and Federal Reserve Bank stock, which are redeemable with the issuer at cost and cannot be traded in the market. As such, no significant observable market data for these instruments is available. The Company accounts for the stock based on the industry guidance that requires these investments be carried at cost and evaluated for impairment based on the ultimate recovery of cost.

Derivative contracts (trading assets or trading liabilities)
With the exception of one derivative contract discussed herein and certain instruments discussed under "other assets/liabilities, net" that qualify as derivative instruments, the Company’s derivative instruments are level 1 or 2 instruments. Level 1 derivative contracts generally include exchange-traded futures or option contracts for which pricing is readily available. See Note 10, “Derivative Financial Instruments,” for additional information on the Company’s derivative contracts.
The Company’s level 2 instruments are predominantly standard OTC swaps, options, and forwards, with underlying market variables of interest rates, foreign exchange, equity, and credit. Because fair values for OTC contracts are not readily available, the Company estimates fair values using internal, but standard, valuation models that incorporate market-observable inputs. The valuation model is driven by the type of contract: for option-based products, the Company uses an appropriate option pricing model, such as Black-Scholes; for forward-based products, the Company’s valuation methodology is generally a discounted cash flow approach. The primary drivers of the fair values of derivative instruments are the underlying variables, such as interest rates, exchange rates, equity, or credit. As such, the Company uses market-based assumptions for all of its significant inputs, such as interest rate yield curves, quoted exchange rates and spot prices, market implied volatilities, and credit curves.
The Agreements the Company entered into related to its Coke common stock are level 3 instruments, due to the unobservability of a significant assumption used to value these instruments. Because the value is primarily driven by the embedded equity collars on the Coke shares, a Black-Scholes model is the appropriate valuation model. Most of the assumptions are directly observable from the market, such as the per share market price of Coke common stock, interest rates, and the dividend rate on the Coke common stock. Volatility is a significant assumption and is impacted both by the unusually large size of the trade and the long tenor until settlement. Because the derivatives carry scheduled terms of 6.5 years and 7 years from the effective date and are on a significant number of Coke shares, the observable and active options market on Coke does not provide for any identical or similar instruments. As such, the Company receives estimated market values from a market participant who is knowledgeable about Coke equity derivatives and is active in the market. Based on inquiries of the market participant as to their procedures, as well as the Company’s own valuation assessment procedures, the Company has satisfied itself that the market participant is using methodologies and assumptions that other market participants would use in estimating the fair value of the Agreements. At June 30, 2012 and December 31, 2011, the Agreements’ combined fair value was a liability of $349 million and $189 million, respectively.

See Note 10, “Derivative Financial Instruments,” to the Consolidated Financial Statements, for additional information on the Company's derivative contracts.
Trading loans
The Company engages in certain businesses whereby the election to carry loans at fair value for financial reporting aligns with the underlying business purposes. Specifically, the loans that are included within this classification are: (i) loans made or acquired in connection with the Company’s TRS business (see Note 6, "Certain Transfers of Financial Assets and Variable Interest Entities," and Note 10, “Derivative Financial Instruments,” for further discussion of this business), (ii) loans backed by the SBA, and (iii) the loan sales and trading business within the Company’s Wholesale Banking line of business. All of these loans have been classified as level 2, due to the market data that the Company uses in its estimates of fair value.
The loans made in connection with the Company’s TRS business are short-term, demand loans, whereby the repayment is senior in priority and whose value is collateralized. While these loans do not trade in the market, the Company believes that the par amount of the loans approximates fair value and no unobservable assumptions are made by the Company to arrive at this conclusion. At June 30, 2012 and December 31, 2011, the Company had outstanding $1.9 billion and $1.7 billion, respectively, of such short-term loans carried at fair value.
SBA loans are similar to SBA securities discussed herein under “Federal agency securities,” except for their legal form. In both cases, the Company trades instruments that are fully guaranteed by the U.S. government as to contractual principal and interest and has sufficient observable trading activity upon which to base its estimates of fair value.
The loans from the Company’s sales and trading business are commercial and corporate leveraged loans that are either traded in the market or for which similar loans trade. The Company elected to carry these loans at fair value to reflect the active management of these positions. The Company is able to obtain fair value estimates for substantially all of these loans using a third party valuation service that is broadly used by market participants. While most of the loans are traded in the markets, the Company does not believe that trading activity qualifies the loans as level 1 instruments, as the volume and level of trading activity is subject to variability and the loans are not exchange-traded, such that the Company believes that level 2 is a more appropriate presentation of the underlying market activity for the loans. At June 30, 2012 and December 31, 2011, $235 million and $323 million, respectively, of loans related to the Company’s trading business were held in inventory.

Loans Held for Sale and Loans Held for Investment
Residential LHFS
The Company recognized at fair value certain newly-originated mortgage LHFS based upon defined product criteria. The Company chooses to fair value these mortgage LHFS to eliminate the complexities and inherent difficulties of achieving hedge accounting and to better align reported results with the underlying economic changes in value of the loans and related hedge instruments. This election impacts the timing and recognition of origination fees and costs, as well as servicing value. Specifically, origination fees and costs are recognized in earnings when earned or incurred. The servicing value, which had been recorded as MSRs at the time the loan was sold under previous requirements, is included in the fair value of the loan and initially recognized at the time the Company enters into IRLCs with borrowers. The Company uses derivatives to economically hedge changes in servicing value as a result of including the servicing value in the fair value of the loan. The mark-to-market adjustments related to LHFS and the associated economic hedges are captured in mortgage production related income.
Level 2 LHFS are primarily agency loans which trade in active secondary markets and are priced using current market pricing for similar securities adjusted for servicing and risk and also include non-agency residential mortgages. Due to the non-agency residential loan market disruption, which began during the third quarter of 2007, there was little to no observable trading activity of similar instruments and the Company classified these LHFS as level 3. Recently, the Company has been able to obtain observable pricing from the secondary loan market in which the Company has been a market participant. Therefore, the Company has reclassified these LHFS as level 2. In the tabular level 3 rollforwards, transfers of certain mortgage LHFS into level 3 during 2012 and 2011 were not due to using alternative valuation approaches, but were largely due to borrower defaults or the identification of other loan defects impacting the marketability of the loans.
For residential loans that the Company has elected to carry at fair value, the Company has considered the component of the fair value changes due to instrument-specific credit risk, which is intended to be an approximation of the fair value change attributable to changes in borrower-specific credit risk. For the three and six months ended June 30, 2012, the Company recognized gains in the Consolidated Statements of Income of $5 million, and $2 million, respectively, due to changes in fair value attributable to borrower-specific credit risk. For the three and six months ended June 30, 2011, the Company recognized losses in the Consolidated Statements of Income of $4 million and $9 million, respectively, due to changes in fair value attributable to borrower-specific credit risk. In addition to borrower-specific credit risk, there are other, more significant, variables that drive changes in the fair values of the loans, including interest rates and general conditions in the principal markets for the loans.
Corporate and other LHFS
As discussed in Note 6, “Certain Transfers of Financial Assets and Variable Interest Entities,” the Company has determined that it is the primary beneficiary of a CLO vehicle, which resulted in the Company consolidating the loans of that vehicle. Because the CLO trades its loans from time to time and to fairly present the economics of the CLO, the Company elected to carry the loans of the CLO at fair value. The Company is able to obtain fair value estimates for substantially all of these loans using a third party valuation service that is broadly used by market participants. While most of the loans are traded in the markets, the Company does not believe the loans qualify as level 1 instruments, as the volume and level of trading activity is subject to variability and the loans are not exchange-traded, such that the Company believes that level 2 is more representative of the general market activity for the loans.
LHFI
Level 3 LHFI predominantly includes mortgage loans that have been deemed not marketable, largely due to borrower defaults or the identification of other loan defects. The Company values these loans using a discounted cash flow approach based on assumptions that are generally not observable in the current markets, such as prepayment speeds, default rates, loss severity rates, and discount rates. These assumptions have an inverse relationship to the overall fair value. Level 3 LHFI also include mortgage loans that are valued using collateral based pricing. Changes in the applicable housing price index since the time of the loan origination are considered and applied to the loan's collateral value. An additional discount representing the return that a buyer would require is also considered in the overall fair value.

Other Intangible Assets
Other intangible assets that the Company records at fair value are the Company’s MSR assets. The fair values of MSRs are determined by projecting cash flows, which are then discounted to estimate an expected fair value. The fair values of MSRs are impacted by a variety of factors, including prepayment assumptions, discount rates, delinquency rates, contractually specified servicing fees, servicing costs, and underlying portfolio characteristics. For additional information, see Note 5, "Goodwill and Other Intangible Assets." The underlying assumptions and estimated values are corroborated by values received from independent third parties based on their review of the servicing portfolio. Because these inputs are not transparent in market trades, MSRs are considered to be level 3 assets.
Other Assets/Liabilities, net
The Company’s other assets/liabilities that are carried at fair value on a recurring basis include IRLCs that satisfy the criteria to be treated as derivative financial instruments, derivative financial instruments that are used by the Company to economically hedge certain loans and MSRs, and the derivative that the Company obtained as a result of its sale of Visa Class B shares.
The fair value of IRLCs on residential mortgage LHFS, while based on interest rates observable in the market, is highly dependent on the ultimate closing of the loans. These “pull-through” rates are based on the Company’s historical data and reflect the Company’s best estimate of the likelihood that a commitment will ultimately result in a closed loan. As pull-through rates increase, the fair value of IRLCs also increase. Servicing value is included in the fair value of IRLCs, and the fair value of servicing is determined by projecting cash flows which are then discounted to estimate an expected fair value. The fair value of servicing is impacted by a variety of factors, including prepayment assumptions, discount rates, delinquency rates, contractually specified servicing fees, servicing costs, and underlying portfolio characteristics. Because these inputs are not transparent in market trades, IRLCs are considered to be level 3 assets.
During the three and six months ended June 30, 2012, the Company transferred $218 million and $390 million of IRLCs out of level 3 as the associated loans were closed, compared to $40 million and $54 million, during the same periods in 2011, respectively.
The Company is exposed to interest rate risk associated with MSRs, IRLCs, mortgage LHFS, and mortgage LHFI reported at fair value. The Company may hedge these exposures with a combination of derivatives, including MBS forward and option contracts, interest rate swap and swaption contracts, futures contracts, and eurodollar options. The Company estimates the fair values of such derivative instruments consistent with the methodologies discussed herein under “Derivative contracts” and accordingly these derivatives are considered to be level 2 instruments.
During the second quarter of 2009, in connection with its sale of Visa Class B shares, the Company entered into a derivative contract whereby the ultimate cash payments received or paid, if any, under the contract are based on the ultimate resolution of litigation involving Visa. The value of the derivative was estimated based on the Company’s expectations regarding the ultimate resolution of that litigation, which involved a high degree of judgment and subjectivity. Accordingly, the value of the derivative liability was classified as a level 3 instrument. See Note 11, "Reinsurance Arrangements and Guarantees," for a discussion of the valuation assumptions.

Contingent consideration associated with acquisitions is adjusted to fair value until settled. As the assumptions used to measure fair value are based on internal metrics that are not market observable, the earn out is considered a level 3 liability.

Liabilities
Trading liabilities
Trading liabilities are primarily comprised of derivative contracts, but also include various contracts involving U.S. Treasury securities, equity securities, and corporate and other debt securities that the Company uses in certain of its trading businesses. The Company employs the same valuation methodologies for these derivative contracts and securities as are discussed within the corresponding sections herein under “Trading Assets and Securities Available for Sale.”
Brokered time deposits
The Company has elected to measure certain CDs at fair value. These debt instruments include embedded derivatives that are generally based on underlying equity securities or equity indices, but may be based on other underlyings that may or may not be clearly and closely related to the host debt instrument. The Company elected to carry these instruments at fair value to remove the mixed attribute accounting model for the single debt instrument or to better align the economics of the CDs with the Company’s risk management strategies. The Company evaluated, on an instrument by instrument basis, whether a new issuance would be carried at fair value.

The Company has classified these CDs as level 2 instruments due to the Company’s ability to reasonably measure all significant inputs based on observable market variables. The Company employs a discounted cash flow approach to the host debt component of the CD, based on observable market interest rates for the term of the CD and an estimate of the Bank’s credit risk. For the embedded derivative features, the Company uses the same valuation methodologies as if the derivative were a standalone derivative, as discussed herein under “Derivative contracts.”
For brokered time deposits carried at fair value, the Company estimated credit spreads above LIBOR, based on credit spreads from actual or estimated trading levels of the debt or other relevant market data. The Company recognized losses of approximately $1 million and $6 million for the three and six months ended June 30, 2012, respectively, and gains of
$1 million and losses of $13 million for the three and six months ended June 30, 2011, respectively, due to changes in its own credit spread on its brokered time deposits carried at fair value.
Long-term debt
The Company has elected to carry at fair value certain fixed rate debt issuances of public debt which are valued by obtaining quotes from a third party pricing service and utilizing broker quotes to corroborate the reasonableness of those marks. Additionally, information from market data of recent observable trades and indications from buy side investors, if available, are taken into consideration as additional support for the value. Due to the availability of this information, the Company determined that the appropriate classification for the debt was level 2. The election to fair value the debt was made to align the accounting for the debt with the accounting for the derivatives without having to account for the debt under hedge accounting, thus avoiding the complex and time consuming fair value hedge accounting requirements.
The Company’s public debt carried at fair value impacts earnings predominantly through changes in the Company’s credit spreads as the Company has entered into derivative financial instruments that economically convert the interest rate on the debt from fixed to floating. The estimated earnings impact from changes in credit spreads above U.S. Treasury rates were gains of less than $1 million and losses of $8 million for the three and six months ended June 30, 2012, respectively, and gains of $5 million and losses of $15 million for the three and six months ended June 30, 2011, respectively.
The Company also carries approximately $288 million of issued securities contained in a consolidated CLO at fair value to recognize the nonrecourse nature of these liabilities to the Company. Specifically, the holders of the liabilities are only paid interest and principal to the extent of the cash flows from the assets of the vehicle and the Company has no current or future obligations to fund any of the CLO vehicle’s liabilities. The Company has classified these securities as level 2, as the primary driver of their fair values are the loans owned by the CLO, which the Company has also elected to carry at fair value, as discussed herein under “Loans Held for Investment and Loans Held for Sale – Corporate and other LHFS.”
The valuation technique and range, including weighted average, of the unobservable inputs associated with the Company's level 3 assets and liabilities are as follows:
 
 Level 3 Significant Unobservable Input Assumptions
(Dollars in millions)
Fair value
June 30, 2012 
 
Valuation Technique
 
Unobservable Input1
 
Range
(weighted average)
Assets:
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
MBS - private

$1

 
Third party pricing
 
N/A
 

CDO/CLO securities
43

 
Matrix pricing
 
Indicative pricing based on overcollateralization ratio
 
23-37 (32)
 
Estimated collateral losses
 
37-52% (43%)
ABS
5

 
Matrix pricing
 
Indicative pricing
 
45 (45)
Securities AFS:
 
 
 
 
 
 
 
U.S. states and political subdivisions
55

 
Matrix pricing
 
Indicative pricing
 
72-115 (89)
MBS - private
208

 
Third party pricing
 
N/A
 

ABS
17

 
Third party pricing
 
N/A
 

Corporate and other debt securities
5

 
Cost
 
N/A
 

Other equity securities
857

 
Cost
 
N/A
 

Residential LHFS
2

 
Monte Carlo/Discounted cash flow
 
Option adjusted spread
 
(10)-275 bps (94 bps)
 
Conditional prepayment rate
 
0-36% (23%)
 
Conditional default rate
 
0-25% (7%)
LHFI
386

 
Monte Carlo/Discounted cash flow
 
Option adjusted spread
 
(10)-275 bps (94 bps)
 
Conditional prepayment rate
 
0-36% (23%)
 
Conditional default rate
 
0-25% (7%)
 
20

 
Collateral based pricing
 
Appraised value
 
NM2
MSRs
865

 
Discounted cash flow
 
Conditional prepayment rate
 
8-33% (20%)
 
Discount rate
 
8-28% (11%)
Other assets/(liabilities), net3
135

 
Internal model
 
Pull through rate
 
1-99% (62%)
 
MSR value
 
2-200bps (104 bps)
 
(23
)
 
Internal model
 
Loan production volume
 
0-150% (92%)
Liabilities
 
 
 
 
 
 
 
Derivative contracts
349

 
Counterparty pricing
 
N/A
 
 
1For certain assets and liabilities that the Company utilizes third party pricing, the unobservable inputs and their ranges are not reasonably available to the Company; and therefore, have been noted as "N/A."
2Not meaningful.
3Input assumptions relate to the Company's IRLCs and the contingent consideration obligation related to an acquisition. Excludes $3 million of Other Liabilities. Refer to Note 11, "Reinsurance Arrangements and Guarantees," for additional information.
The following tables present a reconciliation of the beginning and ending balances for fair valued assets and liabilities measured on a recurring basis using significant unobservable inputs (other than MSRs which are disclosed in Note 5, “Goodwill and Other Intangible Assets”). Transfers into and out of the fair value hierarchy levels are assumed to be as of the end of the quarter in which the transfer occurred. None of the transfers into or out of level 3 has been the result of using alternative valuation approaches to estimate fair values. There were no transfers between level 1 and 2 during the six months ended June 30, 2012.
 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
April 1,
2012
 
Included in
earnings    
 
OCI    
 
Purchases
 
Sales    
 
Settlements    
 
Transfers
to/from  other
balance sheet
line items    
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
June 30,
2012  
 
Included in earnings (held at June 30, 2012) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS - private

$1

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$1

 

$—

  
CDO/CLO securities
43

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
43

 
—

 
ABS
5

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Total trading assets
49

 
—

 
—

  
—

 
—

 
—

 
—

 
—

 
—

 
49

 
—

 
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
57

 
—

 
—

 
—

 
—

 
(2
)
 
—

 
—

 
—

 
55

 
—

  
MBS - private
216

 
(1
)
 
4

 
—

 
—

 
(11
)
 
—

 
—

 
—

 
208

 
(1
)
  
ABS
17

 
—

 
1

 
—

 
—

 
(1
)
 
—

 
—

 
—

 
17

 
—

  
Corporate and other debt securities
5

 
—

 
—

 
2

 
—

 
(2
)
 
—

 
—

 
—

 
5

 
—

  
Other equity securities
831

 
—

 
—

 
72

 
—

 
(46
)
 
—

 
—

 
—

 
857

 
—

  
Total securities AFS
1,126

 
(1
)
2 
5

   
74

 
—

 
(62
)
 
—

 
—

 
—

 
1,142

 
(1
)
2  
LHFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
4

 
—

 
—

 
—

 
—

 
—

 
(2
)
 
1

 
(1
)
 
2

 
—

 
LHFI
413

 
5

3 
—

 
—

 
—

 
(14
)
 
1

 
1

 
—

 
406

 
—

 
Other assets/(liabilities), net
91

 
258

4 
—

 
(23
)
 
—

 
1

 
(218
)
 
—

 
—

 
109

 
—

  

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(246
)
 
—

 
(103
)
6 
—

 
—

 
—

 
—

 
—

 
—

 
(349
)
 
—

 


 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
January 1,
2012   
 
Included in
earnings    
 
OCI    
 
Purchases
 
Sales    
 
Settlements    
 
Transfers
to/from  other
balance sheet
line items    
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
June 30,
2012  
 
Included in earnings (held at June 30, 2012) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS - private

$1

 

$—

  

$—

  

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$1

 

$—

  
CDO/CLO securities
43

 
—

 
—

  
—

 
—

 
—

 
—

 
—

 
—

 
43

 
(1
)
 
ABS
5

 
—

  
—

  
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Total trading assets
49

 
—

 
—

  
—

 
—

 
—

 
—

 
—

 
—

 
49

 
(1
)
5  
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
58

 
—

  
(1
)
  
—

 
—

 
(2
)
 
—

 
—

 
—

 
55

 
—

  
MBS - private
221

 
(4
)
  
14

  
—

 
—

 
(23
)
 
—

 
—

 
—

 
208

 
(4
)
  
ABS
16

 
—

  
2

  
—

 
—

 
(1
)
 
—

 
—

 
—

 
17

 
—

  
Corporate and other debt securities
5

 
—

  
—

  
2

 
—

 
(2
)
 
—

 
—

 
—

 
5

 
—

  
Other equity securities
741

 
—

  
—

  
162

 
—

 
(46
)
 
—

 
—

 
—

 
857

 
—

  
Total securities AFS
1,041

 
(4
)
2 
15

   
164

 
—

 
(74
)
 
—

 
—

 
—

 
1,142

 
(4
)
2  
LHFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
1

 
—

 
—

  
—

 
(1
)
 
—

 
3

 
4

 
(5
)
 
2

 
—

 
LHFI
433

 
1

3 
—

  
—

 
—

 
(26
)
 
(5
)
 
3

 
—

 
406

 
1

3 
Other assets/(liabilities), net
62

 
438

4 
—

  
(23
)
 
—

 
22

 
(390
)
 
—

 
—

 
109

 
—

  

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(189
)
 
1

5 
(161
)
6 
—

 
—

 
—

 
—

 
—

 
—

 
(349
)
 
1

5  
1 Change in unrealized gains/(losses) included in earnings during the period related to financial assets still held at June 30, 2012.
2 Amounts included in earnings are recorded in net securities gains.
3 Amounts are generally included in mortgage production related income; however, the mark on certain fair value loans is included in trading income.
4 Amounts included in earnings are net of issuances, fair value changes, and expirations and are recorded in mortgage production related income.
5 Amounts included in earnings are recorded in trading income.
6 Amount recorded in OCI is the effective portion of the cash flow hedges related to the Company’s probable forecasted sale of its shares of Coke common stock as discussed in Note 10, “Derivative Financial Instruments.”






 
Fair Value Measurements
Using Significant Unobservable Inputs
 
 
(Dollars in millions)
Beginning
balance
April 1,
2011  
 
Included in
earnings    
 
OCI    
 
Sales    
 
Settlements    
 
Transfers
to/from other
balance sheet
line items    
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
June 30,
2011
 
Included in earnings (held at June 30, 2011) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS - private

$2

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$2

 

$—

  
CDO/CLO securities
42

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
42

 
—

 
ABS
5

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Equity securities
56

 
4

 
—

 
—

 
(47
)
 
—

 
—

 
—

 
13

 
—

  
Total trading assets
105

 
4

2  
—

 
—

 
(47
)
 
—

 
—

 
—

 
62

 
—

 
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
73

 
—

 
—

 
—

 
(5
)
 
—

 
—

 
—

 
68

 
—

  
MBS - private
338

 
(1
)
 
(7
)
 
—

 
(19
)
 
—

 
—

 
—

 
311

 
1

  
ABS
20

 
—

 
—

 
—

 
(1
)
 
—

 
—

 
—

 
19

 
—

  
Corporate and other debt securities
5

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Other equity securities
690

 
—

 
—

 
—

 
(93
)
 
—

 
—

 
—

 
597

 
—

  
Total securities AFS
1,126

 
(1
)
3  
(7
)
 
—

 
(118
)
 
—

 
—

 
—

 
1,000

 
1

3  
LHFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
17

 
1

6 
—

 
(12
)
 
—

 
(7
)
 
5

 
(1
)
 
3

 
—

 
LHFI
457

 
1

5 
—

 
—

 
(11
)
 
2

 
—

 
—

 
449

 
(1
)
5 
Other assets/(liabilities), net
(2
)
 
48

6 
—

 
—

 
6

 
(40
)
 
—

 
—

 
12

 
—

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(161
)
 
1

2 
6

7 

—

 
—

 
—

 
—

 
—

 
(154
)
 
—

 
 
Fair Value Measurements
Using Significant Unobservable Inputs
 
 
(Dollars in millions)
Beginning
balance
January 1,
2011  
 
Included in
earnings    
 
OCI    
 
Sales    
 
Settlements    
 
Transfers
to/from other
balance sheet
line items    
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
June 30,
2011
 
Included in earnings (held at June 30, 2011) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS - private

$6

 

$2

 

$—

 

($5
)
 

($1
)
 

$—

 

$—

 

$—

 

$2

 

$—

  
CDO/CLO securities
53

 
31

 
—

 
(21
)
 
(1
)
 
(20
)
 
—

 
—

 
42

 
15

 
ABS
27

 
9

 
—

 
(31
)
 
—

 
—

 
—

 
—

 
5

 
2

  
Equity securities
123

 
12

 
—

 
—

 
(122
)
 
—

 
—

 
—

 
13

 
—

  
Total trading assets
209

 
54

2  
—

 
(57
)
 
(124
)
 
(20
)
 
—

 
—

 
62

 
17

2  
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
74

 
1

 
—

 
—

 
(7
)
 
—

 
—

 
—

 
68

 
—

  
MBS - private
347

 
(3
)
 
9

 
—

 
(42
)
 
—

 
—

 
—

 
311

 
(3
)
  
ABS
20

 
—

 
1

 
—

 
(2
)
 
—

 
—

 
—

 
19

 
—

  
Corporate and other debt securities
5

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Other equity securities
690

 
—

 
—

 
—

 
(93
)
 
—

 
—

 
—

 
597

 
—

  
Total securities AFS
1,136

 
(2
)
3  
10

 
—

 
(144
)
 
—

 
—

 
—

 
1,000

 
(3
)
3  
LHFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
2

 
—

 
—

 
(14
)
 
(1
)
 
2

 
16

 
(2
)
 
3

 
—

 
Corporate and other loans
5

 
(1
)
4 
—

 
—

 
—

 
(4
)
 
—

 
—

 
—

 
—

 
LHFI
492

 
—

 
—

 
—

 
(34
)
 
(9
)
 
—

 
—

 
449

 
(3
)
5 
Other assets/(liabilities), net
(24
)
 
84

6 
—

 
—

 
6

 
(54
)
 
—

 
—

 
12

 
—

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(145
)
 
1

2 
(10
)
7 

—

 
—

 
—

 
—

 
—

 
(154
)
 
—

 
1 Change in unrealized gains/(losses) included in earnings for the period related to financial assets still held at June 30, 2011.
2 Amounts included in earnings are recorded in trading income.
3 Amounts included in earnings are recorded in net securities gains.
4 Amounts included in earnings are recorded in other noninterest income.
5 Amounts are generally included in mortgage production related income, however, the mark on certain fair value loans is included in trading income.
6 Amounts included in earnings are net of issuances, fair value changes, and expirations and are recorded in mortgage production related income.
7 Amount recorded in OCI is the effective portion of the cash flow hedges related to the Company’s probable forecasted sale of its shares of Coke common stock as discussed in Note 10, “Derivative Financial Instruments.”
Non-recurring Fair Value Measurements
The following tables present the carrying value of those assets measured at fair value on a non-recurring basis for which impairment was recognized as well as any valuation allowance against those assets as of the period end indicated. The table does not reflect the change in fair value attributable to any related economic hedges the Company may have used to mitigate the interest rate risk associated with LHFS and MSRs. The Company’s economic hedging activities for LHFS are deployed at the portfolio level.
 
 
 
 
Fair Value Measurement at
June 30, 2012,
Using
 
 
 
 
 
(Dollars in millions)
Net
Carrying
Value
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Valuation
Allowance
 
Gains/(Losses) for the Three Months Ended
June 30, 2012
 
Gains/(Losses) for the Six Months Ended
June 30, 2012
LHFS

$17

 

$—

 

$17

 

$—

 

$—

 

$—

 

$—

LHFI
49

 
—

 
—

 
49

 
3

 
—

 
—

OREO
331

 
—

 
260

 
71

 
(136
)
 
—

 
3

Other Assets
92

 
—

 
21

 
71

 
(60
)
 
(6
)
 
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement at
December 31, 2011,
Using
 
 
 
 
 
(Dollars in millions)
Net
Carrying
Value
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Valuation
Allowance
 
Gains/(Losses) for the Year Ended December 31, 2011
 
 
LHFS

$212

 

$—

 

$108

 

$104

 

$—

 

$—

 
 
LHFI
72

 
—

 
—

 
72

 
(7
)
 
—

 
 
OREO
479

 
—

 
372

 
107

 
(127
)
 
(9
)
 
 
Affordable Housing
324

 
—

 
—

 
324

 
—

 
(10
)
 
 
Other Assets
45

 
—

 
24

 
21

 
(20
)
 
(17
)
 
 

The following is a discussion of the valuation techniques and inputs used in developing fair value measurements for assets classified as level 2 or 3 that are measured at fair value on a non-recurring basis, as determined by the nature and risks of the instrument.
Loans Held for Sale
At June 30, 2012, level 2 LHFS consisted of non-agency residential mortgage LHFS. These loans were valued consistent with the methodology discussed in the Recurring Fair Value Measurement section of this footnote. At December 31, 2011, level 2 LHFS consisted primarily of conforming, residential mortgage loans, and corporate loans that are accounted for at LOCOM, and level 3 LHFS consisted of non-agency residential mortgages. The Company has been a participant in selling non-agency residential mortgages in the market, and therefore, has classified them as level 2 as of June 30, 2012. At December 31, 2011, level 3 LHFS also included leases held for sale which were valued using internal estimates which incorporated market data when available. Due to the lack of current market data for comparable leases, these assets were considered level 3.
During the six months ended June 30, 2012, the Company transferred $116 million of residential mortgage NPLs to LHFS, as the Company elected to actively market these loans for sale during the second quarter of 2012. These loans were predominantly reported at amortized cost prior to transferring to LHFS; however, a portion of the NPLs was carried at fair value. As a result of transferring the loans to LHFS, the Company recognized a $35 million charge-off to reflect the loans' estimated market value. Of these transferred loans, $71 million were sold at a gain of $4 million during the six months ended June 30, 2012, $7 million were returned to LHFI as they were no longer deemed marketable for sale and the remainder were removed as a result of various loss events.
During the six months ended June 30, 2011, the Company transferred $47 million in NPLs, net of a $10 million incremental charge-off, that were previously designated as LHFI to LHFS in conjunction with the Company’s election to actively market these loans for sale. These loans were predominantly reported at amortized cost prior to transferring to LHFS; however, a portion of the NPLs was carried at fair value. Of these transferred loans, $34 million were sold at approximately their carrying value during the year ended December 31, 2011; the remaining $13 million were returned to LHFI as they were no longer deemed marketable for sale.
Loans Held for Investment
LHFI consist predominantly of nonperforming commercial real estate loans for which specific reserves have been recorded. As these loans have been classified as nonperforming, cash proceeds from the sale of the underlying collateral is the expected source of repayment for a majority of these loans. Accordingly, the fair value of these loans is derived from internal estimates of the underlying collateral incorporating market data when available. Due to the lack of market data for similar assets, these loans are considered level 3.
OREO
OREO is measured at the lower of cost or its fair value less costs to sell. Level 2 OREO consists primarily of residential homes, commercial properties, and vacant lots and land for which current property-specific appraisals, broker pricing opinions, or other market information is available. Level 3 OREO consists of lots and land for which initial valuations are based on property-specific appraisals or internal valuations. Due to the lower dollar value per property and geographic dispersion of the portfolio, these properties are re-evaluated using a pooled approach, which applies geographic factors to adjust carrying values for estimated further declines in value. Land and lots have proven to be the most challenging asset class to accurately value due in part to the low balance per property composition of the asset class. The pooled discount methodology provides a means to reserve for losses across a broad band of assets rather than rely on potentially unreliable asset-specific valuations. The pooled discount methodology is applied to land and lot assets that have valuations older than six months. The Company's independent internal valuation group determines the discounts to be applied and the discount percentages are segregated by state and by asset class (residential or commercial). The range of discount percentages applied to residential properties was 15% to 50% with a weighted average of 30%. The range of discount percentages applied to commercial properties was 5% to 30% with a weighted average of 24%. The discount percentages reflect the general market decline/increase in a particular state for a particular asset class and are determined by examining various valuation sources, including but not limited to, recent appraisals or sales prices of similar assets within each state.
Affordable Housing
The Company evaluates its consolidated affordable housing partnership investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. An impairment is recorded when the carrying amount of the partnership exceeds its fair value. Fair value measurements for affordable housing investments are derived from internal models using market assumptions when available. Significant assumptions utilized in these models include cash flows, market capitalization rates, and tax credit market pricing. Due to the lack of comparable sales in the marketplace, these valuations are considered level 3. No impairment was recognized during the three and six months ended June 30, 2012 and 2011.
Other Assets
Other assets consist of private equity investments, other repossessed assets, and assets under operating leases where the Company is the lessor.
Investments in private equity partnerships are valued based on the estimated expected remaining cash flows to be received from these assets discounted at a market rate that is commensurate with their risk profile. Based on the valuation methodology and the lack of observable inputs, these investments are considered level 3. During the three months ended June 30, 2012, the Company initiated a disposition strategy for the majority of its investments in private equity partnerships, many of which were ultimately sold during July 2012 at prices approximating their carrying value.
Other repossessed assets consist of repossessed personal property that is measured at fair value less cost to sell. These assets are considered level 2 as their fair value is determined based on market comparables and broker opinions. During the three months ended June 30, 2012 and 2011, the Company recognized no impairment charges and impairment charges of $1 million, respectively. During both six month periods ended June 30, 2012 and 2011, the Company recognized impairment charges of $1 million on these assets.
The Company monitors the fair value of assets under operating leases where the Company is the lessor, and recognizes impairment to the extent the carrying value is not recoverable and the fair value is less than its carrying value. Fair value is determined using collateral specific pricing digests, external appraisals, and recent sales data from industry equipment dealers. As market data for similar assets is available and used in the valuation, these assets are considered level 2. No impairment was recognized during the three months ended June 30, 2012 and 2011. During both six month periods ended June 30, 2012 and 2011, the Company recognized impairment charges of $1 million attributable to the fair value of various personal property under operating leases.
Fair Value of Financial Instruments
The carrying amounts and fair values of the Company’s financial instruments are as follows:
 
 
June 30, 2012
 
Fair Value Measurement Using
 
(Dollars in millions)
Carrying
Amount
 
Fair
Value
 
Quoted Prices In Active
Markets for
Identical
Assets/Liabilities    
(Level 1)
 
Significant
Other
Observable    
Inputs
(Level 2)
 
Significant
Unobservable    
Inputs
(Level 3)
 
Financial assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents

$6,739

 

$6,739

 

$6,739

 

$—

 

$—

(a) 
Trading assets
6,327

 
6,327

 
424

 
5,854

 
49

(b) 
Securities AFS
24,409

 
24,409

 
2,686

 
20,581

 
1,142

(b) 
LHFS
3,123

 
3,127

 
—

 
3,072

 
55

(c) 
LHFI, net
122,260

 
118,403

 
—

 
4,941

 
113,462

(d)
Financial liabilities
 
 
 
 
 
 
 
 
 
 
Consumer and commercial deposits

$126,145

 

$126,456

 

$—

 

$126,456

 

$—

(e) 
Brokered time deposits
2,208

 
2,227

 
—

 
2,227

 
—

(f) 
Foreign deposits
50

 
50

 
—

 
50

 
—

(f) 
Short-term borrowings
9,528

 
9,528

 
—

 
9,528

 
—

(f) 
Long-term debt
13,076

 
12,856

 
—

 
11,116

 
1,740

(f) 
Trading liabilities
1,782

 
1,782

 
352

 
1,081

 
349

(b) 

 
December 31, 2011
 
(Dollars in millions)
Carrying
Amount
 
Fair
Value
 
Financial assets
 
 
 
 
Cash and cash equivalents

$4,509

 

$4,509

(a) 
Trading assets
6,279

 
6,279

(b) 
Securities AFS
28,117

 
28,117

(b) 
LHFS
2,353

 
2,355

(c) 
LHFI, net
120,038

 
115,685

(d)
Financial liabilities
 
 
 
 
Consumer and commercial deposits

$125,611

 

$125,963

(e) 
Brokered time deposits
2,281

 
2,289

(f) 
Foreign deposits
30

 
30

(f) 
Short-term borrowings
11,466

 
11,466

(f) 
Long-term debt
10,908

 
10,515

(f) 
Trading liabilities
1,806

 
1,806

(b) 

The following methods and assumptions were used by the Company in estimating the fair value of financial instruments:
(a)
Cash and cash equivalents are valued at their carrying amounts reported in the balance sheet, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments.
(b)
Securities AFS, trading assets, and trading liabilities that are classified as level 1 are valued based on quoted market prices. For those instruments classified as level 2 or 3, refer to the respective valuation discussions within this footnote.
(c)
LHFS are generally valued based on observable current market prices or, if quoted market prices are not available, on quoted market prices of similar instruments. Refer to the LHFS section within this footnote for further discussion of the LHFS carried at fair value. In instances when significant valuation assumptions are not readily observable in the market, instruments are valued based on the best available data to approximate fair value. This data may be internally-developed and considers risk premiums that a market participant would require under then-current market conditions.
(d)
LHFI fair values are based on a hypothetical exit price, which does not represent the estimated intrinsic value of the loan if held for investment. The assumptions used are expected to approximate those that a market participant purchasing the loans would use to value the loans, including a market risk premium and liquidity discount. Estimating the fair value of the loan portfolio when loan sales and trading markets are illiquid, or for certain loan types, nonexistent, requires significant judgment. Therefore, the estimated fair value can vary significantly depending on a market participant’s ultimate considerations and assumptions. The final value yields a market participant’s expected return on investment that is indicative of the current market conditions, but it does not take into consideration the Company’s estimated value from continuing to hold these loans or its lack of willingness to transact at these estimated values. Level 2 LHFI consist of agency mortgage loans for which the Company has obtained a guarantee from Fannie Mae in the form of a long term standby commitment. These agency mortgage loans are priced using current market pricing for similar securities adjusted for servicing value and market and credit risk. Additionally, the Company classifies widely syndicated commercial leveraged loans as level 2 in the fair value hierarchy as the loans, or similar loans, are traded in an active market and pricing is readily available from a third-party pricing service.
The Company estimated fair value for the remaining LHFI based on estimated future cash flows discounted, initially, at current origination rates for loans with similar terms and credit quality, which derived an estimated value of 101% and 100% on the loan portfolio’s net carrying value as of June 30, 2012 and December 31, 2011, respectively. The value derived from origination rates likely does not represent an exit price; therefore, an incremental market risk and liquidity discount was subtracted from the initial value as of June 30, 2012 and December 31, 2011, respectively. The discounted value is a function of a market participant’s required yield in the current environment and is not a reflection of the expected cumulative losses on the loans. Loan prepayments are used to adjust future cash flows based on historical experience and prepayment model forecasts. The value of related accrued interest on loans approximates fair value; however, it is not included in the carrying amount or fair value of loans. The value of long-term customer relationships is not permitted under current U.S. GAAP to be included in the estimated fair value.
(e)
Deposit liabilities with no defined maturity such as DDAs, NOW/money market accounts, and savings accounts have a fair value equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for CDs are estimated using a discounted cash flow calculation that applies current interest rates to a schedule of aggregated expected maturities. The assumptions used in the discounted cash flow analysis are expected to approximate those that market participants would use in valuing deposits. The value of long-term relationships with depositors is not taken into account in estimating fair values.
(f)
Fair values for foreign deposits, certain brokered time deposits, short-term borrowings, and certain long-term debt are based on quoted market prices for similar instruments or estimated using discounted cash flow analysis and the Company’s current incremental borrowing rates for similar types of instruments. For brokered time deposits and long-term debt that the Company carries at fair value, refer to the respective valuation sections within this footnote. For Level 3 debt, the terms are unique in nature or there are otherwise no similar instruments than can be used to value the instrument without using significant unobservable assumptions.  In this situation, we look at current borrowing rates along with the collateral levels that secure the debt when determining an appropriate fair value adjustment.

