Exhibit 12.2
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
PREFERRED STOCK DIVIDENDS
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 | |||||||||||||||
Senior preferred stock and preferred stock dividends(2) | 675 | 398 | 270 | 260 | 260 | |||||||||||||||
Total fixed charges including preferred stock dividends | $ | 34,015 | $ | 38,887 | $ | 37,546 | $ | 30,165 | $ | 26,833 | ||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends(3) | — | — | 1.07 | 1.09 | 1.13 | |||||||||||||||
(1) | For the ratio of earnings to combined fixed charges and preferred stock dividends to equal 1.00, earnings (loss), as adjusted must increase by $44.8 billion and $5.9 billion for the years ended December 31, 2008 and 2007, respectively. |
(2) | Senior preferred stock and preferred stock dividends represent pre-tax earnings required to cover any senior preferred stock and preferred stock dividend requirements computed using our effective tax rate, whenever there is an income tax provision, for the relevant periods. |
(3) | Ratio of earnings to combined fixed charges and preferred stock dividends is computed by dividing earnings, as adjusted by total fixed charges including preferred stock dividends. |