| Year Ended December 31 | ||||||||||||||||||||
| (Dollars in millions) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Excluding Interest on Deposits |
||||||||||||||||||||
Income before income taxes |
$ | (1,323 | ) | $ | 4,360 | $ | 4,428 | $ | 20,924 | $ | 31,973 | |||||||||
Equity in undistributed earnings of
unconsolidated subsidiaries |
1,285 | (1,833 | ) | (144 | ) | (95 | ) | (315 | ) | |||||||||||
Fixed charges: |
||||||||||||||||||||
Interest expense |
19,977 | 23,000 | 25,074 | 34,778 | 29,514 | |||||||||||||||
1/3 of net rent expense
(1) |
1,099 | 1,110 | 791 | 669 | 609 | |||||||||||||||
Total fixed charges |
21,076 | 24,110 | 25,865 | 35,447 | 30,123 | |||||||||||||||
Preferred dividend requirements
(2) |
n/m | 5,921 | 1,461 | 254 | 33 | |||||||||||||||
Fixed charges and preferred
dividends |
21,076 | 30,031 | 27,326 | 35,701 | 30,156 | |||||||||||||||
Earnings |
$ | 21,038 | $ | 26,637 | $ | 30,149 | $ | 56,276 | $ | 61,781 | ||||||||||
Ratio of earnings to fixed charges |
1.00 | 1.10 | 1.17 | 1.59 | 2.05 | |||||||||||||||
Ratio of earnings to fixed charges and
preferred dividends (2,
3) |
n/m | — | 1.10 | 1.58 | 2.05 | |||||||||||||||
| Year Ended December 31 | ||||||||||||||||||||
| (Dollars in millions) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Including Interest on Deposits |
||||||||||||||||||||
Income before income taxes |
$ | (1,323 | ) | $ | 4,360 | $ | 4,428 | $ | 20,924 | $ | 31,973 | |||||||||
Equity in undistributed earnings of
unconsolidated subsidiaries |
1,285 | (1,833 | ) | (144 | ) | (95 | ) | (315 | ) | |||||||||||
Fixed charges: |
||||||||||||||||||||
Interest expense |
23,974 | 30,807 | 40,324 | 52,871 | 43,994 | |||||||||||||||
1/3 of net rent expense
(1) |
1,099 | 1,110 | 791 | 669 | 609 | |||||||||||||||
Total fixed charges |
25,073 | 31,917 | 41,115 | 53,540 | 44,603 | |||||||||||||||
Preferred dividend requirements
(2) |
n/m | 5,921 | 1,461 | 254 | 33 | |||||||||||||||
Fixed charges and preferred
dividends |
25,073 | 37,838 | 42,576 | 53,794 | 44,636 | |||||||||||||||
Earnings |
$ | 25,035 | $ | 34,444 | $ | 45,399 | $ | 74,369 | $ | 76,261 | ||||||||||
Ratio of earnings to fixed charges |
1.00 | 1.08 | 1.10 | 1.39 | 1.71 | |||||||||||||||
Ratio of earnings to fixed charges and
preferred dividends (2,
3) |
n/m | — | 1.07 | 1.38 | 1.71 | |||||||||||||||
| (1) | Represents an appropriate interest factor. | |
| (2) | Reflects the impact of the $12.4 billion goodwill impairment charge during 2010 which resulted in a negative preferred dividend requirement. | |
| (3) | The earnings for 2009 were inadequate to cover fixed charges and preferred stock dividends. The earnings deficiency is a result of the accelerated accretion of $4.0 billion recorded as a result of the repurchase of TARP Preferred Stock. The coverage deficiency for fixed charges and preferred dividends was $3.4 billion. | |
| n/m = not meaningful | ||