Unfunded loan commitments and letters of credit are not included in the table above. At June 30, 2012, the Company had $43 billion of unfunded commercial loan commitments and letters of credit. A reasonable estimate of the fair value of these instruments is the carrying value of deferred fees plus the related unfunded commitments reserve which was a combined $154 million at June 30, 2012. No active trading market exists for these instruments, and the estimated fair value does not include any value associated with the borrower relationship. The Company does not estimate the fair values of consumer unfunded lending commitments which can generally be canceled by providing notice to the borrower.
Contingencies
Contingencies
NOTE 13 – CONTINGENCIES
Litigation and Regulatory Matters
In the ordinary course of business, the Company and its subsidiaries are subject to regulatory examinations, investigations, and requests for information, and are also parties to numerous civil claims and lawsuits. Some of these matters involve claims for substantial amounts. The Company’s experience has shown that the damages alleged by plaintiffs or claimants are often overstated, based on novel or unsubstantiated legal theories, unsupported by the facts, and/or bear no relation to the ultimate award that a court might grant. Additionally, the outcome of litigation and regulatory matters and the timing of ultimate resolution are inherently difficult to predict. Because of these factors, the Company typically cannot provide a meaningful estimate of the range of reasonably possible outcomes of claims in the aggregate or by individual claim. On a case-by-case basis, however, reserves are established for those legal claims in which it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. In no cases are those accrual amounts material to the financial condition of the Company. The actual costs of resolving these claims may be substantially higher or lower than the amounts reserved.
For a limited number of legal matters in which the Company is involved, the Company is able to estimate a range of reasonably possible losses. For other matters for which a loss is probable or reasonably possible, such an estimate is not possible. For those matters where a loss is both estimable and reasonably possible, management currently estimates the aggregate range of reasonably possible losses as $0 to $300 million in excess of the accrued liability, if any, related to those matters. This estimated range of reasonably possible losses represents the estimated possible losses over the life of such legal matters, which may span a currently indeterminable number of years, and is based on information currently available as of June 30, 2012. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from this estimate. Those matters for which an estimate is not possible are not included within this estimated range; therefore, this estimated range does not represent the Company’s maximum loss exposure. Based on current knowledge, it is the opinion of management that liabilities arising from legal claims in excess of the amounts currently accrued, if any, will not have a material impact to the Company’s financial condition, results of operations, or cash flows. However, in light of the significant uncertainties involved in these matters, and the large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to the Company’s results or cash flows for any given reporting period.
The following is a description of certain litigation and regulatory matters.
Interchange and Related Litigation
Card Association Antitrust Litigation
The Company is a defendant, along with Visa U.S.A. and MasterCard International, as well as several other banks, in one of several antitrust lawsuits challenging their practices. For a discussion regarding the Company’s involvement in this litigation matter, refer to Note 11, “Reinsurance Arrangements and Guarantees.”

In re ATM Fee Antitrust Litigation
The Company is a defendant in a number of antitrust actions that have been consolidated in federal court in San Francisco, California under the name In re ATM Fee Antitrust Litigation, Master File No. C04-2676 CR13. In these actions, Plaintiffs, on behalf of a class, assert that Concord EFS and a number of financial institutions have unlawfully fixed the interchange fee for participants in the Star ATM Network. Plaintiffs claim that Defendants’ conduct is illegal under Section 1 of the Sherman Act. Plaintiffs initially asserted the Defendants’ conduct was illegal per se. In August 2007, Concord and the bank defendants filed motions for summary judgment on Plaintiffs’ per se claim. In March 2008, the Court granted the motions on the ground that Defendants’ conduct in setting an interchange fee must be analyzed under the rule of reason. The Court certified this question for interlocutory appeal, and the Court of Appeals for the Ninth Circuit rejected Plaintiffs’ petition for permission to appeal on August 13, 2008. Plaintiffs subsequently filed a Second Amended Complaint in which they asserted a rule of reason claim. This complaint was dismissed by the Court as well, but Plaintiffs were given leave to file another amended complaint. Plaintiffs filed yet another complaint and Defendants moved to dismiss the same. The Court granted this motion in part by dismissing one of the Plaintiffs two claims-–but denied the motion as to one claim. On September 16, 2010, the Court granted the Defendants’ motion for summary judgment as to the remaining claim on the grounds that Plaintiffs lack standing to assert that claim. Plaintiffs filed an appeal of this decision with the Ninth Circuit Court of Appeals and the Ninth Circuit recently affirmed the District Court's decision.

Overdraft Fee Cases
The Company has been named as a defendant in three putative class actions relating to the imposition of overdraft fees on customer accounts. The first such case, Buffington et al. v. SunTrust Banks, Inc. et al. was filed in Fulton County Superior Court on May 6, 2009. This action was removed to the U.S. District Court for the Northern District of Georgia, Atlanta Division on June 10, 2009, and was transferred to the U.S. District Court for the Southern District of Florida for inclusion in Multi-District Litigation Case No. 2036 on December 1, 2009. Plaintiffs assert claims for breach of contract, conversion, unconscionability, and unjust enrichment for alleged injuries they suffered as a result of the method of posting order used by the Company, which allegedly resulted in overdraft fees being assessed to their joint checking account, and purport to bring their action on behalf of a putative class of “all SunTrust Bank account holders who incurred an overdraft charge despite their account having a sufficient balance of actual funds to cover all debits that have been submitted to the bank for payment,” as well as “all SunTrust account holders who incurred one or more overdraft charges based on SunTrust Bank’s reordering of charges.” Plaintiffs seek restitution, damages, expenses of litigation, attorneys’ fees, and other relief deemed equitable by the Court. The Company filed a Motion to Dismiss and Motion to Compel Arbitration and both motions were denied. The denial of the motion to compel arbitration was appealed to the Eleventh Circuit Court of Appeals. The Eleventh Circuit remanded this matter back to the District Court with instructions to the District Court to review its prior ruling in light of the Supreme Court’s decision in AT&T Mobility LLC v. Concepcion. The District Court then denied SunTrust's motion to compel arbitration for different reasons. SunTrust appealed this decision to the Eleventh Circuit and, on March 1, 2012, the Eleventh Circuit reversed the District Court's decision and ordered that SunTrust's Motion to Compel Arbitration be granted. Plaintiffs have filed a Petition for Rehearing or Rehearing En Banc, which was denied.
The second of these cases, Bickerstaff v. SunTrust Bank, was filed in the Fulton County State Court on July 12, 2010 and an amended complaint was filed on August 9, 2010. Plaintiff asserts that all overdraft fees charged to his account which related to debit card and ATM transactions are actually interest charges and therefore subject to the usury laws of Georgia. Plaintiff has brought claims for violations of civil and criminal usury laws, conversion, and money had and received, and purports to bring the action on behalf of all Georgia citizens who have incurred such overdraft fees within the last four years where the overdraft fee resulted in an interest rate being charged in excess of the usury rate. SunTrust has filed a motion to compel arbitration. On March 16, 2012, the Court entered an order holding that SunTrust's arbitration provision is enforceable but that the named plaintiff in the case had opted out of that provision pursuant to its terms. The court explicitly stated that it was not ruling at that time on the question of whether the named plaintiff could proceed with the case as a class rather than as an individual action. SunTrust has filed an appeal of this decision.
The third of these cases, Byrd v. SunTrust Bank, was filed on April 23, 2012 in the United States District Court for the Western District of Tennessee. This case is substantially similar to the Bickerstaff matter described above. SunTrust has filed a Motion to Compel Arbitration.

SunTrust Mortgage, Inc. v. United Guaranty Residential Insurance Company of North Carolina
STM filed a suit in the Eastern District of Virginia in July of 2009 against United Guaranty Residential Insurance Company of North Carolina (“UGRIC”) seeking payment involving denied mortgage insurance claims regarding second lien mortgages. STM’s claims are in two counts. Count One involves a common reason for denial of claims by UGRIC for a group of loans. Count Two involves a group of loans with individualized reasons for the claim denials asserted by UGRIC. The two counts filed by STM have been bifurcated for trial purposes. UGRIC has counterclaimed for declaratory relief involving interpretation of the insurance policy involving certain caps on the amount of claims covered, whether ongoing premium obligations exist after any caps are met, and the potential to accelerate any premiums that may be owed if UGRIC prevails on its counterclaim. UGRIC later disclaimed its argument for acceleration of premiums. The Court granted STM’s motion for summary judgment as to liability on Count One and, after a trial on damages, awarded STM $34 million along with $6 million in prejudgment interest on August 19, 2011. Count Two has been stayed pending final resolution of Count One. On September 13, 2011, the Court added $5 million to the judgment involving STM's claims for fees on certain issues. On UGRIC’s counterclaim, the Court agreed that UGRIC’s interpretation was correct regarding STM’s continued obligations to pay premiums in the future after coverage caps are met. However, on August 19, 2011, the Court found for STM on its affirmative defense that UGRIC can no longer enforce the contract due to its prior breaches, and consequently, denied UGRIC's request for a declaration that it was entitled to continue to collect premiums after caps are met. UGRIC has filed an appeal of the Court's rulings.

Lehman Brothers Holdings, Inc. Litigation
Beginning in October 2008, STRH, along with other underwriters and individuals, were named as defendants in several individual and putative class action complaints filed in the U.S. District Court for the Southern District of New York and state and federal courts in Arkansas, California, Texas and Washington. Plaintiffs allege violations of Sections 11 and 12 of the Securities Act of 1933 for allegedly false and misleading disclosures in connection with various debt and preferred stock offerings of Lehman Brothers Holdings, Inc. ("Lehman Brothers") and seek unspecified damages. All cases have now been transferred for coordination to the multi-district litigation captioned In re Lehman Brothers Equity/Debt Securities Litigation pending in the U.S. District Court for the Southern District of New York. Defendants filed a motion to dismiss all claims asserted in the class action. On July 27, 2011, the District Court granted in part and denied in part the motion to dismiss the class claims against STRH and the other underwriter defendants. A settlement with the class plaintiffs was approved by the Court on December 15, 2011. The class notice and opt-out process is complete and the class settlement approval process has been completed. A number of individual lawsuits and smaller putative class actions remain pending and will move forward, each on its own schedule. Motions to dismiss are pending in each of these cases.

SunTrust Securities Class Action Litigation
Beginning in May 2009, the Company, STRH, SunTrust Capital IX, officers and directors of the Company, and others were named in three putative class actions arising out of the offer and sale of approximately $690 million of SunTrust Capital IX 7.875% Trust Preferred Securities (“TRUPs”) of SunTrust Banks, Inc. The complaints alleged, among other things, that the relevant registration statement and accompanying prospectus misrepresented or omitted material facts regarding the Company’s allowance for loan and lease loss reserves, the Company’s capital position, and its internal risk controls. Plaintiffs seek to recover alleged losses in connection with their investment in the TRUPs or to rescind their purchases of the TRUPs. These cases were consolidated under the caption Belmont Holdings Corp., et al., v. SunTrust Banks, Inc., et al., in the U.S. District Court for the Northern District of Georgia, Atlanta Division, and on November 30, 2009, a consolidated amended complaint was filed. On January 29, 2010, Defendants filed a motion to dismiss the consolidated amended complaint. This motion was granted, with leave to amend, on September 10, 2010. On October 8, 2010, the lead plaintiff filed an amended complaint in an attempt to address the pleading deficiencies identified in the Court’s dismissal decision. The Company filed a motion to dismiss the amended complaint on March 21, 2011. The District Court denied the motion to dismiss as to Plaintiff's claims that the Company misrepresented the adequacy of its loan loss reserves for 2007 but dismissed all other claims against the Company and limited discovery in the initial stages of the case to the question of SunTrust's subjective belief as to the adequacy of those reserves at the time of the offering. SunTrust subsequently filed a motion for reconsideration of this decision and a motion to stay discovery pending resolution of that motion. The Court granted the motion to stay and the parties are awaiting a decision on the motion for reconsideration.

SunTrust Shareholder Derivative Litigation
On September 9, 2011, the Company and several current and former executives and members of the Board were named in a shareholder derivative action filed in the Superior Court of Fulton County, Georgia, Sharon Benfield v. James M. Wells, III. et al., and on December 19, 2011, the Company and several current and former executives and members of the Board were named as defendants in a separate shareholder derivative action filed in the U.S. District Court for the Northern District of Georgia, Edward Mannato v. James M. Wells, III, et al. The plaintiffs in both of these lawsuits purport to bring their claims on behalf of and for the benefit of the Company. Generally, these lawsuits are substantially overlapping and make very broad allegations of mis-management of, and mis-representations about, the Company's exposure to loan losses and the residential real estate market leading up to and during the recent real estate and credit market crises. In both cases, the plaintiffs assert causes of action for breach of fiduciary duty, waste of corporate assets, and unjust enrichment. The Mannato lawsuit arises out of a shareholder demand made of SunTrust in March 2008 that was the subject of an investigation conducted at the direction of a committee of independent members of the Company's Board. This committee concluded that no wrongdoing had occurred and that the interests of the Company's shareholders would not be served by pursuing the claims alleged in the plaintiff's demand. The Benfield lawsuit arises out of a shareholder demand made of SunTrust in February 2011 that was the subject of an investigation conducted at the direction of the same Board committee. This committee recently concluded that no wrongdoing had occurred and that the interests of the Company's shareholders would not be served by pursuing the claims alleged in the plaintiff's demand. A motion to dismiss has been filed in this matter based, in part, on the committee's conclusions.

Colonial BancGroup Securities Litigation
Beginning in July 2009, STRH, certain other underwriters, The Colonial BancGroup, Inc. (“Colonial BancGroup”) and certain officers and directors of Colonial BancGroup were named as defendants in a putative class action filed in the U.S. District Court for the Middle District of Alabama, Northern District entitled In re Colonial BancGroup, Inc. Securities Litigation. The complaint was brought by purchasers of certain debt and equity securities of Colonial BancGroup and seeks unspecified damages. Plaintiffs allege violations of Sections 11 and 12 of the Securities Act of 1933 due to allegedly false and misleading disclosures in the relevant registration statement and prospectus relating to Colonial BancGroup’s goodwill impairment, mortgage underwriting standards, and credit quality. On August 28, 2009, The Colonial BancGroup filed for bankruptcy. The defendants’ motion to dismiss was denied in May 2010, but the Court subsequently has ordered Plaintiffs to file an amended complaint. This amended complaint has been filed and the defendants have filed a motion to dismiss.

U.S. Department of Justice Investigation
Since late 2009, STM has been cooperating with the United States Department of Justice (“USDOJ”) in connection with an investigation relating to alleged violations of the Equal Credit Opportunity Act and the Fair Housing Act. USDOJ’s allegations in this matter relate solely to prior periods and to alleged practices of STM that no longer are in effect. The parties have reached an agreement as to the terms of a Consent Order in this matter and USDOJ filed a lawsuit in May 2012, and contemporaneously submitted this Consent Order to the Court, in the United States District Court for the Eastern District of Virginia. This agreement is still subject to approval by the Court.

Consent Order with the Federal Reserve
On April 13, 2011 SunTrust Banks, Inc., SunTrust Bank, and STM entered into a Consent Order with the Federal Reserve in which SunTrust Banks, Inc., SunTrust Bank, and STM agreed to strengthen oversight of and improve risk management, internal audit, and compliance programs concerning the residential mortgage loan servicing, loss mitigation, and foreclosure activities of STM. Under the terms of the Consent Order, SunTrust Bank and STM also agreed to retain an independent consultant to conduct a review of residential foreclosure actions pending at any time during the period from January 1, 2009 through December 31, 2010 for loans serviced by STM, to identify any errors, misrepresentations, or deficiencies, determine whether any instances so identified resulted in financial injury, and prepare a written report detailing the findings. Additionally, borrowers who had a residential foreclosure action pending during this two year review period have been solicited through advertising and direct mailings to request a review by the independent consultant of their case if they believe they incurred a financial injury as a result of errors, misrepresentations, or other deficiencies in the foreclosure process. A direct mail solicitation was completed on November 28, 2011. The deadline for submitting requests for review has been extended to September 30, 2012. Reviews by the independent consultant are currently underway. In addition, the Company is also required to engage an independent third party consultant to prepare a validation report with respect to compliance with the Consent Order. Under the terms of the Consent Order, SunTrust Bank and STM also agreed, among other things, to: (a) strengthen the coordination of communications between borrowers and STM concerning ongoing loss mitigation and foreclosure activities; (b) submit a plan to enhance processes for oversight and management of third party vendors used in connection with residential mortgage servicing, loss mitigation and foreclosure activities; (c) enhance and strengthen the enterprise-wide compliance program with respect to oversight of residential mortgage loan servicing, loss mitigation and foreclosure activities; (d) ensure appropriate oversight of STM’s activities with respect to Mortgage Electronic Registration System; (e) review and remediate, if necessary, STM’s management information systems for its residential mortgage loan servicing, loss mitigation, and foreclosure activities; (f) improve the training of STM officers and staff concerning applicable law, supervisory guidance and internal procedures concerning residential mortgage loan servicing, loss mitigation and foreclosure activities, including the single point of contact for foreclosure and loss mitigation; (g) retain an independent consultant to conduct a comprehensive assessment of STM's risks, including, but not limited to, operational, compliance, transaction, legal, and reputational risks particularly in the areas of residential mortgage loan servicing, loss mitigation and foreclosure; (h) enhance and strengthen the enterprise-wide risk management program with respect to oversight of residential mortgage loan servicing, loss mitigation and foreclosure activities; and (i) enhance and strengthen the internal audit program with respect to residential loan servicing, loss mitigation and foreclosure activities. The comprehensive third party risk assessment was completed in August 2011, and the Company continues implementation of recommended enhancements. All of the action plans designed to complete the above enhancements were accepted by the Federal Reserve and are currently in implementation. Redacted versions of the action plans and the Company's engagement letter with the independent consultant are available on the Federal Reserve's website. The full text of the Consent Order is available on the Federal Reserve’s website and was filed as Exhibit 10.25 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.
The Company completed an internal review of STM’s residential foreclosure processes, and as a result of the review, steps have been taken and continue to be taken, to improve upon those processes. As discussed above, the Consent Order requires the Company to retain an independent consultant to conduct a review of residential foreclosure actions pending during 2009 and 2010. The Company is currently incurring the costs associated with the Consent Order required foreclosure file review. Until the independent foreclosure review has been finalized, the Company is unable to accurately estimate the amount of additional costs for remediation payments and program administration, however costs may increase from current levels. On June 21, 2012, the OCC and the Federal Reserve released guidance that will be used in determining the compensation or other remedy that borrowers will receive for financial injury identified during the independent foreclosure review. Under the guidance, remediation for injuries may include lump-sum payments, suspension or rescission of a foreclosure, a loan modification or other loss mitigation assistance, correction of credit reports, or correction of deficiency amounts and records. For each instance requiring financial remediation, lump-sum payments can range from $500 to, in the most egregious cases, $125,000 plus an amount equal to the equity in the home. As a result of the Federal Reserve’s review of the Company’s residential mortgage loan servicing and foreclosure processing practices that preceded the Consent Order, the Federal Reserve announced that it would impose a civil money penalty. At this time, no such penalty has been imposed, and the amount and terms of such a potential penalty have not been finally determined. The Company's accrual for expected costs related to a potential settlement with the U.S. and the States Attorneys General regarding certain mortgage servicing claims (which is discussed below at "United States and States Attorneys General Mortgage Servicing Claims") includes the expected incremental costs (if any) of a civil money penalty relating to the Consent Order.

A Financial Guaranty Insurance Company
The Company is engaged in settlement negotiations with a financial guaranty insurance company relating to second lien mortgage loan repurchase claims for a securitization that the financial guaranty insurance company guaranteed under an insurance policy. The financial guaranty insurance company’s allegations in this matter generally are that it has paid claims as a result of defaults in the underlying loans and that some of these losses are the result of breaches of representations and warranties made in the documents governing the transaction in question.

Putative ERISA Class Actions
Company Stock Class Action
Beginning in July 2008, the Company, officers and directors of the Company, and certain other Company employees were named in a putative class action alleging that they breached their fiduciary duties under ERISA by offering the Company's common stock as an investment option in the SunTrust Banks, Inc. 401(k) Plan (the “Plan”). The plaintiffs purport to represent all current and former Plan participants who held the Company stock in their Plan accounts from May 2007 to the present and seek to recover alleged losses these participants supposedly incurred as a result of their investment in Company stock.
The Company Stock Class Action was originally filed in the U.S. District Court for the Southern District of Florida, but was transferred to the U.S. District Court for the Northern District of Georgia, Atlanta Division, (the “District Court”) in November 2008.
On October 26, 2009, an amended complaint was filed. On December 9, 2009, defendants filed a motion to dismiss the amended complaint. On October 25, 2010, the District Court granted in part and denied in part defendants' motion to dismiss the amended complaint. Defendants and plaintiffs filed separate motions for the District Court to certify its October 25, 2010 order for immediate interlocutory appeal. On January 3, 2011, the District Court granted both motions.
On January 13, 2011, defendants and plaintiffs filed separate petitions seeking permission to pursue interlocutory appeals with the U.S. Court of Appeals for the Eleventh Circuit (“the Circuit Court”). On April 14, 2011, the Circuit Court granted defendants and plaintiffs permission to pursue interlocutory review in separate appeals. The Circuit Court subsequently stayed these appeals pending decision of a separate appeal involving The Home Depot in which substantially similar issues are presented. On May 8, 2012, the Circuit Court decided this appeal in favor of The Home Depot. We await further direction from the Circuit Court.

Mutual Funds Class Action
On March 11, 2011, the Company, officers and directors of the Company, and certain other Company employees were named in a putative class action alleging that they breached their fiduciary duties under ERISA by offering certain STI Classic Mutual Funds as investment options in the Plan. The plaintiff purports to represent all current and former Plan participants who held the STI Classic Mutual Funds in their Plan accounts from April 2002 through December 2010 and seeks to recover alleged losses these Plan participants supposedly incurred as a result of their investment in the STI Classic Mutual Funds.
The Affiliated Funds Class Action is pending in the U.S. District Court for the Northern District of Georgia, Atlanta Division (the “District Court”). On June 6, 2011, plaintiff filed an amended complaint, and, on June 20, 2011, defendants filed a motion to dismiss the amended complaint. On March 12, 2012, the Court granted in part and denied in part the motion to dismiss. The Company believes that based on the Court's Order, the Court lacks subject matter jurisdiction over the plaintiff's remaining claims and has filed a motion to dismiss the remainder of the case on this ground.

Metropolitan Bank Group, Inc. v. SunTrust Robinson Humphrey, Inc.
On March 8, 2011, STRH was served with a notice of claim initiating a FINRA arbitration against the Company and one employee by Metropolitan Bank Group, Inc. In this case, the plaintiff alleges that it purchased approximately $80 million in preferred securities through STRH on which it suffered significant losses. The plaintiff alleges that it subsequently was informed by its primary regulator that it was not permitted to own certain of these securities and that STRH was or should have been aware of that fact. The plaintiff also alleges that certain of the securities in question were not suitable for it because they were too risky. The plaintiff has asserted causes of action for negligence, breach of fiduciary duty, and violation of FINRA rules. The arbitration hearing in this case is scheduled for August 2012.

SunTrust Mortgage Reinsurance Class Actions
STM and Twin Rivers Insurance Company ("Twin Rivers") have been named as defendants in two putative class actions alleging that the companies entered into illegal “captive reinsurance” arrangements with private mortgage insurers. More specifically, plaintiffs allege that SunTrust’s selection of private mortgage insurers who agree to reinsure loans referred to them by SunTrust with Twin Rivers results in illegal “kickbacks” in the form of the insurance premiums paid to Twin Rivers. Plaintiffs contend that this arrangement violates the Real Estate Settlement Procedures Act (“RESPA”) and results in unjust enrichment to the detriment of borrowers. The first of these cases, Thurmond, Christopher, et al. v. SunTrust Banks, Inc. et al., was filed in February 2011 in the U.S. District Court for the Eastern District of Pennsylvania. This case was stayed by the Court pending the outcome of Edwards v. First American Financial Corporation, a captive reinsurance case currently pending before the U.S. Supreme Court at the time. The second of these cases, Acosta, Lemuel & Maria Ventrella et al. v. SunTrust Bank, SunTrust Mortgage, Inc., et al., was filed in the U.S. District Court for the Central District of California in December 2011. This case was stayed pending a decision in the Edwards case also. The U.S. Supreme Court recently withdrew its grant of cert. in Edwards and, as a result, the Company expects that the stays in these cases will be lifted. A motion to dismiss already has been filed in Thurmond and the Company intends to file a similar motion in Acosta.

United States and States Attorneys General Mortgage Servicing Claims
In January, 2012, the Company commenced discussions related to a mortgage servicing settlement with the U.S., through the Department of Justice, and Attorneys General for several states regarding various potential claims relating to the Company's mortgage servicing activities. While these discussions are in the preliminary stages and the Company has not reached any agreement with such parties, the Company estimates that the cost of resolving these and potential similar claims, including the costs of such a settlement, borrower-specific actions, and/or legal matters to defend such claims if they are not settled, will be approximately $120 million, pre-tax, ($81 million, after-tax), and the Company accrued this expense in its 2011 financial results.

False Claim Act Litigation
SunTrust Mortgage is a defendant in a qui tam lawsuit brought in the U.S. District Court for the Northern District of Georgia under the federal False Claims Act, United States ex rel. Bibby & Donnelly v. Wells Fargo, et al. This lawsuit originally was filed under seal, but the second amended complaint was unsealed by the District Court in October 2011. The plaintiffs, who allege that they are officers of a mortgage broker, allege that numerous mortgage originators, including SunTrust Mortgage, made false statements to the U.S. Department of Veterans Affairs in order to obtain loan guarantees by the VA under its Interest Rate Reduction Refinancing Loans ("IRRRL") program. Plaintiffs allege that the mortgage originators charged fees in connection with these loans that were not permitted under the IRRRL program and made false statements to the VA to the effect that the loans complied with all applicable regulations or program requirements. According to Plaintiffs, by doing so, the originators caused the VA to pay, among other costs, amounts to honor the loan guarantees to which they were not entitled. Plaintiffs have sued on their own behalf and on behalf of the U.S., and seek, among other things, unspecified damages equal to the loss that SunTrust Mortgage allegedly caused the U.S. (trebled under the False Claims Act), statutory civil penalties of between $5,500 and $11,000 per violation, injunctive relief, and attorneys' fees. To date, the U.S. has not joined in the prosecution of this action. SunTrust Mortgage and other defendants have filed motions to dismiss.

HUD Investigation
On April 25, 2012, the Company was informed of the commencement of an investigation by the HUD relating generally to origination practices for FHA loans. The Company is cooperating with the investigation.
Business Segment Reporting
Business Segment Reporting
NOTE 14 - BUSINESS SEGMENT REPORTING

The Company has three business segments used to measure business activity: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking, with the remainder in Corporate Other. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by management. The segment structure was revised during the first quarter of 2012 from the six segments the Company utilized during 2011. The revised segment structure was in conjunction with organizational changes made throughout the Company that were announced during the fourth quarter of 2011 and implemented in the first quarter of 2012. The following is a description of the new segments and their composition.

The Consumer Banking and Private Wealth Management segment is made up of two primary businesses: Consumer Banking and Private Wealth Management.

•
Consumer Banking provides services to consumers through an extensive network of traditional and in-store branches, ATMs, the internet (www.suntrust.com), and telephone (1-800-SUNTRUST). Financial products and services offered to consumers include consumer deposits, home equity lines, consumer lines, indirect auto, student lending, bank card, and other consumer loan and fee-based products. Consumer Banking also serves as an entry point for clients and provides services for other lines of business.

•
The Private Wealth Management business provides a full array of wealth management products and professional services to both individual and institutional clients including brokerage, professional investment management, and trust services to clients seeking active management of their financial resources. Private Wealth Management's primary businesses include Private Banking, STIS and IIS. Private Banking offers a full array of loan and deposit products to clients. STIS offers discount/online and full service brokerage services to individual clients. IIS includes Employee Benefit Solutions, Foundations & Endowments Specialty Group, and Escrow Services.

The Wholesale Banking segment includes the following six businesses:

•
CIB offers a wide array of traditional banking products (lending and treasury management services) and investment banking services. CIB serves clients in the large, middle corporate and commercial markets. The Corporate Banking Group generally serves clients with greater than $750 million in annual revenues and is focused on selected industry sectors: consumer and retail energy, financial services and technology, healthcare, and media and communications. The Middle Market Group generally serves clients with annual revenue ranging from $100 million to $750 million. Comprehensive investment banking products and services are provided by STRH to clients in both Wholesale Banking and Private Wealth Management, including strategic advice, raising capital, and financial risk management. 

•
Diversified Commercial Banking offers an array of traditional banking products and investment banking services as needed for the Company's small business clients, commercial clients, dealer services (financing dealer floor plan inventories), not-for-profit and government entities, and insurance premium financing through Premium Assignment Corporation.

•
Commercial Real Estate provides financial solutions for commercial real estate developers and investors, including construction, mini-perm, and permanent real estate financing, as well as tailored financing and equity investment solutions for community development and affordable housing projects delivered through SunTrust Community Capital. Leasing, offering equipment lease financing solutions, is also managed within this segment.

•
GenSpring provides family office solutions to ultra high net worth individuals and their families. Utilizing teams of multi-disciplinary specialists with expertise in investments, tax, accounting, estate planning and other wealth management disciplines, GenSpring helps families manage and sustain their wealth across multiple generations. 

•
RidgeWorth, an SEC registered investment advisor, serves as investment manager for the RidgeWorth Funds as well as individual clients. RidgeWorth is also a holding company with ownership in other institutional asset management boutiques offering a wide array of equity and fixed income capabilities.  These boutiques include Ceredex Value Advisors, Certium Asset Management, Seix Investment Advisors, Silvant Capital Management, StableRiver Capital Management, and Zevenbergen Capital Investments.

•
Treasury & Payment Solutions provides all SunTrust business clients with services required to manage their payments and receipts, and the ability to manage and optimize their deposits across all aspects of their business. Treasury & Payment Solutions operates all electronic and paper payment types, including card, wire transfer, ACH, check and cash, while providing clients the means to manage their accounts electronically online both domestically and internationally.

The Mortgage Banking segment offers residential mortgage products nationally through its retail, broker, and correspondent channels, as well as via the internet (www.suntrust.com) and by telephone (1-800-SUNTRUST). These products are either sold in the secondary market, primarily with servicing rights retained, or held in the Company's loan portfolio. The line of business services loans for itself, for other SunTrust lines of business, and for other investors. The line of business also includes ValuTree Real Estate Services, LLC, a tax service subsidiary.

Corporate Other includes management of the Company's investment securities portfolio, long-term debt, end user derivative instruments, short-term liquidity and funding activities, balance sheet risk management, and most real estate assets. Other components include Enterprise Information Services, which is the primary information technology and operations group; the Corporate Real Estate group, Marketing, SunTrust Online, Human Resources, Finance, Corporate Risk Management, Legal and Compliance, Branch Operations, Communications, Procurement, and Executive Management.
Because the business segment results are presented based on management accounting practices, the transition to the consolidated results, which are prepared under U.S. GAAP, creates certain differences which are reflected in Reconciling Items.
For business segment reporting purposes, the basis of presentation in the accompanying discussion includes the following:
•
Net interest income – All net interest income is presented on a FTE basis. The revenue gross-up has been applied to tax-exempt loans and investments to make them comparable to other taxable products. The segments have also been matched maturity funds transfer priced, generating credits or charges based on the economic value or cost created by the assets and liabilities of each segment. The mismatch between funds credits and funds charges at the segment level resides in Reconciling Items. The change in the matched maturity funds mismatch is generally attributable to corporate balance sheet management strategies.
•
Provision for credit losses - Represents net charge-offs by segment. The difference between the segment net charge-offs and the consolidated provision for credit losses is reported in Reconciling Items.
•
Provision/(benefit) for income taxes - Calculated using a nominal income tax rate for each segment. This calculation includes the impact of various income adjustments, such as the reversal of the FTE gross up on tax-exempt assets, tax adjustments, and credits that are unique to each business segment. The difference between the calculated provision/(benefit) for income taxes at the segment level and the consolidated provision/(benefit) for income taxes is reported in Reconciling Items.
The segment’s financial performance is comprised of direct financial results as well as various allocations that for internal management reporting purposes provide an enhanced view of analyzing the segment’s financial performance. The internal allocations include the following:
•
Operational Costs – Expenses are charged to the segments based on various statistical volumes multiplied by activity based cost rates. As a result of the activity based costing process, planned residual expenses are also allocated to the segments. The recoveries for the majority of these costs are in the Corporate Other.
•
Support and Overhead Costs – Expenses not directly attributable to a specific segment are allocated based on various drivers (e.g., number of full-time equivalent employees and volume of loans and deposits). The recoveries for these allocations are in Corporate Other.
•
Sales and Referral Credits – Segments may compensate another segment for referring or selling certain products. The majority of the revenue resides in the segment where the product is ultimately managed.
The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affect the results disclosed for each segment with no impact on consolidated results. Whenever significant changes to management reporting methodologies take place, the impact of these changes is quantified and prior period information is reclassified wherever practicable.
 
Three Months Ended June 30, 2012
(Dollars in millions)
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Average total assets

$46,337

 

$64,603

 

$35,788

 

$29,414

 

$1,773

 

$177,915

Average total liabilities
78,107

 
53,209

 
4,347

 
21,960

 
(180
)
 
157,443

Average total equity
—

 
—

 
—

 
—

 
20,472

 
20,472

Net interest income

$630

 

$433

 

$131

 

$94

 

($14
)
 

$1,274

FTE adjustment
—

 
32

 
—

 
1

 
(1
)
 
32

Net interest income - FTE 1
630

 
465

 
131

 
95

 
(15
)
 
1,306

Provision for credit losses 2
118

 
67

 
165

 
—

 
(50
)
 
300

Net interest income/(loss) after provision for credit losses
512

 
398

 
(34
)
 
95

 
35

 
1,006

Total noninterest income
340

 
383

 
179

 
41

 
(3
)
 
940

Total noninterest expense
688

 
515

 
348

 
(3
)
 
(2
)
 
1,546

Income/(loss) before provision/(benefit) for income taxes
164

 
266

 
(203
)
 
139

 
34

 
400

Provision/(benefit) for income taxes 3
59

 
78

 
(83
)
 
54

 
15

 
123

Net income/(loss) including income attributable to noncontrolling interest
105

 
188

 
(120
)
 
85

 
19

 
277

Net income attributable to noncontrolling interest
—

 
—

 
—

 
3

 
(1
)
 
2

Net income/(loss)

$105

 

$188

 

($120
)
 

$82

 

$20

 

$275

 
 
 
 
 
 
 
 
 
 
 
 

 
Three Months Ended June 30, 2011
(Dollars in millions)
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Average total assets

$43,244

 

$62,255

 

$33,363

 

$31,281

 

$384

 

$170,527

Average total liabilities
77,718

 
54,932

 
3,427

 
14,927

 
14

 
151,018

Average total equity
—

 
—

 
—

 
—

 
19,509

 
19,509

Net interest income

$620

 

$399

 

$112

 

$119

 

$9

 

$1,259

FTE adjustment
—

 
26

 
—

 
2

 
(1
)
 
27

Net interest income - FTE 1
620

 
425

 
112

 
121

 
8

 
1,286

Provision for credit losses 2
177

 
175

 
153

 
—

 
(113
)
 
392

Net interest income/(loss) after provision for credit losses
443

 
250

 
(41
)
 
121

 
121

 
894

Total noninterest income
372

 
402

 
75

 
67

 
(4
)
 
912

Total noninterest expense
736

 
549

 
274

 
(14
)
 
(3
)
 
1,542

Income/(loss) before provision/(benefit) for income taxes
79

 
103

 
(240
)
 
202

 
120

 
264

Provision/(benefit) for income taxes 3
29

 
18

 
(93
)
 
84

 
47

 
85

Net income/(loss) including income attributable to noncontrolling interest
50

 
85

 
(147
)
 
118

 
73

 
179

Net income attributable to noncontrolling interest
—

 
(1
)
 
—

 
2

 
—

 
1

Net income/(loss)

$50

 

$86

 

($147
)
 

$116

 

$73

 

$178


1Net interest income is FTE and is presented on a matched maturity funds transfer price basis for the segments.
2Provision for credit losses represents net charge-offs for the segments.
3Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.


 
Six Months Ended June 30, 2012
(Dollars in millions)
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Average total assets

$46,222

 

$63,979

 

$35,512

 

$30,332

 

$1,340

 

$177,385

Average total liabilities
77,839

 
54,234

 
4,088

 
21,185

 
(325
)
 
157,021

Average total equity
—

 
—

 
—

 
—

 
20,364

 
20,364

Net interest income

$1,263

 

$862

 

$257

 

$220

 

($17
)
 

$2,585

FTE adjustment
—

 
61

 
—

 
2

 
—

 
63

Net interest income - FTE 1
1,263

 
923

 
257

 
222

 
(17
)
 
2,648

Provision for credit losses 2
272

 
168

 
331

 
—

 
(154
)
 
617

Net interest income/(loss) after provision for credit losses
991

 
755

 
(74
)
 
222

 
137

 
2,031

Total noninterest income
662

 
762

 
336

 
61

 
(5
)
 
1,816

Total noninterest expense
1,387

 
1,030

 
686

 
(11
)
 
(5
)
 
3,087

Income/(loss) before provision/(benefit) for income taxes
266

 
487

 
(424
)
 
294

 
137

 
760

Provision/(benefit) for income taxes 3
96

 
137

 
(170
)
 
103

 
57

 
223

Net income/(loss) including income attributable to noncontrolling interest
170

 
350

 
(254
)
 
191

 
80

 
537

Net income attributable to noncontrolling interest
—

 
8

 
—

 
5

 
(1
)
 
12

Net income/(loss)

$170

 

$342

 

($254
)
 

$186

 

$81

 

$525

 
 
 
 
 
 
 
 
 
 
 
 

 
Six Months Ended June 30, 2011
(Dollars in millions)
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Average total assets

$43,329

 

$61,772

 

$33,947

 

$31,082

 

$1,659

 

$171,789

Average total liabilities
77,283

 
54,468

 
3,559

 
15,202

 
(21
)
 
150,491

Average total equity
—

 
—

 
—

 
—

 
21,298

 
21,298

Net interest income

$1,239

 

$789

 

$232

 

$240

 

$8

 

$2,508

FTE adjustment
—

 
51

 
—

 
3

 
1

 
55

Net interest income - FTE 1
1,239

 
840

 
232

 
243

 
9

 
2,563

Provision for credit losses 2
379

 
321

 
376

 
—

 
(237
)
 
839

Net interest income/(loss) after provision for credit losses
860

 
519

 
(144
)
 
243

 
246

 
1,724

Total noninterest income
731

 
791

 
156

 
135

 
(18
)
 
1,795

Total noninterest expense
1,433

 
1,086

 
526

 
(19
)
 
(19
)
 
3,007

Income/(loss) before provision/(benefit) for income taxes
158

 
224

 
(514
)
 
397

 
247

 
512

Provision/(benefit) for income taxes 3
58

 
39

 
(199
)
 
150

 
98

 
146

Net income/(loss) including income attributable to noncontrolling interest
100

 
185

 
(315
)
 
247

 
149

 
366

Net income attributable to noncontrolling interest
—

 
4

 
—

 
5

 
(1
)
 
8

Net income/(loss)

$100

 

$181

 

($315
)
 

$242

 

$150

 

$358

  
1Net interest income is FTE and is presented on a matched maturity funds transfer price basis for the segments.
2Provision for credit losses represents net charge-offs for the segments.
3Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.
Significant Accounting Policies (Policies)
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] 
Basis of Presentation
The unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could vary from these estimates. Certain reclassifications have been made to prior period amounts to conform to the current period presentation.
The Company evaluated subsequent events through the date its financial statements were issued.
These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. Except for accounting policies that have been recently adopted as described below, there have been no significant changes to the Company’s accounting policies as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.
Accounting Policies Recently Adopted and Pending Accounting Pronouncements 
Accounting Policies Recently Adopted and Pending Accounting Pronouncements
In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” The primary purpose of the ASU was to conform the language in the fair value measurements guidance in U.S. GAAP and IFRS. The ASU also clarified how to apply existing fair value measurement and disclosure requirements. Further, the ASU required additional disclosures about transfers between level 1 and 2 of the fair value hierarchy, quantitative information for level 3 inputs, and the level of the fair value measurement hierarchy for items that are not measured at fair value in the statement of financial position but for which the fair value is required to be disclosed. The ASU was effective for the interim reporting period ending March 31, 2012. The Company adopted the standard as of January 1, 2012, and the required disclosures are included in Note 12, “Fair Value Election and Measurement.” The adoption did not impact the Company’s financial position, results of operations, or EPS.
In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income.” The ASU requires presentation of the components of comprehensive income in either a continuous statement of comprehensive income or two separate but consecutive statements. The update does not change the items presented in OCI and does not affect the calculation or reporting of EPS. In December 2011, the FASB issued ASU 2011-12, “Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassification of Items out of Accumulated Other Comprehensive Income in ASU 2011-05,” which deferred the effective date for the amendments to the reclassification of items out of AOCI. In June 2012, the FASB decided that the presentation requirements deferred in ASU 2011-12 would not be reinstated. The guidance, with the exception of reclassification adjustments, was effective on January 1, 2012 and must be applied retrospectively for all periods presented. The Company adopted the standard as of January 1, 2012, and the required disclosures are included in the Consolidated Statements of Comprehensive Income. The adoption did not impact the Company’s financial position, results of operations, or EPS.
In September 2011, the FASB issued ASU 2011-08, “Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment.” The ASU amends interim and annual goodwill impairment testing requirements such that an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The guidance was effective for annual and interim goodwill impairment tests beginning on or after January 1, 2012. The Company adopted the standard as of January 1, 2012 and has applied the guidance to interim goodwill impairment testing. The adoption did not have an impact on the Company's financial position, results of operations, or EPS.

