Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31, | ||||||||||||||||||||
2008(1) | 2007(1) | 2006 | 2005 | 2004 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Net income (loss) before cumulative effect of changes in accounting principles | $ | (50,119 | ) | $ | (3,094 | ) | $ | 2,327 | $ | 2,172 | $ | 2,603 | ||||||||
Add: | ||||||||||||||||||||
Income tax expense (benefit) | 5,550 | (2,883 | ) | (45 | ) | 358 | 609 | |||||||||||||
Minority interests in earnings (loss) of consolidated subsidiaries | 8 | (8 | ) | 58 | 96 | 129 | ||||||||||||||
Low-income housing tax credit partnerships | 453 | 469 | 407 | 320 | 282 | |||||||||||||||
Total interest expense | 33,332 | 38,482 | 37,270 | 29,899 | 26,566 | |||||||||||||||
Interest factor in rental expenses | 8 | 7 | 6 | 6 | 6 | |||||||||||||||
Earnings (loss), as adjusted | $ | (10,768 | ) | $ | 32,973 | $ | 40,023 | $ | 32,851 | $ | 30,195 | |||||||||
Fixed charges: | ||||||||||||||||||||
Total interest expense | $ | 33,332 | $ | 38,482 | $ | 37,270 | $ | 29,899 | $ | 26,566 | ||||||||||
Interest factor in rental expenses | 8 | 7 | 6 | 6 | 6 | |||||||||||||||
Capitalized interest | — | — | — | — | 1 | |||||||||||||||
Total fixed charges | $ | 33,340 | $ | 38,489 | $ | 37,276 | $ | 29,905 | $ | 26,573 | ||||||||||
Ratio of earnings to fixed charges(2) | — | — | 1.07 | 1.10 | 1.14 | |||||||||||||||
(1) | For the ratio of earnings to fixed charges to equal 1.00, earnings (loss), as adjusted must increase by $44.1 billion and $5.5 billion for the years ended December 31, 2008 and 2007, respectively. |
(2) | Ratio of earnings to fixed charges is computed by dividing earnings, as adjusted by total fixed charges. |