Quarterly report pursuant to Section 13 or 15(d)

Merger and Restructuring Activity

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Merger and Restructuring Activity
 6 Months Ended
Jun. 30, 2011
Merger and Restructuring Activity [Abstract]  
Merger and Restructuring Activity
NOTE 2 – Merger and Restructuring Activity
     Merger and restructuring charges are recorded in the Consolidated Statement of Income and include incremental costs to integrate the operations of the Corporation and its most recent acquisitions. These charges represent costs associated with these one-time activities and do not represent ongoing costs of the fully integrated combined organization. The table below presents the components of merger and restructuring charges.
                                 
    Three Months Ended   Six Months Ended
    June 30   June 30
(Dollars in millions)
  2011     2010     2011     2010  
 
Severance and employee-related charges
  $ 65     $ 123     $ 133     $ 274  
Systems integrations and related charges
    79       329       185       639  
Other
    15       56       43       116  
 
Total merger and restructuring charges
  $ 159     $ 508     $ 361     $ 1,029  
 
     For the three and six months ended June 30, 2011, all merger-related charges related to the Merrill Lynch & Co., Inc. (Merrill Lynch) acquisition. For the three and six months ended June 30, 2010, $424 million and $832 million of merger-related charges related to the Merrill Lynch acquisition and $84 million and $197 million related to earlier acquisitions.
     The table below presents the changes in restructuring reserves for the three and six months ended June 30, 2011 and 2010. Restructuring reserves are established by a charge to merger and restructuring charges, and the restructuring charges are included in the total merger and restructuring charges in the table above. Substantially all of the amounts in the table below relate to the Merrill Lynch acquisition.
                 
    Restructuring Reserves
(Dollars in millions)
  2011     2010  
 
Balance, January 1
  $ 336     $ 403  
Exit costs and restructuring charges:
               
Merrill Lynch
    65       106  
Other
    -       30  
Cash payments and other
    (237 )     (294 )
 
Balance, March 31
  $ 164     $ 245  
Exit costs and restructuring charges:
               
Merrill Lynch
    62       93  
Other
    -       23  
Cash payments and other
    (57 )     (101 )
 
Balance, June 30
  $ 169     $ 260