In July 2012, the FASB issued ASU 2012-02, “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment."  The ASU permits entities to perform an optional qualitative assessment for determining whether it is more likely than not that an indefinite-lived intangible asset is impaired.  The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012.  The Company is evaluating the impact of the ASU; however, it is not expected to have a significant impact on the Company's financial position, results of operations, or EPS.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] 
The Company sponsors various short-term incentive and LTI plans for eligible employees. The Company delivers LTIs through various incentive programs, including stock options, RSUs, restricted stock, and LTI cash. Awards under the LTI cash plan generally cliff vest over a period of three years from the date of the award and are paid in cash. AIP is the Company's short-term cash incentive plan for key employees that provides for potential annual cash awards based on the Company's performance and/or the achievement of business unit and individual performance objectives. The Company's AIP plan includes a higher number of eligible employees that previously received compensation under other incentive plans, including MIP. Compensation expense for the AIP and LTI cash plans was $40 million and $32 million for the three months ended June 30, 2012 and 2011, respectively, and $77 million and $60 million for the six months ended June 30, 2012 and 2011, respectively.
Previously, TARP prohibited the payment of any bonus, incentive compensation or stock option award to the Company's five NEOs and certain other highly-compensated executives. As a result, beginning in January 2010, the Company paid additional base salary amounts in the form of stock (salary shares) to the NEOs and some of the other employees who were among the next 20 most highly-compensated employees. The Company did this each pay period in the form of stock units under the SunTrust Banks, Inc. 2009 Stock Plan (the "2009 Stock Plan") until the Company repaid TARP. The Company settled the stock units in cash; for the 2010 salary shares, one half was settled on March 31, 2011 and one half was settled on March 31, 2012. The 2011 salary shares were settled on March 30, 2011, the date the Company repaid the U.S. government's TARP investment. The amount paid upon settlement of the stock units was equal to the value of a share of SunTrust common stock on the settlement date. The value of salary shares paid was $4 million and $7 million in 2012 and 2011, respectively.

Stock-Based Compensation
The Company provides stock-based awards through the SunTrust Banks Inc. 2009 Stock Plan (as amended and restated effective January 1, 2011) under which the Compensation Committee of the Board of Directors has the authority to grant stock options, restricted stock, and RSUs to key employees of the Company, some of which may have performance or other conditions such as vesting tied to the Company's total shareholder return relative to a peer group or vesting tied to the achievement of a ROA target.
The Company granted 1,665,570 shares of restricted stock and 1,690,515 RSUs during the first six months of 2012. The weighted average grant-date fair value of these awards was $21.80 and $20.77 per share, respectively. The Company also granted 859,390 shares of stock options with a weighted average exercise price of $21.92. The fair value of options granted during the first six months of 2012 and 2011 was $7.83 and $10.97 per share, respectively. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model using the following assumptions:
Securities Available for Sale (Tables)
Securities Portfolio Composition 
 
June 30, 2012
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$214

 

$10

 

$—

 

$224

Federal agency securities
1,698

 
85

 
—

 
1,783

U.S. states and political subdivisions
359

 
19

 
6

 
372

MBS - agency
17,308

 
803

 
1

 
18,110

MBS - private
225

 
—

 
17

 
208

ABS
344

 
9

 
5

 
348

Corporate and other debt securities
42

 
3

 
—

 
45

Coke common stock
—

 
2,346

 
—

 
2,346

Other equity securities1
972

 
1

 
—

 
973

Total securities AFS

$21,162

 

$3,276

 

$29

 

$24,409

 
 
 
 
 
 
 
 
 
December 31, 2011
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$671

 

$23

 

$—

 

$694

Federal agency securities
1,843

 
89

 
—

 
1,932

U.S. states and political subdivisions
437

 
21

 
4

 
454

MBS - agency
20,480

 
743

 
—

 
21,223

MBS - private
252

 
—

 
31

 
221

CDO/CLO securities
50

 
—

 
—

 
50

ABS
460

 
11

 
7

 
464

Corporate and other debt securities
49

 
2

 
—

 
51

Coke common stock
—

 
2,099

 
—

 
2,099

Other equity securities1
928

 
1

 
—

 
929

Total securities AFS

$25,170

 

$2,989

 

$42

 

$28,117

1At June 30, 2012, other equity securities included the following securities at cost: $455 million in FHLB of Atlanta stock, $401 million in Federal Reserve Bank stock, and $116 million in mutual fund investments. At December 31, 2011, other equity securities included the following securities at cost: $342 million in FHLB of Atlanta stock, $398 million in Federal Reserve Bank stock, and $187 million in mutual fund investments.
Amortized Cost and Fair Value of Investments in Debt Securities by Estimated Average Life 
 
 
Distribution of Maturities
(Dollars in millions)
1 Year
or Less
 
1-5
Years
 
5-10
Years
 
After 10
Years
 
Total
Amortized Cost:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$12

 

$202

 

$—

 

$—

 

$214

Federal agency securities
117

 
1,372

 
95

 
114

 
1,698

U.S. states and political subdivisions
108

 
178

 
21

 
52

 
359

MBS - agency
901

 
14,304

 
1,827

 
276

 
17,308

MBS - private
—

 
136

 
89

 
—

 
225

ABS
123

 
152

 
2

 
67

 
344

Corporate and other debt securities
3

 
2

 
37

 
—

 
42

Total debt securities

$1,264

 

$16,346

 

$2,071

 

$509

 

$20,190

Fair Value:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$12

 

$212

 

$—

 

$—

 

$224

Federal agency securities
118

 
1,441

 
105

 
119

 
1,783

U.S. states and political subdivisions
111

 
191

 
21

 
49

 
372

MBS - agency
951

 
14,957

 
1,916

 
286

 
18,110

MBS - private
—

 
125

 
83

 
—

 
208

ABS
123

 
152

 
2

 
71

 
348

Corporate and other debt securities
3

 
2

 
40

 
—

 
45

Total debt securities

$1,318

 

$17,080

 

$2,167

 

$525

 

$21,090


Securities in a Continuous Unrealized Loss Position 

 
June 30, 2012
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized  
Losses
Temporarily impaired securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agency securities

$19

 

$—

 

$—

 

$—

 

$19

 

$—

U.S. states and political subdivisions
1

 
—

 
24

 
6

 
25

 
6

MBS - agency
12

 
1

 
1

 
—

 
13

 
1

ABS
—

 
—

 
12

 
3

 
12

 
3

Total temporarily impaired securities

32

 
1

 
37

 
9

 
69

 
10

Other-than-temporarily impaired securities1:
 
 
 
 
 
 
 
 
 
 
 
MBS - private
—

 
—

 
207

 
17

 
207

 
17

ABS
1

 
—

 
4

 
2

 
5

 
2

Total other-than-temporarily impaired securities
1

 
—

 
211

 
19

 
212

 
19

Total impaired securities

$33

 

$1

 

$248

 

$28

 

$281

 

$29

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2011
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
   Value   
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Temporarily impaired securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agency securities

$10

 

$—

 

$—

 

$—

 

$10

 

$—

U.S. states and political subdivisions
1

 
—

 
28

 
4

 
29

 
4

MBS - agency
224

 
—

 
1

 
—

 
225

 
—

CDO/CLO securities
50

 
—

 
—

 
—

 
50

 
—

ABS
—

 
—

 
11

 
5

 
11

 
5

Total temporarily impaired securities
285

 
—

 
40

 
9

 
325

 
9

Other-than-temporarily impaired securities1:
 
 
 
 
 
 
 
 
 
 
 
MBS - private
15

 
1

 
206

 
30

 
221

 
31

ABS
1

 
—

 
3

 
2

 
4

 
2

Total other-than-temporarily impaired securities
16

 
1

 
209

 
32

 
225

 
33

Total impaired securities

$301

 

$1

 

$249

 

$41

 

$550

 

$42

1Includes OTTI securities for which credit losses have been recorded in earnings in current or prior periods.
Gross Realized Gains and Losses on Sales and OTTI on Securities AFS 
 
Three Months Ended June 30
 
Six Months Ended June 30
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Gross realized gains

$16

 

$33

 

$36

 

$176

Gross realized losses
—

 
—

 
—

 
(78
)
OTTI
(2
)
 
(1
)
 
(4
)
 
(2
)
Net securities gains

$14

 

$32

 

$32

 

$96

Other Than Temporary Impairment Losses On Investment Securities [Table Text Block] 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2012
 
2011
 
2012
 
2011
(Dollars in millions)
MBS - Private
 
MBS - Private
 
MBS - Private
 
MBS - Private
OTTI1

$2

 

$1

 

$4

 

$2

Portion of losses recognized in OCI (before taxes)
—

 
—

 
—

 
—

Net impairment losses recognized in earnings

$2

 

$1

 

$4

 

$2

1 The initial OTTI amount represents the excess of the amortized cost over the fair value of AFS debt securities. For subsequent impairments of the same security, amount represents additional declines in the fair value subsequent to the previously recorded OTTI, if applicable, until such time the security is no longer in an unrealized loss position.
Rollforward of Credit Losses Recognized in Earnings Related to Securities 
 
Three Months Ended June 30
 
Six Months Ended June 30
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Balance, beginning of period

$27

 

$21

 

$25

 

$20

Additions:
 
 
 
 
 
 
 
OTTI credit losses on previously impaired securities
2

 
1

 
4

 
2

Reductions:
 
 
 
 
 
 
 
Increases in expected cash flows recognized over the remaining life of the securities
(1
)
 
(1
)
 
(1
)
 
(1
)
Balance, end of period

$28

 

$21

 

$28

 

$21


Measurement Of Investment Credit Losses Assumptions [Table Text Block] 
 
 
2012
 
2011
Default rate
2 - 6%
 
4 - 8%
Prepayment rate
7 - 21%
 
12 - 22%
Loss severity
47 - 56%
 
39 - 44%

Loans (Tables)
Composition of Loan Portfolio 
(Dollars in millions)
June 30,
2012
 
December 31,
2011
Commercial loans:
 
 
 
Commercial & industrial

$52,030

 

$49,538

Commercial real estate
4,825

 
5,094

Commercial construction
959

 
1,240

Total commercial loans
57,814

 
55,872

Residential loans:
 
 
 
Residential mortgages - guaranteed
5,663

 
6,672

Residential mortgages - nonguaranteed1
24,405

 
23,243

Home equity products
15,281

 
15,765

Residential construction
853

 
980

Total residential loans
46,202

 
46,660

Consumer loans:
 
 
 
Guaranteed student loans
7,248

 
7,199

Other direct
2,225

 
2,059

Indirect
10,506

 
10,165

Credit cards
565

 
540

Total consumer loans
20,544

 
19,963

LHFI

$124,560

 

$122,495

LHFS

$3,123

 

$2,353

1Includes $405 million and $431 million of loans carried at fair value at June 30, 2012 and December 31, 2011, respectively.
LHFI by Credit Quality Indicator 
 
Commercial & industrial
 
Commercial real estate
 
Commercial construction
(Dollars in millions)
June 30,
2012
 
December 31,
2011
 
June 30,
2012
 
December 31,
2011
 
June 30,
2012
 
December 31,
2011
Credit rating:
 
 
 
 
 
 
 
 
 
 
 
Pass

$50,130

 

$47,683

 

$3,836

 

$3,845

 

$581

 

$581

Criticized accruing
1,569

 
1,507

 
756

 
961

 
247

 
369

Criticized nonaccruing
331

 
348

 
233

 
288

 
131

 
290

Total

$52,030

 

$49,538

 

$4,825

 

$5,094

 

$959

 

$1,240

 
Residential mortgages -
   nonguaranteed 2
 
Home equity products
 
Residential construction
(Dollars in millions)
June 30,
2012
 
December 31,
2011
 
June 30,
2012
 
December 31,
2011
 
June 30,
2012
 
December 31,
2011
Current FICO score range:
 
 
 
 
 
 
 
 
 
 
 
700 and above

$17,567

 

$16,139

 

$11,583

 

$11,084

 

$613

 

$661

620 - 699
4,149

 
4,132

 
2,405

 
2,903

 
158

 
202

Below 6201
2,689

 
2,972

 
1,293

 
1,778

 
82

 
117

Total

$24,405

 

$23,243

 

$15,281

 

$15,765

 

$853

 

$980

 
Consumer - other direct
 
Consumer - indirect
 
Consumer - credit cards
(Dollars in millions)
June 30,
2012
 
December 31,
2011
 
June 30,
2012
 
December 31,
2011
 
June 30,
2012
 
December 31,
2011
Current FICO score range:
 
 
 
 
 
 
 
 
 
 
 
700 and above

$1,829

 

$1,614

 

$7,965

 

$7,397

 

$379

 

$347

620 - 699
325

 
359

 
1,886

 
1,990

 
142

 
142

Below 6201
71

 
86

 
655

 
778

 
44

 
51

Total

$2,225

 

$2,059

 

$10,506

 

$10,165

 

$565

 

$540

1For substantially all loans with refreshed FICO scores below 620, the borrower’s FICO score at the time of origination exceeded 620 but has since deteriorated as the loan has seasoned.
2Excludes $5.7 billion and $6.7 billion at June 30, 2012 and December 31, 2011, respectively, of guaranteed residential loans. At both June 30, 2012 and December 31, 2011, the majority of these loans had FICO scores of 700 and above.

Payment Status for the LHFI Portfolio 
 
As of June 30, 2012
(Dollars in millions)
Accruing
Current
 
Accruing
30-89 Days
Past Due
 
Accruing
90+ Days
Past Due
 
 Nonaccruing 2
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial

$51,600

 

$76

 

$23

 

$331

 

$52,030

Commercial real estate
4,582

 
8

 
2

 
233

 
4,825

Commercial construction
826

 
2

 
—

 
131

 
959

Total commercial loans
57,008

 
86

 
25

 
695

 
57,814

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - guaranteed
4,357

 
144

 
1,162

 
—

 
5,663

Residential mortgages - nonguaranteed1
22,834

 
255

 
30

 
1,286

 
24,405

Home equity products
14,828

 
151

 
—

 
302

 
15,281

Residential construction
691

 
7

 
1

 
154

 
853

Total residential loans
42,710

 
557

 
1,193

 
1,742

 
46,202

Consumer loans:
 
 
 
 
 
 
 
 
 
Guaranteed student loans
5,746

 
583

 
919

 
—

 
7,248

Other direct
2,201

 
14

 
6

 
4

 
2,225

Indirect
10,443

 
45

 
1

 
17

 
10,506

Credit cards
553

 
6

 
6

 
—

 
565

Total consumer loans
18,943

 
648

 
932

 
21

 
20,544

Total LHFI

$118,661

 

$1,291

 

$2,150

 

$2,458

 

$124,560

1Includes $405 million of loans carried at fair value.
2Total nonaccruing loans past due 90 days or more totaled $2.0 billion. Nonaccruing loans past due fewer than 90 days include modified nonaccrual loans reported as TDRs.
 


 
As of December 31, 2011
(Dollars in millions)
Accruing
Current
 
Accruing
30-89 Days
Past Due
 
Accruing
90+ Days
Past Due
 
 Nonaccruing 2
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial

$49,098

 

$80

 

$12

 

$348

 

$49,538

Commercial real estate
4,797

 
9

 
—

 
288

 
5,094

Commercial construction
943

 
7

 
—

 
290

 
1,240

Total commercial loans
54,838

 
96

 
12

 
926

 
55,872

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - guaranteed
5,394

 
176

 
1,102

 
—

 
6,672

Residential mortgages - nonguaranteed1
21,501

 
324

 
26

 
1,392

 
23,243

Home equity products
15,223

 
204

 
—

 
338

 
15,765

Residential construction
737

 
22

 
1

 
220

 
980

Total residential loans
42,855

 
726

 
1,129

 
1,950

 
46,660

Consumer loans:
 
 
 
 
 
 
 
 
 
Guaranteed student loans
5,690

 
640

 
869

 
—

 
7,199

Other direct
2,032

 
14

 
6

 
7

 
2,059

Indirect
10,074

 
66

 
5

 
20

 
10,165

Credit cards
526

 
7

 
7

 
—

 
540

Total consumer loans
18,322

 
727

 
887

 
27

 
19,963

Total LHFI

$116,015

 

$1,549

 

$2,028

 

$2,903

 

$122,495

1Includes $431 million of loans carried at fair value.
2Total nonaccruing loans past due 90 days or more totaled $2.3 billion. Nonaccruing loans past due fewer than 90 days include modified nonaccrual loans reported as TDRs.

LHFI Considered Impaired 
 
As of June 30, 2012
 
Three Months Ended
June 30, 2012
 
Six Months Ended
June 30, 2012
(Dollars in millions)
Unpaid
Principal
Balance
 
Amortized   
Cost1
 
Related
Allowance
 
Average
Amortized
Cost
 
Interest
Income
Recognized2
 
Average
Amortized
Cost
 
Interest
Income
Recognized2
Impaired loans with no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & industrial

$45

 

$37

 

$—

 

$37

 

$—

 

$38

 

$—

Commercial real estate
83

 
51

 
—

 
59

 
1

 
63

 
1

Commercial construction
28

 
17

 
—

 
28

 
—

 
32

 
—

Total commercial loans
156

 
105

 
—

 
124

 
1

 
133

 
1

Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & industrial
90

 
74

 
7

 
81

 
—

 
83

 
—

Commercial real estate
92

 
76

 
7

 
82

 
—

 
84

 
—

Commercial construction
68

 
63

 
4

 
66

 
—

 
67

 
1

Total commercial loans
250

 
213

 
18

 
229

 
—

 
234

 
1

Residential loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
2,659

 
2,255

 
238

 
2,255

 
20

 
2,260

 
42

Home equity products
577

 
534

 
92

 
535

 
7

 
539

 
13

Residential construction
274

 
227

 
25

 
232

 
3

 
237

 
5

Total residential loans
3,510

 
3,016

 
355

 
3,022

 
30

 
3,036

 
60

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Other direct
12

 
12

 
1

 
12

 
—

 
12

 
—

Indirect
14

 
14

 
—

 
14

 
1

 
15

 
1

Credit cards
25

 
25

 
7

 
25

 
—

 
26

 
1

Total consumer loans
51

 
51

 
8

 
51

 
1

 
53

 
2

Total impaired loans

$3,967

 

$3,385

 

$381

 

$3,426

 

$32

 

$3,456

 

$64

1Amortized cost reflects charge-offs that have been recognized plus other amounts that have been applied to reduce the net book balance.
2Of the interest income recognized for the three and six months ended June 30, 2012, cash basis interest income was $4 million and $8 million, respectively.
 
As of December 31, 2011
 
Year Ended December 31, 2011
(Dollars in millions)
Unpaid
Principal
Balance
 
Amortized
Cost1
 
Related
Allowance
 
Average
Amortized 
Cost
 
Interest
Income
Recognized2
Impaired loans with no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial

$93

 

$73

 

$—

 

$109

 

$3

Commercial real estate
58

 
50

 
—

 
56

 
1

Commercial construction
45

 
40

 
—

 
47

 
1

Total commercial loans
196

 
163

 
—

 
212

 
5

Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial
76

 
67

 
9

 
68

 
1

Commercial real estate
111

 
82

 
15

 
103

 
2

Commercial construction
132

 
100

 
10

 
121

 
2

Total commercial loans
319

 
249

 
34

 
292

 
5

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
2,797

 
2,405

 
293

 
2,451

 
88

Home equity products
553

 
515

 
86

 
528

 
23

Residential construction
246

 
221

 
26

 
229

 
8

Total residential loans
3,596

 
3,141

 
405

 
3,208

 
119

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
12

 
12

 
1

 
13

 
1

Credit cards
27

 
27

 
8

 
26

 
2

Total consumer loans
39

 
39

 
9

 
39

 
3

Total impaired loans

$4,150

 

$3,592

 

$448

 

$3,751

 

$132

1Amortized cost reflects charge-offs that have been recognized plus other amounts that have been applied to reduce net book balance.
2Of the interest income recognized for the year ended December 31, 2011, cash basis interest income was $25 million.
Nonperforming Assets 
(Dollars in millions)
June 30, 2012
 
December 31, 2011
Nonaccrual/NPLs:
 
 
 
Commercial loans:
 
 
 
Commercial & industrial

$331

 

$348

Commercial real estate
233

 
288

Commercial construction
131

 
290

Residential loans:
 
 
 
Residential mortgages - nonguaranteed
1,286

 
1,392

Home equity products
302

 
338

Residential construction
154

 
220

Consumer loans:
 
 
 
Other direct
4

 
7

Indirect
17

 
20

Total nonaccrual/NPLs
2,458

 
2,903

OREO1
331

 
479

Other repossessed assets
11

 
10

Total nonperforming assets

$2,800

 

$3,392

1Does not include foreclosed real estate related to loans insured by the FHA or the VA. Proceeds due from the FHA and the VA are recorded as a receivable in other assets until the funds are received and the property is conveyed. The receivable amount related to proceeds due from the FHA or the VA totaled $124 million and $132 million at June 30, 2012 and December 31, 2011, respectively.
Troubled Debt Restructurings on Financing Receivables [Table Text Block] 
 
Three Months Ended June 30, 2012
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 1
 
Rate
 Modification 2
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial
80
 

$—

 

$1

 

$3

 

$4

Commercial real estate
13
 
6

 
6

 
—

 
12

Commercial construction
5
 
1

 
—

 
10

 
11

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
199
 
—

 
21

 
—

 
21

Home equity products
457
 
—

 
33

 
2

 
35

Residential construction
140
 
—

 
1

 
20

 
21

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
27
 
—

 
—

 
1

 
1

Indirect
795
 
—

 
—

 
14

 
14

Credit cards
361
 
—

 
2

 
—

 
2

Total TDRs
2,077
 

$7

 

$64

 

$50

 

$121

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2012
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 1
 
Rate
 Modification 2
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial
183
 

$—

 

$2

 

$15

 

$17

Commercial real estate
23
 
12

 
7

 
2

 
21

Commercial construction
12
 
2

 
—

 
11

 
13

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
424
 
—

 
41

 
1

 
42

Home equity products
841
 
—

 
64

 
3

 
67

Residential construction
175
 
—

 
1

 
29

 
30

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
39
 
—

 
—

 
1

 
1

Indirect
795
 
—

 
—

 
14

 
14

Credit cards
863
 
—

 
5

 
—

 
5

Total TDRs
3,355
 

$14

 

$120

 

$76

 

$210

1Restructured loans which had forgiveness of amounts contractually due under the terms of the loan typically have had multiple concessions including rate modifications and/or term extensions. The total amount of charge-offs associated with principal forgiveness was $1 million during both the three and six months ended June 30, 2012.
2Restructured loans which had a modification of the loan's contractual interest rate may also have had an extension of the loan's contractual maturity date and/or other concessions. The financial effect of modifying the interest rate on the loans modified as a TDR was immaterial to the financial statements during the three and six months ended June 30, 2012.

 
Three Months Ended June 30, 2011
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 1
 
Rate
 Modification 2
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial
56
 

$19

 

$22

 

$3

 

$44

Commercial real estate
9
 
4

 
—

 
3

 
7

Commercial construction
8
 
3

 
—

 
31

 
34

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
258
 
—

 
61

 
5

 
66

Home equity products
398
 
—

 
31

 
—

 
31

Residential construction
27
 
—

 
5

 
1

 
6

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
11
 
—

 
—

 
1

 
1

Total TDRs
767
 

$26

 

$119

 

$44

 

$189

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2011
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 1
 
Rate
 Modification 2
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
Commercial & industrial
78
 

$27

 

$22

 

$8

 

$57

Commercial real estate
25
 
22

 
16

 
15

 
53

Commercial construction
82
 
27

 
2

 
41

 
70

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
528
 
—

 
142

 
8

 
150

Home equity products
743
 
—

 
62

 
—

 
62

Residential construction
50
 
—

 
10

 
1

 
11

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
51
 
—

 
—

 
2

 
2

Total TDRs
1,557
 

$76

 

$254

 

$75

 

$405


1Restructured loans which had forgiveness of amounts contractually due under the terms of the loan typically have had multiple concessions including rate modifications and/or term extensions. The total amount of charge-offs associated with principal forgiveness during the three and six months ended June 30, 2011 was $8 million and $9 million, respectively.
2Restructured loans which had a modification of the loan's contractual interest rate may also have had an extension of the loan's contractual maturity date and/or other concessions. The financial effect of modifying the interest rate on the loans modified as a TDR was immaterial to the financial statements during the three and six months ended June 30, 2011.
TroubledDebtRestructuingDefault [Table Text Block] 
 
Three Months Ended June 30, 2012 1
 
Six Months Ended June 30, 2012 2
(Dollars in millions)
Number of Loans
 
Amortized Cost
 
Number of Loans
 
Amortized Cost
Commercial loans:
 
 
 
 
 
 
 
Commercial & industrial
14
 

$1

 
25
 

$3

Commercial real estate
—

 
—

 
4
 
4

Commercial construction
4
 
4

 
7
 
6

Residential loans:
 
 
 
 
 
 
 
Residential mortgages
28
 
9

 
56
 
14

Home equity products
38
 
3

 
81
 
6

Residential construction
6
 
—

 
17
 
2

Consumer loans:
 
 
 
 
 
 
 
Other direct
—

 
—

 
2
 
—

Credit cards
57
 
—

 
135
 
1

Total TDRs
147
 

$17

 
327
 

$36

1For the three months ended June 30, 2012, this represents defaults on loans that were first modified between the periods April 1, 2011 and June 30, 2012.
2For the six months ended June 30, 2012, this represents defaults on loans that were first modified between the periods January 1, 2011 and June 30, 2012.


 
Three Months Ended June 30, 2011 1
 
Six Months Ended June 30, 2011 2
(Dollars in millions)
Number of Loans
 
Amortized Cost
 
Number of Loans
 
Amortized Cost
Commercial loans:
 
 
 
 
 
 
 
Commercial & industrial
10
 

$—

 
20
 

$2

Commercial real estate
2
 
1

 
6
 
1

Commercial construction
8
 
15

 
14
 
24

Residential loans:
 
 
 
 
 
 
 
Residential mortgages
94
 
23

 
334
 
75

Home equity products
47
 
4

 
111
 
11

Residential construction
8
 
1

 
23
 
5

Consumer loans:
 
 
 
 
 
 
 
Other direct
5
 
—

 
7
 
—

Total TDRs
174
 

$44

 
515
 

$118

1For the three months ended June 30, 2011, this represents defaults on loans that were first modified between the periods April 1, 2010 and June 30, 2011.
2For the six months ended June 30, 2011, this represents defaults on loans that were first modified between the periods January 1, 2010 and June 30, 2011.
Allowance for Credit Losses (Tables)
Activity in the Allowance for Credit Losses 
 
Three Months Ended June 30
 
Six Months Ended June 30
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Balance at beginning of period

$2,400

 

$2,908

 

$2,505

 

$3,032

Provision for loan losses
302

 
395

 
615

 
846

Provision/(benefit) for unfunded commitments
(2
)
 
(3
)
 
2

 
(7
)
Loan charge-offs
(397
)
 
(563
)
 
(860
)
 
(1,178
)
Loan recoveries
47

 
58

 
88

 
102

Balance at end of period

$2,350

 

$2,795

 

$2,350

 

$2,795

Components:
 
 
 
 
 
 
 
ALLL

$2,300

 

$2,744

 
 
 
 
Unfunded commitments reserve1
50

 
51

 
 
 
 
Allowance for credit losses

$2,350

 

$2,795

 
 
 
 
1 The unfunded commitments reserve is recorded in other liabilities in the Consolidated Balance Sheets.
Activity in the ALLL by Segment 
 
Three Months Ended June 30, 2012
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$901

 

$1,315

 

$132

 

$2,348

Provision for loan losses
49

 
230

 
23

 
302

Loan charge-offs
(94
)
 
(274
)
 
(29
)
 
(397
)
Loan recoveries
31

 
6

 
10

 
47

Balance at end of period

$887

 

$1,277

 

$136

 

$2,300

 
 
 
 
 

 

 
Three Months Ended June 30, 2011
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$1,255

 

$1,440

 

$159

 

$2,854

Provision for loan losses
124

 
252

 
19

 
395

Loan charge-offs
(220
)
 
(303
)
 
(40
)
 
(563
)
Loan recoveries
41

 
6

 
11

 
58

Balance at end of period

$1,200

 

$1,395

 

$149

 

$2,744

 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2012
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$964

 

$1,354

 

$139

 

$2,457

Provision for loan losses
87

 
488

 
40

 
615

Loan charge-offs
(220
)
 
(576
)
 
(64
)
 
(860
)
Loan recoveries
56

 
11

 
21

 
88

Balance at end of period

$887

 

$1,277

 

$136

 

$2,300

 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2011
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$1,303

 

$1,498

 

$173

 

$2,974

Provision for loan losses
232

 
574

 
40

 
846

Loan charge-offs
(405
)
 
(688
)
 
(85
)
 
(1,178
)
Loan recoveries
70

 
11

 
21

 
102

Balance at end of period

$1,200

 

$1,395

 

$149

 

$2,744

Loans Held for Investment portfolio and Related Allowance for Loan and Lease Losses 
 
As of June 30, 2012
 
Commercial
 
Residential
 
Consumer
 
Total
(Dollars in millions)
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
Individually evaluated

$318

 

$18

 

$3,016

 

$355

 

$51

 

$8

 

$3,385

 

$381

Collectively evaluated
57,495

 
869

 
42,781

 
922

 
20,493

 
128

 
120,769

 
1,919

Total evaluated
57,813

 
887

 
45,797

 
1,277

 
20,544

 
136

 
124,154

 
2,300

LHFI at fair value
1

 
—

 
405

 
—

 
—

 
—

 
406

 
—

Total LHFI

$57,814

 

$887

 

$46,202

 

$1,277

 

$20,544

 

$136

 

$124,560

 

$2,300

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2011
 
Commercial
 
Residential
 
Consumer
 
Total
(Dollars in millions)
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
Individually evaluated

$412

 

$34

 

$3,141

 

$405

 

$39

 

$9

 

$3,592

 

$448

Collectively evaluated
55,458

 
930

 
43,088

 
949

 
19,924

 
130

 
118,470

 
2,009

Total evaluated
55,870

 
964

 
46,229

 
1,354

 
19,963

 
139

 
122,062

 
2,457

LHFI at fair value
2

 
—

 
431

 
—

 
—

 
—

 
433

 
—

Total LHFI

$55,872

 

$964

 

$46,660

 

$1,354

 

$19,963

 

$139

 

$122,495

 

$2,457

Goodwill and Other Intangible Assets (Tables)
Changes in Carrying Amount of Goodwill by Reportable Segment 
(Dollars in millions)
 
Retail
Banking
 
Diversified
Commercial
Banking
 
CIB
 
W&IM
 
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Total
Balance, January 1, 2012
 

$4,854

 

$928

 

$180

 

$382

 

$—

 

$—

 

$6,344

Acquisition of FirstAgain, LLC
 
—

 
—

 
—

 
—

 
32

 
—

 
32

Intersegment transfers
 
(4,854
)
 
(928
)
 
(180
)
 
(382
)
 
3,930

 
2,414

 
—

Balance, June 30, 2012
 

$—

 

$—

 

$—

 

$—

 

$3,962

 

$2,414

 

$6,376

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2011
 

$4,854

 

$928

 

$180

 

$361

 

$—

 

$—

 

$6,323

Contingent consideration
 
—

 
—

 
—

 
1

 
—

 
—

 
1

Acquisition of certain additional
assets of CSI Capital Management
 
—

 
—

 
—

 
19

 
—

 
—

 
19

Balance, June 30, 2011
 

$4,854

 

$928

 

$180

 

$381

 

$—

 

$—

 

$6,343

Schedule of Finite-Lived Intangible Assets by Major Class [Table Text Block] 
 
(Dollars in millions)
Core Deposit  
Intangibles
 
MSRs -
Fair Value
 
Other
 
Total
Balance, January 1, 2012

$38

 

$921

 

$58

 

$1,017

Amortization
(11
)
 
—

 
(11
)
 
(22
)
MSRs originated
—

 
161

 
—

 
161

Changes in fair value:
 
 
 
 
 
 
 
Due to changes in inputs and assumptions 1
—

 
(102
)
 
—

 
(102
)
Other changes in fair value 2
—

 
(112
)
 
—

 
(112
)
Sale of MSRs
—

 
(3
)
 
—

 
(3
)
Balance, June 30, 2012

$27

 

$865

 

$47

 

$939

 
 
 
 
 
 
 
 
Balance, January 1, 2011

$67

 

$1,439

 

$65

 

$1,571

Amortization
(16
)
 
—

 
(7
)
 
(23
)
MSRs originated
—

 
136

 
—

 
136

Changes in fair value:
 
 
 
 
 
 
 
Due to changes in inputs and assumptions 1
—

 
(51
)
 
—

 
(51
)
Other changes in fair value 2
—

 
(94
)
 
—

 
(94
)
Sale of MSRs
—

 
(7
)
 
—

 
(7
)
Other
—

 
—

 
7

 
7

Balance, June 30, 2011

$51

 

$1,423

 

$65

 

$1,539

1 Primarily reflects changes in discount rates and prepayment speed assumptions, due to changes in interest rates.
2 Represents changes due to the collection of expected cash flows, net of accretion, due to the passage of time.
Key Characteristics, Inputs, and Economic Assumptions Used to Estimate the Fair Value of the Company's MSRs 
(Dollars in millions)
June 30, 2012
 
December 31, 2011
Fair value of retained MSRs

$865

 

$921

Prepayment rate assumption (annual)
20
%
 
20
%
Decline in fair value from 10% adverse change

$55

 

$52

Decline in fair value from 20% adverse change
100

 
98

Discount rate (annual)
11
%
 
11
%
Decline in fair value from 10% adverse change

$31

 

$33

Decline in fair value from 20% adverse change
60

 
63

Weighted-average life (in years)
4.2

 
4.3

Weighted-average coupon
5.0
%
 
5.2
%
Certain Transfers of Financial Assets and Variable Interest Entities (Tables)
Asset Transfers in Which the Company has Continuing Economic Involvement 
 
Three Months Ended June 30
 
Six Months Ended June 30
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Cash flows on interests held:
 
 
 
 
 
 
 
  Residential Mortgage Loans

$8

 

$13

 

$15

 

$28

  Commercial and Corporate Loans
—

 
1

 
—

 
1

  CDO Securities
1

 
—

 
1

 
1

    Total cash flows on interests held

$9

 

$14

 

$16

 

$30

Servicing or management fees:
 
 
 
 
 
 
 
  Residential Mortgage Loans

$1

 

$1

 

$1

 

$2

  Commercial and Corporate Loans
2

 
2

 
5

 
5

  CDO Securities
—

 
—

 
—

 
—

    Total servicing or management fees

$3

 

$3

 

$6

 

$7

 
 
 
 
 
 
 
 
Portfolio Balances and Delinquency Balances Based on 90 Days or More Past Due and Net Charge-offs Related to Managed Portfolio Loans 
 
Portfolio Balance
 
Past Due
 
 
Net Charge-offs
 
June 30, 2012
 
December 31, 2011
 
June 30, 2012
 
December 31, 2011
 
 
For the Three Months
Ended June 30
 
For the Six Months
Ended June 30
 
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Type of loan:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial

$57,814

 

$55,872

 

$720

 

$938

 
 

$63

 

$179

 

$164

 

$335

Residential
46,202

 
46,660

 
2,935

 
3,079

 
 
268

 
297

 
565

 
677

Consumer
20,544

 
19,963

 
953

 
914

 
 
19

 
29

 
43

 
64

Total loan portfolio
124,560

 
122,495

 
4,608

 
4,931

 
 
350

 
505

 
772

 
1,076

Managed securitized loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
1,920

 
1,978

 
20

 
43

 
 
—

 
—

 
—

 
—

Residential
110,031

 
114,342

 
2,642

1 
3,310

1 
 
9

 
15

 
16

 
27

Total managed loans

$236,511

 

$238,815

 

$7,270

 

$8,284

 
 

$359

 

$520

 

$788

 

$1,103

1Excludes loans that have completed the foreclosure or short sale process (i.e., involuntary prepayments).
Net Income/(Loss) Per Common Share (Tables)
Reconciliation of Net Income/(Loss) to Net Income/(Loss) Available to Common Shareholders
NOTE 7 – NET INCOME PER COMMON SHARE
Equivalent shares of 26 million and 32 million related to common stock options and common stock warrants outstanding as of June 30, 2012 and 2011, respectively, were excluded from the computations of diluted income per average common share because they would have been anti-dilutive.
A reconciliation of the difference between average basic common shares outstanding and average diluted common shares outstanding for the three and six months ended June 30, 2012 and 2011 is included below. Additionally, included below is a reconciliation of net income to net income available to common shareholders. 
 
