Quarterly report pursuant to Section 13 or 15(d)

Fair Value Option

v2.4.0.6
Fair Value Option
3 Months Ended
Mar. 31, 2012
Fair Value Option [Abstract]  
Fair Value Option
NOTE 16 – Fair Value Option

The Corporation elected to account for certain financial instruments under the fair value option. For additional information on the primary financial instruments for which the fair value option elections have been made, see Note 23 – Fair Value Option to the Consolidated Financial Statements of the Corporation's 2011 Annual Report on Form 10-K.

The table below provides information about the fair value carrying amount and the contractual principal outstanding of assets and liabilities accounted for under the fair value option at March 31, 2012 and December 31, 2011.

Fair Value Option Elections
 
March 31, 2012
 
December 31, 2011
(Dollars in millions)
Fair Value
Carrying
Amount
 
Contractual
Principal
Outstanding
 
Fair Value
Carrying
Amount
Less Unpaid
Principal
 
Fair Value
Carrying
Amount
 
Contractual
Principal
Outstanding
 
Fair Value
Carrying
Amount
Less Unpaid
Principal
Loans reported as trading account assets
$
1,195

 
$
2,265

 
$
(1,070
)
 
$
1,151

 
$
2,371

 
$
(1,220
)
Consumer and commercial loans
9,192

 
10,885

 
(1,693
)
 
8,804

 
10,823

 
(2,019
)
Loans held-for-sale
7,558

 
9,327

 
(1,769
)
 
7,630

 
9,673

 
(2,043
)
Securities financing agreements
149,437

 
148,868

 
569

 
121,688

 
121,092

 
596

Other assets
230

 
n/a

 
n/a

 
251

 
n/a

 
n/a

Long-term deposits
3,191

 
2,967

 
224

 
3,297

 
3,035

 
262

Asset-backed secured financings
663

 
1,246

 
(583
)
 
650

 
1,271

 
(621
)
Unfunded loan commitments
844

 
n/a

 
n/a

 
1,249

 
n/a

 
n/a

Other short-term borrowings
5,732

 
5,732

 

 
5,908

 
5,909

 
(1
)
Long-term debt (1)
51,037

 
54,986

 
(3,949
)
 
46,239

 
55,854

 
(9,615
)
(1) 
The majority of the difference between the fair value carrying amount and contractual principal outstanding at March 31, 2012 and December 31, 2011 relates to the impact of the Corporation's credit spreads, as well as the fair value of the underlying derivative, where applicable.
n/a = not applicable

The table below provides information about where changes in the fair value of assets and liabilities accounted for under the fair value option are included in the Consolidated Statement of Income for the three months ended March 31, 2012 and 2011.

Gains (Losses) Relating to Assets and Liabilities Accounted for Under the Fair Value Option
 
Three Months Ended March 31, 2012
(Dollars in millions)
Trading
Account
Profits
(Losses)
 
Mortgage
Banking
Income
(Loss)
 
Other
Income
(Loss)
 
Total
Loans reported as trading account assets
$
78

 
$

 
$

 
$
78

Consumer and commercial loans
(1
)
 

 
302

 
301

Loans held-for-sale
56

 
431

 
104

 
591

Securities financing agreements

 

 
(104
)
 
(104
)
Other assets

 

 
18

 
18

Long-term deposits

 

 
21

 
21

Asset-backed secured financings

 
(38
)
 

 
(38
)
Unfunded loan commitments

 

 
404

 
404

Other short-term borrowings
7

 

 

 
7

Long-term debt
(791
)
 

 
(3,314
)
 
(4,105
)
Total
$
(651
)
 
$
393

 
$
(2,569
)
 
$
(2,827
)
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2011
Loans reported as trading account assets
$
69

 
$

 
$

 
$
69

Commercial loans
(11
)
 

 
106

 
95

Loans held-for-sale

 
872

 
221

 
1,093

Securities financing agreements

 

 
(111
)
 
(111
)
Other assets

 

 
29

 
29

Long-term deposits

 

 
5

 
5

Asset-backed secured financings

 
(46
)
 

 
(46
)
Unfunded loan commitments

 

 
132

 
132

Other short-term borrowings
56

 

 

 
56

Long-term debt
65

 

 
(586
)
 
(521
)
Total
$
179

 
$
826

 
$
(204
)
 
$
801