 
Three Months Ended June 30
 
Six Months Ended June 30
(In millions, except per share data)
 
2012
 
2011
 
2012
 
2011
Net income
 

$275

 

$178

 

$525

 

$358

Preferred dividends
 
(3
)
 
(2
)
 
(6
)
 
(4
)
Dividends and accretion of discount on preferred stock issued to the U.S. Treasury
 
—

 
—

 
—

 
(66
)
Accretion associated with repurchase of preferred stock issued to the U.S. Treasury
 
—

 
—

 
—

 
(74
)
Dividends and undistributed earnings allocated to unvested shares
 
(2
)
 
(2
)
 
(4
)
 
(2
)
Net income available to common shareholders
 

$270

 

$174

 

$515

 

$212

Average basic common shares
 
534

 
532

 
534

 
516

Effect of dilutive securities:
 
 
 
 
 
 
 
 
Stock options
 
1

 
1

 
1

 
2

Restricted stock
 
2

 
2

 
2

 
2

Average diluted common shares
 
537

 
535

 
537

 
520

Net income per average common share - diluted
 

$0.50

 

$0.33

 

$0.96

 

$0.41

Net income per average common share - basic
 

$0.51

 

$0.33

 

$0.97

 

$0.41

Employee Benefit Plans (Tables)
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] 
 
 
Six Months Ended June 30
 
2012
 
2011
Dividend yield
0.91
%
 
0.67
%
Expected stock price volatility
39.88

 
34.73

Risk-free interest rate (weighted average)
1.07

 
2.61

Expected life of options
6 years

 
6 years

Stock-Based Compensation Expense Recognized in Noninterest Expense 
 
 
Three Months Ended June 30
 
Six Months Ended June 30
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Stock-based compensation expense:
 
 
 
 
 
 
 
Stock options

$2

 

$5

 

$6

 

$8

Restricted stock
8

 
8

 
15

 
17

RSUs
4

 
8

 
18

 
8

Total stock-based compensation expense

$14

 

$21

 

$39

 

$33

Schedule of Net Benefit Costs [Table Text Block] 
 
Three Months Ended June 30
 
2012
 
2011
(Dollars in millions)
Retirement Benefits
 
Other Postretirement
Benefits
 
Retirement Benefits
 
Other Postretirement
Benefits
Service cost

$—

 

$—

 

$17

 

$—

Interest cost
31

 
1

 
32

 
2

Expected return on plan assets
(43
)
 
(1
)
 
(47
)
 
(2
)
Amortization of prior service credit
—

 
—

 
(4
)
 
—

Recognized net actuarial loss
6

 
—

 
11

 
—

Net periodic (benefit)/cost

($6
)
 

$—

 

$9

 

$—


 
Six Months Ended June 30
 
2012
 
2011
(Dollars in millions)
Retirement Benefits
 
Other Postretirement
Benefits
 
Retirement Benefits
 
Other Postretirement
Benefits
Service cost

$—

 

$—

 

$35

 

$—

Interest cost
60

 
3

 
64

 
5

Expected return on plan assets
(86
)
 
(3
)
 
(94
)
 
(4
)
Amortization of prior service credit
—

 
—

 
(9
)
 
—

Recognized net actuarial loss
12

 
—

 
21

 
—

Net periodic (benefit)/cost

($14
)
 

$—

 

$17

 

$1

Derivative Financial Instruments (Tables)
Derivative Positions 
 
As of June 30, 20121
 
 
Asset Derivatives
 
Liability Derivatives
 
(Dollars in millions)
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
 
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
 
Derivatives designated in cash flow hedging relationships 2
Equity contracts hedging:
Securities AFS
Trading assets
 

$1,547

  

$—

 
Trading liabilities
 

$1,547

  

$349

  
Interest rate contracts hedging:
Floating rate loans
Trading assets
 
13,350

  
854

 
Trading liabilities
 
—

  
—

  
Total
 
 
14,897

  
854

 
 
 
1,547

  
349

  
Derivatives designated in fair value hedging relationships 3
Interest rate contracts covering:
Fixed rate debt
Trading assets
 
1,000

 
63

 
Trading liabilities
 
—

 
—

  
Total
 
 
1,000

 
63

 
 
 
—

 
—

  
Derivatives not designated as hedging instruments 4
Interest rate contracts covering:
Fixed rate debt
Trading assets
 
437

  
7

 
Trading liabilities
 
60

  
10

  
MSRs
Other assets
 
13,558

  
416

 
Other liabilities
 
4,860

  
36

  
LHFS, IRLCs, LHFI-FV
Other assets
 
2,922

 
9

 
Other liabilities
 
7,485

5 
51

  
Trading activity 6
Trading assets
 
87,129

 
6,429

 
Trading liabilities
 
95,911

 
6,094

  
Foreign exchange rate contracts covering:
Commercial loans
Trading assets
 
33

  
1

 
Trading liabilities
 
—

  
—

  
Trading activity
Trading assets
 
2,489

  
63

 
Trading liabilities
 
2,712

  
64

  
Credit contracts covering:
Loans
Other assets
 
60

  
1

 
Other liabilities
 
368

  
5

  
Trading activity
Trading assets
 
2,044

7 
34

 
Trading liabilities
 
2,035

7 
28

  
Equity contracts - Trading activity 6
Trading assets
 
12,883

 
1,348

 
Trading liabilities
 
15,807

 
1,464

  
Other contracts:
IRLCs and other
Other assets
 
6,402

  
135

 
Other liabilities
 
134

8 
3

8 
Trading activity
Trading assets
 
310

  
26

 
Trading liabilities
 
285

  
26

  
Total
 
 
128,267

  
8,469

 
 
 
129,657

  
7,781

  

Total derivatives
 
 

$144,164

  

$9,386

 
 
 

$131,204

  

$8,130

  
1 The Company offsets cash collateral paid to and received from derivative counterparties when the derivative contracts are subject to ISDA master netting arrangements and meet the derivative offsetting requirements. The effects of offsetting on the Company's Consolidated Balance Sheets as of June 30, 2012 are presented in Note 12, "Fair Value Election and Measurement."
2 See “Cash Flow Hedges” in this Note for further discussion.
3 See “Fair Value Hedges” in this Note for further discussion.
4 See “Economic Hedging and Trading Activities” in this Note for further discussion.
5 Amount includes $1.2 billion of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative asset or liability associated with the one day lag is included in the fair value column of this table.
6 Amounts include $20.3 billion and $0.6 billion of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative assets/liabilities associated with the one day lag are included in the fair value column of this table.
7 Asset and liability amounts include $2 million and $5 million, respectively, of notional from purchased and written credit risk participation agreements, respectively, whose notional is calculated as the notional of the derivative participated adjusted by the relevant RWA conversion factor.
8 Includes a $3 million derivative liability recognized in other liabilities in the Consolidated Balance Sheets, related to a notional amount of $134 million. The notional amount is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009 as discussed in Note 11, “Reinsurance Arrangements and Guarantees.”
 
As of December 31, 20111
 
 
Asset Derivatives
 
Liability Derivatives
 
(Dollars in millions)
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
 
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
 
Derivatives designated in cash flow hedging relationships 2
Equity contracts hedging:
Securities AFS
Trading assets
 

$1,547

  

$—

 
Trading liabilities
 

$1,547

  

$189

  
Interest rate contracts hedging:
Floating rate loans
Trading assets
 
14,850

  
1,057

 
Trading liabilities
 
—

 
—

  
Total
 
 
16,397

 
1,057

 
 
 
1,547

 
189

  
Derivatives designated in fair value hedging relationships 3
Interest rate contracts covering:
Securities AFS
Trading assets
 
—

 
—

 
Trading liabilities
 
450

 
1

  
Fixed rate debt
Trading assets
 
1,000

 
56

 
Trading liabilities
 
—

 
—

  
Total
 
 
1,000

 
56

 
 
 
450

 
1

  
Derivatives not designated as hedging instruments 4
Interest rate contracts covering:
Fixed rate debt
Trading assets
 
437

  
13

 
Trading liabilities
 
60

  
9

  
MSRs
Other assets
 
28,800

  
472

 
Other liabilities
 
2,920

  
29

  
LHFS, IRLCs, LHFI-FV
Other assets
 
2,657

 
19

 
Other liabilities
 
6,228

5 
54

  
Trading activity
Trading assets
 
113,420

6 

6,226

 
Trading liabilities
 
101,042

  
5,847

  
Foreign exchange rate contracts covering:
Foreign-denominated debt and commercial loans
Trading assets
 
33

   
1

 
Trading liabilities
 
460

  
129

  
Trading activity
Trading assets
 
2,532

   
127

 
Trading liabilities
 
2,739

  
125

  
Credit contracts covering:
Loans
Trading assets
 
45

   
1

 
Trading liabilities
 
308

  
3

  
Trading activity
Trading assets
 
1,841

7 

28

 
Trading liabilities
 
1,809

7 
23

  
Equity contracts - Trading activity
Trading assets
 
10,168

6 

1,013

 
Trading liabilities
 
10,445

   
1,045

  
Other contracts:
IRLCs and other
Other assets
 
4,909

  
84

 
Other liabilities
 
139

8 
22

8 
Trading activity
Trading assets
 
207

  
23

 
Trading liabilities
 
203

   
23

  
Total
 
 
165,049

 
8,007

 
 
 
126,353

 
7,309

  
Total derivatives
 
 

$182,446

 

$9,120

 
 
 

$128,350

 

$7,499

  
1 The Company offsets cash collateral paid to and received from derivative counterparties when the derivative contracts are subject to ISDA master netting arrangements and meet the derivative offsetting requirements. The effects of offsetting on the Company's Consolidated Balance Sheets as of December 31, 2011 are presented in Note 12, "Fair Value Election and Measurement."
2 See “Cash Flow Hedges” in this Note for further discussion.
3 See "Fair Value Hedges" in this Note for further discussion.
4 See “Economic Hedging and Trading Activities” in this Note for further discussion.
5 Amount includes $1.2 billion of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative liability associated with the one day lag is included in the fair value column of this table unless immaterial.
6 Amounts include $16.7 billion and $0.6 billion of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative asset associated with the one day lag is included in the fair value column of this table unless immaterial.
7 Asset and liability amounts include $2 million and $6 million, respectively, of notional from purchased and written interest rate swap risk participation agreements, respectively, whose notional is calculated as the notional of the interest rate swap participated adjusted by the relevant RWA conversion factor.
8 Includes a $22 million derivative liability recognized in other liabilities in the Consolidated Balance Sheets, related to a notional amount of $134 million. The notional amount is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009 as discussed in Note 11, “Reinsurance Arrangements and Guarantees.”
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] 
 
 
Three Months Ended June 30, 2012
(Dollars in millions)
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships
Equity contracts hedging Securities AFS

($103
)
 
 
 

$—

Interest rate contracts hedging Floating rate loans1
117

 
Interest and fees on loans
 
83

Total

$14

 
 
 

$83

 
 
 
 
 
 
 
Six Months Ended June 30, 2012
(Dollars in millions)
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships
   Equity contracts hedging Securities AFS

($161
)
 
 
 

$—

   Interest rate contracts hedging Floating rate loans1
167

 
Interest and fees on loans
 
166

Total

$6

 
 
 

$166

1 During the three and six months ended June 30, 2012, the Company also reclassified $37 million and $105 million, respectively, in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.

 
 
Three Months Ended June 30, 2012
(Dollars in millions)
Amount of gain/(loss)
on Derivatives
recognized in Income
 
Amount of gain/(loss)
on related Hedged Items
recognized in Income
 
Amount of gain/(loss)
recognized in
Income on Hedges
(Ineffective Portion)
Derivatives in fair value hedging relationships1
Interest rate contracts hedging Fixed rate debt

$8

 

($8
)
 

$—

Interest rate contracts hedging Securities AFS
—

 
—

 
—

Total

$8

 

($8
)
 

$—

 
 
 
 
 
 
 
Six Months Ended June 30, 2012
(Dollars in millions)
Amount of gain/(loss)
on Derivatives
recognized in Income
 
Amount of gain/(loss)
on related Hedged Items
recognized in Income
 
Amount of gain/(loss)
recognized in
Income on Hedges
(Ineffective Portion)
Derivatives in fair value hedging relationships1
   Interest rate contracts hedging Fixed rate debt

$7

 

($7
)
 

$—

   Interest rate contracts hedging Securities AFS
1

 
(1
)
 
—

Total

$8

 

($8
)
 

$—

1 Amounts are recognized in trading income in the Consolidated Statements of Income.
 
(Dollars in millions)
Classification of gain/(loss)
recognized in Income on Derivatives
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Three Months Ended
June 30, 2012
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Six Months Ended
June 30, 2012
Derivatives not designated as hedging instruments
 
 
Interest rate contracts covering:
 
 
 
 
 
Fixed rate debt
Trading income
 

($2
)
 

($1
)
MSRs
Mortgage servicing related income
 
269

 
196

LHFS, IRLCs, LHFI-FV
Mortgage production related income
 
(135
)
 
(170
)
Trading activity
Trading income
 
27

 
54

Foreign exchange rate contracts covering:
 
 
 
 
 
Commercial loans and foreign-denominated debt
Trading income
 
115

 
130

Trading activity
Trading income
 
11

 
14

Credit contracts covering:
 
 
 
 
 
Loans
Other income 1
 
(1
)
 
(4
)
Trading activity
Trading income
 
6

 
12

Equity contracts - trading activity
Trading income
 
10

 
13

Other contracts:
 
 
 
 
 
IRLCs
Mortgage production related income
 
257

 
442

Total
 
 

$557

 

$686

1 For the six months ended June 30, 2012, losses of $3 million were recorded in trading income.

The impacts of derivatives on the Consolidated Statements of Income and the Consolidated Statements of Shareholders’ Equity for the three and six months ended June 30, 2011 are presented below:
 
Three Months Ended June 30, 2011
(Dollars in millions)
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships
Equity contracts hedging Securities AFS

$6

 
 
 

$—

Interest rate contracts hedging Floating rate loans1
261

 
Interest and fees on loans
 
105

Total

$267

 
 
 

$105

 
 
 
 
 
 
 
Six Months Ended June 30, 2011
(Dollars in millions)
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
 
Classification of gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships
   Equity contracts hedging Securities AFS

($10
)
 
 
 

$—

   Interest rate contracts hedging Floating rate loans1
234

 
Interest and fees on loans
 
218

Total

$224

 
 
 

$218

1 During the three and six months ended June 30, 2011, the Company also reclassified $49 million and $90 million in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.

 
Three Months Ended June 30, 2011
(Dollars in millions)
Amount of gain/(loss) on Derivatives recognized in Income
 
Amount of gain/(loss)
on related Hedged Items
recognized in Income
 
Amount of gain/(loss) recognized in Income on Hedges (Ineffective Portion)
Derivatives in fair value hedging relationships
   Interest rate contracts hedging Fixed rate debt1

$15

 

($15
)
 

$—

 
 
 
 
 
 
 
Six Months Ended June 30, 2011
(Dollars in millions)
Amount of gain/(loss) on Derivatives recognized in Income
 
Amount of gain/(loss)
on related Hedged Items
recognized in Income
 
Amount of gain/(loss) recognized in Income on Hedges (Ineffective Portion)
Derivatives in fair value hedging relationships
   Interest rate contracts hedging Fixed rate debt1

$15

 

($15
)
 

$—

1 Amounts are recognized in trading income in the Consolidated Statements of Income.

(Dollars in millions)
Classification of gain/(loss)
recognized in Income on Derivatives
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Three Months Ended
June 30, 2011
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Six Months Ended
June 30, 2011
Derivatives not designated as hedging instruments
 
 
Interest rate contracts covering:
 
 
 
 
 
Fixed rate debt
Trading income
 

$—

 

$1

MSRs
Mortgage servicing related income
 
134

 
91

LHFS, IRLCs, LHFI-FV
Mortgage production related income
 
(67
)
 
(93
)
Trading activity
Trading income
 
33

 
37

Foreign exchange rate contracts covering:
 
 

 

Commercial loans and foreign-denominated debt
Trading income
 
29

 
110

Trading activity
Trading income
 
(5
)
 
(6
)
Credit contracts covering:
 
 

 

Loans
Trading income
 
—

 
(1
)
Trading activity
Trading income
 
4

 
8

Equity contracts - trading activity
Trading income
 
5

 
8

Other contracts:
 
 

 

IRLCs
Mortgage production related income
 
48

 
84

Total
 
 

$181

 

$239


Reinsurance Arrangements and Guarantees (Tables)
Schedule Of Remaining Outstanding Balance Of Loans Sold [Table Text Block] 
 
Remaining Outstanding Balance by Year of Sale
(Dollars in billions)
2005
 
2006
 
2007
 
2008
 
2009
 
2010
 
2011
 
2012
 
Total    
GSE1

$3.7

 

$4.4

 

$8.7

 

$8.8

 

$20.8

 

$12.4

 

$12.5

 

$9.7

 

$81.0

Ginnie Mae1
0.7

 
0.5

 
0.5

 
2.4

 
5.1

 
3.7

 
2.9

 
2.3

 
18.1

Non-agency
3.9

 
5.6

 
4.2

 
—

 
—

 
—

 
—

 
—

 
13.7

Total

$8.3

 

$10.5

 

$13.4

 

$11.2

 

$25.9

 

$16.1

 

$15.4

 

$12.0

 

$112.8

1 Balances based on loans serviced by the Company.
Mortgage Loan Repurchase Losses 
 
Three Months Ended June 30
 
Six Months Ended June 30
(Dollars in millions)
2012
 
2011
 
2012
 
2011
Balance at beginning of period

$383

 

$270

 

$320

 

$265

Repurchase provision
155

 
90

 
330

 
170

Charge-offs
(104
)
 
(61
)
 
(216
)
 
(136
)
Balance at end of period

$434

 

$299

 

$434

 

$299

Fair Value Election and Measurement (Tables)
Assets and Liabilities Measured at Fair Value on a Recurring Basis 
 
 
 
Fair Value Measurements at
June 30, 2012
Using
(Dollars in millions)
Assets/Liabilities    
 
Quoted Prices In Active
Markets for
Identical
Assets/Liabilities    
(Level 1)
 
Significant
Other
Observable    
Inputs
(Level 2)
 
Significant
Unobservable    
Inputs
(Level 3)
Assets

 

 

 

Trading assets:

 

 

 

U.S. Treasury securities

$125

 

$125

 

$—

 

$—

Federal agency securities
521

 
—

 
521

 
—

U.S. states and political subdivisions
58

 
—

 
58

 
—

MBS - agency
371

 
—

 
371

 
—

MBS - private
1

 
—

 
—

 
1

CDO/CLO securities
45

 
—

 
2

 
43

ABS
37

 
—

 
32

 
5

Corporate and other debt securities
560

 
—

 
560

 
—

CP
113

 
—

 
113

 
—

Equity securities
91

 
91

 
—

 
—

Derivative contracts
3,127

 
208

 
2,919

 
—

Trading loans
2,215

 
—

 
2,215

 
—

Gross trading assets
7,264

 
424

 
6,791

 
49

Offsetting collateral 1
(937
)
 
 
 
 
 
 
Total trading assets
6,327

 
 
 
 
 
 
Securities AFS:

 

 

 

U.S. Treasury securities
224

 
224

 
—

 
—

Federal agency securities
1,783

 
—

 
1,783

 
—

U.S. states and political subdivisions
372

 
—

 
317

 
55

MBS - agency
18,110

 
—

 
18,110

 
—

MBS - private
208

 
—

 
—

 
208

ABS
348

 
—

 
331

 
17

Corporate and other debt securities
45

 
—

 
40

 
5

Coke common stock
2,346

 
2,346

 
—

 
—

   Other equity securities 2
973

 
116

 
—

 
857

Total securities AFS
24,409

 
2,686

 
20,581

 
1,142

LHFS:

 

 

 

Residential loans
2,618

 
—

 
2,616

 
2

Corporate and other loans
322

 
—

 
322

 
—

Total LHFS
2,940

 
—

 
2,938

 
2

LHFI
406

 
—

 
—

 
406

MSRs
865

 
—

 
—

 
865

Other assets 3
552

 
2

 
415

 
135

Liabilities

 

 

 

Trading liabilities:

 

 

 

U.S. Treasury securities
330

 
330

 
—

 
—

Corporate and other debt securities
301

 
—

 
301

 
—

Equity securities
22

 
22

 
—

 
—

Derivative contracts
2,337

 
—

 
1,988

 
349

Gross trading liabilities
2,990

 
352

 
2,289

 
349

Offsetting collateral 1
(1,208
)
 
 
 
 
 
 
Total trading liabilities
1,782

 
 
 
 
 
 
Brokered time deposits
914

 
—

 
914

 
—

Long-term debt
2,010

 
—

 
2,010

 
—

Other liabilities 3,4
109

 
1

 
82

 
26

1Amount represents the cash collateral received from or deposited with derivative counterparties. Amount is offset with derivatives in the Consolidated Balance Sheets as of June 30, 2012.
2Includes at cost, $455 million of FHLB of Atlanta stock, $401 million of Federal Reserve Bank stock, and $116 million in mutual fund investments.
3These amounts include IRLCs and derivative financial instruments entered into by the Mortgage line of business to hedge its interest rate risk.
4These amounts include the derivative associated with the Company's sale of Visa shares during the year ended December 31, 2009, certain CDS, and the contingent consideration obligation related to an acquisition.
 
 
 
Fair Value Measurements at
December 31, 2011
Using
 
(Dollars in millions)
Assets/Liabilities
 
Quoted Prices
In Active
Markets for
Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
U.S. Treasury securities

$144

 

$144

 

$—

 

$—

Federal agency securities
478

 
—

 
478

 
—

U.S. states and political subdivisions
54

 
—

 
54

 
—

MBS - agency
412

 
—

 
412

 
—

MBS - private
1

 
—

 
—

 
1

CDO/CLO securities
45

 
—

 
2

 
43

ABS
37

 
—

 
32

 
5

Corporate and other debt securities
344

 
—

 
344

 
—

CP
229

 
—

 
229

 
—

Equity securities
91

 
91

 
—

 
—

Derivative contracts
3,444

 
306

 
3,138

 
—

Trading loans
2,030

 
—

 
2,030

 
—

Gross trading assets
7,309

 
541

 
6,719

 
49

Offsetting collateral 1
(1,030
)
 
 
 
 
 
 
Total trading assets
6,279

 
 
 
 
 
 
Securities AFS:
 
 
 
 
 
 
 
U.S. Treasury securities
694

 
694

 
—

 
—

Federal agency securities
1,932

 
—

 
1,932

 
—

U.S. states and political subdivisions
454

 
—

 
396

 
58

MBS - agency
21,223

 
—

 
21,223

 
—

MBS - private
221

 
—

 
—

 
221

CDO/CLO securities
50

 
—

 
50

 
—

ABS
464

 
—

 
448

 
16

Corporate and other debt securities
51

 
—

 
46

 
5

Coke common stock
2,099

 
2,099

 
—

 
—

      Other equity securities 2
929

 
188

 
—

 
741

Total securities AFS
28,117

 
2,981

 
24,095

 
1,041

LHFS:
 
 
 
 
 
 
 
Residential loans
1,826

 
—

 
1,825

 
1

Corporate and other loans
315

 
—

 
315

 
—

Total LHFS
2,141

 
—

 
2,140

 
1

LHFI
433

 
—

 
—

 
433

MSRs
921

 
—

 
—

 
921

Other assets 3
554

 
7

 
463

 
84

Liabilities
 
 
 
 
 
 
 
Trading liabilities:
 
 
 
 
 
 
 
U.S. Treasury securities
569

 
569

 
—

 
—

Corporate and other debt securities
77

 
—

 
77

 
—

Equity securities
37

 
37

 
—

 
—

Derivative contracts
2,293

 
174

 
1,930

 
189

Gross trading liabilities
2,976

 
780

 
2,007

 
189

Offsetting collateral 1
(1,170
)
 
 
 
 
 
 
Total trading liabilities
1,806

 
 
 
 
 
 
Brokered time deposits
1,018

 
—

 
1,018

 
—

Long-term debt
1,997

 
—

 
1,997

 
—

Other liabilities 3,4
84

 
1

 
61

 
22

1Amount represents the cash collateral received from or deposited with derivative counterparties. Amount is offset with derivatives in the Consolidated Balance Sheets as of December 31, 2011.
2 Includes at cost, $342 million of FHLB of Atlanta stock, $398 million of Federal Reserve Bank stock, and $187 million in mutual fund investments.
3These amounts include IRLCs and derivative financial instruments entered into by the Mortgage line of business to hedge its interest rate risk.
4These amounts include the derivative associated with the Company's sale of Visa shares during the year ended December 31, 2009.

Fair Value Option Elected, Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance 
(Dollars in millions)
Aggregate
Fair Value
June 30, 2012
 
Aggregate
Unpaid Principal
Balance under FVO
June 30, 2012
 
Fair Value
Over/(Under)
Unpaid Principal
Trading loans

$2,215

 

$2,197

 

$18

LHFS
2,939

 
2,819

 
120

Nonaccrual loans
1

 
8

 
(7
)
LHFI
386

 
407

 
(21
)
Past due loans of 90 days or more
1

 
2

 
(1
)
Nonaccrual loans
19

 
42

 
(23
)
Brokered time deposits
914

 
914

 
—

Long-term debt
2,010

 
1,900

 
110

(Dollars in millions)
Aggregate
Fair Value
December 31, 2011
 
Aggregate
Unpaid Principal
Balance under FVO
December 31, 2011
 
Fair Value
Over/(Under)
Unpaid Principal
Trading loans

$2,030

 

$2,010

 

$20

LHFS
2,139

 
2,077

 
62

Past due loans of 90 days or more
1

 
1

 
—

Nonaccrual loans
1

 
8

 
(7
)
LHFI
407

 
439

 
(32
)
Past due loans of 90 days or more
1

 
2

 
(1
)
Nonaccrual loans
25

 
48

 
(23
)
Brokered time deposits
1,018

 
1,011

 
7

Long-term debt
1,997

 
1,901

 
96


Change in Fair Value of Financial Instruments for which the FVO has been Elected 
 
 
Fair Value Gain/(Loss) for the Three Months Ended
June 30, 2012, for Items Measured at Fair Value  Pursuant to Election of the FVO
 
Fair Value Gain/(Loss) for the Six Months Ended
June 30, 2012, for Items Measured at Fair Value  Pursuant to Election of the FVO
(Dollars in millions)
 
Trading income
 
Mortgage
Production
Related
Income 1
 
Mortgage
Servicing
Related
Income
 
Total
Changes in
Fair Values  
Included in
Current-
Period
Earnings 2
 
Trading income
 
Mortgage
Production
Related
Income 1
 
Mortgage
Servicing
Related
Income
 
Total
Changes in
Fair Values  
Included in
Current-
Period
Earnings 2
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading loans
 

$8

 

$—

 

$—

 

$8

 

$16

 

$—

 

$—

 

$16

LHFS
 
(2
)
 
248

 
—

 
246

 
5

 
403

 
—

 
408

LHFI
 
1

 
5

 
—

 
6

 
1

 
2

 
—

 
3

MSRs
 
—

 
20

 
(281
)
 
(261
)
 
—

 
30

 
(214
)
 
(184
)
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokered time deposits
 
7

 
—

 
—

 
7

 
7

 
—

 
—

 
7

Long-term debt
 
(10
)
 
—

 
—

 
(10
)
 
(14
)
 
—

 
—

 
(14
)
1For the three and six months ended June 30, 2012, income related to LHFS includes $58 million and $131 million, respectively, related to MSRs recognized upon the sale of loans reported at fair value. For the three and six months ended June 30, 2012, income related to MSRs includes $20 million and $30 million, respectively, of MSRs recognized upon the sale of loans reported at LOCOM.
2Changes in fair value for the three and six months ended June 30, 2012 exclude accrued interest for the period then ended. Interest income or interest expense on trading loans, LHFS, LHFI, brokered time deposits, and long-term debt that have been elected to be carried at fair value are recorded in interest income or interest expense in the Consolidated Statements of Income.


 
 
Fair Value Gain/(Loss) for the Three Months Ended
June 30, 2011, for Items Measured at Fair Value Pursuant to Election of the FVO
 
Fair Value Gain/(Loss) for the Six Months Ended
June 30, 2011, for Items Measured at Fair Value Pursuant to Election of the FVO
(Dollars in millions)
 
Trading income
 
Mortgage
Production
Related
Income 1
 
Mortgage
Servicing
Related
Income
 
Total
Changes in
Fair Values  
Included in
Current
Period
Earnings 2
 
Trading income
 
Mortgage
Production
Related
Income 1
 
Mortgage
Servicing
Related
Income
 
Total
Changes in
Fair Values  
Included in
Current
Period
Earnings 2
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading loans
 

$5

 

$—

 

$—

 

$5

 

$12

 

$—

 

$—

 

$12

LHFS
 
(4
)
 
119

 
—

 
115

 
(2
)
 
149

 
—

 
147

LHFI
 
—

 
—

 
—

 
—

 
3

 
(4
)
 
—

 
(1
)
MSRs
 
—

 
2

 
(162
)
 
(160
)
 
—

 
4

 
(145
)
 
(141
)
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokered time deposits
 
8

 
—

 
—

 
8

 
(3
)
 
—

 
—

 
(3
)
Long-term debt
 
(21
)
 
—

 
—

 
(21
)
 
(38
)
 
—

 
—

 
(38
)
1For the three and six months ended June 30, 2011, income related to LHFS includes $46 million and $132 million related to MSRs recognized upon the sale of loans reported at fair value. For the three and six months ended June 30, 2011, income related to MSRs includes $2 million and $4 million of MSRs recognized upon the sale of loans reported at LOCOM. These MSRs are included in the table since the Company elected to report MSRs recognized in 2009 and beyond using the fair value method. Previously, MSRs were reported under the amortized cost method.
2Changes in fair value for the three and six months ended June 30, 2011 exclude accrued interest for the period then ended. Interest income or interest expense on trading loans, LHFS, LHFI, brokered time deposits, and long-term debt that have been elected to be carried at fair value are recorded in interest income or interest expense in the Consolidated Statements of Income.
Fair Value Level 3 Significant Unobservable Input Assumptions [Table Text Block] 
 
 Level 3 Significant Unobservable Input Assumptions
(Dollars in millions)
Fair value
June 30, 2012 
 
Valuation Technique
 
Unobservable Input1
 
Range
(weighted average)
Assets:
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
MBS - private

$1

 
Third party pricing
 
N/A
 

CDO/CLO securities
43

 
Matrix pricing
 
Indicative pricing based on overcollateralization ratio
 
23-37 (32)
 
Estimated collateral losses
 
37-52% (43%)
ABS
5

 
Matrix pricing
 
Indicative pricing
 
45 (45)
Securities AFS:
 
 
 
 
 
 
 
U.S. states and political subdivisions
55

 
Matrix pricing
 
Indicative pricing
 
72-115 (89)
MBS - private
208

 
Third party pricing
 
N/A
 

ABS
17

 
Third party pricing
 
N/A
 

Corporate and other debt securities
5

 
Cost
 
N/A
 

Other equity securities
857

 
Cost
 
N/A
 

Residential LHFS
2

 
Monte Carlo/Discounted cash flow
 
Option adjusted spread
 
(10)-275 bps (94 bps)
 
Conditional prepayment rate
 
0-36% (23%)
 
Conditional default rate
 
0-25% (7%)
LHFI
386

 
Monte Carlo/Discounted cash flow
 
Option adjusted spread
 
(10)-275 bps (94 bps)
 
Conditional prepayment rate
 
0-36% (23%)
 
Conditional default rate
 
0-25% (7%)
 
20

 
Collateral based pricing
 
Appraised value
 
NM2
MSRs
865

 
Discounted cash flow
 
Conditional prepayment rate
 
8-33% (20%)
 
Discount rate
 
8-28% (11%)
Other assets/(liabilities), net3
135

 
Internal model
 
Pull through rate
 
1-99% (62%)
 
MSR value
 
2-200bps (104 bps)
 
(23
)
 
Internal model
 
Loan production volume
 
0-150% (92%)
Liabilities
 
 
 
 
 
 
 
Derivative contracts
349

 
Counterparty pricing
 
N/A
 
 
1For certain assets and liabilities that the Company utilizes third party pricing, the unobservable inputs and their ranges are not reasonably available to the Company; and therefore, have been noted as "N/A."
2Not meaningful.
3Input assumptions relate to the Company's IRLCs and the contingent consideration obligation related to an acquisition. Excludes $3 million of Other Liabilities. Refer to Note 11, "Reinsurance Arrangements and Guarantees," for additional information.
Reconciliation of the Beginning and Ending Balances for Fair Valued Assets and Liabilities Measured on a Recurring Basis Using Significant Unobservable Inputs 
 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
April 1,
2012
 
Included in
earnings    
 
OCI    
 
Purchases
 
Sales    
 
Settlements    
 
Transfers
to/from  other
balance sheet
line items    
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
June 30,
2012  
 
Included in earnings (held at June 30, 2012) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS - private

$1

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$1

 

$—

  
CDO/CLO securities
43

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
43

 
—

 
ABS
5

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Total trading assets
49

 
—

 
—

  
—

 
—

 
—

 
—

 
—

 
—

 
49

 
—

 
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
57

 
—

 
—

 
—

 
—

 
(2
)
 
—

 
—

 
—

 
55

 
—

  
MBS - private
216

 
(1
)
 
4

 
—

 
—

 
(11
)
 
—

 
—

 
—

 
208

 
(1
)
  
ABS
17

 
—

 
1

 
—

 
—

 
(1
)
 
—

 
—

 
—

 
17

 
—

  
Corporate and other debt securities
5

 
—

 
—

 
2

 
—

 
(2
)
 
—

 
—

 
—

 
5

 
—

  
Other equity securities
831

 
—

 
—

 
72

 
—

 
(46
)
 
—

 
—

 
—

 
857

 
—

  
Total securities AFS
1,126

 
(1
)
2 
5

   
74

 
—

 
(62
)
 
—

 
—

 
—

 
1,142

 
(1
)
2  
LHFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
4

 
—

 
—

 
—

 
—

 
—

 
(2
)
 
1

 
(1
)
 
2

 
—

 
LHFI
413

 
5

3 
—

 
—

 
—

 
(14
)
 
1

 
1

 
—

 
406

 
—

 
Other assets/(liabilities), net
91

 
258

4 
—

 
(23
)
 
—

 
1

 
(218
)
 
—

 
—

 
109

 
—

  

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(246
)
 
—

 
(103
)
6 
—

 
—

 
—

 
—

 
—

 
—

 
(349
)
 
—

 


 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
January 1,
2012   
 
Included in
earnings    
 
OCI    
 
Purchases
 
Sales    
 
Settlements    
 
Transfers
to/from  other
balance sheet
line items    
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
June 30,
2012  
 
Included in earnings (held at June 30, 2012) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS - private

$1

 

$—

  

$—

  

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$1

 

$—

  
CDO/CLO securities
43

 
—

 
—

  
—

 
—

 
—

 
—

 
—

 
—

 
43

 
(1
)
 
ABS
5

 
—

  
—

  
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Total trading assets
49

 
—

 
—

  
—

 
—

 
—

 
—

 
—

 
—

 
49

 
(1
)
5  
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
58

 
—

  
(1
)
  
—

 
—

 
(2
)
 
—

 
—

 
—

 
55

 
—

  
MBS - private
221

 
(4
)
  
14

  
—

 
—

 
(23
)
 
—

 
—

 
—

 
208

 
(4
)
  
ABS
16

 
—

  
2

  
—

 
—

 
(1
)
 
—

 
—

 
—

 
17

 
—

  
Corporate and other debt securities
5

 
—

  
—

  
2

 
—

 
(2
)
 
—

 
—

 
—

 
5

 
—

  
Other equity securities
741

 
—

  
—

  
162

 
—

 
(46
)
 
—

 
—

 
—

 
857

 
—

  
Total securities AFS
1,041

 
(4
)
2 
15

   
164

 
—

 
(74
)
 
—

 
—

 
—

 
1,142

 
(4
)
2  
LHFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
1

 
—

 
—

  
—

 
(1
)
 
—

 
3

 
4

 
(5
)
 
2

 
—

 
LHFI
433

 
1

3 
—

  
—

 
—

 
(26
)
 
(5
)
 
3

 
—

 
406

 
1

3 
Other assets/(liabilities), net
62

 
438

4 
—

  
(23
)
 
—

 
22

 
(390
)
 
—

 
—

 
109

 
—

  

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(189
)
 
1

5 
(161
)
6 
—

 
—

 
—

 
—

 
—

 
—

 
(349
)
 
1

5  
1 Change in unrealized gains/(losses) included in earnings during the period related to financial assets still held at June 30, 2012.
2 Amounts included in earnings are recorded in net securities gains.
3 Amounts are generally included in mortgage production related income; however, the mark on certain fair value loans is included in trading income.
4 Amounts included in earnings are net of issuances, fair value changes, and expirations and are recorded in mortgage production related income.
5 Amounts included in earnings are recorded in trading income.
6 Amount recorded in OCI is the effective portion of the cash flow hedges related to the Company’s probable forecasted sale of its shares of Coke common stock as discussed in Note 10, “Derivative Financial Instruments.”






 
Fair Value Measurements
Using Significant Unobservable Inputs
 
 
(Dollars in millions)
Beginning
balance
April 1,
2011  
 
Included in
earnings    
 
OCI    
 
Sales    
 
Settlements    
 
Transfers
to/from other
balance sheet
line items    
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
June 30,
2011
 
Included in earnings (held at June 30, 2011) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS - private

$2

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$2

 

$—

  
CDO/CLO securities
42

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
42

 
—

 
ABS
5

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Equity securities
56

 
4

 
—

 
—

 
(47
)
 
—

 
—

 
—

 
13

 
—

  
Total trading assets
105

 
4

2  
—

 
—

 
(47
)
 
—

 
—

 
—

 
62

 
—

 
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
73

 
—

 
—

 
—

 
(5
)
 
—

 
—

 
—

 
68

 
—

  
MBS - private
338

 
(1
)
 
(7
)
 
—

 
(19
)
 
—

 
—

 
—

 
311

 
1

  
ABS
20

 
—

 
—

 
—

 
(1
)
 
—

 
—

 
—

 
19

 
—

  
Corporate and other debt securities
5

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Other equity securities
690

 
—

 
—

 
—

 
(93
)
 
—

 
—

 
—

 
597

 
—

  
Total securities AFS
1,126

 
(1
)
3  
(7
)
 
—

 
(118
)
 
—

 
—

 
—

 
1,000

 
1

3  
LHFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
17

 
1

6 
—

 
(12
)
 
—

 
(7
)
 
5

 
(1
)
 
3

 
—

 
LHFI
457

 
1

5 
—

 
—

 
(11
)
 
2

 
—

 
—

 
449

 
(1
)
5 
Other assets/(liabilities), net
(2
)
 
48

6 
—

 
—

 
6

 
(40
)
 
—

 
—

 
12

 
—

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(161
)
 
1

2 
6

7 

—

 
—

 
—

 
—

 
—

 
(154
)
 
—

 
 
Fair Value Measurements
Using Significant Unobservable Inputs
 
 
(Dollars in millions)
Beginning
balance
January 1,
2011  
 
Included in
earnings    
 
OCI    
 
Sales    
 
Settlements    
 
Transfers
to/from other
balance sheet
line items    
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
June 30,
2011
 
Included in earnings (held at June 30, 2011) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS - private

$6

 

$2

 

$—

 

($5
)
 

($1
)
 

$—

 

$—

 

$—

 

$2

 

$—

  
CDO/CLO securities
53

 
31

 
—

 
(21
)
 
(1
)
 
(20
)
 
—

 
—

 
42

 
15

 
ABS
27

 
9

 
—

 
(31
)
 
—

 
—

 
—

 
—

 
5

 
2

  
Equity securities
123

 
12

 
—

 
—

 
(122
)
 
—

 
—

 
—

 
13

 
—

  
Total trading assets
209

 
54

2  
—

 
(57
)
 
(124
)
 
(20
)
 
—

 
—

 
62

 
17

2  
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
74

 
1

 
—

 
—

 
(7
)
 
—

 
—

 
—

 
68

 
—

  
MBS - private
347

 
(3
)
 
9

 
—

 
(42
)
 
—

 
—

 
—

 
311

 
(3
)
  
ABS
20

 
—

 
1

 
—

 
(2
)
 
—

 
—

 
—

 
19

 
—

  
Corporate and other debt securities
5

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Other equity securities
690

 
—

 
—

 
—

 
(93
)
 
—

 
—

 
—

 
597

 
—

  
Total securities AFS
1,136

 
(2
)
3  
10

 
—

 
(144
)
 
—

 
—

 
—

 
1,000

 
(3
)
3  
LHFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
2

 
—

 
—

 
(14
)
 
(1
)
 
2

 
16

 
(2
)
 
3

 
—

 
Corporate and other loans
5

 
(1
)
4 
—

 
—

 
—

 
(4
)
 
—

 
—

 
—

 
—

 
LHFI
492

 
—

 
—

 
—

 
(34
)
 
(9
)
 
—

 
—

 
449

 
(3
)
5 
Other assets/(liabilities), net
(24
)
 
84

6 
—

 
—

 
6

 
(54
)
 
—

 
—

 
12

 
—

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(145
)
 
1

2 
(10
)
7 

—

 
—

 
—

 
—

 
—

 
(154
)
 
—

 
1 Change in unrealized gains/(losses) included in earnings for the period related to financial assets still held at June 30, 2011.
2 Amounts included in earnings are recorded in trading income.
3 Amounts included in earnings are recorded in net securities gains.
4 Amounts included in earnings are recorded in other noninterest income.
5 Amounts are generally included in mortgage production related income, however, the mark on certain fair value loans is included in trading income.
6 Amounts included in earnings are net of issuances, fair value changes, and expirations and are recorded in mortgage production related income.
7 Amount recorded in OCI is the effective portion of the cash flow hedges related to the Company’s probable forecasted sale of its shares of Coke common stock as discussed in Note 10, “Derivative Financial Instruments.”
Change in Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis 
 
 
 
Fair Value Measurement at
June 30, 2012,
Using
 
 
 
 
 
(Dollars in millions)
Net
Carrying
Value
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Valuation
Allowance
 
Gains/(Losses) for the Three Months Ended
June 30, 2012
 
Gains/(Losses) for the Six Months Ended
June 30, 2012
LHFS

$17

 

$—

 

$17

 

$—

 

$—

 

$—

 

$—

LHFI
49

 
—

 
—

 
49

 
3

 
—

 
—

OREO
331

 
—

 
260

 
71

 
(136
)
 
—

 
3

Other Assets
92

 
—

 
21

 
71

 
(60
)
 
(6
)
 
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement at
December 31, 2011,
Using
 
 
 
 
 
(Dollars in millions)
Net
Carrying
Value
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Valuation
Allowance
 
Gains/(Losses) for the Year Ended December 31, 2011
 
 
LHFS

$212

 

$—

 

$108

 

$104

 

$—

 

$—

 
 
LHFI
72

 
—

 
—

 
72

 
(7
)
 
—

 
 
OREO
479

 
—

 
372

 
107

 
(127
)
 
(9
)
 
 
Affordable Housing
324

 
—

 
—

 
324

 
—

 
(10
)
 
 
Other Assets
45

 
—

 
24

 
21

 
(20
)
 
(17
)
 
 

Carrying Amounts and Fair Values of the Company's Financial Instruments 
 
June 30, 2012
 
Fair Value Measurement Using
 
(Dollars in millions)
Carrying
Amount
 
Fair
Value
 
Quoted Prices In Active
Markets for
Identical
Assets/Liabilities    
(Level 1)
 
Significant
Other
Observable    
Inputs
(Level 2)
 
Significant
Unobservable    
Inputs
(Level 3)
 
Financial assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents

$6,739

 

$6,739

 

$6,739

 

$—

 

$—

(a) 
Trading assets
6,327

 
6,327

 
424

 
5,854

 
49

(b) 
Securities AFS
24,409

 
24,409

 
2,686

 
20,581

 
1,142

(b) 
LHFS
3,123

 
3,127

 
—

 
3,072

 
55

(c) 
LHFI, net
122,260

 
118,403

 
—

 
4,941

 
113,462

(d)
Financial liabilities
 
 
 
 
 
 
 
 
 
 
Consumer and commercial deposits

$126,145

 

$126,456

 

$—

 

$126,456

 

$—

(e) 
Brokered time deposits
2,208

 
2,227

 
—

 
2,227

 
—

(f) 
Foreign deposits
50

 
50

 
—

 
50

 
—

(f) 
Short-term borrowings
9,528

 
9,528

 
—

 
9,528

 
—

(f) 
Long-term debt
13,076

 
12,856

 
—

 
11,116

 
1,740

(f) 
Trading liabilities
1,782

 
1,782

 
352

 
1,081

 
349

(b) 

 
December 31, 2011
 
(Dollars in millions)
Carrying
Amount
 
Fair
Value
 
Financial assets
 
 
 
 
Cash and cash equivalents

$4,509

 

$4,509

(a) 
Trading assets
6,279

 
6,279

(b) 
Securities AFS
28,117

 
28,117

(b) 
LHFS
2,353

 
2,355

(c) 
LHFI, net
120,038

 
115,685

(d)
Financial liabilities
 
 
 
 
Consumer and commercial deposits

$125,611

 

$125,963

(e) 
Brokered time deposits
2,281

 
2,289

(f) 
Foreign deposits
30

 
30

(f) 
Short-term borrowings
11,466

 
11,466

(f) 
Long-term debt
10,908

 
10,515

(f) 
Trading liabilities
1,806

 
1,806

(b) 

The following methods and assumptions were used by the Company in estimating the fair value of financial instruments:
(a)
Cash and cash equivalents are valued at their carrying amounts reported in the balance sheet, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments.
(b)
Securities AFS, trading assets, and trading liabilities that are classified as level 1 are valued based on quoted market prices. For those instruments classified as level 2 or 3, refer to the respective valuation discussions within this footnote.
(c)
LHFS are generally valued based on observable current market prices or, if quoted market prices are not available, on quoted market prices of similar instruments. Refer to the LHFS section within this footnote for further discussion of the LHFS carried at fair value. In instances when significant valuation assumptions are not readily observable in the market, instruments are valued based on the best available data to approximate fair value. This data may be internally-developed and considers risk premiums that a market participant would require under then-current market conditions.
(d)
LHFI fair values are based on a hypothetical exit price, which does not represent the estimated intrinsic value of the loan if held for investment. The assumptions used are expected to approximate those that a market participant purchasing the loans would use to value the loans, including a market risk premium and liquidity discount. Estimating the fair value of the loan portfolio when loan sales and trading markets are illiquid, or for certain loan types, nonexistent, requires significant judgment. Therefore, the estimated fair value can vary significantly depending on a market participant’s ultimate considerations and assumptions. The final value yields a market participant’s expected return on investment that is indicative of the current market conditions, but it does not take into consideration the Company’s estimated value from continuing to hold these loans or its lack of willingness to transact at these estimated values. Level 2 LHFI consist of agency mortgage loans for which the Company has obtained a guarantee from Fannie Mae in the form of a long term standby commitment. These agency mortgage loans are priced using current market pricing for similar securities adjusted for servicing value and market and credit risk. Additionally, the Company classifies widely syndicated commercial leveraged loans as level 2 in the fair value hierarchy as the loans, or similar loans, are traded in an active market and pricing is readily available from a third-party pricing service.
The Company estimated fair value for the remaining LHFI based on estimated future cash flows discounted, initially, at current origination rates for loans with similar terms and credit quality, which derived an estimated value of 101% and 100% on the loan portfolio’s net carrying value as of June 30, 2012 and December 31, 2011, respectively. The value derived from origination rates likely does not represent an exit price; therefore, an incremental market risk and liquidity discount was subtracted from the initial value as of June 30, 2012 and December 31, 2011, respectively. The discounted value is a function of a market participant’s required yield in the current environment and is not a reflection of the expected cumulative losses on the loans. Loan prepayments are used to adjust future cash flows based on historical experience and prepayment model forecasts. The value of related accrued interest on loans approximates fair value; however, it is not included in the carrying amount or fair value of loans. The value of long-term customer relationships is not permitted under current U.S. GAAP to be included in the estimated fair value.
(e)
Deposit liabilities with no defined maturity such as DDAs, NOW/money market accounts, and savings accounts have a fair value equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for CDs are estimated using a discounted cash flow calculation that applies current interest rates to a schedule of aggregated expected maturities. The assumptions used in the discounted cash flow analysis are expected to approximate those that market participants would use in valuing deposits. The value of long-term relationships with depositors is not taken into account in estimating fair values.
(f)
Fair values for foreign deposits, certain brokered time deposits, short-term borrowings, and certain long-term debt are based on quoted market prices for similar instruments or estimated using discounted cash flow analysis and the Company’s current incremental borrowing rates for similar types of instruments. For brokered time deposits and long-term debt that the Company carries at fair value, refer to the respective valuation sections within this footnote. For Level 3 debt, the terms are unique in nature or there are otherwise no similar instruments than can be used to value the instrument without using significant unobservable assumptions.  In this situation, we look at current borrowing rates along with the collateral levels that secure the debt when determining an appropriate fair value adjustment.
Business Segment Reporting (Tables)
Business Segment Reporting
 
Three Months Ended June 30, 2012
(Dollars in millions)
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Average total assets

$46,337

 

$64,603

 

$35,788

 

$29,414

 

$1,773

 

$177,915

Average total liabilities
78,107

 
53,209

 
4,347

 
21,960

 
(180
)
 
157,443

Average total equity
—

 
—

 
—

 
—

 
20,472

 
20,472

Net interest income

$630

 

$433

 

$131

 

$94

 

($14
)
 

$1,274

FTE adjustment
—

 
32

 
—

 
1

 
(1
)
 
32

Net interest income - FTE 1
630

 
465

 
131

 
95

 
(15
)
 
1,306

Provision for credit losses 2
118

 
67

 
165

 
—

 
(50
)
 
300

Net interest income/(loss) after provision for credit losses
512

 
398

 
(34
)
 
95

 
35

 
1,006

Total noninterest income
340

 
383

 
179

 
41

 
(3
)
 
940

Total noninterest expense
688

 
515

 
348

 
(3
)
 
(2
)
 
1,546

Income/(loss) before provision/(benefit) for income taxes
164

 
266

 
(203
)
 
139

 
34

 
400

Provision/(benefit) for income taxes 3
59

 
78

 
(83
)
 
54

 
15

 
123

Net income/(loss) including income attributable to noncontrolling interest
105

 
188

 
(120
)
 
85

 
19

 
277

Net income attributable to noncontrolling interest
—

 
—

 
—

 
3

 
(1
)
 
2

Net income/(loss)

$105

 

$188

 

($120
)
 

$82

 

$20

 

$275

 
 
 
 
 
 
 
 
 
 
 
 

 
Three Months Ended June 30, 2011
(Dollars in millions)
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Average total assets

$43,244

 

$62,255

 

$33,363

 

$31,281

 

$384

 

$170,527

Average total liabilities
77,718

 
54,932

 
3,427

 
14,927

 
14

 
151,018

Average total equity
—

 
—

 
—

 
—

 
19,509

 
19,509

Net interest income

$620

 

$399

 

$112

 

$119

 

$9

 

$1,259

FTE adjustment
—

 
26

 
—

 
2

 
(1
)
 
27

Net interest income - FTE 1
620

 
425

 
112

 
121

 
8

 
1,286

Provision for credit losses 2
177

 
175

 
153

 
—

 
(113
)
 
392

Net interest income/(loss) after provision for credit losses
443

 
250

 
(41
)
 
121

 
121

 
894

Total noninterest income
372

 
402

 
75

 
67

 
(4
)
 
912

Total noninterest expense
736

 
549

 
274

 
(14
)
 
(3
)
 
1,542

Income/(loss) before provision/(benefit) for income taxes
79

 
103

 
(240
)
 
202

 
120

 
264

Provision/(benefit) for income taxes 3
29

 
18

 
(93
)
 
84

 
47

 
85

Net income/(loss) including income attributable to noncontrolling interest
50

 
85

 
(147
)
 
118

 
73

 
179

Net income attributable to noncontrolling interest
—

 
(1
)
 
—

 
2

 
—

 
1

Net income/(loss)

$50

 

$86

 

($147
)
 

$116

 

$73

 

$178


1Net interest income is FTE and is presented on a matched maturity funds transfer price basis for the segments.
2Provision for credit losses represents net charge-offs for the segments.
3Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.


 
Six Months Ended June 30, 2012
(Dollars in millions)
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Average total assets

$46,222

 

$63,979

 

$35,512

 

$30,332

 

$1,340

 

$177,385

Average total liabilities
77,839

 
54,234

 
4,088

 
21,185

 
(325
)
 
157,021

Average total equity
—

 
—

 
—

 
—

 
20,364

 
20,364

Net interest income

$1,263

 

$862

 

$257

 

$220

 

($17
)
 

$2,585

FTE adjustment
—

 
61

 
—

 
2

 
—

 
63

Net interest income - FTE 1
1,263

 
923

 
257

 
222

 
(17
)
 
2,648

Provision for credit losses 2
272

 
168

 
331

 
—

 
(154
)
 
617

Net interest income/(loss) after provision for credit losses
991

 
755

 
(74
)
 
222

 
137

 
2,031

Total noninterest income
662

 
762

 
336

 
61

 
(5
)
 
1,816

Total noninterest expense
1,387

 
1,030

 
686

 
(11
)
 
(5
)
 
3,087

Income/(loss) before provision/(benefit) for income taxes
266

 
487

 
(424
)
 
294

 
137

 
760

Provision/(benefit) for income taxes 3
96

 
137

 
(170
)
 
103

 
57

 
223

Net income/(loss) including income attributable to noncontrolling interest
170

 
350

 
(254
)
 
191

 
80

 
537

Net income attributable to noncontrolling interest
—

 
8

 
—

 
5

 
(1
)
 
12

Net income/(loss)

$170

 

$342

 

($254
)
 

$186

 

$81

 

$525

 
 
 
 
 
 
 
 
 
 
 
 

 
Six Months Ended June 30, 2011
(Dollars in millions)
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Average total assets

$43,329

 

$61,772

 

$33,947

 

$31,082

 

$1,659

 

$171,789

Average total liabilities
77,283

 
54,468

 
3,559

 
15,202

 
(21
)
 
150,491

Average total equity
—

 
—

 
—

 
—

 
21,298

 
21,298

Net interest income

$1,239

 

$789

 

$232

 

$240

 

$8

 

$2,508

FTE adjustment
—

 
51

 
—

 
3

 
1

 
55

Net interest income - FTE 1
1,239

 
840

 
232

 
243

 
9

 
2,563

Provision for credit losses 2
379

 
321

 
376

 
—

 
(237
)
 
839

Net interest income/(loss) after provision for credit losses
860

 
519

 
(144
)
 
243

 
246

 
1,724

Total noninterest income
731

 
791

 
156

 
135

 
(18
)
 
1,795

Total noninterest expense
1,433

 
1,086

 
526

 
(19
)
 
(19
)
 
3,007

Income/(loss) before provision/(benefit) for income taxes
158

 
224

 
(514
)
 
397

 
247

 
512

Provision/(benefit) for income taxes 3
58

 
39

 
(199
)
 
150

 
98

 
146

Net income/(loss) including income attributable to noncontrolling interest
100

 
185

 
(315
)
 
247

 
149

 
366

Net income attributable to noncontrolling interest
—

 
4

 
—

 
5

 
(1
)
 
8

Net income/(loss)

$100

 

$181

 

($315
)
 

$242

 

$150

 

$358

  
1Net interest income is FTE and is presented on a matched maturity funds transfer price basis for the segments.
2Provision for credit losses represents net charge-offs for the segments.
3Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.
Securities Available for Sale (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
$ 21,162 
$ 25,170 
Unrealized Gains
3,276 
2,989 
Unrealized Losses
29 
42 
Fair Value
24,409 
28,117 
US Treasury Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
214 
671 
Unrealized Gains
10 
23 
Unrealized Losses
0 
0 
Fair Value
224 
694 
US Government Agencies Debt Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
1,698 
1,843 
Unrealized Gains
85 
89 
Unrealized Losses
0 
0 
Fair Value
1,783 
1,932 
US States and Political Subdivisions Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
359 
437 
Unrealized Gains
19 
21 
Unrealized Losses
6 
4 
Fair Value
372 
454 
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
17,308 
20,480 
Unrealized Gains
803 
743 
Unrealized Losses
1 
0 
Fair Value
18,110 
21,223 
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
225 
252 
Unrealized Gains
0 
0 
Unrealized Losses
17 
31 
Fair Value
208 
221 
Collateralized Debt Obligations [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
 
50 
Unrealized Gains
 
0 
Unrealized Losses
 
0 
Fair Value
 
50 
Asset-backed Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
344 
460 
Unrealized Gains
9 
11 
Unrealized Losses
5 
7 
Fair Value
348 
464 
Corporate And Other Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
42 
49 
Unrealized Gains
3 
2 
Unrealized Losses
0 
0 
Fair Value
45 
51 
Equity Securities, Coca Cola
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
0 
0 
Unrealized Gains
2,346 
2,099 
Unrealized Losses
0 
0 
Fair Value
2,346 
2,099 
Equity Securities, Other [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
972 1
928 1
Unrealized Gains
1 1
1 1
Unrealized Losses
0 1
0 1
Fair Value
973 1
929 1
Equity Securities, Other [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Federal Reserve Bank Stock
$ 401 
$ 398 
Securities Available for Sale (Parenthetical) (Detail) (Equity Securities, Other [Member], USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Equity Securities, Other [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Federal Home Loan Bank (FHLB) of Atlanta stock (par value)
$ 455 
$ 342 
Federal Reserve Bank Stock
401 
398 
Mutual fund investments (par value)
$ 116 
$ 187 
Securities Available for Sale - Additional Information (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions
4 
 
4 
 
 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
$ 2,000,000 
$ 1,000,000 
$ 4,000,000 
$ 2,000,000 
 
Fair value of pledged securities available for sale
7,600,000,000 
 
7,600,000,000 
 
9,100,000,000 
Securities AFS Pledged Transferee Cannot Transfer
0 
 
0 
 
0 
Securities Sold under Agreements to Repurchase
1,583,000,000 
 
1,583,000,000 
 
1,644,000,000 
Trading Assets [Member]
 
 
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
Trading assets and cash equivalents, pledged
978,000,000 
 
978,000,000 
 
770,000,000 
Securities Sold under Agreements to Repurchase
930,000,000 
 
930,000,000 
 
747,000,000 
Mortgage-backed Securities, Issued by Private Enterprises [Member] |
Other Than Temporarily Impaired Securities [Member]
 
 
 
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
Available for sale securities, fair market value
$ 140,000,000 
$ 193,000,000 
$ 140,000,000 
$ 193,000,000 
 
Amortized Cost and Fair Value of Investments in Debt Securities by Estimated Average Life (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Distribution of Maturities: Amortized Cost, 1 Year or Less
$ 1,264 
Distribution of Maturities: Amortized Cost, 1-5 Years
16,346 
Distribution of Maturities: Amortized Cost, 5-10 Years
2,071 
Distribution of Maturities: Amortized Cost, After 10 Years
509 
Distribution of Maturities: Amortized Cost, Total
20,190 
Distribution of Maturities: Fair Value, 1 Year or Less
1,318 
Distribution of Maturities: Fair Value, 1-5 Years
17,080 
Distribution of Maturities: Fair Value, 5-10 Years
2,167 
Distribution of Maturities: Fair Value, After 10 Years
525 
Distribution of Maturities: Fair Value, Total
21,090 
US Treasury Securities
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
12 
Distribution of Maturities: Amortized Cost, 1-5 Years
202 
Distribution of Maturities: Amortized Cost, 5-10 Years
0 
Distribution of Maturities: Amortized Cost, After 10 Years
0 
Distribution of Maturities: Amortized Cost, Total
214 
Distribution of Maturities: Fair Value, 1 Year or Less
12 
Distribution of Maturities: Fair Value, 1-5 Years
212 
Distribution of Maturities: Fair Value, 5-10 Years
0 
Distribution of Maturities: Fair Value, After 10 Years
0 
Distribution of Maturities: Fair Value, Total
224 
US Government Agencies Debt Securities
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
117 
Distribution of Maturities: Amortized Cost, 1-5 Years
1,372 
Distribution of Maturities: Amortized Cost, 5-10 Years
95 
Distribution of Maturities: Amortized Cost, After 10 Years
114 
Distribution of Maturities: Amortized Cost, Total
1,698 
Distribution of Maturities: Fair Value, 1 Year or Less
118 
Distribution of Maturities: Fair Value, 1-5 Years
1,441 
Distribution of Maturities: Fair Value, 5-10 Years
105 
Distribution of Maturities: Fair Value, After 10 Years
119 
Distribution of Maturities: Fair Value, Total
1,783 
US States and Political Subdivisions Debt Securities [Member]
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
108 
Distribution of Maturities: Amortized Cost, 1-5 Years
178 
Distribution of Maturities: Amortized Cost, 5-10 Years
21 
Distribution of Maturities: Amortized Cost, After 10 Years
52 
Distribution of Maturities: Amortized Cost, Total
359 
Distribution of Maturities: Fair Value, 1 Year or Less
111 
Distribution of Maturities: Fair Value, 1-5 Years
191 
Distribution of Maturities: Fair Value, 5-10 Years
21 
Distribution of Maturities: Fair Value, After 10 Years
49 
Distribution of Maturities: Fair Value, Total
372 
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
901 
Distribution of Maturities: Amortized Cost, 1-5 Years
14,304 
Distribution of Maturities: Amortized Cost, 5-10 Years
1,827 
Distribution of Maturities: Amortized Cost, After 10 Years
276 
Distribution of Maturities: Amortized Cost, Total
17,308 
Distribution of Maturities: Fair Value, 1 Year or Less
951 
Distribution of Maturities: Fair Value, 1-5 Years
14,957 
Distribution of Maturities: Fair Value, 5-10 Years
1,916 
Distribution of Maturities: Fair Value, After 10 Years
286 
Distribution of Maturities: Fair Value, Total
18,110 
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
0 
Distribution of Maturities: Amortized Cost, 1-5 Years
136 
Distribution of Maturities: Amortized Cost, 5-10 Years
89 
Distribution of Maturities: Amortized Cost, After 10 Years
0 
Distribution of Maturities: Amortized Cost, Total
225 
Distribution of Maturities: Fair Value, 1 Year or Less
0 
Distribution of Maturities: Fair Value, 1-5 Years
125 
Distribution of Maturities: Fair Value, 5-10 Years
83 
Distribution of Maturities: Fair Value, After 10 Years
0 
Distribution of Maturities: Fair Value, Total
208 
Asset-backed Securities [Member]
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
123 
Distribution of Maturities: Amortized Cost, 1-5 Years
152 
Distribution of Maturities: Amortized Cost, 5-10 Years
2 
Distribution of Maturities: Amortized Cost, After 10 Years
67 
Distribution of Maturities: Amortized Cost, Total
344 
Distribution of Maturities: Fair Value, 1 Year or Less
123 
Distribution of Maturities: Fair Value, 1-5 Years
152 
Distribution of Maturities: Fair Value, 5-10 Years
2 
Distribution of Maturities: Fair Value, After 10 Years
71 
Distribution of Maturities: Fair Value, Total
348 
Corporate And Other Debt Securities [Member]
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
3 
Distribution of Maturities: Amortized Cost, 1-5 Years
2 
Distribution of Maturities: Amortized Cost, 5-10 Years
37 
Distribution of Maturities: Amortized Cost, After 10 Years
0 
Distribution of Maturities: Amortized Cost, Total
42 
Distribution of Maturities: Fair Value, 1 Year or Less
3 
Distribution of Maturities: Fair Value, 1-5 Years
2 
Distribution of Maturities: Fair Value, 5-10 Years
40 
Distribution of Maturities: Fair Value, After 10 Years
0 
Distribution of Maturities: Fair Value, Total
$ 45 
Securities with Unrealized Losses (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
$ 32 
$ 285 
Less than twelve months, Unrealized Losses
1 
0 
Twelve months or longer, Fair Value
37 
40 
Twelve months or longer, Unrealized Losses
9 
9 
Total, Fair Value
69 
325 
Total, Unrealized Losses
10 
9 
Temporarily Impaired Securities |
US Government Agencies Debt Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
19 
10 
Less than twelve months, Unrealized Losses
0 
0 
Twelve months or longer, Fair Value
0 
0 
Twelve months or longer, Unrealized Losses
0 
0 
Total, Fair Value
19 
10 
Total, Unrealized Losses
0 
0 
Temporarily Impaired Securities |
US States and Political Subdivisions Debt Securities [Member]
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
1 
1 
Less than twelve months, Unrealized Losses
0 
0 
Twelve months or longer, Fair Value
24 
28 
Twelve months or longer, Unrealized Losses
6 
4 
Total, Fair Value
25 
29 
Total, Unrealized Losses
6 
4 
Temporarily Impaired Securities |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
12 
224 
Less than twelve months, Unrealized Losses
1 
0 
Twelve months or longer, Fair Value
1 
1 
Twelve months or longer, Unrealized Losses
0 
0 
Total, Fair Value
13 
225 
Total, Unrealized Losses
1 
0 
Temporarily Impaired Securities |
Collateralized Debt Obligations [Member]
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
 
50 
Less than twelve months, Unrealized Losses
 
0 
Twelve months or longer, Fair Value
 
0 
Twelve months or longer, Unrealized Losses
 
0 
Total, Fair Value
 
50 
Total, Unrealized Losses
 
0 
Temporarily Impaired Securities |
Asset-backed Securities [Member]
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
0 
0 
Less than twelve months, Unrealized Losses
0 
0 
Twelve months or longer, Fair Value
12 
11 
Twelve months or longer, Unrealized Losses
3 
5 
Total, Fair Value
12 
11 
Total, Unrealized Losses
3 
5 
Other Than Temporarily Impaired Securities [Member]
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
1 1
16 1
Less than twelve months, Unrealized Losses
0 1
1 1
Twelve months or longer, Fair Value
211 1
209 1
Twelve months or longer, Unrealized Losses
19 1
32 1
Total, Fair Value
212 1
225 1
Total, Unrealized Losses
19 1
33 1
Other Than Temporarily Impaired Securities [Member] |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
0 1
15 1
Less than twelve months, Unrealized Losses
0 1
1 1
Twelve months or longer, Fair Value
207 1
206 1
Twelve months or longer, Unrealized Losses
17 1
30 1
Total, Fair Value
207 1
221 1
Total, Unrealized Losses
17 1
31 1
Other Than Temporarily Impaired Securities [Member] |
Asset-backed Securities [Member]
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
1 1
1 1
Less than twelve months, Unrealized Losses
0 1
0 1
Twelve months or longer, Fair Value
4 1
3 1
Twelve months or longer, Unrealized Losses
2 1
2 1
Total, Fair Value
5 1
4 1
Total, Unrealized Losses
2 1
2 1
Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
33 
301 
Less than twelve months, Unrealized Losses
1 
1 
Twelve months or longer, Fair Value
248 
249 
Twelve months or longer, Unrealized Losses
28 
41 
Total, Fair Value
281 
550 
Total, Unrealized Losses
$ 29 
$ 42 
Gross Realized Gains and Losses on Sales and OTTI on Securities Available for Sale (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Gross realized gains
$ 16 
$ 33 
$ 36 
$ 176 
Gross realized losses
0 
0 
0 
(78)
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
(2)
(1)
(4)
(2)
Net securities gains
$ 14 
$ 32 
$ 32 
$ 96 
OTTI Losses on Available for Sale Securities (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Total OTTI losses
$ 2 1
$ 1 1
$ 4 1
$ 2 1
Portion of losses recognized in OCI (before taxes)
0 
0 
0 
0 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
$ 2 
$ 1 
$ 4 
$ 2 
Significant Inputs Considered in Determining the Measurement of Credit Losses Recognized in Earnings for Private Residential MBS (Detail)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Lower Limit
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Current default rate
2.00% 
4.00% 
Prepayment rate
7.00% 
12.00% 
Inputs Considered In Determining Measurement Of Credit Losses Loss Severity
47.00% 
39.00% 
Upper Limit
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Current default rate
6.00% 
8.00% 
Prepayment rate
21.00% 
22.00% 
Inputs Considered In Determining Measurement Of Credit Losses Loss Severity
56.00% 
44.00% 
Composition of the Company's Loan Portfolio (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 124,560 1
$ 122,495 1
Loans Held for Sale
3,123 2
2,353 2
Commercial and Industrial
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
52,030 
49,538 
Commercial Real Estate
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
4,825 
5,094 
Commercial Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
959 
1,240 
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
24,405 3
23,243 3
Home Equity
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
15,281 
15,765 
Residential Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
853 
980 
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
2,225 
2,059 
Consumer Indirect
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
10,506 
10,165 
Consumer Credit Card
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
565 
540 
Commercial Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
57,814 
55,872 
Commercial Portfolio Segment [Member] |
Commercial and Industrial
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
52,030 
49,538 
Commercial Portfolio Segment [Member] |
Commercial Real Estate
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
4,825 
5,094 
Commercial Portfolio Segment [Member] |
Commercial Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
959 
1,240 
Residential Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
46,202 
46,660 
Residential Portfolio Segment [Member] |
Residential Guaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
5,663 
6,672 
Residential Portfolio Segment [Member] |
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
24,405 4
23,243 5
Residential Portfolio Segment [Member] |
Home Equity
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
15,281 
15,765 
Residential Portfolio Segment [Member] |
Residential Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
853 
980 
Consumer Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
20,544 
19,963 
Consumer Portfolio Segment [Member] |
Guaranteed Student Loans
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
7,248 
7,199 
Consumer Portfolio Segment [Member] |
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
2,225 
2,059 
Consumer Portfolio Segment [Member] |
Consumer Indirect
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
10,506 
10,165 
Consumer Portfolio Segment [Member] |
Consumer Credit Card
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
565 
540 
Loans Held For Investment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
124,560 
122,495 
Loans Held For Investment [Member] |
Commercial Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
57,814 
55,872 
Loans Held For Investment [Member] |
Commercial Portfolio Segment [Member] |
Commercial and Industrial
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
52,030 
49,538 
Loans Held For Investment [Member] |
Commercial Portfolio Segment [Member] |
Commercial Real Estate
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
4,825 
5,094 
Loans Held For Investment [Member] |
Commercial Portfolio Segment [Member] |
Commercial Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
959 
1,240 
Loans Held For Investment [Member] |
Residential Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
46,202 
46,660 
Loans Held For Investment [Member] |
Residential Portfolio Segment [Member] |
Residential Guaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
5,663 
6,672 
Loans Held For Investment [Member] |
Residential Portfolio Segment [Member] |
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
24,405 6
23,243 6
Loans Held For Investment [Member] |
Residential Portfolio Segment [Member] |
Home Equity
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
15,281 
15,765 
Loans Held For Investment [Member] |
Residential Portfolio Segment [Member] |
Residential Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
853 
980 
Loans Held For Investment [Member] |
Consumer Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
20,544 
19,963 
Loans Held For Investment [Member] |
Consumer Portfolio Segment [Member] |
Guaranteed Student Loans
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
7,248 
7,199 
Loans Held For Investment [Member] |
Consumer Portfolio Segment [Member] |
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
2,225 
2,059 
Loans Held For Investment [Member] |
Consumer Portfolio Segment [Member] |
Consumer Indirect
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
10,506 
10,165 
Loans Held For Investment [Member] |
Consumer Portfolio Segment [Member] |
Consumer Credit Card
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
565 
540 
Loans Held-for-Sale
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans Held for Sale
$ 3,123 
$ 2,353 
Composition of the Company's Loan Portfolio (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans carried at fair value
$ 406 
$ 433 
Commercial Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans carried at fair value
1 
2 
Residential Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans carried at fair value
405 
431 
Residential Portfolio Segment [Member] |
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans carried at fair value
$ 405 
$ 431 
Loans - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Loans transferred from loans held for sale to loans
 
 
$ 31 
$ 46 
 
Value of loans transferred from LHFI to LHFS
 
 
1,116 
198 
 
Loans held for investment sold
454 
277 
454 
277 
 
Gain on sale of loans held for investment
 
 
23 
10 
 
PrincipalForgivenessRestructuringImpact
1 
8 
1 
9 
 
Loans and Leases Receivable, Impaired, Commitment to Lend
4 
 
4 
 
5 
Concentration of credit risk, maximum exposure, percentage of total loans
37.00% 
 
37.00% 
 
 
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
7 1
26 2
14 1
76 2
 
Lower Limit
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Minimum amount of modified loan in a TDR to evaluate individually for impairment
3 
 
3 
 
 
Guaranteed Student Loans
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Student loan portfolio percentage current
79.00% 
 
79.00% 
 
79.00% 
Accrual Loans
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Accruing TDRs included in impaired loan balances
2,600 
 
2,600 
 
2,576 
Accruing TDRs current
94.00% 
 
94.00% 
 
93.00% 
Cross-Border Outstanding Loans
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
680 
 
680 
 
630 
Residential Mortgage
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure, percentage of total loans
 
 
 
 
38.00% 
Concentration of credit risk, maximum exposure
46,200 
 
46,200 
 
46,700 
Government guaranteed percent
12.00% 
 
12.00% 
 
14.00% 
Residential Mortgage |
Risk Level, High
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
14,200 
 
14,200 
 
14,700 
Commitments to Extend Credit
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
12,200 
 
12,200 
 
12,700 
Loan Origination Commitments
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
9,100 
 
9,100 
 
7,800 
Interest Only Loans |
Risk Level, High
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
8,700 
 
8,700 
 
9,400 
Interest Only Loans, High LTV First Lien and Junior Lien, With No Mortgage Insurance [Member] |
Risk Level, High
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
1,700 
 
1,700 
 
1,900 
Amortizing Loans, High LTV First Lien and Junior Lien, With No Mortgage Insurance [Member] |
Risk Level, High
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
$ 5,500 
 
$ 5,500 
 
$ 5,278 
LHFI by Credit Quality Indicator (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 124,560 1
$ 122,495 1
Commercial and Industrial
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
52,030 
49,538 
Commercial and Industrial |
Pass
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
50,130 
47,683 
Commercial and Industrial |
Criticized Accruing
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,569 
1,507 
Commercial and Industrial |
Criticized Nonaccruing
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
331 
348 
Commercial Real Estate
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
4,825 
5,094 
Commercial Real Estate |
Pass
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
3,836 
3,845 
Commercial Real Estate |
Criticized Accruing
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
756 
961 
Commercial Real Estate |
Criticized Nonaccruing
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
233 
288 
Commercial Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
959 
1,240 
Commercial Construction [Member] |
Pass
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
581 
581 
Commercial Construction [Member] |
Criticized Accruing
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
247 
369 
Commercial Construction [Member] |
Criticized Nonaccruing
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
131 
290 
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
24,405 2
23,243 2
Residential Nonguaranteed [Member] |
FICO Score 700 and Above
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
17,567 2
16,139 2
Residential Nonguaranteed [Member] |
FICO Score Between 620 and 699
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
4,149 2
4,132 2
Residential Nonguaranteed [Member] |
FICO Score Below 620
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
2,689 2 3
2,972 2 3
Home Equity
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
15,281 
15,765 
Home Equity |
FICO Score 700 and Above
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
11,583 
11,084 
Home Equity |
FICO Score Between 620 and 699
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
2,405 
2,903 
Home Equity |
FICO Score Below 620
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,293 3
1,778 3
Residential Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
853 
980 
Residential Construction |
FICO Score 700 and Above
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
613 
661 
Residential Construction |
FICO Score Between 620 and 699
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
158 
202 
Residential Construction |
FICO Score Below 620
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
82 3
117 3
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
2,225 
2,059 
Consumer Other Direct |
FICO Score 700 and Above
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,829 
1,614 
Consumer Other Direct |
FICO Score Between 620 and 699
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
325 
359 
Consumer Other Direct |
FICO Score Below 620
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
71 3
86 3
Consumer Indirect
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
10,506 
10,165 
Consumer Indirect |
FICO Score 700 and Above
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
7,965 
7,397 
Consumer Indirect |
FICO Score Between 620 and 699
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,886 
1,990 
Consumer Indirect |
FICO Score Below 620
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
655 3
778 3
Consumer Credit Card
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
565 
540 
Consumer Credit Card |
FICO Score 700 and Above
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
379 
347 
Consumer Credit Card |
FICO Score Between 620 and 699
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
142 
142 
Consumer Credit Card |
FICO Score Below 620
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 44 3
$ 51 3
LHFI by Credit Quality Indicator (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 124,560 1
$ 122,495 1
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
24,405 2
23,243 2
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
2,225 
2,059 
Federally Guaranteed Residential Loans |
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 5,700 
$ 6,700 
Payment Status for the LHFI Portfolio (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
$ 118,661 
$ 116,015 
Accruing 30-89 Days Past Due
1,291 
1,549 
Accruing 90+ Days Past Due
2,150 
2,028 
Nonaccruing
2,458 1
2,903 2
Total
124,560 3
122,495 3
Commercial and Industrial
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
52,030 
49,538 
Commercial Real Estate
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
4,825 
5,094 
Commercial Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
959 
1,240 
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
24,405 4
23,243 4
Home Equity
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
15,281 
15,765 
Residential Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
853 
980 
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
2,225 
2,059 
Consumer Indirect
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
10,506 
10,165 
Consumer Credit Card
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total
565 
540 
Commercial Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
57,008 
54,838 
Accruing 30-89 Days Past Due
86 
96 
Accruing 90+ Days Past Due
25 
12 
Nonaccruing
695 1
926 2
Total
57,814 
55,872 
Commercial Portfolio Segment [Member] |
Commercial and Industrial
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
51,600 
49,098 
Accruing 30-89 Days Past Due
76 
80 
Accruing 90+ Days Past Due
23 
12 
Nonaccruing
331 1
348 2
Total
52,030 
49,538 
Commercial Portfolio Segment [Member] |
Commercial Real Estate
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
4,582 
4,797 
Accruing 30-89 Days Past Due
8 
9 
Accruing 90+ Days Past Due
2 
0 
Nonaccruing
233 1
288 2
Total
4,825 
5,094 
Commercial Portfolio Segment [Member] |
Commercial Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
826 
943 
Accruing 30-89 Days Past Due
2 
7 
Accruing 90+ Days Past Due
0 
0 
Nonaccruing
131 1
290 2
Total
959 
1,240 
Residential Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
42,710 
42,855 
Accruing 30-89 Days Past Due
557 
726 
Accruing 90+ Days Past Due
1,193 
1,129 
Nonaccruing
1,742 1
1,950 2
Total
46,202 
46,660 
Residential Portfolio Segment [Member] |
Residential Guaranteed
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
4,357 
5,394 
Accruing 30-89 Days Past Due
144 
176 
Accruing 90+ Days Past Due
1,162 
1,102 
Nonaccruing
0 1
0 2
Total
5,663 
6,672 
Residential Portfolio Segment [Member] |
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
22,834 5
21,501 6
Accruing 30-89 Days Past Due
255 5
324 6
Accruing 90+ Days Past Due
30 5
26 6
Nonaccruing
1,286 1 5
1,392 2 6
Total
24,405 5
23,243 6
Residential Portfolio Segment [Member] |
Home Equity
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
14,828 
15,223 
Accruing 30-89 Days Past Due
151 
204 
Accruing 90+ Days Past Due
0 
0 
Nonaccruing
302 1
338 2
Total
15,281 
15,765 
Residential Portfolio Segment [Member] |
Residential Construction
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
691 
737 
Accruing 30-89 Days Past Due
7 
22 
Accruing 90+ Days Past Due
1 
1 
Nonaccruing
154 1
220 2
Total
853 
980 
Consumer Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
18,943 
18,322 
Accruing 30-89 Days Past Due
648 
727 
Accruing 90+ Days Past Due
932 
887 
Nonaccruing
21 1
27 2
Total
20,544 
19,963 
Consumer Portfolio Segment [Member] |
Guaranteed Student Loans
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
5,746 
5,690 
Accruing 30-89 Days Past Due
583 
640 
Accruing 90+ Days Past Due
919 
869 
Nonaccruing
0 1
0 2
Total
7,248 
7,199 
Consumer Portfolio Segment [Member] |
Consumer Other Direct
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
2,201 
2,032 
Accruing 30-89 Days Past Due
14 
14 
Accruing 90+ Days Past Due
6 
6 
Nonaccruing
4 1
7 2
Total
2,225 
2,059 
Consumer Portfolio Segment [Member] |
Consumer Indirect
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
10,443 
10,074 
Accruing 30-89 Days Past Due
45 
66 
Accruing 90+ Days Past Due
1 
5 
Nonaccruing
17 1
20 2
Total
10,506 
10,165 
Consumer Portfolio Segment [Member] |
Consumer Credit Card
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
553 
526 
Accruing 30-89 Days Past Due
6 
7 
Accruing 90+ Days Past Due
6 
7 
Nonaccruing
0 1
0 2
Total
$ 565 
$ 540 
Payment Status for the LHFI Portfolio (Parenthetical) (Detail) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
 
 
Loans carried at fair value
$ 406,000,000 
$ 433,000,000 
Nonaccruing 90 Plus Days Past Due
2,000,000,000 
2,300,000,000 
Commercial Portfolio Segment [Member]
 
 
Financing Receivable, Impaired [Line Items]
 
 
Loans carried at fair value
1,000,000 
2,000,000 
Residential Portfolio Segment [Member]
 
 
Financing Receivable, Impaired [Line Items]
 
 
Loans carried at fair value
405,000,000 
431,000,000 
Residential Portfolio Segment [Member] |
Residential Nonguaranteed [Member]
 
 
Financing Receivable, Impaired [Line Items]
 
 
Loans carried at fair value
$ 405,000,000 
$ 431,000,000 
LHFI Considered Impaired (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2012
Jun. 30, 2012
Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
 
 
 
Impaired Financing Receivable, Interest Income, Cash Basis Method
$ 4 
$ 8 
$ 25 
Unpaid Principal Balance
3,967 
3,967 
4,150 
Amortized Cost
3,385 1
3,385 1
3,592 2
Related Allowance
381 
381 
448 
Average Amortized Cost
3,426 
3,456 
3,751 
Interest Income Recognized
32 3
64 3
132 4
Impaired Financing Receivables With No Related Allowance [Member] |
Commercial Portfolio Segment [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
156 
156 
196 
Amortized Cost
105 1
105 1
163 2
Related Allowance
0 
0 
0 
Average Amortized Cost
124 
133 
212 
Interest Income Recognized
1 3
1 3
5 4
Impaired Financing Receivables With No Related Allowance [Member] |
Commercial Portfolio Segment [Member] |
Commercial and Industrial
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
45 
45 
93 
Amortized Cost
37 1
37 1
73 2
Related Allowance
0 
0 
0 
Average Amortized Cost
37 
38 
109 
Interest Income Recognized
0 3
0 3
3 4
Impaired Financing Receivables With No Related Allowance [Member] |
Commercial Portfolio Segment [Member] |
Commercial Real Estate
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
83 
83 
58 
Amortized Cost
51 1
51 1
50 2
Related Allowance
0 
0 
0 
Average Amortized Cost
59 
63 
56 
Interest Income Recognized
1 3
1 3
1 4
Impaired Financing Receivables With No Related Allowance [Member] |
Commercial Portfolio Segment [Member] |
Commercial Construction [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
28 
28 
45 
Amortized Cost
17 1
17 1
40 2
Related Allowance
0 
0 
0 
Average Amortized Cost
28 
32 
47 
Interest Income Recognized
0 3
0 3
1 4
Impaired Financing Receivables with Related Allowance [Member] |
Commercial Portfolio Segment [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
250 
250 
319 
Amortized Cost
213 1
213 1
249 2
Related Allowance
18 
18 
34 
Average Amortized Cost
229 
234 
292 
Interest Income Recognized
0 3
1 3
5 4
Impaired Financing Receivables with Related Allowance [Member] |
Commercial Portfolio Segment [Member] |
Commercial and Industrial
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
90 
90 
76 
Amortized Cost
74 1
74 1
67 2
Related Allowance
7 
7 
9 
Average Amortized Cost
81 
83 
68 
Interest Income Recognized
0 3
0 3
1 4
Impaired Financing Receivables with Related Allowance [Member] |
Commercial Portfolio Segment [Member] |
Commercial Real Estate
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
92 
92 
111 
Amortized Cost
76 1
76 1
82 2
Related Allowance
7 
7 
15 
Average Amortized Cost
82 
84 
103 
Interest Income Recognized
0 3
0 3
2 4
Impaired Financing Receivables with Related Allowance [Member] |
Commercial Portfolio Segment [Member] |
Commercial Construction [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
68 
68 
132 
Amortized Cost
63 1
63 1
100 2
Related Allowance
4 
4 
10 
Average Amortized Cost
66 
67 
121 
Interest Income Recognized
0 3
1 3
2 4
Impaired Financing Receivables with Related Allowance [Member] |
Residential Portfolio Segment [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
3,510 
3,510 
3,596 
Amortized Cost
3,016 1
3,016 1
3,141 2
Related Allowance
355 
355 
405 
Average Amortized Cost
3,022 
3,036 
3,208 
Interest Income Recognized
30 3
60 3
119 4
Impaired Financing Receivables with Related Allowance [Member] |
Residential Portfolio Segment [Member] |
Residential Nonguaranteed [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
2,659 
2,659 
2,797 
Amortized Cost
2,255 1
2,255 1
2,405 2
Related Allowance
238 
238 
293 
Average Amortized Cost
2,255 
2,260 
2,451 
Interest Income Recognized
20 3
42 3
88 4
Impaired Financing Receivables with Related Allowance [Member] |
Residential Portfolio Segment [Member] |
Home Equity
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
577 
577 
553 
Amortized Cost
534 1
534 1
515 2
Related Allowance
92 
92 
86 
Average Amortized Cost
535 
539 
528 
Interest Income Recognized
7 3
13 3
23 4
Impaired Financing Receivables with Related Allowance [Member] |
Residential Portfolio Segment [Member] |
Residential Construction
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
274 
274 
246 
Amortized Cost
227 1
227 1
221 2
Related Allowance
25 
25 
26 
Average Amortized Cost
232 
237 
229 
Interest Income Recognized
3 3
5 3
8 4
Impaired Financing Receivables with Related Allowance [Member] |
Consumer Portfolio Segment [Member]
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
51 
51 
39 
Amortized Cost
51 1
51 1
39 2
Related Allowance
8 
8 
9 
Average Amortized Cost
51 
53 
39 
Interest Income Recognized
1 3
2 3
3 4
Impaired Financing Receivables with Related Allowance [Member] |
Consumer Portfolio Segment [Member] |
Consumer Other Direct
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
12 
12 
12 
Amortized Cost
12 1
12 1
12 2
Related Allowance
1 
1 
1 
Average Amortized Cost
12 
12 
13 
Interest Income Recognized
0 3
0 3
1 4
Impaired Financing Receivables with Related Allowance [Member] |
Consumer Portfolio Segment [Member] |
Consumer Indirect
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
14 
14 
 
Amortized Cost
14 1
14 1
 
Related Allowance
0 
0 
 
Average Amortized Cost
14 
15 
 
Interest Income Recognized
1 3
1 3
 
Impaired Financing Receivables with Related Allowance [Member] |
Consumer Portfolio Segment [Member] |
Consumer Credit Card
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
Unpaid Principal Balance
25 
25 
27 
Amortized Cost
25 1
25 1
27 2
Related Allowance
7 
7 
8 
Average Amortized Cost
25 
26 
26 
Interest Income Recognized
$ 0 3
$ 1 3
$ 2 4
LHFI Considered Impaired (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2012
Jun. 30, 2012
Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
 
 
 
Impaired Financing Receivable, Interest Income, Cash Basis Method
$ 4 
$ 8 
$ 25 
Nonperforming Assets (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Nonaccrual/NPLs
$ 2,458 1
$ 2,903 2
OREO
331 3
479 3
Other repossessed assets
11 
10 
Total nonperforming assets
2,800 
3,392 
Commercial Portfolio Segment [Member]
 
 
Nonaccrual/NPLs
695 1
926 2
Commercial Portfolio Segment [Member] |
Commercial and Industrial
 
 
Nonaccrual/NPLs
331 1
348 2
Commercial Portfolio Segment [Member] |
Commercial Real Estate
 
 
Nonaccrual/NPLs
233 1
288 2
Commercial Portfolio Segment [Member] |
Commercial Construction [Member]
 
 
Nonaccrual/NPLs
131 1
290 2
Residential Portfolio Segment [Member]
 
 
Nonaccrual/NPLs
1,742 1
1,950 2
Residential Portfolio Segment [Member] |
Residential Nonguaranteed [Member]
 
 
Nonaccrual/NPLs
1,286 1 4
1,392 2 5
Residential Portfolio Segment [Member] |
Home Equity
 
 
Nonaccrual/NPLs
302 1
338 2
Residential Portfolio Segment [Member] |
Residential Construction
 
 
Nonaccrual/NPLs
154 1
220 2
Consumer Portfolio Segment [Member]
 
 
Nonaccrual/NPLs
21 1
27 2
Consumer Portfolio Segment [Member] |
Consumer Other Direct
 
 
Nonaccrual/NPLs
4 1
7 2
Consumer Portfolio Segment [Member] |
Consumer Indirect
 
 
Nonaccrual/NPLs
$ 17 1
$ 20 2
Nonperforming Assets (Parenthetical) (Detail) (Federal Housing Administration Loan, USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Federal Housing Administration Loan
 
 
OREO
$ 124 
$ 132 
Loans TDR Modifications (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
contracts
Jun. 30, 2011
contracts
Jun. 30, 2012
contracts
Jun. 30, 2011
contracts
Dec. 31, 2011
Financing Receivable, Modifications [Line Items]
 
 
 
 
 
Loans and Leases Receivable, Impaired, Commitment to Lend
$ 4 
 
$ 4 
 
$ 5 
Financing Receivable, Restructured During Period, Number Of Contracts
2,077 
767 
3,355 
1,557 
 
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
7 1
26 2
14 1
76 2
 
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
64 3
119 4
120 3
254 4
 
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
50 
44 
76 
75 
 
total modifications
121 
189 
210 
405 
 
PrincipalForgivenessRestructuringImpact
1 
8 
1 
9 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
147 5
174 6
327 7
515 8
 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
17 5
44 6
36 7
118 8
 
Commercial Portfolio Segment [Member] |
Commercial and Industrial [Member]
 
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
80 
56 
183 
78 
 
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1
19 2
0 1
27 2
 
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
1 3
22 4
2 3
22 4
 
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
3 
3 
15 
8 
 
total modifications
4 
44 
17 
57 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
14 5
10 6
25 7
20 8
 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
1 5
0 6
3 7
2 8
 
Commercial Portfolio Segment [Member] |
Commercial Real Estate [Member]
 
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
13 
9 
23 
25 
 
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
6 1
4 2
12 1
22 2
 
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
6 3
0 4
7 3
16 4
 
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
0 
3 
2 
15 
 
total modifications
12 
7 
21 
53 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
0 5
2 6
4 7
6 8
 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
0 5
1 6
4 7
1 8
 
Commercial Portfolio Segment [Member] |
Commercial Construction [Member]
 
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
5 
8 
12 
82 
 
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
1 1
3 2
2 1
27 2
 
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
0 3
0 4
0 3
2 4
 
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
10 
31 
11 
41 
 
total modifications
11 
34 
13 
70 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
4 5
8 6
7 7
14 8
 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
4 5
15 6
6 7
24 8
 
Residential Portfolio Segment [Member] |
Residential Nonguaranteed [Member]
 
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
199 
258 
424 
528 
 
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1
0 2
0 1
0 2
 
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
21 3
61 4
41 3
142 4
 
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
0 
5 
1 
8 
 
total modifications
21 
66 
42 
150 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
28 5
94 6
56 7
334 8
 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
9 5
23 6
14 7
75 8
 
Residential Portfolio Segment [Member] |
Home Equity [Member]
 
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
457 
398 
841 
743 
 
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1
0 2
0 1
0 2
 
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
33 3
31 4
64 3
62 4
 
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
2 
0 
3 
0 
 
total modifications
35 
31 
67 
62 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
38 5
47 6
81 7
111 8
 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
3 5
4 6
6 7
11 8
 
Residential Portfolio Segment [Member] |
Residential Construction [Member]
 
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
140 
27 
175 
50 
 
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1
0 2
0 1
0 2
 
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
1 3
5 4
1 3
10 4
 
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
20 
1 
29 
1 
 
total modifications
21 
6 
30 
11 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
6 5
8 6
17 7
23 8
 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
0 5
1 6
2 7
5 8
 
Consumer Portfolio Segment [Member] |
Consumer Indirect
 
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
795 
 
795 
 
 
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1
 
0 1
 
 
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
0 3
 
0 3
 
 
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
14 
 
14 
 
 
total modifications
14 
 
14 
 
 
Consumer Portfolio Segment [Member] |
Consumer Other Direct [Member]
 
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
27 
11 
39 
51 
 
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1
0 2
0 1
0 2
 
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
0 3
0 4
0 3
0 4
 
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
1 
1 
1 
2 
 
total modifications
1 
1 
1 
2 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
0 5
5 6
2 7
7 8
 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
0 5
0 6
0 7
0 8
 
Consumer Portfolio Segment [Member] |
Consumer Credit Card Financing Receivable [Member]
 
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
361 
 
863 
 
 
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1
 
0 1
 
 
Financing Receivable, Amount Restructured During Period, Other Concessions Granted
2 3
 
5 3
 
 
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
0 
 
0 
 
 
total modifications
2 
 
5 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
57 5
 
135 7
 
 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
$ 0 5
 
$ 1 7
 
 
Loans Troubled Debt Restructurings (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
contracts
Jun. 30, 2011
contracts
Jun. 30, 2012
contracts
Jun. 30, 2011
contracts
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
147 1
174 2
327 3
515 4
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
$ 17 1
$ 44 2
$ 36 3
$ 118 4
Commercial Construction [Member] |
Commercial Portfolio Segment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
4 1
8 2
7 3
14 4
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
4 1
15 2
6 3
24 4
Residential Nonguaranteed [Member] |
Residential Portfolio Segment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
28 1
94 2
56 3
334 4
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
9 1
23 2
14 3
75 4
Home Equity |
Residential Portfolio Segment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
38 1
47 2
81 3
111 4
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
3 1
4 2
6 3
11 4
Residential Construction |
Residential Portfolio Segment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
6 1
8 2
17 3
23 4
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
0 1
1 2
2 3
5 4
Consumer Other Direct |
Consumer Portfolio Segment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
0 1
5 2
2 3
7 4
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
0 1
0 2
0 3
0 4
Consumer Credit Card |
Consumer Portfolio Segment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
57 1
 
135 3
 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
0 1
 
1 3
 
Commercial and Industrial |
Commercial Portfolio Segment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
14 1
10 2
25 3
20 4
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
1 1
0 2
3 3
2 4
Commercial Real Estate |
Commercial Portfolio Segment [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
0 1
2 2
4 3
6 4
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
$ 0 1
$ 1 2
$ 4 3
$ 1 4
Activity in the Allowance for Credit Losses (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Mar. 31, 2012
Dec. 31, 2011
Mar. 31, 2011
Dec. 31, 2010
Components:
 
 
 
 
 
 
 
 
Balance at beginning of period
$ 2,400 
$ 2,908 
$ 2,505 
$ 3,032 
 
 
 
 
Provision for loan losses
302 
395 
615 
846 
 
 
 
 
Provision(Benefit) for unfunded commitments
(2)
(3)
2 
(7)
 
 
 
 
Loan charge-offs
(397)
(563)
(860)
(1,178)
 
 
 
 
Loan recoveries
47 
58 
88 
102 
 
 
 
 
Balance at end of period
2,350 
2,795 
2,350 
2,795 
 
 
 
 
ALLL
2,300 
2,744 
2,300 
2,744 
2,348 
2,457 
2,854 
2,974 
Unfunded commitments reserve
50 1
51 1
50 1
51 1
 
 
 
 
Allowance for credit losses
$ 2,350 
$ 2,795 
$ 2,350 
$ 2,795 
 
 
 
 
Activity in the ALLL by segment (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Allowance for Loan and Lease Losses [Roll Forward]
 
 
 
 
Balance at beginning of period
$ 2,348 
$ 2,854 
$ 2,457 
$ 2,974 
Provision for loan losses
302 
395 
615 
846 
Loan charge-offs
(397)
(563)
(860)
(1,178)
Loan recoveries
47 
58 
88 
102 
Balance at end of period
2,300 
2,744 
2,300 
2,744 
Commercial Portfolio Segment [Member]
 
 
 
 
Allowance for Loan and Lease Losses [Roll Forward]
 
 
 
 
Balance at beginning of period
901 
1,255 
964 
1,303 
Provision for loan losses
49 
124 
87 
232 
Loan charge-offs
(94)
(220)
(220)
(405)
Loan recoveries
31 
41 
56 
70 
Balance at end of period
887 
1,200 
887 
1,200 
Residential Portfolio Segment [Member]
 
 
 
 
Allowance for Loan and Lease Losses [Roll Forward]
 
 
 
 
Balance at beginning of period
1,315 
1,440 
1,354 
1,498 
Provision for loan losses
230 
252 
488 
574 
Loan charge-offs
(274)
(303)
(576)
(688)
Loan recoveries
6 
6 
11 
11 
Balance at end of period
1,277 
1,395 
1,277 
1,395 
Consumer Portfolio Segment [Member]
 
 
 
 
Allowance for Loan and Lease Losses [Roll Forward]
 
 
 
 
Balance at beginning of period
132 
159 
139 
173 
Provision for loan losses
23 
19 
40 
40 
Loan charge-offs
(29)
(40)
(64)
(85)
Loan recoveries
10 
11 
21 
21 
Balance at end of period
$ 136 
$ 149 
$ 136 
$ 149 
Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill by Reportable Segment (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Beginning balance
$ 6,344 
$ 6,323 
Goodwill, Intersegment Transfers
0 
 
Contingent consideration
 
1 
Ending balance
6,376 
6,343 
Goodwill, Acquired During Period
32 
19 
Retail Banking
 
 
Beginning balance
4,854 
4,854 
Goodwill, Intersegment Transfers
(4,854)
 
Contingent consideration
 
0 
Ending balance
0 
4,854 
Goodwill, Acquired During Period
0 
0 
Diversified Commercial Banking
 
 
Beginning balance
928 
928 
Goodwill, Intersegment Transfers
(928)
 
Contingent consideration
 
0 
Ending balance
0 
928 
Goodwill, Acquired During Period
0 
0 
Corporate and Investment Banking Segment [Member]
 
 
Beginning balance
180 
180 
Goodwill, Intersegment Transfers
(180)
 
Contingent consideration
 
0 
Ending balance
0 
180 
Goodwill, Acquired During Period
0 
0 
Wealth and Investment Management Segment
 
 
Beginning balance
382 
361 
Goodwill, Intersegment Transfers
(382)
 
Contingent consideration
 
1 
Ending balance
0 
381 
Goodwill, Acquired During Period
0 
19 
Consumer Banking and Private Wealth Management Segment [Member]
 
 
Beginning balance
0 
0 
Goodwill, Intersegment Transfers
3,930 
 
Contingent consideration
 
0 
Ending balance
3,962 
0 
Goodwill, Acquired During Period
32 
0 
Wholesale Banking [Member]
 
 
Beginning balance
0 
0 
Goodwill, Intersegment Transfers
2,414 
 
Contingent consideration
 
0 
Ending balance
2,414 
0 
Goodwill, Acquired During Period
0 
0 
Consumer Banking and Private Wealth Management Segment [Member] |
Retail Banking
 
 
Goodwill, Intersegment Transfers
3,596 
 
Consumer Banking and Private Wealth Management Segment [Member] |
Wealth and Investment Management Segment
 
 
Goodwill, Intersegment Transfers
335 
 
Wholesale Banking [Member] |
Retail Banking
 
 
Goodwill, Intersegment Transfers
1,259 
 
Wholesale Banking [Member] |
Wealth and Investment Management [Member]
 
 
Goodwill, Intersegment Transfers
47 
 
Wholesale Banking [Member] |
Corporate and Investment Banking Segment [Member]
 
 
Goodwill, Intersegment Transfers
$ 180 
 
Goodwill and Other Intangible Assets - Changes in the Carrying Amounts of Other Intangible Assets (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Beginning Balance
$ 1,017 
$ 1,571 
Amortization
(22)
(23)
MSRs originated
161 
136 
Changes in fair value:
 
 
Due to changes in inputs or assumptions
(102)1
(51)1
Due to fair value election
(112)2
(94)2
Sale of MSRs
(3)
(7)
Other
 
(7)
Ending Balance
939 
1,539 
Core Deposits
 
 
Beginning Balance
38 
67 
Amortization
11 
16 
MSRs originated
0 
0 
Changes in fair value:
 
 
Due to changes in inputs or assumptions
0 
0 
Due to fair value election
0 
0 
Sale of MSRs
0 
0 
Other
 
0 
Ending Balance
27 
51 
Mortgage Servicing Rights, Amortized Cost
 
 
Beginning Balance
921 
1,439 
Amortization
0 
0 
MSRs originated
161 
136 
Changes in fair value:
 
 
Due to changes in inputs or assumptions
(102)1
(51)1
Due to fair value election
(112)2
(94)2
Sale of MSRs
3 
7 
Other
 
0 
Ending Balance
865 
1,423 
Other Intangible Assets
 
 
Beginning Balance
58 
65 
Amortization
11 
7 
MSRs originated
0 
0 
Changes in fair value:
 
 
Due to changes in inputs or assumptions
0 
0 
Due to fair value election
0 
0 
Sale of MSRs
0 
0 
Other
 
(7)
Ending Balance
$ 47 
$ 65 
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Goodwill, Intersegment Transfers
 
 
$ 0 
 
 
change in amount of loans serviced for third parties
 
 
(4.00%)
 
 
Mortgage servicing related income
70,000,000 
72,000,000 
151,000,000 
144,000,000 
 
Mortgage Servicing Rights
 
 
 
 
 
Mortgage servicing related income
80,000,000 
94,000,000 
163,000,000 
186,000,000 
 
Total unpaid principal amount of mortgaged loans serviced
153,400,000,000 
 
153,400,000,000 
 
157,800,000,000 
Included in these amounts of loans serviced for third parties
118,900,000,000 
 
118,900,000,000 
 
124,100,000,000 
Residential mortgage loans sold
 
 
1,400,000,000 
 
 
Retail Banking [Member]
 
 
 
 
 
Goodwill, Intersegment Transfers
 
 
(4,854,000,000)
 
 
Retail Banking [Member] |
Consumer Banking and Private Wealth Management Segment [Member]
 
 
 
 
 
Goodwill, Intersegment Transfers
 
 
3,596,000,000 
 
 
Retail Banking [Member] |
Wholesale Banking [Member]
 
 
 
 
 
Goodwill, Intersegment Transfers
 
 
1,259,000,000 
 
 
Wealth and Investment Management Segment [Member]
 
 
 
 
 
Goodwill, Intersegment Transfers
 
 
(382,000,000)
 
 
Wealth and Investment Management Segment [Member] |
Consumer Banking and Private Wealth Management Segment [Member]
 
 
 
 
 
Goodwill, Intersegment Transfers
 
 
335,000,000 
 
 
Diversified Commercial Banking Reporting Unit [Member] |
Wholesale Banking [Member]
 
 
 
 
 
Goodwill, Intersegment Transfers
 
 
928,000,000 
 
 
Corporate and Investment Banking Segment [Member]
 
 
 
 
 
Goodwill, Intersegment Transfers
 
 
(180,000,000)
 
 
Corporate and Investment Banking Segment [Member] |
Wholesale Banking [Member]
 
 
 
 
 
Goodwill, Intersegment Transfers
 
 
180,000,000 
 
 
Wealth and Investment Management [Member] |
Wholesale Banking [Member]
 
 
 
 
 
Goodwill, Intersegment Transfers
 
 
$ 47,000,000 
 
 
Goodwill and Other Intangible Assets - Summary of the Key Characteristics, Inputs, and Economic Assumptions Used to Estimate the Fair Value of the Company's MSRs (Detail) (Estimate of Fair Value, Fair Value Disclosure, USD $)
In Millions, unless otherwise specified
6 Months Ended 12 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Estimate of Fair Value, Fair Value Disclosure
 
 
Fair value of retained MSRs
$ 865 
$ 921 
Prepayment rate assumption (annual)
20.00% 
20.00% 
Decline in fair value from 10% adverse change
55 
52 
Decline in fair value from 20% adverse change
100 
98 
Discount rate (annual)
11.00% 
11.00% 
Decline in fair value from 10% adverse change
31 
33 
Decline in fair value from 20% adverse change
$ 60 
$ 63 
Weighted-average life (in years)
4.2 
4.3 
Weighted-average coupon
5.00% 
5.20% 
Certain Transfers of Financial Assets and Variable Interest Entities - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Total assets
$ 178,257 
 
$ 178,257 
 
$ 176,859 
Loans Receivable Held-for-sale, Net
3,123 1
 
3,123 1
 
2,353 1
Total liabilities
157,689 
 
157,689 
 
156,793 
Long-term Debt
13,076 2
 
13,076 2
 
10,908 2
Servicing fees received by the Company
70 
72 
151 
144 
 
Other assets
6,175 
 
6,175 
 
6,159 
Senior financing outstanding to VIEs
6,327 
 
6,327 
 
6,279 
Variable Interest Entity, Primary Beneficiary
 
 
 
 
 
Loans Receivable Held-for-sale, Net
322 
 
322 
 
315 
Long-term Debt
700 
 
700 
 
722 
Residential Mortgage |
Variable Interest Entity, Not Primary Beneficiary [Member]
 
 
 
 
 
Loans and Leases Receivable, Gain (Loss) on Sales, Net
236 
107 
460 
118 
 
Transferor's Interests in Transferred Financial Assets, Fair Value
96 
 
96 
 
104 
Total assets
484 
 
484 
 
529 
Commercial and Corporate Loans [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member]
 
 
 
 
 
Total assets
1,900 
 
1,900 
 
2,000 
Total liabilities
1,800 
 
1,800 
 
1,900 
Commercial and Corporate Loans [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member] |
Preference Shares
 
 
 
 
 
Total assets
2 
 
2 
 
2 
Commercial and Corporate Loans [Member] |
Variable Interest Entity, Primary Beneficiary
 
 
 
 
 
Loans Receivable, Net
 
 
 
 
315 
Long-term Debt
288 
 
288 
 
289 
Student Loans |
Variable Interest Entity, Primary Beneficiary
 
 
 
 
 
Loans Receivable, Net
416 
 
416 
 
438 
Long-term Debt
412 
 
412 
 
433 
Student Loans |
Variable Interest Entity, Primary Beneficiary |
Upper Limit
 
 
 
 
 
Government guaranteed percent
97.00% 
 
97.00% 
 
97.00% 
Collateralized Debt Obligations [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member]
 
 
 
 
 
Total assets
1,200 
 
1,200 
 
1,200 
Declines in fair values for the total retained interests due to 20% adverse changes in the discount rate
28 
 
28 
 
 
Collateralized Debt Obligations [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member] |
Trading Assets [Member]
 
 
 
 
 
Transferor's Interests in Transferred Financial Assets, Fair Value
43 
 
43 
 
43 
Collateralized Debt Obligations [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member] |
Lower Limit
 
 
 
 
 
Declines in fair values for the total retained interests due to 20% adverse changes in the discount rate
9 
 
9 
 
 
Total Return Swap |
Variable Interest Entity, Not Primary Beneficiary [Member]
 
 
 
 
 
Senior financing outstanding to VIEs
1,900 
 
1,900 
 
1,700 
VIEs had entered into TRS contracts with the Company with outstanding notional amounts
1,900 
 
1,900 
 
1,600 
Derivative asset positions
29 
 
29 
 
20 
Derivative Liability, Fair Value, Gross Liability
25 
 
25 
 
17 
Community Development Investments [Member] |
General Partner [Member]
 
 
 
 
 
Total assets
5 
 
5 
 
5 
Total liabilities
1 
 
1 
 
1 
Community Development Investments [Member] |
Partnership [Member]
 
 
 
 
 
Total assets
349 
 
349 
 
360 
Total liabilities
104 
 
104 
 
107 
Community Development Investments [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member]
 
 
 
 
 
Total assets
1,200 
 
1,200 
 
1,200 
Other assets
67 
 
67 
 
68 
Community Development Investments [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member] |
Limited Partner
 
 
 
 
 
Other assets
189 
 
189 
 
194 
Loans issued by the Company to the limited partnerships
238 
 
238 
 
249 
Ridgeworth Fund |
Variable Interest Entity, Not Primary Beneficiary [Member]
 
 
 
 
 
Total assets
$ 1,000 
 
$ 1,000 
 
$ 1,100 
Asset Transfers in Which the Company has Continuing Economic Involvement (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2012
Mar. 31, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Jun. 30, 2012
Residential Mortgage
Mar. 31, 2011
Residential Mortgage
Jun. 30, 2012
Residential Mortgage
Jun. 30, 2011
Residential Mortgage
Jun. 30, 2012
Commercial and Corporate Loans [Member]
Mar. 31, 2011
Commercial and Corporate Loans [Member]
Jun. 30, 2012
Commercial and Corporate Loans [Member]
Jun. 30, 2011
Commercial and Corporate Loans [Member]
Jun. 30, 2012
Collateralized Debt Obligations [Member]
Mar. 31, 2011
Collateralized Debt Obligations [Member]
Jun. 30, 2012
Collateralized Debt Obligations [Member]
Jun. 30, 2011
Collateralized Debt Obligations [Member]
Jun. 30, 2012
Variable Interest Entity, Not Primary Beneficiary [Member]
Community Development Investments [Member]
Dec. 31, 2011
Variable Interest Entity, Not Primary Beneficiary [Member]
Community Development Investments [Member]
Jun. 30, 2012
Variable Interest Entity, Not Primary Beneficiary [Member]
Residential Mortgage
Jun. 30, 2011
Variable Interest Entity, Not Primary Beneficiary [Member]
Residential Mortgage
Jun. 30, 2012
Variable Interest Entity, Not Primary Beneficiary [Member]
Residential Mortgage
Jun. 30, 2011
Variable Interest Entity, Not Primary Beneficiary [Member]
Residential Mortgage
Dec. 31, 2011
Variable Interest Entity, Not Primary Beneficiary [Member]
Residential Mortgage
Jun. 30, 2012
Variable Interest Entity, Not Primary Beneficiary [Member]
Commercial and Corporate Loans [Member]
Dec. 31, 2011
Variable Interest Entity, Not Primary Beneficiary [Member]
Commercial and Corporate Loans [Member]
Jun. 30, 2012
General Partner [Member]
Community Development Investments [Member]
Dec. 31, 2011
General Partner [Member]
Community Development Investments [Member]
Jun. 30, 2012
Limited Partner
Variable Interest Entity, Not Primary Beneficiary [Member]
Community Development Investments [Member]
Dec. 31, 2011
Limited Partner
Variable Interest Entity, Not Primary Beneficiary [Member]
Community Development Investments [Member]
Assets
$ 178,257 
 
$ 178,257 
 
$ 176,859 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,200 
$ 1,200 
$ 484 
 
$ 484 
 
$ 529 
$ 1,900 
$ 2,000 
$ 5 
$ 5 
 
 
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
106 
108 
 
 
 
 
 
 
 
 
 
454 
472 
Loans and Leases Receivable, Gain (Loss) on Sales, Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
236 
107 
460 
118 
 
 
 
 
 
 
 
Cash flows on interests held
9 
14 
16 
30 
 
8 
13 
15 
28 
0 
1 
0 
1 
1 
0 
1 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
Servicing or management fees
$ 3 
$ 3 
$ 6 
$ 7 
 
$ 1 
$ 1 
$ 1 
$ 2 
$ 2 
$ 2 
$ 5 
$ 5 
$ 0 
$ 0 
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings/ (Loss) Per Common Share - Additional Information (Detail)
In Millions, unless otherwise specified
Jun. 30, 2012
Jun. 30, 2011
Equivalent shares related to common stock options and common stock warrants outstanding were excluded from the computations of diluted income/(loss) per average common share because they would have been antidilutive
26 
32 
Reconciliation of Net Income/(Loss) to Net Income/(Loss) Available to Common Shareholders (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Net income/(loss)
$ 275 
$ 178 
$ 525 
$ 358 
Preferred dividends
(3)
(2)
(6)
(4)
Dividends and accretion of discount on preferred stock issued to the U.S. Treasury
0 
0 
0 
(66)
Preferred Stock, Accretion of Redemption Discount
0 
0 
0 
(74)
Dividends and undistributed earnings allocated to unvested shares
(2)
2 
(4)
2 
Net income/(loss) available to common shareholders
$ 270 
$ 174 
$ 515 
$ 212 
Average basic common shares
533,964,000 
531,792,000 
533,532,000 
515,819,000 
Weighted Average Number Diluted Shares Outstanding Adjustment [Abstract]
 
 
 
 
Stock options
1,000,000 
1,000,000 
1,000,000 
2,000,000 
Restricted stock
2,000,000 
2,000,000 
2,000,000 
2,000,000 
Average diluted common shares
537,495,000 
535,416,000 
536,951,000 
519,548,000 
Net income/(loss) per average common share - diluted
$ 0.50 
$ 0.33 
$ 0.96 
$ 0.41 
Net income/(loss) per average common share - basic
$ 0.51 
$ 0.33 
$ 0.97 
$ 0.41 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Income Tax Expense (Benefit)
$ 91 
$ 58 
$ 160 
$ 91 
Effective Income Tax Rate, Continuing Operations
25.00% 
25.00% 
23.00% 
20.00% 
Employee Benefit Plans - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Pension Plans, Defined Benefit
Jun. 30, 2012
Other Postretirement Benefit Plans, Defined Benefit
Jun. 30, 2012
Salary Shares [Member]
Dec. 31, 2011
Salary Shares [Member]
Jun. 30, 2012
Restricted Stock [Member]
Jun. 30, 2012
Restricted Stock Units (RSUs) [Member]
Amount paid during period in salary shares
 
 
 
 
 
 
$ 4 
$ 7 
 
 
MIP and LTI deferred cash plan - expense
40 
32 
77 
60 
 
 
 
 
 
 
Fair value of options granted per share
 
 
$ 7.83 
$ 10.97 
 
 
 
 
 
 
Recognized stock-based compensation tax benefit
6 
8 
15 
12 
 
 
 
 
 
 
Options granted
 
 
 
 
 
 
 
 
1,665,570 
1,690,515 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price
$ 21.92 
 
$ 21.92 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value
 
 
 
 
 
 
 
 
$ 21.80 
$ 20.77 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures
 
 
859,390 
 
 
 
 
 
 
 
Expected long-term rate of return on plan assets
 
 
 
 
7.00% 
6.25% 
 
 
 
 
Supplemental Retirement Benefit plans, anticipated employer contributions/benefit payments
28 
 
28 
 
 
 
 
 
 
 
Supplemental Retirement Benefit plans, actual contributions/benefit payments
1 
 
2 
 
 
 
 
 
 
 
Contributed To Postretirement Welfare Plan
1 
 
1 
 
 
 
 
 
 
 
Expected Medicare Subsidy Reimbursement Amount
$ 3 
 
$ 3 
 
 
 
 
 
 
 
Assumptions Used in Estimating the Grant Date Fair Value of Options Using the Black-Scholes Option Pricing Model (Detail)
6 Months Ended
Jun. 30, 2012
years
Jun. 30, 2011
years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term
6 
6 
Dividend yield
0.91% 
0.67% 
Expected stock price volatility
39.88% 
34.73% 
Risk-free interest rate (weighted average)
1.07% 
2.61% 
Stock-Based Compensation Expense Recognized in Noninterest Expense (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Stock-based compensation expense:
 
 
 
 
Stock options
$ 2 
$ 5 
$ 6 
$ 8 
Restricted stock
8 
8 
15 
17 
Restricted stock units
4 
8 
18 
8 
Total stock-based compensation expense
$ 14 
$ 21 
$ 39 
$ 33 
Components of Net Periodic Benefit Cost (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Pension Plans, Defined Benefit
 
 
 
 
Service cost
$ 0 
$ 17 
$ 0 
$ 35 
Interest cost
31 
32 
60 
64 
Expected return on plan assets
(43)
(47)
(86)
(94)
Amortization of prior service cost
0 
(4)
0 
(9)
Recognized net actuarial loss
6 
11 
12 
21 
Net periodic benefit cost
(6)
9 
(14)
17 
Other Postretirement Benefit Plans, Defined Benefit
 
 
 
 
Service cost
0 
0 
0 
0 
Interest cost
1 
2 
3 
5 
Expected return on plan assets
(1)
(2)
(3)
(4)
Amortization of prior service cost
0 
0 
0 
0 
Recognized net actuarial loss
0 
0 
0 
0 
Net periodic benefit cost
$ 0 
$ 0 
$ 0 
$ 1 
Derivative Financial Instruments - Additional Information (Detail) (USD $)
Share data in Millions, unless otherwise specified
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Sep. 30, 2008
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Cash Flow Hedging
Jun. 30, 2011
Cash Flow Hedging
Jun. 30, 2012
Cash Flow Hedging
Jun. 30, 2011
Cash Flow Hedging
Jun. 30, 2012
Credit and Market Risk
Dec. 31, 2011
Credit and Market Risk
Jun. 30, 2012
Credit and Market Risk
Additional Termination Event [Member]
Jun. 30, 2012
Credit and Market Risk
Additional Termination Event [Member]
Credit Downgrade [Member]
Jun. 30, 2012
Credit and Market Risk
Credit Support Annex
Jun. 30, 2012
Credit and Market Risk
Credit Support Annex
Credit Downgrade [Member]
Jun. 30, 2012
Credit and Market Risk
Credit Support Annex
Additional Credit Downgrade [Member]
Jun. 30, 2012
Credit Default Swap
Dec. 31, 2011
Credit Default Swap
Jun. 30, 2012
Credit Derivatives Swap Participation
Dec. 31, 2011
Credit Derivatives Swap Participation
Jun. 30, 2012
sti_CashFlowDerivativesHedges [Member]
Jun. 30, 2012
Total Return Swap
Dec. 31, 2011
Total Return Swap
Jun. 30, 2012
Lower Limit
years
Jun. 30, 2012
Upper Limit
years
Jun. 30, 2012
Derivatives Sold
Credit Default Swap
Dec. 31, 2011
Derivatives Sold
Credit Default Swap
Sep. 30, 2008
Sun Trust Banks, Inc. and Subsidiaries
Subsidiaries
Sep. 30, 2008
Sun Trust Bank
Subsidiaries
Jun. 30, 2012
Interest Income (Expense), Net [Member]
Cash Flow Hedging
Jun. 30, 2011
Interest Income (Expense), Net [Member]
Cash Flow Hedging
Jun. 30, 2012
Interest Income (Expense), Net [Member]
Cash Flow Hedging
Jun. 30, 2011
Interest Income (Expense), Net [Member]
Cash Flow Hedging
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
 
 
 
 
 
$ 83,000,000 
$ 105,000,000 
$ 166,000,000 
$ 218,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 37,000,000 
$ 49,000,000 
$ 105,000,000 
$ 90,000,000 
Derivative asset positions
 
 
 
 
 
 
 
 
 
2,300,000,000 
2,400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net derivative asset positions to which the Company was exposed to risk of its counterparties, netted by counterparty where formal netting arrangements exist
 
 
 
 
 
 
 
 
 
3,400,000,000 
3,600,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collateral held by the Company against derivative asset positions
 
 
 
 
 
 
 
 
 
1,100,000,000 
1,200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted the fair value of its net derivative asset position for estimates of counterparty credit risk
 
 
 
 
 
 
 
 
 
32,000,000 
36,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Posted collateral
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,000,000 
8,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross notional amounts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
125,000,000 
175,000,000 
 
 
 
1,900,000,000 
1,600,000,000 
 
 
 
 
 
 
 
 
 
 
Derivative asset positions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
29,000,000 
20,000,000 
 
 
 
 
 
 
 
 
 
 
Derivative Liability, Fair Value, Gross Liability
 
 
 
 
 
 
 
 
 
1,200,000,000 
1,200,000,000 
10,000,000 
4,000,000 
1,200,000,000 
 
 
 
 
 
 
 
25,000,000 
17,000,000 
 
 
 
 
 
 
 
 
 
 
Collateral held
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
283,000,000 
285,000,000 
 
 
 
 
 
 
 
 
 
 
Posted collateral
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
1,200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative remaining terms, lower limit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 year 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative remaining terms, higher limit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred net gains on derivatives that are recorded in AOCI are expected to be reclassified to net interest income over the next twelve months in connection with the recognition of interest income or interest expense on these hedged items
 
 
 
 
 
278,000,000 
 
278,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum exposure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
117,000,000 
167,000,000 
42,000,000 
57,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair values of written CDS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,000,000 
6,000,000 
 
 
 
 
 
 
 
1,000,000 
4,000,000 
 
 
 
 
 
 
Executed equity forward agreements, underlying shares
 
 
30.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
22.9 
7.1 
 
 
 
 
Probable forecasted sale of Coke
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.5 
7.0 
 
 
 
 
 
 
 
 
Reconized ineffectiveness which was recorded in trading account profits and commissions
$ 1,000,000 
$ 1,000,000 
 
$ 1,000,000 
$ 1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
sti_WeightedAverageofMaturitiesofCashFlowHedges [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
P2.9Y 1
 
 
 
 
 
 
 
 
 
 
 
 
Average Term of Credit Risk Derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
P4.1Y 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum Term of Credit Risk Derivatives
1 year 
 
 
1 year 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 year 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum Term of Credit Risk Derivatives
9 years 
 
 
9 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Positions (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Credit Default Swap [Member]
 
 
Fair values of written CDS
$ 2 
$ 6 
Derivative Financial Instruments, Assets
 
 
Notional amount of derivatives
144,164 1
182,446 2
Derivative asset positions
9,386 1
9,120 2
Derivative Financial Instruments, Assets |
Designated as Hedging Instrument |
Cash Flow Hedging
 
 
Derivatives designated as hedging relationships, notional amount
14,897 1 3
16,397 2 3
Derivative asset positions
854 1 3
1,057 2 3
Derivative Financial Instruments, Assets |
Designated as Hedging Instrument |
Cash Flow Hedging |
Equity Contract |
Available-for-sale Securities [Member] |
Trading Account Assets
 
 
Derivatives designated as hedging relationships, notional amount
1,547 1 3
1,547 2 3
Derivative asset positions
0 1 3
0 2 3
Derivative Financial Instruments, Assets |
Designated as Hedging Instrument |
Cash Flow Hedging |
Interest Rate Contract |
Floating Rate Loans |
Trading Account Assets
 
 
Derivatives designated as hedging relationships, notional amount
13,350 1 3
14,850 2 3
Derivative asset positions
854 1 3
1,057 2 3
Derivative Financial Instruments, Assets |
Designated as Hedging Instrument |
Fair Value Hedging
 
 
Derivatives designated as hedging relationships, notional amount
1,000 1 4
1,000 2 5
Derivative asset positions
63 1 4
56 2 5
Derivative Financial Instruments, Assets |
Designated as Hedging Instrument |
Fair Value Hedging |
Equity Contract |
Available-for-sale Securities [Member] |
Trading Account Assets
 
 
Derivatives designated as hedging relationships, notional amount
 
0 2 5
Derivative asset positions
 
0 2 5
Derivative Financial Instruments, Assets |
Designated as Hedging Instrument |
Fair Value Hedging |
Interest Rate Contract |
Fixed Rate Debt |
Trading Account Assets
 
 
Derivatives designated as hedging relationships, notional amount
1,000 1 4
1,000 2 5
Derivative asset positions
63 1 4
56 2 5
Derivative Financial Instruments, Assets |
Nondesignated
 
 
Derivatives not designated as hedging instruments, notional amount
128,267 1 6
165,049 2 6
Derivative asset positions
8,469 1 6
8,007 2 6
Derivative Financial Instruments, Assets |
Nondesignated |
Future [Member]
 
 
Notional Amount of Interest Rate Derivatives
 
1,203 
Derivative Financial Instruments, Assets |
Nondesignated |
Equity Contract |
Trading Activity |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
12,883 1 6 7
10,168 2 6 8
Derivative asset positions
1,348 1 6 7
1,013 2 6
Derivative Financial Instruments, Assets |
Nondesignated |
Interest Rate Contract |
Fixed Rate Debt |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
437 1 6
437 2 6
Derivative asset positions
7 1 6
13 2 6
Derivative Financial Instruments, Assets |
Nondesignated |
Interest Rate Contract |
Mortgage Servicing Rights |
Other Assets [Member]
 
 
Derivatives not designated as hedging instruments, notional amount
13,558 1 6
28,800 2 6
Derivative asset positions
416 1 6
472 2 6
Derivative Financial Instruments, Assets |
Nondesignated |
Interest Rate Contract |
Loans |
Other Assets [Member]
 
 
Derivatives not designated as hedging instruments, notional amount
2,922 1 6
2,657 2 6
Derivative asset positions
9 1 6
19 2 6
Derivative Financial Instruments, Assets |
Nondesignated |
Interest Rate Contract |
Trading Activity |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
87,129 1 6 7
113,420 2 6 8
Derivative asset positions
6,429 1 6 7
6,226 2 6
Derivative Financial Instruments, Assets |
Nondesignated |
Foreign Exchange Contract |
Trading Activity |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
2,489 1 6
2,532 2 6
Derivative asset positions
63 1 6
127 2 6
Derivative Financial Instruments, Assets |
Nondesignated |
Foreign Exchange Contract |
Foreign-Denominated Debt and Commercial Loans |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
33 1 6
33 2 6
Derivative asset positions
1 1 6
1 2 6
Derivative Financial Instruments, Assets |
Nondesignated |
Credit Risk Contract [Member] |
Loans |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
 
45 2 6
Derivative asset positions
 
1 2 6
Derivative Financial Instruments, Assets |
Nondesignated |
Credit Risk Contract [Member] |
Loans |
Other Assets [Member]
 
 
Derivatives not designated as hedging instruments, notional amount
60 1 6
 
Derivative asset positions
1 1 6
 
Derivative Financial Instruments, Assets |
Nondesignated |
Credit Risk Contract [Member] |
Trading Activity |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
2,044 1 6 9
1,841 10 2 6
Derivative asset positions
34 1 6
28 2 6
Derivative Financial Instruments, Assets |
Nondesignated |
Other Contract |
Loans |
Other Assets [Member]
 
 
Derivatives not designated as hedging instruments, notional amount
6,402 1 6
4,909 2 6
Derivative asset positions
135 1 6
84 2 6
Derivative Financial Instruments, Assets |
Nondesignated |
Other Contract |
Trading Activity |
Trading Account Assets
 
 
Derivatives not designated as hedging instruments, notional amount
310 1 6
207 2 6
Derivative asset positions
26 1 6
23 2 6
Derivative Financial Instruments, Liabilities [Member]
 
 
Notional amount of derivatives
131,204 1
128,350 2
Derivative liability positions, fair value
8,130 1
7,499 2
Derivative Financial Instruments, Liabilities [Member] |
Designated as Hedging Instrument |
Cash Flow Hedging
 
 
Derivatives designated as hedging relationships, notional amount
1,547 1 3
1,547 2 3
Derivative liability positions, fair value
349 1 3
189 2 3
Derivative Financial Instruments, Liabilities [Member] |
Designated as Hedging Instrument |
Cash Flow Hedging |
Equity Contract |
Available-for-sale Securities [Member] |
Trading Liabilities
 
 
Derivatives designated as hedging relationships, notional amount
1,547 1 3
1,547 2 3
Derivative liability positions, fair value
349 1 3
189 2 3
Derivative Financial Instruments, Liabilities [Member] |
Designated as Hedging Instrument |
Cash Flow Hedging |
Interest Rate Contract |
Floating Rate Loans |
Trading Liabilities
 
 
Derivatives designated as hedging relationships, notional amount
0 1 3
0 2 3
Derivative liability positions, fair value
0 1 3
0 2 3
Derivative Financial Instruments, Liabilities [Member] |
Designated as Hedging Instrument |
Fair Value Hedging
 
 
Derivatives designated as hedging relationships, notional amount
0 1 4
450 2 5
Derivative liability positions, fair value
0 1 4
1 2 5
Derivative Financial Instruments, Liabilities [Member] |
Designated as Hedging Instrument |
Fair Value Hedging |
Equity Contract |
Available-for-sale Securities [Member] |
Trading Liabilities
 
 
Derivatives designated as hedging relationships, notional amount
 
450 2 5
Derivative liability positions, fair value
 
1 2 5
Derivative Financial Instruments, Liabilities [Member] |
Designated as Hedging Instrument |
Fair Value Hedging |
Interest Rate Contract |
Fixed Rate Debt |
Trading Liabilities
 
 
Derivatives designated as hedging relationships, notional amount
0 1 4
0 2 5
Derivative liability positions, fair value
0 1 4
0 2 5
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated
 
 
Derivatives not designated as hedging instruments, notional amount
129,657 1 6
126,353 2 6
Derivative liability positions, fair value
7,781 1 6
7,309 2 6
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated |
Future [Member]
 
 
Notional Amount of Interest Rate Derivatives
1,243 
 
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated |
Equity Contract |
Trading Activity |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
15,807 1 6 7
10,445 2 6
Derivative liability positions, fair value
1,464 1 6 7
1,045 2 6
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated |
Interest Rate Contract |
Fixed Rate Debt |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
60 1 6
60 2 6
Derivative liability positions, fair value
10 1 6
9 2 6
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated |
Interest Rate Contract |
Mortgage Servicing Rights |
Other Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
4,860 1 6
2,920 2 6
Derivative liability positions, fair value
36 1 6
29 2 6
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated |
Interest Rate Contract |
Loans |
Other Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
7,485 1 11 6
6,228 12 2 6
Derivative liability positions, fair value
51 1 6
54 2 6
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated |
Interest Rate Contract |
Trading Activity |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
95,911 1 6 7
101,042 2 6
Derivative liability positions, fair value
6,094 1 6 7
5,847 2 6
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated |
Foreign Exchange Contract |
Trading Activity |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
2,712 1 6
2,739 2 6
Derivative liability positions, fair value
64 1 6
125 2 6
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated |
Foreign Exchange Contract |
Foreign-Denominated Debt and Commercial Loans |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
0 1 6
460 2 6
Derivative liability positions, fair value
0 1 6
129 2 6
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated |
Credit Risk Contract [Member] |
Loans |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
 
308 2 6
Derivative liability positions, fair value
5 1 6
3 2 6
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated |
Credit Risk Contract [Member] |
Loans |
Other Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
368 1 6
 
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated |
Credit Risk Contract [Member] |
Trading Activity |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
2,035 1 6 9
1,809 10 2 6
Derivative liability positions, fair value
28 1 6
23 2 6
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated |
Other Contract |
Loans |
Other Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
134 1 13 6
139 14 2 6
Derivative liability positions, fair value
3 1 13 6
22 14 2 6
Derivative Financial Instruments, Liabilities [Member] |
Nondesignated |
Other Contract |
Trading Activity |
Trading Liabilities
 
 
Derivatives not designated as hedging instruments, notional amount
285 1 6
203 2 6
Derivative liability positions, fair value
$ 26 1 6
$ 23 2 6
Derivative Positions (Parenthetical) (Detail) (USD $)
Share data in Millions, unless otherwise specified
1 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2012
Nondesignated
Trading Activity
Dec. 31, 2011
Nondesignated
Trading Activity
Jun. 30, 2012
Derivative Financial Instruments, Assets
Nondesignated
Trading Activity
Dec. 31, 2011
Derivative Financial Instruments, Assets
Nondesignated
Trading Activity
Dec. 31, 2011
Derivative Financial Instruments, Assets
Nondesignated
Future
Jun. 30, 2012
Derivative Financial Instruments, Liabilities [Member]
Nondesignated
Jun. 30, 2012
Derivative Financial Instruments, Liabilities [Member]
Nondesignated
Future
May 31, 2009
Derivative Financial Instruments, Liabilities [Member]
Visa Interest
Nondesignated
Dec. 31, 2011
Nondesignated
Jun. 30, 2012
Cash Flow Hedging
Jun. 30, 2011
Cash Flow Hedging
Jun. 30, 2012
Cash Flow Hedging
Jun. 30, 2011
Cash Flow Hedging
Jun. 30, 2012
Cash Flow Hedging
Interest Income (Expense), Net [Member]
Jun. 30, 2011
Cash Flow Hedging
Interest Income (Expense), Net [Member]
Jun. 30, 2012
Cash Flow Hedging
Interest Income (Expense), Net [Member]
Jun. 30, 2011
Cash Flow Hedging
Interest Income (Expense), Net [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
 
 
 
 
 
 
 
 
 
$ 83,000,000 
$ 105,000,000 
$ 166,000,000 
$ 218,000,000 
$ 37,000,000 
$ 49,000,000 
$ 105,000,000 
$ 90,000,000 
Notional amounts related to interest rate futures
 
 
20,300,000,000 
16,700,000,000 
1,203,000,000 
 
1,243,000,000 
 
 
 
 
 
 
 
 
 
 
Notional related to equity futures
 
 
600,000,000 
600,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset amount notional from purchased and written interest rate swap risk participation agreements
2,000,000 
2,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liability amount notional from purchased and written interest rate swap risk participation agreements
5,000,000 
6,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liability recorded in other liabilities, established upon the sale of Visa Class B shares
 
 
 
 
 
2,900,000 
 
 
22,000,000 
 
 
 
 
 
 
 
 
Notional amount, established upon the sale of Visa Class B shares
 
 
 
 
 
$ 134,000,000 
 
 
$ 134,000,000 
 
 
 
 
 
 
 
 
Shares of Class B Visa Inc. common stock sold to another financial institution, shares
 
 
 
 
 
 
 
3.2 
 
 
 
 
 
 
 
 
 
Impacts of Derivative Financial Instruments on the Consolidated Statements of Income/(Loss) and the Consolidated Statements of Shareholders' Equity (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Cash Flow Hedging
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
$ 14,000,000 
$ 267,000,000 
$ 6,000,000 
$ 224,000,000 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
83,000,000 
105,000,000 
166,000,000 
218,000,000 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
8,000,000 1
 
8,000,000 1
 
Amount of gain on related Hedged Items recognized in Income
(8,000,000)1
 
(8,000,000)1
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
0 1
 
0 1
 
Cash Flow Hedging |
Equity Contract |
Available-for-sale Securities [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
(103,000,000)
6,000,000 
(161,000,000)
(10,000,000)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
0 
0 
0 
0 
Cash Flow Hedging |
Interest Rate Contract |
Floating Rate Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
117,000,000 2
261,000,000 3
167,000,000 2
234,000,000 3
Cash Flow Hedging |
Interest Income (Expense), Net [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
37,000,000 
49,000,000 
105,000,000 
90,000,000 
Cash Flow Hedging |
Interest Income, Interest and Fees on Loans |
Interest Rate Contract |
Floating Rate Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
83,000,000 2
105,000,000 3
166,000,000 2
218,000,000 3
Fair Value Hedging |
Other Income [Member] |
Interest Rate Contract |
Available-for-sale Securities [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
0 1
 
1,000,000 1
 
Amount of gain on related Hedged Items recognized in Income
0 1
 
(1,000,000)1
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
0 1
 
0 1
 
Fair Value Hedging |
Other Income [Member] |
Interest Rate Contract |
Fixed Rate Debt
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
8,000,000 1
15,000,000 1
7,000,000 1
15,000,000 1
Amount of gain on related Hedged Items recognized in Income
(8,000,000)1
(15,000,000)1
(7,000,000)1
(15,000,000)1
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
0 1
0 1
0 1
0 1
Nondesignated
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
557,000,000 
181,000,000 
686,000,000 
239,000,000 
Nondesignated |
Other Income [Member] |
Equity Contract |
Trading Activity
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
10,000,000 
5,000,000 
13,000,000 
8,000,000 
Nondesignated |
Other Income [Member] |
Interest Rate Contract |
Fixed Rate Debt
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
(2,000,000)
0 
(1,000,000)
1,000,000 
Nondesignated |
Other Income [Member] |
Interest Rate Contract |
Trading Activity
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
27,000,000 
33,000,000 
54,000,000 
37,000,000 
Nondesignated |
Other Income [Member] |
Foreign Exchange Contract |
Trading Activity
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
11,000,000 
(5,000,000)
14,000,000 
(6,000,000)
Nondesignated |
Other Income [Member] |
Foreign Exchange Contract |
Foreign-Denominated Debt and Commercial Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
115,000,000 
29,000,000 
130,000,000 
110,000,000 
Nondesignated |
Other Income [Member] |
Credit Risk Contract [Member] |
Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
 
0 
3,000,000 
(1,000,000)
Nondesignated |
Other Income [Member] |
Credit Risk Contract [Member] |
Trading Activity
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
6,000,000 
4,000,000 
12,000,000 
8,000,000 
Nondesignated |
Other Income [Member] |
Credit Risk Contract [Member] |
Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
(1,000,000)4
 
(4,000,000)4
 
Nondesignated |
Mortgage Servicing Income |
Interest Rate Contract |
Mortgage Servicing Rights
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
269,000,000 
134,000,000 
196,000,000 
91,000,000 
Nondesignated |
Mortgage Production Income |
Interest Rate Contract |
Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
(135,000,000)
(67,000,000)
(170,000,000)
(93,000,000)
Nondesignated |
Mortgage Production Income |
Other Contract |
Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
$ 257,000,000 
$ 48,000,000 
$ 442,000,000 
$ 84,000,000 
Impacts of Derivative Financial Instruments on the Consolidated Statements of Income/(Loss) and the Consolidated Statements of Shareholders' Equity (Parenthetical) (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Cash Flow Hedging
 
 
 
 
Reclassified in pre-tax gains from AOCI into net interest income
$ 83,000,000 
$ 105,000,000 
$ 166,000,000 
$ 218,000,000 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
8,000,000 1
 
8,000,000 1
 
Cash Flow Hedging |
Interest Income (Expense), Net [Member]
 
 
 
 
Reclassified in pre-tax gains from AOCI into net interest income
37,000,000 
49,000,000 
105,000,000 
90,000,000 
Nondesignated
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
557,000,000 
181,000,000 
686,000,000 
239,000,000 
Loans |
Credit Risk Contract [Member] |
Nondesignated |
Trading Account Profits And Commissions [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
 
$ 0 
$ 3,000,000 
$ (1,000,000)
Reinsurance Arrangements and Guarantees - Additional Information (Detail) (USD $)
Share data in Millions, unless otherwise specified
6 Months Ended 12 Months Ended 90 Months Ended 6 Months Ended 12 Months Ended 3 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended 12 Months Ended 1 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Jun. 30, 2012
Jun. 30, 2012
Contingent Consideration
Dec. 31, 2011
Contingent Consideration
Jun. 30, 2012
Non Agency Securities [Member]
Dec. 31, 2011
Non Agency Securities [Member]
Dec. 31, 2010
Non Agency Securities [Member]
Dec. 31, 2009
Non Agency Securities [Member]
Jun. 30, 2012
Agency Securities
Dec. 31, 2011
Agency Securities
Jun. 30, 2012
Ginnie Mae
Jun. 30, 2012
Mortgage Reinsurance Contracts
Jun. 30, 2011
Mortgage Reinsurance Contracts
Jun. 30, 2012
Mortgage Reinsurance Contracts
Jun. 30, 2011
Mortgage Reinsurance Contracts
Dec. 31, 2011
Mortgage Reinsurance Contracts
Jun. 30, 2012
Mortgage Reinsurance Contracts
Upper Limit
Jun. 30, 2012
Standby Letters of Credit
Dec. 31, 2011
Standby Letters of Credit
Jun. 30, 2012
Mortgage Loans and Mortgage Servicing Rights
Dec. 31, 2011
Mortgage Loans and Mortgage Servicing Rights
Jun. 30, 2012
Mortgage Loans and Mortgage Servicing Rights
Sales
Dec. 31, 2011
Mortgage Loans and Mortgage Servicing Rights
Sales
Jun. 30, 2012
Mortgage Loans and Mortgage Servicing Rights, Repurchase Reserves
Jun. 30, 2011
Mortgage Loans and Mortgage Servicing Rights, Repurchase Reserves
Dec. 31, 2011
Mortgage Loans and Mortgage Servicing Rights, Repurchase Reserves
Jun. 30, 2012
Mortgage Loans and Mortgage Servicing Rights, Repurchase Reserves
Nonperforming Financing Receivable [Member]
Dec. 31, 2011
Mortgage Loans and Mortgage Servicing Rights, Repurchase Reserves
Nonperforming Financing Receivable [Member]
Jun. 30, 2012
Visa Interest
Dec. 31, 2011
Visa Interest
Dec. 31, 2010
Visa Interest
May 31, 2009
Visa Interest
Jun. 30, 2012
Tax Credit Sales [Member]
Dec. 31, 2011
Tax Credit Sales [Member]
Jun. 30, 2012
Derivative Financial Instruments, Liabilities [Member]
Dec. 31, 2011
Derivative Financial Instruments, Liabilities [Member]
Jun. 30, 2012
Not Designated as Hedging Instrument [Member]
Derivative Financial Instruments, Liabilities [Member]
Dec. 31, 2011
Not Designated as Hedging Instrument [Member]
Derivative Financial Instruments, Liabilities [Member]
May 31, 2009
Not Designated as Hedging Instrument [Member]
Derivative Financial Instruments, Liabilities [Member]
Visa Interest
Mortgage loans were covered by such mortgage reinsurance contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 7,000,000,000 
 
$ 7,000,000,000 
 
$ 8,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loss exposure ceded to the Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
275,000,000 
 
275,000,000 
 
309,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum amount of loss exposure based on funds held in each seperate trust account, including net premiums due to the trust accounts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
27,000,000 
 
27,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum Exposure to Loss Reserves
 
 
 
 
 
 
 
 
 
 
 
 
 
 
24,000,000 
 
24,000,000 
 
38,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision For Losses, Mortgage Reinsurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
6,000,000 
9,000,000 
13,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future reported losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future cash losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium income, mortgage reinsurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
6,000,000 
8,000,000 
14,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum potential amount obligation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,800,000,000 
5,200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
37,000,000 
 
 
 
 
 
 
Fair value of contingent payments
 
 
 
 
 
32,000,000 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
104,000,000 
105,000,000 
434,000,000 
320,000,000 
10,000,000 
8,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantee obligations, carrying value
 
 
 
 
 
32,000,000 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
104,000,000 
105,000,000 
434,000,000 
320,000,000 
10,000,000 
8,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans sold from January 1, 2005 to September 30, 2011
256,500,000,000 
 
 
 
256,500,000,000 
 
 
30,300,000,000 
 
 
 
197,300,000,000 
 
28,900,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans Sold Repurchased Request Amount
937,000,000 
1,700,000,000 
1,100,000,000 
1,100,000,000 
6,200,000,000 
 
 
6,000,000 
50,000,000 
55,000,000 
99,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unpaid principal balance of loans related to unresolved requests previously received from investors
652,000,000 
590,000,000 
 
 
652,000,000 
 
 
10,000,000 
12,000,000 
 
 
642,000,000 
578,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repurchased or otherwise settled mortgages
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
368,000,000 
246,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repurchased mortgage loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
294,000,000 
 
252,000,000 
128,000,000 
134,000,000 
 
 
 
 
 
 
 
 
 
 
 
Amount funded by Visa into an escrow account to fund judgments and settlements relating to litigation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8,100,000,000 
 
 
 
 
 
 
 
 
 
 
Shares of Class B Visa Inc. common stock sold to another financial institution, shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2 
Payments to derivative counterparty
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
23,000,000 
8,000,000 
17,000,000 
 
 
 
 
 
 
 
 
Derivative liability positions, fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
22,000,000 
 
 
 
 
8,130,000,000 1
7,499,000,000 2
7,781,000,000 1 3
7,309,000,000 2 3
 
Common stock conversion rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.4254 
 
 
0.6296 
 
 
 
 
 
 
 
Tax Credits To Be Delivered
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,000,000 
5,000,000 
 
 
 
 
 
Loss Contingency, Range of Possible Loss, Minimum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss Contingency, Range of Possible Loss, Maximum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Balance of Loans Sold by Vintage and Type of Buyer (Detail) (USD $)
In Billions, unless otherwise specified
Jun. 30, 2012
Outstanding balance remaining of loans sold to outside investors
$ 112.8 
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
81.0 1
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
18.1 1
Non Agency Securities [Member]
 
Outstanding balance remaining of loans sold to outside investors
13.7 
Vintage 2005
 
Outstanding balance remaining of loans sold to outside investors
8.3 
Vintage 2005 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
3.7 1
Vintage 2005 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
0.7 1
Vintage 2005 |
Non Agency Securities [Member]
 
Outstanding balance remaining of loans sold to outside investors
3.9 
Vintage 2006
 
Outstanding balance remaining of loans sold to outside investors
10.5 
Vintage 2006 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
4.4 1
Vintage 2006 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
0.5 1
Vintage 2006 |
Non Agency Securities [Member]
 
Outstanding balance remaining of loans sold to outside investors
5.6 
Vintage 2007
 
Outstanding balance remaining of loans sold to outside investors
13.4 
Vintage 2007 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
8.7 1
Vintage 2007 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
0.5 1
Vintage 2007 |
Non Agency Securities [Member]
 
Outstanding balance remaining of loans sold to outside investors
4.2 
Vintage 2008
 
Outstanding balance remaining of loans sold to outside investors
11.2 
Vintage 2008 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
8.8 1
Vintage 2008 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
2.4 1
Vintage 2008 |
Non Agency Securities [Member]
 
Outstanding balance remaining of loans sold to outside investors
0 
Vintage 2009
 
Outstanding balance remaining of loans sold to outside investors
25.9 
Vintage 2009 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
20.8 1
Vintage 2009 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
5.1 1
Vintage 2009 |
Non Agency Securities [Member]
 
Outstanding balance remaining of loans sold to outside investors
0 
Vintage 2010
 
Outstanding balance remaining of loans sold to outside investors
16.1 
Vintage 2010 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
12.4 1
Vintage 2010 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
3.7 1
Vintage 2010 |
Non Agency Securities [Member]
 
Outstanding balance remaining of loans sold to outside investors
0 
Vintage 2011
 
Outstanding balance remaining of loans sold to outside investors
15.4 
Vintage 2011 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
12.5 1
Vintage 2011 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
2.9 1
Vintage 2011 |
Non Agency Securities [Member]
 
Outstanding balance remaining of loans sold to outside investors
0 
Vintage 2012
 
Outstanding balance remaining of loans sold to outside investors
12.0 
Vintage 2012 |
Agency Securities
 
Outstanding balance remaining of loans sold to outside investors
9.7 1
Vintage 2012 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
2.3 1
Vintage 2012 |
Non Agency Securities [Member]
 
Outstanding balance remaining of loans sold to outside investors
$ 0 
Mortgage Loan Repurchase Losses (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Reserve for mortgage loan repurchase losses
 
 
 
 
Balance at beginning of period
$ 383 
$ 270 
$ 320 
$ 265 
Repurchase provision
155 
90 
330 
170 
Charge-offs
(104)
(61)
(216)
(136)
Balance at end of period
$ 434 
$ 299 
$ 434 
$ 299 
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Assets
 
 
Loans Held-for-sale, Fair Value Disclosure
$ 2,940 1
$ 2,141 1
Fair Value, Measurements, Recurring [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
6,327 
6,279 
Loans Held-for-sale, Fair Value Disclosure
2,940 
2,141 
Loans, Held for Investment, Fair Value Disclosure
406 
433 
Other intangible assets
865 
921 
Other assets
552 2
554 2
Liabilities
 
 
Trading liabilities
1,782 
1,806 
Brokered deposits
914 
1,018 
Long-term debt
2,010 
1,997 
Other liabilities
109 2 3
84 2 4
Fair Value, Measurements, Recurring [Member] |
Residential Mortgage, Loans Held For Sale [Member]
 
 
Assets
 
 
Loans Held-for-sale, Fair Value Disclosure
2,618 
1,826 
Fair Value, Measurements, Recurring [Member] |
Corporate and Other
 
 
Assets
 
 
Loans Held-for-sale, Fair Value Disclosure
322 
315 
Fair Value, Measurements, Recurring [Member] |
Fair Value Adjustments on Hedges and Derivative Contracts [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
(937)5
(1,030)6
Liabilities
 
 
Trading liabilities
(1,208)5
(1,170)6
Fair Value, Measurements, Recurring [Member] |
Available-for-sale Securities [Member]
 
 
Assets
 
 
Securities available for sale
24,409 
28,117 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale Securities [Member] |
US Treasury Securities
 
 
Assets
 
 
Securities available for sale
224 
694 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale Securities [Member] |
US Government Agencies Debt Securities
 
 
Assets
 
 
Securities available for sale
1,783 
1,932 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale Securities [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
Assets
 
 
Securities available for sale
372 
454 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale Securities [Member] |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Securities available for sale
18,110 
21,223 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale Securities [Member] |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
Assets
 
 
Securities available for sale
208 
221 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale Securities [Member] |
Collateralized Debt Obligations [Member]
 
 
Assets
 
 
Securities available for sale
 
50 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale Securities [Member] |
Asset-backed Securities [Member]
 
 
Assets
 
 
Securities available for sale
348 
464 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale Securities [Member] |
Corporate And Other Debt Securities [Member]
 
 
Assets
 
 
Securities available for sale
45 
51 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale Securities [Member] |
Equity Securities, Coca Cola
 
 
Assets
 
 
Securities available for sale
2,346 
2,099 
Fair Value, Measurements, Recurring [Member] |
Available-for-sale Securities [Member] |
Equity Securities, Other [Member]
 
 
Assets
 
 
Securities available for sale
973 7
929 8
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
424 
541 
Loans Held-for-sale, Fair Value Disclosure
0 
0 
Loans, Held for Investment, Fair Value Disclosure
0 
0 
Other intangible assets
0 
0 
Other assets
2 2
7 2
Liabilities
 
 
Trading liabilities
352 
780 
Brokered deposits
0 
0 
Long-term debt
0 
0 
Other liabilities
1 2 3
1 2 4
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
US Treasury Securities
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
125 
144 
Liabilities
 
 
Trading liabilities
330 
569 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
US Government Agencies Debt Securities
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Collateralized Debt Obligations [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Asset-backed Securities [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Corporate And Other Debt Securities [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Liabilities
 
 
Trading liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Commercial Paper
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Equity Securities
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
91 
91 
Liabilities
 
 
Trading liabilities
22 
37 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Derivative Financial Instruments, Assets
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
208 
306 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Trading Loans
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Residential Mortgage, Loans Held For Sale [Member]
 
 
Assets
 
 
Loans Held-for-sale, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Corporate and Other
 
 
Assets
 
 
Loans Held-for-sale, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Derivative Financial Instruments, Liabilities [Member]
 
 
Liabilities
 
 
Trading liabilities
0 
174 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Available-for-sale Securities [Member]
 
 
Assets
 
 
Securities available for sale
2,686 
2,981 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Available-for-sale Securities [Member] |
US Treasury Securities
 
 
Assets
 
 
Securities available for sale
224 
694 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Available-for-sale Securities [Member] |
US Government Agencies Debt Securities
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Available-for-sale Securities [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Available-for-sale Securities [Member] |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Available-for-sale Securities [Member] |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Available-for-sale Securities [Member] |
Collateralized Debt Obligations [Member]
 
 
Assets
 
 
Securities available for sale
 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Available-for-sale Securities [Member] |
Asset-backed Securities [Member]
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Available-for-sale Securities [Member] |
Corporate And Other Debt Securities [Member]
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Available-for-sale Securities [Member] |
Equity Securities, Coca Cola
 
 
Assets
 
 
Securities available for sale
2,346 
2,099 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Available-for-sale Securities [Member] |
Equity Securities, Other [Member]
 
 
Assets
 
 
Securities available for sale
116 7
188 8
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
6,791 
6,719 
Loans Held-for-sale, Fair Value Disclosure
2,938 
2,140 
Loans, Held for Investment, Fair Value Disclosure
0 
0 
Other intangible assets
0 
0 
Other assets
415 2
463 2
Liabilities
 
 
Trading liabilities
2,289 
2,007 
Brokered deposits
914 
1,018 
Long-term debt
2,010 
1,997 
Other liabilities
82 2 3
61 2 4
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
US Treasury Securities
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Liabilities
 
 
Trading liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
US Government Agencies Debt Securities
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
521 
478 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
58 
54 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
371 
412 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Collateralized Debt Obligations [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
2 
2 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Asset-backed Securities [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
32 
32 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Corporate And Other Debt Securities [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
560 
344 
Liabilities
 
 
Trading liabilities
301 
77 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Commercial Paper
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
113 
229 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Equity Securities
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Liabilities
 
 
Trading liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Derivative Financial Instruments, Assets
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
2,919 
3,138 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Trading Loans
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
2,215 
2,030 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Residential Mortgage, Loans Held For Sale [Member]
 
 
Assets
 
 
Loans Held-for-sale, Fair Value Disclosure
2,616 
1,825 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Corporate and Other
 
 
Assets
 
 
Loans Held-for-sale, Fair Value Disclosure
322 
315 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Derivative Financial Instruments, Liabilities [Member]
 
 
Liabilities
 
 
Trading liabilities
1,988 
1,930 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Available-for-sale Securities [Member]
 
 
Assets
 
 
Securities available for sale
20,581 
24,095 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Available-for-sale Securities [Member] |
US Treasury Securities
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Available-for-sale Securities [Member] |
US Government Agencies Debt Securities
 
 
Assets
 
 
Securities available for sale
1,783 
1,932 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Available-for-sale Securities [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
Assets
 
 
Securities available for sale
317 
396 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Available-for-sale Securities [Member] |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Securities available for sale
18,110 
21,223 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Available-for-sale Securities [Member] |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Available-for-sale Securities [Member] |
Collateralized Debt Obligations [Member]
 
 
Assets
 
 
Securities available for sale
 
50 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Available-for-sale Securities [Member] |
Asset-backed Securities [Member]
 
 
Assets
 
 
Securities available for sale
331 
448 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Available-for-sale Securities [Member] |
Corporate And Other Debt Securities [Member]
 
 
Assets
 
 
Securities available for sale
40 
46 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Available-for-sale Securities [Member] |
Equity Securities, Coca Cola
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Available-for-sale Securities [Member] |
Equity Securities, Other [Member]
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
49 
49 
Loans Held-for-sale, Fair Value Disclosure
2 
1 
Loans, Held for Investment, Fair Value Disclosure
406 
433 
Other intangible assets
865 
921 
Other assets
135 2
84 2
Liabilities
 
 
Trading liabilities
349 
189 
Brokered deposits
0 
0 
Long-term debt
0 
0 
Other liabilities
26 2 3
22 2 4
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
US Treasury Securities
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Liabilities
 
 
Trading liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
US Government Agencies Debt Securities
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
1 
1 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Collateralized Debt Obligations [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
43 
43 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Asset-backed Securities [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
5 
5 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Corporate And Other Debt Securities [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Liabilities
 
 
Trading liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Commercial Paper
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Equity Securities
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Liabilities
 
 
Trading liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Derivative Financial Instruments, Assets
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Trading Loans
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Residential Mortgage, Loans Held For Sale [Member]
 
 
Assets
 
 
Loans Held-for-sale, Fair Value Disclosure
2 
1 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Corporate and Other
 
 
Assets
 
 
Loans Held-for-sale, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Derivative Financial Instruments, Liabilities [Member]
 
 
Liabilities
 
 
Trading liabilities
349 
189 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Available-for-sale Securities [Member]
 
 
Assets
 
 
Securities available for sale
1,142 
1,041 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Available-for-sale Securities [Member] |
US Treasury Securities
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Available-for-sale Securities [Member] |
US Government Agencies Debt Securities
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Available-for-sale Securities [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
Assets
 
 
Securities available for sale
55 
58 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Available-for-sale Securities [Member] |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Available-for-sale Securities [Member] |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
Assets
 
 
Securities available for sale
208 
221 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Available-for-sale Securities [Member] |
Collateralized Debt Obligations [Member]
 
 
Assets
 
 
Securities available for sale
 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Available-for-sale Securities [Member] |
Asset-backed Securities [Member]
 
 
Assets
 
 
Securities available for sale
17 
16 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Available-for-sale Securities [Member] |
Corporate And Other Debt Securities [Member]
 
 
Assets
 
 
Securities available for sale
5 
5 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Available-for-sale Securities [Member] |
Equity Securities, Coca Cola
 
 
Assets
 
 
Securities available for sale
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Available-for-sale Securities [Member] |
Equity Securities, Other [Member]
 
 
Assets
 
 
Securities available for sale
857 7
741 8
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Available-for-sale Securities [Member] |
Federal Home Loan Bank Stock and Federal Reserve Bank Stock [Member]
 
 
Assets
 
 
Securities available for sale
856 7
740 6
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
7,264 
7,309 
Liabilities
 
 
Trading liabilities
2,990 
2,976 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
US Treasury Securities
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
125 
144 
Liabilities
 
 
Trading liabilities
330 
569 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
US Government Agencies Debt Securities
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
521 
478 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
58 
54 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
371 
412 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
1 
1 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Collateralized Debt Obligations [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
45 
45 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Asset-backed Securities [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
37 
37 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Corporate And Other Debt Securities [Member]
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
560 
344 
Liabilities
 
 
Trading liabilities
301 
77 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Commercial Paper
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
113 
229 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Equity Securities
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
91 
91 
Liabilities
 
 
Trading liabilities
22 
37 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Derivative Financial Instruments, Assets
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
3,127 
3,444 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Trading Loans
 
 
Assets
 
 
Trading Account Assets, Fair Value Disclosure
2,215 
2,030 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] |
Derivative Financial Instruments, Liabilities [Member]
 
 
Liabilities
 
 
Trading liabilities
$ 2,337 
$ 2,293 
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) (Equity Securities, Other [Member], Fair Value, Measurements, Recurring [Member], USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Equity Securities, Other [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Federal Home Loan Bank (FHLB) of Atlanta stock stated at par value
$ 455 
$ 342 
Federal Reserve Bank stock stated at par value
401 
398 
Mutual fund investments (par value)
$ 116 
$ 187 
Fair Value Option Elected, Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Loans Held-for-sale, Fair Value Disclosure
$ 2,940 1
$ 2,141 1
Brokered deposits
914 
1,018 
Aggregate Fair Value Under Fair Value Option
 
 
Trading Account Assets, Fair Value Disclosure
2,215 
2,030 
Loans Held-for-sale, Fair Value Disclosure
2,939 
2,139 
Loans, Held for Investment, Fair Value Disclosure
386 
407 
Brokered deposits
914 
1,018 
Long-term debt
2,010 
1,997 
Aggregate Fair Value Under Fair Value Option |
Loans Held-for-Sale
 
 
Past due loans of 90 days or more
 
1 
Nonaccrual loans
1 
1 
Aggregate Fair Value Under Fair Value Option |
Loans Held For Investment [Member]
 
 
Past due loans of 90 days or more
1 
1 
Nonaccrual loans
19 
25 
Aggregate Unpaid Principal Balance Under Fair Value Option
 
 
Trading Account Assets, Fair Value Disclosure
2,197 
2,010 
Loans Held-for-sale, Fair Value Disclosure
2,819 
2,077 
Loans, Held for Investment, Fair Value Disclosure
407 
439 
Brokered deposits
914 
1,011 
Long-term debt
1,900 
1,901 
Aggregate Unpaid Principal Balance Under Fair Value Option |
Loans Held-for-Sale
 
 
Past due loans of 90 days or more
 
1 
Nonaccrual loans
8 
8 
Aggregate Unpaid Principal Balance Under Fair Value Option |
Loans Held For Investment [Member]
 
 
Past due loans of 90 days or more
2 
2 
Nonaccrual loans
42 
48 
Fair Value Over/(Under) Unpaid Principal
 
 
Trading Account Assets, Fair Value Disclosure
18 
20 
Loans Held-for-sale, Fair Value Disclosure
120 
62 
Loans, Held for Investment, Fair Value Disclosure
(21)
(32)
Brokered deposits
0 
7 
Long-term debt
110 
96 
Fair Value Over/(Under) Unpaid Principal |
Loans Held-for-Sale
 
 
Past due loans of 90 days or more
 
0 
Nonaccrual loans
(7)
(7)
Fair Value Over/(Under) Unpaid Principal |
Loans Held For Investment [Member]
 
 
Past due loans of 90 days or more
(1)
(1)
Nonaccrual loans
$ (23)
$ (23)
Change in Fair Value of Financial Instruments for which the FVO has been Elected (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Trading Account Assets
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
$ 8,000,000 1
$ 5,000,000 2
$ 16,000,000 1
$ 12,000,000 2
Loans Held-for-Sale
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
246,000,000 1
115,000,000 2
408,000,000 1
147,000,000 2
Mortgage Servicing Rights
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
(261,000,000)1
(160,000,000)2
(184,000,000)1
(141,000,000)2
Brokered Deposits
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
7,000,000 1
8,000,000 2
7,000,000 1
(3,000,000)2
Long-term Debt [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
(10,000,000)1
(21,000,000)2
(14,000,000)1
(38,000,000)2
Loans Held For Investment [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
6,000,000 1
0 2
3,000,000 1
(1,000,000)2
Trading Account Profits And Commissions [Member] |
Trading Account Assets
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
8,000,000 
5,000,000 
16,000,000 
12,000,000 
Trading Account Profits And Commissions [Member] |
Loans Held-for-Sale
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
(2,000,000)
(4,000,000)
5,000,000 
(2,000,000)
Trading Account Profits And Commissions [Member] |
Mortgage Servicing Rights
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Trading Account Profits And Commissions [Member] |
Brokered Deposits
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
7,000,000 
8,000,000 
7,000,000 
(3,000,000)
Trading Account Profits And Commissions [Member] |
Long-term Debt [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
(10,000,000)
(21,000,000)
(14,000,000)
(38,000,000)
Trading Account Profits And Commissions [Member] |
Loans Held For Investment [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
1,000,000 
0 
1,000,000 
3,000,000 
Mortgage Production Income [Member] |
Trading Account Assets
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Mortgage Production Income [Member] |
Loans Held-for-Sale
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
248,000,000 3
119,000,000 4
403,000,000 3
149,000,000 4
Mortgage Production Income [Member] |
Mortgage Servicing Rights
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
20,000,000 3
2,000,000 4
30,000,000 3
4,000,000 4
Mortgage Production Income [Member] |
Brokered Deposits
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Mortgage Production Income [Member] |
Long-term Debt [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Mortgage Production Income [Member] |
Loans Held For Investment [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
5,000,000 3
0 
2,000,000 3
(4,000,000)4
Mortgage Servicing Income [Member] |
Trading Account Assets
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Mortgage Servicing Income [Member] |
Loans Held-for-Sale
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Mortgage Servicing Income [Member] |
Mortgage Servicing Rights
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
(281,000,000)
(162,000,000)
(214,000,000)
(145,000,000)
Mortgage Servicing Income [Member] |
Brokered Deposits
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Mortgage Servicing Income [Member] |
Long-term Debt [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Mortgage Servicing Income [Member] |
Loans Held For Investment [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
$ 0 
$ 0 
$ 0 
$ 0 
Change in Fair Value of Financial Instruments for which the FVO has been Elected (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Income recognized upon the sale of loans
 
 
$ 23 
$ 10 
Loans Held-for-Sale |
Mortgage Production Income
 
 
 
 
Income recognized upon the sale of loans
58 
46 
131 
132 
Mortgage Servicing Rights |
Mortgage Production Income
 
 
 
 
Income recognized upon the sale of loans
$ 20 
$ 2 
$ 30 
$ 4 
Fair Value Measurement and Election - Additional Information (Detail) (USD $)
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Jun. 30, 2012
Fair Value, Inputs, Level 2 [Member]
Property Subject to Operating Lease [Member]
Jun. 30, 2011
Fair Value, Inputs, Level 2 [Member]
Property Subject to Operating Lease [Member]
Jun. 30, 2012
Fair Value, Inputs, Level 2 [Member]
Property Subject to Operating Lease [Member]
Jun. 30, 2011
Fair Value, Inputs, Level 2 [Member]
Property Subject to Operating Lease [Member]
Jun. 30, 2012
Total Return Swap
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2011
Total Return Swap
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2012
Interest Rate Lock Commitments
Jun. 30, 2011
Interest Rate Lock Commitments
Jun. 30, 2012
Interest Rate Lock Commitments
Jun. 30, 2011
Interest Rate Lock Commitments
Jun. 30, 2012
Collateralized Debt Obligations [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2012
Lower Limit
years
Jun. 30, 2012
Upper Limit
years
Jun. 30, 2012
Asset-backed Securities [Member]
Trading Assets [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2012
Asset-backed Securities [Member]
Available-for-sale Securities [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2012
Asset-backed Securities [Member]
Student Loans
Jun. 30, 2012
Equity Securities, Coca Cola
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2011
Equity Securities, Coca Cola
Fair Value, Inputs, Level 3 [Member]
Jun. 30, 2012
Trading Account Assets
Fair Value, Inputs, Level 2 [Member]
Dec. 31, 2011
Trading Account Assets
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2012
Residential Mortgage, Loans Held For Sale [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2011
Residential Mortgage, Loans Held For Sale [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2012
Residential Mortgage, Loans Held For Sale [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2011
Residential Mortgage, Loans Held For Sale [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2012
Residential Mortgage, Loans Held For Sale [Member]
Nonperforming Financing Receivable [Member]
Dec. 31, 2011
Residential Mortgage, Loans Held For Sale [Member]
Nonperforming Financing Receivable [Member]
Jun. 30, 2012
Residential Mortgage, Loans Held For Sale [Member]
Nonperforming Financing Receivable [Member]
Jun. 30, 2011
Residential Mortgage, Loans Held For Sale [Member]
Nonperforming Financing Receivable [Member]
Jun. 30, 2012
Brokered Deposits
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2011
Brokered Deposits
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2012
Brokered Deposits
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2011
Brokered Deposits
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2012
Long-term Debt [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2011
Long-term Debt [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2012
Long-term Debt [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2011
Long-term Debt [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2012
Repossessed Personal Property [Member]
Other Assets [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2011
Repossessed Personal Property [Member]
Other Assets [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2012
Repossessed Personal Property [Member]
Other Assets [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2011
Repossessed Personal Property [Member]
Other Assets [Member]
Fair Value, Inputs, Level 2 [Member]
Jun. 30, 2012
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Dec. 31, 2011
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Jun. 30, 2012
Fair Value, Measurements, Recurring [Member]
Other real estate owned residential properties [Member]
Fair Value, Inputs, Level 3 [Member]
Lower Limit
Jun. 30, 2012
Fair Value, Measurements, Recurring [Member]
Other real estate owned residential properties [Member]
Fair Value, Inputs, Level 3 [Member]
Upper Limit
Jun. 30, 2012
Fair Value, Measurements, Recurring [Member]
Other real estate owned residential properties [Member]
Fair Value, Inputs, Level 3 [Member]
Weighted Average [Member]
Jun. 30, 2012
Fair Value, Measurements, Recurring [Member]
Other real estate owned commercial properties [Member]
Fair Value, Inputs, Level 3 [Member]
Lower Limit
Jun. 30, 2012
Fair Value, Measurements, Recurring [Member]
Other real estate owned commercial properties [Member]
Fair Value, Inputs, Level 3 [Member]
Upper Limit
Jun. 30, 2012
Fair Value, Measurements, Recurring [Member]
Other real estate owned commercial properties [Member]
Fair Value, Inputs, Level 3 [Member]
Weighted Average [Member]
Transferred Out of Level 3 in The Fair Value Hierarchy
 
 
 
 
 
 
 
 
 
 
 
$ (218,000,000)
$ (40,000,000)
$ (390,000,000)
$ (54,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government guaranteed percent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
97.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Probable forecasted sale of Coke
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.5 
7.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative in a liability position, fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
349,000,000 
189,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LHFI at fair value
406,000,000 
 
406,000,000 
 
433,000,000 
 
 
 
 
1,900,000,000 
1,700,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading loans were outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
235,000,000 
323,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recognized losses due to changes in fair value attributable to borrower-specific credit risk
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000 
(4,000,000)
2,000,000 
(9,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans held for investment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
406,000,000 
433,000,000 
406,000,000 
433,000,000 
 
 
 
 
 
 
Recognized gains (losses) on liabilities due to changes in its own credit spread
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1,000,000)
1,000,000 
(6,000,000)
(13,000,000)
1,000,000 
5,000,000 
(8,000,000)
(15,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issued securities contained in a consolidated CLO at fair value in order to recognize the nonrecourse nature of these liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
288,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,010,000,000 
1,997,000,000 
0 
0 
 
 
 
 
 
 
Transferred loans that were previously designated as held for investment to held for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
116,000,000 
47,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Incremental charge-off
397,000,000 
563,000,000 
860,000,000 
1,178,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
35,000,000 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans sold at carrying value
454,000,000 
277,000,000 
454,000,000 
277,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
71,000,000 
34,000,000 
71,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Sale of Mortgage Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans transferred from loans held for sale to loans
 
 
31,000,000 
46,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,000,000 
13,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Inputs, Discount Rate, Variable Spread
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15.00% 
50.00% 
30.00% 
5.00% 
30.00% 
24.00% 
Asset Impairment Charges
 
 
 
 
 
0 
0 
1,000,000 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
1,000,000 
1,000,000 
1,000,000 
 
 
 
 
 
 
 
 
 
 
Fair value measurement with unobservable inputs reconciliation recurring basis asset and liabilities level 3 transfers out of
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 32,000,000 
$ 71,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Election and Measurement Level 3 Significant Unobservable Input Assumptions (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Jun. 30, 2012
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Collateralized Debt Obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Collateralized Debt Obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Asset-backed Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Asset-backed Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
US States and Political Subdivisions Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
US States and Political Subdivisions Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Corporate And Other Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Corporate And Other Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Residential Mortgage, Loans Held For Sale [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Residential Mortgage, Loans Held For Sale [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Residential Mortgage, Loans Held For Sale [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Residential Mortgage, Loans Held For Sale [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Derivative Financial Instruments, Liabilities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Derivative Financial Instruments, Liabilities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Available-for-sale Securities [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Available-for-sale Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Available-for-sale Securities [Member]
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Available-for-sale Securities [Member]
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
Collateralized Debt Obligations [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
Collateralized Debt Obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Available-for-sale Securities [Member]
Asset-backed Securities [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
Asset-backed Securities [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Available-for-sale Securities [Member]
Asset-backed Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
Asset-backed Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Available-for-sale Securities [Member]
US States and Political Subdivisions Debt Securities [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
US States and Political Subdivisions Debt Securities [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Available-for-sale Securities [Member]
US States and Political Subdivisions Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
US States and Political Subdivisions Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Available-for-sale Securities [Member]
Corporate And Other Debt Securities [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
Corporate And Other Debt Securities [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Available-for-sale Securities [Member]
Corporate And Other Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
Corporate And Other Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Available-for-sale Securities [Member]
Equity Securities, Other [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
Equity Securities, Other [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Available-for-sale Securities [Member]
Equity Securities, Other [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Dec. 31, 2011
Available-for-sale Securities [Member]
Equity Securities, Other [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Market Approach Valuation Technique [Member]
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Market Approach Valuation Technique [Member]
Asset-backed Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Market Approach Valuation Technique [Member]
Loans Held For Investment [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Market Approach Valuation Technique [Member]
Other Assets And Liabilities, Net [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Market Approach Valuation Technique [Member]
Derivative Financial Instruments, Liabilities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Market Approach Valuation Technique [Member]
Available-for-sale Securities [Member]
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Market Approach Valuation Technique [Member]
Available-for-sale Securities [Member]
Asset-backed Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Market Approach Valuation Technique [Member]
Available-for-sale Securities [Member]
US States and Political Subdivisions Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Cost Approach Valuation Technique [Member]
Available-for-sale Securities [Member]
Corporate And Other Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Cost Approach Valuation Technique [Member]
Available-for-sale Securities [Member]
Equity Securities, Other [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Income Approach Valuation Technique [Member]
Collateralized Debt Obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Income Approach Valuation Technique [Member]
Residential Mortgage, Loans Held For Sale [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Income Approach Valuation Technique [Member]
Loans Held For Investment [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Income Approach Valuation Technique [Member]
Mortgage Servicing Rights
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Income Approach Valuation Technique [Member]
Other Assets And Liabilities, Net [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Lower Limit
Market Approach Valuation Technique [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Lower Limit
Market Approach Valuation Technique [Member]
Collateralized Debt Obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Lower Limit
Market Approach Valuation Technique [Member]
Asset-backed Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Lower Limit
Market Approach Valuation Technique [Member]
Other Assets And Liabilities, Net [Member]
Jun. 30, 2012
Lower Limit
Market Approach Valuation Technique [Member]
Available-for-sale Securities [Member]
US States and Political Subdivisions Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Lower Limit
Income Approach Valuation Technique [Member]
Residential Mortgage, Loans Held For Sale [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Lower Limit
Income Approach Valuation Technique [Member]
Loans Held For Investment [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Lower Limit
Income Approach Valuation Technique [Member]
Mortgage Servicing Rights
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Lower Limit
Income Approach Valuation Technique [Member]
Other Assets And Liabilities, Net [Member]
Jun. 30, 2012
Upper Limit
Market Approach Valuation Technique [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Upper Limit
Market Approach Valuation Technique [Member]
Collateralized Debt Obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Upper Limit
Market Approach Valuation Technique [Member]
Asset-backed Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Upper Limit
Market Approach Valuation Technique [Member]
Other Assets And Liabilities, Net [Member]
Jun. 30, 2012
Upper Limit
Market Approach Valuation Technique [Member]
Available-for-sale Securities [Member]
US States and Political Subdivisions Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Upper Limit
Income Approach Valuation Technique [Member]
Residential Mortgage, Loans Held For Sale [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Upper Limit
Income Approach Valuation Technique [Member]
Loans Held For Investment [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Upper Limit
Income Approach Valuation Technique [Member]
Mortgage Servicing Rights
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Upper Limit
Income Approach Valuation Technique [Member]
Other Assets And Liabilities, Net [Member]
Jun. 30, 2012
Weighted Average [Member]
Market Approach Valuation Technique [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Weighted Average [Member]
Market Approach Valuation Technique [Member]
Collateralized Debt Obligations [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Weighted Average [Member]
Market Approach Valuation Technique [Member]
Asset-backed Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Weighted Average [Member]
Market Approach Valuation Technique [Member]
Other Assets And Liabilities, Net [Member]
Jun. 30, 2012
Weighted Average [Member]
Market Approach Valuation Technique [Member]
Available-for-sale Securities [Member]
US States and Political Subdivisions Debt Securities [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Weighted Average [Member]
Income Approach Valuation Technique [Member]
Residential Mortgage, Loans Held For Sale [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Weighted Average [Member]
Income Approach Valuation Technique [Member]
Loans Held For Investment [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Weighted Average [Member]
Income Approach Valuation Technique [Member]
Mortgage Servicing Rights
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Jun. 30, 2012
Weighted Average [Member]
Income Approach Valuation Technique [Member]
Other Assets And Liabilities, Net [Member]
level 3 fair value assumptions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading Account Assets, Fair Value Disclosure
 
 
$ 6,327 
$ 6,279 
$ 49 
$ 49 
$ 1 
$ 1 
$ 43 
$ 43 
$ 5 
$ 5 
$ 0 
$ 0 
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1 
$ 5 
 
 
 
 
 
 
 
 
$ 43 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, Fair Value Disclosure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
24,409 
28,117 
1,142 
1,041 
208 
221 
208 
221 
50 
0 
348 
464 
17 
16 
372 
454 
55 
58 
45 
51 
5 
5 
973 1
929 2
857 1
741 2
 
 
 
 
 
208 
17 
55 
5 
857 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans Held-for-sale, Fair Value Disclosure
2,940 3
2,141 3
2,940 
2,141 
2 
1 
 
 
 
 
 
 
 
 
 
 
2,618 
1,826 
2 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, Held for Investment, Fair Value Disclosure
 
 
406 
433 
406 
433 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20 
 
 
 
 
 
 
 
 
 
386 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible Assets, Fair Value Disclosure
 
 
865 
921 
865 
921 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
865 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset and Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
135 4
 
 
 
 
 
 
 
 
 
 
(23)4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading Liabilities, Fair Value Disclosure
 
 
$ 1,782 
$ 1,806 
$ 349 
$ 189 
 
 
 
 
 
 
 
 
$ 0 
$ 0 
 
 
 
 
$ 349 
$ 189 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 349 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Inputs, Discount Rate, Variable Spread
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.23% 
 
 
 
 
 
 
 
 
0.37% 
 
 
 
 
 
 
 
 
0.32% 
 
 
 
 
 
 
 
Fair Value Inputs, Expected Collateral Losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
37.00% 
 
 
 
 
 
 
 
 
52.00% 
 
 
 
 
 
 
 
 
43.00% 
 
 
 
 
 
 
 
Fair Value Inputs, Indicative Pricing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.45% 
 
0.72% 
 
 
 
 
 
 
0.45% 
 
1.15% 
 
 
 
 
 
 
0.45% 
 
0.89% 
 
 
 
 
Fair Value Inputs, Option Adjusted Spread
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(0.10%)
(0.10%)
 
 
 
 
 
 
 
2.75% 
2.75% 
 
 
 
 
 
 
 
0.94% 
0.94% 
 
 
Fair Value Inputs, Conditional Prepayment Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.00% 
0.00% 
8.00% 
 
 
 
 
 
 
36.00% 
36.00% 
33.00% 
 
 
 
 
 
 
23.00% 
23.00% 
20.00% 
 
Fair Value Inputs, Probability of Default
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.00% 
0.00% 
 
 
 
 
 
 
 
25.00% 
25.00% 
 
 
 
 
 
 
 
7.00% 
7.00% 
 
 
Fair Value Inputs, Loss Severity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.00% 
 
 
 
 
 
 
 
 
0.00% 
 
 
 
 
 
 
 
 
0.00% 
 
 
 
 
 
 
 
 
Fair Value Inputs, Discount Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.00% 
 
 
 
 
 
 
 
 
28.00% 
 
 
 
 
 
 
 
 
11.00% 
 
Fair Value Inputs, Pull Through Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
99.00% 
 
 
 
 
 
 
 
 
62.00% 
 
 
 
 
 
Fair Value Inputs, Msr Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.02% 
 
 
 
 
 
 
 
 
2.00% 
 
 
 
 
 
 
 
 
1.04% 
 
 
 
 
 
fair value inputs, loan production volume
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.00% 
 
 
 
 
 
 
 
 
150.00% 
 
 
 
 
 
 
 
 
92.00% 
Reconciliation of the Beginning and Ending Balances for Fair Valued Assets and Liabilities Measured on a Recurring Basis Using Significant Unobservable Inputs (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Derivative Financial Instruments, Liabilities [Member]
 
 
 
 
Beginning balance
$ (246)
$ (161)
$ (189)
$ (145)
Included in earnings
0 
1 1
1 1
1 1
OCI
(103)2
6 2
(161)2
(10)2
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases
0 
 
0 
 
Sales
0 
0 
0 
0 
Settlements
0 
0 
0 
0 
Transfers to other balance sheet line items
0 
0 
0 
0 
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liabilities Transfers Into Level 3
0 
0 
0 
0 
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Liabilities Transfers Out Of Level 3
0 
0 
0 
0 
Fair value, ending balance
(349)
(154)
(349)
(154)
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
1 1 3
0 
Trading Account Assets
 
 
 
 
Beginning balance
49 
105 
49 
209 
Included in earnings
0 
4 1
0 
54 1
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
0 
0 
(57)
Settlements
0 
(47)
0 
(124)
Transfers to other balance sheet line items
0 
0 
0 
(20)
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
49 
62 
49 
62 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
(1)1 3
17 1 4
Trading Account Assets |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
 
 
Beginning balance
1 
2 
1 
6 
Included in earnings
0 
0 
0 
2 
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
0 
0 
(5)
Settlements
0 
0 
0 
(1)
Transfers to other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
1 
2 
1 
2 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
0 
0 
Trading Account Assets |
Collateralized Debt Obligations [Member]
 
 
 
 
Beginning balance
43 
42 
43 
53 
Included in earnings
0 
0 
0 
31 
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
0 
0 
(21)
Settlements
0 
0 
0 
(1)
Transfers to other balance sheet line items
0 
0 
0 
(20)
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
43 
42 
43 
42 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 4
(1)3
15 4
Trading Account Assets |
Asset-backed Securities [Member]
 
 
 
 
Beginning balance
5 
5 
5 
27 
Included in earnings
0 
0 
0 
9 
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
0 
0 
(31)
Settlements
0 
0 
0 
0 
Transfers to other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
5 
5 
5 
5 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
0 
2 4
Trading Account Assets |
Equity Securities
 
 
 
 
Beginning balance
 
56 
 
123 
Included in earnings
 
4 
 
12 
OCI
 
0 
 
0 
Sales
 
0 
 
0 
Settlements
 
(47)
 
(122)
Transfers to other balance sheet line items
 
0 
 
0 
Transfers into Level 3
 
0 
 
0 
Transfers out of Level 3
 
0 
 
0 
Fair value, ending balance
 
13 
 
13 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
 
0 
 
0 
Available-for-sale Securities [Member]
 
 
 
 
Beginning balance
1,126 
1,126 
1,041 
1,136 
Included in earnings
(1)5
(1)6
(4)5
(2)5
OCI
5 
(7)
15 
10 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
74 
 
164 
 
Sales
0 
0 
0 
0 
Settlements
(62)
(118)
(74)
(144)
Transfers to other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
1,142 
1,000 
1,142 
1,000 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
(1)3 5
1 5
(4)3 5
(3)4 5
Available-for-sale Securities [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
 
 
Beginning balance
57 
73 
58 
74 
Included in earnings
0 
0 
0 
1 
OCI
0 
0 
(1)
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
0 
0 
0 
Settlements
(2)
(5)
(2)
(7)
Transfers to other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
55 
68 
55 
68 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
0 
0 
Available-for-sale Securities [Member] |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
 
 
Beginning balance
216 
338 
221 
347 
Included in earnings
(1)
(1)
(4)
(3)
OCI
4 
(7)
14 
9 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
0 
0 
0 
Settlements
(11)
(19)
(23)
(42)
Transfers to other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
208 
311 
208 
311 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
(1)3
1 4
(4)3
(3)4
Available-for-sale Securities [Member] |
Asset-backed Securities [Member]
 
 
 
 
Beginning balance
17 
20 
16 
20 
Included in earnings
0 
0 
0 
0 
OCI
1 
0 
2 
1 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
0 
0 
0 
Settlements
(1)
(1)
(1)
(2)
Transfers to other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
17 
19 
17 
19 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
0 
0 
Available-for-sale Securities [Member] |
Corporate And Other Debt Securities [Member]
 
 
 
 
Beginning balance
5 
5 
5 
5 
Included in earnings
0 
0 
0 
0 
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
2 
 
2 
 
Sales
0 
0 
0 
0 
Settlements
(2)
0 
(2)
0 
Transfers to other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
5 
5 
5 
5 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
0 
0 
Available-for-sale Securities [Member] |
Equity Securities, Other [Member]
 
 
 
 
Beginning balance
831 
690 
741 
690 
Included in earnings
0 
0 
0 
0 
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
72 
 
162 
 
Sales
0 
0 
0 
0 
Settlements
(46)
(93)
(46)
(93)
Transfers to other balance sheet line items
0 
0 
0 
0 
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
857 
597 
857 
597 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
0 
0 
Loans Held-for-Sale |
Corporate and Other Loans
 
 
 
 
Beginning balance
 
 
 
5 
Included in earnings
 
 
 
(1)6
OCI
 
 
 
0 
Sales
 
 
 
0 
Settlements
 
 
 
0 
Transfers to other balance sheet line items
 
 
 
(4)
Transfers into Level 3
 
 
 
0 
Transfers out of Level 3
 
 
 
0 
Fair value, ending balance
 
0 
 
0 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
 
 
 
0 
Loans Held-for-Sale |
Residential Mortgage, Loans Held For Sale [Member]
 
 
 
 
Beginning balance
4 
17 
1 
2 
Included in earnings
0 
1 7
0 
0 
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
 
(12)
(1)
(14)
Settlements
0 
0 
0 
(1)
Transfers to other balance sheet line items
(2)
(7)
(3)
2 
Transfers into Level 3
1 
5 
4 
16 
Transfers out of Level 3
(1)
(1)
(5)
(2)
Fair value, ending balance
2 
3 
2 
3 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
0 
0 
0 
Loans Held For Investment [Member]
 
 
 
 
Beginning balance
413 
457 
433 
492 
Included in earnings
5 8
1 9
1 8
0 
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
 
Sales
0 
0 
0 
0 
Settlements
(14)
(11)
(26)
(34)
Transfers to other balance sheet line items
1 
2 
(5)
(9)
Transfers into Level 3
1 
0 
3 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
406 
449 
406 
449 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
0 
(1)4 9
1 3 8
(3)4 7
Other Assets And Liabilities, Net [Member]
 
 
 
 
Beginning balance
91 
(2)
62 
(24)
Included in earnings
258 7
48 7
438 7
84 7
OCI
0 
0 
0 
0 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
(23)
 
(23)
 
Sales
0 
0 
0 
0 
Settlements
1 
6 
22 
6 
Transfers to other balance sheet line items
(218)
(40)
(390)
(54)
Transfers into Level 3
0 
0 
0 
0 
Transfers out of Level 3
0 
0 
0 
0 
Fair value, ending balance
109 
12 
109 
12 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
$ 0 
$ 0 
$ 0 
$ 0 
Carrying Value of Those Assets Measured at Fair Value on a Non-Recurring Basis (Detail) (Fair Value, Measurements, Nonrecurring, USD $)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2012
Jun. 30, 2012
Dec. 31, 2011
Loans Held-for-Sale
 
 
 
Assets measured at fair value on a non-recurring basis
$ 17,000,000 
$ 17,000,000 
$ 212,000,000 
Loans Held For Investment [Member]
 
 
 
Assets measured at fair value on a non-recurring basis
49,000,000 
49,000,000 
72,000,000 
Other Real Estate Owned
 
 
 
Assets measured at fair value on a non-recurring basis
331,000,000 
331,000,000 
479,000,000 
Affordable Housing
 
 
 
Assets measured at fair value on a non-recurring basis
 
 
324,000,000 
Other Assets [Member]
 
 
 
Assets measured at fair value on a non-recurring basis
92,000,000 
92,000,000 
45,000,000 
Fair Value, Inputs, Level 1 [Member] |
Loans Held-for-Sale
 
 
 
Assets measured at fair value on a non-recurring basis
0 
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Loans Held For Investment [Member]
 
 
 
Assets measured at fair value on a non-recurring basis
0 
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Other Real Estate Owned
 
 
 
Assets measured at fair value on a non-recurring basis
0 
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Affordable Housing
 
 
 
Assets measured at fair value on a non-recurring basis
 
 
0 
Fair Value, Inputs, Level 1 [Member] |
Other Assets [Member]
 
 
 
Assets measured at fair value on a non-recurring basis
0 
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Loans Held-for-Sale
 
 
 
Assets measured at fair value on a non-recurring basis
17,000,000 
17,000,000 
108,000,000 
Fair Value, Inputs, Level 2 [Member] |
Loans Held For Investment [Member]
 
 
 
Assets measured at fair value on a non-recurring basis
0 
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Other Real Estate Owned
 
 
 
Assets measured at fair value on a non-recurring basis
260,000,000 
260,000,000 
372,000,000 
Fair Value, Inputs, Level 2 [Member] |
Affordable Housing
 
 
 
Assets measured at fair value on a non-recurring basis
 
 
0 
Fair Value, Inputs, Level 2 [Member] |
Other Assets [Member]
 
 
 
Assets measured at fair value on a non-recurring basis
21,000,000 
21,000,000 
24,000,000 
Fair Value, Inputs, Level 3 [Member] |
Loans Held-for-Sale
 
 
 
Assets measured at fair value on a non-recurring basis
0 
0 
104,000,000 
Fair Value, Inputs, Level 3 [Member] |
Loans Held For Investment [Member]
 
 
 
Assets measured at fair value on a non-recurring basis
49,000,000 
49,000,000 
72,000,000 
Fair Value, Inputs, Level 3 [Member] |
Other Real Estate Owned
 
 
 
Assets measured at fair value on a non-recurring basis
71,000,000 
71,000,000 
107,000,000 
Fair Value, Inputs, Level 3 [Member] |
Affordable Housing
 
 
 
Assets measured at fair value on a non-recurring basis
 
 
324,000,000 
Fair Value, Inputs, Level 3 [Member] |
Other Assets [Member]
 
 
 
Assets measured at fair value on a non-recurring basis
71,000,000 
71,000,000 
21,000,000 
Valuation Allowance |
Loans Held-for-Sale
 
 
 
Valuation Allowance
0 
0 
0 
Asset Impairment Charges
0 
0 
0 
Valuation Allowance |
Loans Held For Investment [Member]
 
 
 
Valuation Allowance
3,000,000 
3,000,000 
(7,000,000)
Asset Impairment Charges
0 
0 
0 
Valuation Allowance |
Other Real Estate Owned
 
 
 
Valuation Allowance
(136,000,000)
(136,000,000)
(127,000,000)
Asset Impairment Charges
0 
3,000,000 
(9,000,000)
Valuation Allowance |
Affordable Housing
 
 
 
Valuation Allowance
 
 
0 
Asset Impairment Charges
 
 
(10,000,000)
Valuation Allowance |
Other Assets [Member]
 
 
 
Valuation Allowance
(60,000,000)
(60,000,000)
(20,000,000)
Asset Impairment Charges
$ (6,000,000)
$ (12,000,000)
$ (17,000,000)
Carrying Amounts and Fair Values of the Company's Financial Instruments (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Financial assets
 
 
Loans Held-for-sale, Fair Value Disclosure
$ 2,940 1
$ 2,141 1
Carrying (Reported) Amount, Fair Value Disclosure
 
 
Financial assets
 
 
Cash and cash equivalents
6,739 
4,509 
Trading Account Assets, Fair Value Disclosure
6,327 
6,279 
Securities AFS
24,409 
28,117 
Loans Held-for-sale, Fair Value Disclosure
3,123 
2,353 
LHFI at fair value
122,260 
120,038 
Loans Net Fair Value Disclosure
122,260 
120,038 
Financial liabilities
 
 
Consumer and commercial deposits
126,145 
125,611 
Brokered deposits
2,208 
2,281 
Foreign deposits
50 
30 
Short-term borrowings
9,528 
11,466 
Long-term debt
13,076 
10,908 
Trading liabilities
1,782 
1,806 
Estimate of Fair Value, Fair Value Disclosure
 
 
Financial assets
 
 
Cash and cash equivalents
6,739 2
4,509 2
Trading Account Assets, Fair Value Disclosure
6,327 3
6,279 3
Securities AFS
24,409 3
28,117 3
Loans Held-for-sale, Fair Value Disclosure
3,127 4
2,355 4
LHFI at fair value
118,403 5
115,685 5
Loans Net Fair Value Disclosure
118,403 5
115,685 5
Financial liabilities
 
 
Consumer and commercial deposits
126,456 6
125,963 6
Brokered deposits
2,227 7
2,289 7
Foreign deposits
50 7
30 7
Short-term borrowings
9,528 7
11,466 7
Long-term debt
12,856 7
10,515 7
Trading liabilities
1,782 3
1,806 3
Fair Value, Inputs, Level 1 [Member] |
Estimate of Fair Value, Fair Value Disclosure
 
 
Financial assets
 
 
Cash and cash equivalents
6,739 2
 
Trading Account Assets, Fair Value Disclosure
424 3
 
Securities AFS
2,686 3
 
Loans Held-for-sale, Fair Value Disclosure
0 
 
LHFI at fair value
0 
 
Loans Net Fair Value Disclosure
0 
 
Financial liabilities
 
 
Consumer and commercial deposits
0 
 
Brokered deposits
0 
 
Foreign deposits
0 
 
Short-term borrowings
0 
 
Long-term debt
0 
 
Trading liabilities
352 3
 
Fair Value, Inputs, Level 2 [Member] |
Estimate of Fair Value, Fair Value Disclosure
 
 
Financial assets
 
 
Cash and cash equivalents
0 
 
Trading Account Assets, Fair Value Disclosure
5,854 3
 
Securities AFS
20,581 3
 
Loans Held-for-sale, Fair Value Disclosure
3,072 4
 
LHFI at fair value
4,941 5
 
Loans Net Fair Value Disclosure
4,941 5
 
Financial liabilities
 
 
Consumer and commercial deposits
126,456 6
 
Brokered deposits
2,227 7
 
Foreign deposits
50 7
 
Short-term borrowings
9,528 7
 
Long-term debt
11,116 7
 
Trading liabilities
1,081 3
 
Fair Value, Inputs, Level 3 [Member] |
Estimate of Fair Value, Fair Value Disclosure
 
 
Financial assets
 
 
Cash and cash equivalents
0 
 
Trading Account Assets, Fair Value Disclosure
49 3
 
Securities AFS
1,142 3
 
Loans Held-for-sale, Fair Value Disclosure
55 4
 
LHFI at fair value
113,462 5
 
Loans Net Fair Value Disclosure
113,462 5
 
Financial liabilities
 
 
Consumer and commercial deposits
0 
 
Brokered deposits
0 
 
Foreign deposits
0 
 
Short-term borrowings
0 
 
Long-term debt
1,740 7
 
Trading liabilities
$ 349 3
 
[5] LHFI fair values are based on a hypothetical exit price, which does not represent the estimated intrinsic value of the loan if held for investment. The assumptions used are expected to approximate those that a market participant purchasing the loans would use to value the loans, including a market risk premium and liquidity discount. Estimating the fair value of the loan portfolio when loan sales and trading markets are illiquid, or for certain loan types, nonexistent, requires significant judgment. Therefore, the estimated fair value can vary significantly depending on a market participant’s ultimate considerations and assumptions. The final value yields a market participant’s expected return on investment that is indicative of the current market conditions, but it does not take into consideration the Company’s estimated value from continuing to hold these loans or its lack of willingness to transact at these estimated values. Level 2 LHFI consist of agency mortgage loans for which the Company has obtained a guarantee from Fannie Mae in the form of a long term standby commitment. These agency mortgage loans are priced using current market pricing for similar securities adjusted for servicing value and market and credit risk. Additionally, the Company classifies widely syndicated commercial leveraged loans as level 2 in the fair value hierarchy as the loans, or similar loans, are traded in an active market and pricing is readily available from a third-party pricing service.The Company estimated fair value for the remaining LHFI based on estimated future cash flows discounted, initially, at current origination rates for loans with similar terms and credit quality, which derived an estimated value of 101% and 100% on the loan portfolio’s net carrying value as of June 30, 2012 and December 31, 2011, respectively. The value derived from origination rates likely does not represent an exit price; therefore, an incremental market risk and liquidity discount was subtracted from the initial value as of June 30, 2012 and December 31, 2011, respectively. The discounted value is a function of a market participant’s required yield in the current environment and is not a reflection of the expected cumulative losses on the loans. Loan prepayments are used to adjust future cash flows based on historical experience and prepayment model forecasts. The value of related accrued interest on loans approximates fair value; however, it is not included in the carrying amount or fair value of loans. The value of long-term customer relationships is not permitted under current U.S. GAAP to be included in the estimated fair value.
[7] Fair values for foreign deposits, certain brokered time deposits, short-term borrowings, and certain long-term debt are based on quoted market prices for similar instruments or estimated using discounted cash flow analysis and the Company’s current incremental borrowing rates for similar types of instruments. For brokered time deposits and long-term debt that the Company carries at fair value, refer to the respective valuation sections within this footnote. For Level 3 debt, the terms are unique in nature or there are otherwise no similar instruments than can be used to value the instrument without using significant unobservable assumptions. In this situation, we look at current borrowing rates along with the collateral levels that secure the debt when determining an appropriate fair value adjustment.
Carrying Amounts and Fair Values of the Company's Financial Instruments (Parenthetical) (Detail) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Estimated Fair Value of Loan Portfolio's Net Carrying Value, Percentage
101.00% 
100.00% 
Unfunded loan commitments and letters of credit
$ 43,000,000,000 
 
Allowance for unfunded loan commitments and letters of credit
$ 154,000,000 
 
Contingencies - Additional Information (Detail) (USD $)
6 Months Ended 12 Months Ended 6 Months Ended
Sep. 13, 2011
Aug. 19, 2011
Jun. 30, 2012
Lower Limit
Jun. 30, 2012
Upper Limit
May 31, 2009
Trust Preferred Securities
legalmatter
Jun. 30, 2012
Consent Order Potential Claims per Instance [Member]
Lower Limit
Jun. 30, 2012
Consent Order Potential Claims per Instance [Member]
Upper Limit
Mar. 8, 2011
Preferred Securities [Member]
Dec. 31, 2011
Potential Mortgage Servicing Settlement and Claims [Member]
Jun. 30, 2012
Potential Statutory Civil Penalty per Violation [Member]
Lower Limit
Jun. 30, 2012
Potential Statutory Civil Penalty per Violation [Member]
Upper Limit
Aggregate range of reasonably possible losses on legal matters in excess of the accrued liability
 
 
$ 0 
$ 300,000,000 
 
 
 
 
 
 
 
Contingent Receipt, Judgement Award for Damages
 
34,000,000 
 
 
 
 
 
 
 
 
 
Contingent Payments
5,000,000 
 
 
 
 
 
 
 
 
 
 
Contingent Receipt, Prejudgement Interest Award
 
6,000,000 
 
 
 
 
 
 
 
 
 
Number of putative class actions
 
 
 
 
3 
 
 
 
 
 
 
Amount sold of an asset that is now related to a loss contingency
 
 
 
 
690,000,000 
 
 
80,000,000 
 
 
 
Loss Contingency, Loss in Period
 
 
 
 
 
 
 
 
120,000,000 
 
 
contingency loss, loss in period, after tax
 
 
 
 
 
 
 
 
81,000,000 
 
 
Loss Contingency, Damages Sought, Value
 
 
 
 
 
$ 500 
$ 125,000 
 
 
$ 5,500 
$ 11,000 
Business Segment Reporting (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Average total assets
$ 177,915 
$ 170,527 
$ 177,385 
$ 171,789 
Average total liabilities
157,443 
151,018 
157,021 
150,491 
Average total equity
20,472 
19,509 
20,364 
21,298 
Net, interest income
1,274 
1,259 
2,585 
2,508 
FTE adjustment
32 
27 
63 
55 
Net interest income (FTE)
1,306 1
1,286 1
2,648 1
2,563 1
Provision for credit losses
300 2
392 2
617 2
839 2
Net interest income/(loss) after provision for credit losses
1,006 
894 
2,031 
1,724 
Noninterest income
940 
912 
1,816 
1,795 
Noninterest expense
1,546 
1,542 
3,087 
3,007 
Income/(loss) before provision/(benefit) for income taxes
400 
264 
760 
512 
Provision/(benefit) for income taxes
123 3
85 3
223 3
146 3
Net income/(loss) including income attributable to noncontrolling interest
277 
179 
537 
366 
Net income attributable to noncontrolling interest
2 
1 
12 
8 
Net income/(loss)
275 
178 
525 
358 
Consumer Banking and Private Wealth Management
 
 
 
 
Average total assets
46,337 
43,244 
46,222 
43,329 
Average total liabilities
78,107 
77,718 
77,839 
77,283 
Average total equity
0 
0 
0 
0 
Net, interest income
630 
620 
1,263 
1,239 
FTE adjustment
0 
0 
0 
0 
Net interest income (FTE)
630 1
620 1
1,263 1
1,239 1
Provision for credit losses
118 2
177 2
272 2
379 2
Net interest income/(loss) after provision for credit losses
512 
443 
991 
860 
Noninterest income
340 
372 
662 
731 
Noninterest expense
688 
736 
1,387 
1,433 
Income/(loss) before provision/(benefit) for income taxes
164 
79 
266 
158 
Provision/(benefit) for income taxes
59 3
29 3
96 3
58 3
Net income/(loss) including income attributable to noncontrolling interest
105 
50 
170 
100 
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income/(loss)
105 
50 
170 
100 
Wholesale Banking [Member]
 
 
 
 
Average total assets
64,603 
62,255 
63,979 
61,772 
Average total liabilities
53,209 
54,932 
54,234 
54,468 
Average total equity
0 
0 
0 
0 
Net, interest income
433 
399 
862 
789 
FTE adjustment
32 
26 
61 
51 
Net interest income (FTE)
465 1
425 1
923 1
840 1
Provision for credit losses
67 2
175 2
168 2
321 2
Net interest income/(loss) after provision for credit losses
398 
250 
755 
519 
Noninterest income
383 
402 
762 
791 
Noninterest expense
515 
549 
1,030 
1,086 
Income/(loss) before provision/(benefit) for income taxes
266 
103 
487 
224 
Provision/(benefit) for income taxes
78 3
18 3
137 3
39 3
Net income/(loss) including income attributable to noncontrolling interest
188 
85 
350 
185 
Net income attributable to noncontrolling interest
0 
(1)
8 
4 
Net income/(loss)
188 
86 
342 
181 
Mortgage Banking
 
 
 
 
Average total assets
35,788 
33,363 
35,512 
33,947 
Average total liabilities
4,347 
3,427 
4,088 
3,559 
Average total equity
0 
0 
0 
0 
Net, interest income
131 
112 
257 
232 
FTE adjustment
0 
0 
0 
0 
Net interest income (FTE)
131 1
112 1
257 1
232 1
Provision for credit losses
165 2
153 2
331 2
376 2
Net interest income/(loss) after provision for credit losses
(34)
(41)
(74)
(144)
Noninterest income
179 
75 
336 
156 
Noninterest expense
348 
274 
686 
526 
Income/(loss) before provision/(benefit) for income taxes
(203)
(240)
(424)
(514)
Provision/(benefit) for income taxes
(83)3
(93)3
(170)3
(199)3
Net income/(loss) including income attributable to noncontrolling interest
(120)
(147)
(254)
(315)
Net income attributable to noncontrolling interest
0 
0 
0 
0 
Net income/(loss)
(120)
(147)
(254)
(315)
Corporate Other
 
 
 
 
Average total assets
29,414 
31,281 
30,332 
31,082 
Average total liabilities
21,960 
14,927 
21,185 
15,202 
Average total equity
0 
0 
0 
0 
Net, interest income
94 
119 
220 
240 
FTE adjustment
1 
2 
2 
3 
Net interest income (FTE)
95 1
121 1
222 1
243 1
Provision for credit losses
0 2
0 2
0 2
0 2
Net interest income/(loss) after provision for credit losses
95 
121 
222 
243 
Noninterest income
41 
67 
61 
135 
Noninterest expense
(3)
(14)
(11)
(19)
Income/(loss) before provision/(benefit) for income taxes
139 
202 
294 
397 
Provision/(benefit) for income taxes
54 3
84 3
103 3
150 3
Net income/(loss) including income attributable to noncontrolling interest
85 
118 
191 
247 
Net income attributable to noncontrolling interest
3 
2 
5 
5 
Net income/(loss)
82 
116 
186 
242 
Reconciling Items
 
 
 
 
Average total assets
1,773 
384 
1,340 
1,659 
Average total liabilities
(180)
14 
(325)
(21)
Average total equity
20,472 
19,509 
20,364 
21,298 
Net, interest income
(14)
9 
(17)
8 
FTE adjustment
(1)
(1)
0 
1 
Net interest income (FTE)
(15)1
8 1
(17)1
9 1
Provision for credit losses
(50)2
(113)2
(154)2
(237)2
Net interest income/(loss) after provision for credit losses
35 
121 
137 
246 
Noninterest income
(3)
(4)
(5)
(18)
Noninterest expense
(2)
(3)
(5)
(19)
Income/(loss) before provision/(benefit) for income taxes
34 
120 
137 
247 
Provision/(benefit) for income taxes
15 3
47 3
57 3
98 3
Net income/(loss) including income attributable to noncontrolling interest
19 
73 
80 
149 
Net income attributable to noncontrolling interest
(1)
0 
(1)
(1)
Net income/(loss)
$ 20 
$ 73 
$ 81 
$ 150