Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended | ||||||||||||||||||||||||||||
June 30, | Year Ended December 31, | |||||||||||||||||||||||||||
2009(1) | 2008(1) | 2008(1) | 2007(1) | 2006 | 2005 | 2004 | ||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||
Net income (loss) before income tax expense (benefit) and cumulative effect of changes in accounting principles | $ | (10,205 | ) | $ | (2,420 | ) | $ | (44,561 | ) | $ | (5,985 | ) | $ | 2,340 | $ | 2,626 | $ | 3,341 | ||||||||||
Add: | ||||||||||||||||||||||||||||
Low-income housing tax credit partnerships | 273 | 225 | 453 | 469 | 407 | 320 | 282 | |||||||||||||||||||||
Total interest expense | 12,268 | 17,117 | 33,332 | 38,482 | 37,270 | 29,899 | 26,566 | |||||||||||||||||||||
Interest factor in rental expenses | 3 | 5 | 8 | 7 | 6 | 6 | 6 | |||||||||||||||||||||
Earnings (loss), as adjusted | $ | 2,339 | $ | 14,927 | $ | (10,768 | ) | $ | 32,973 | $ | 40,023 | $ | 32,851 | $ | 30,195 | |||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Total interest expense | $ | 12,268 | $ | 17,117 | $ | 33,332 | $ | 38,482 | $ | 37,270 | $ | 29,899 | $ | 26,566 | ||||||||||||||
Interest factor in rental expenses | 3 | 5 | 8 | 7 | 6 | 6 | 6 | |||||||||||||||||||||
Capitalized interest | — | — | — | — | — | — | 1 | |||||||||||||||||||||
Total fixed charges | $ | 12,271 | $ | 17,122 | $ | 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 $9.9 billion and $2.2 billion for the six months ended June 30, 2009 and June 30, 2008, respectively. 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 (loss), as adjusted by total fixed charges. |
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
PREFERRED STOCK DIVIDENDS
Six Months Ended | ||||||||||||||||||||||||||||
June 30, | Year Ended December 31, | |||||||||||||||||||||||||||
2009(1) | 2008(1) | 2008(1) | 2007(1) | 2006 | 2005 | 2004 | ||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||
Net income (loss) before income tax expense (benefit) and cumulative effect of changes in accounting principles | $ | (10,205 | ) | $ | (2,420 | ) | $ | (44,561 | ) | $ | (5,985 | ) | $ | 2,340 | $ | 2,626 | $ | 3,341 | ||||||||||
Add: | ||||||||||||||||||||||||||||
Low-income housing tax credit partnerships | 273 | 225 | 453 | 469 | 407 | 320 | 282 | |||||||||||||||||||||
Total interest expense | 12,268 | 17,117 | 33,332 | 38,482 | 37,270 | 29,899 | 26,566 | |||||||||||||||||||||
Interest factor in rental expenses | 3 | 5 | 8 | 7 | 6 | 6 | 6 | |||||||||||||||||||||
Earnings (loss), as adjusted | $ | 2,339 | $ | 14,927 | $ | (10,768 | ) | $ | 32,973 | $ | 40,023 | $ | 32,851 | $ | 30,195 | |||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Total interest expense | $ | 12,268 | $ | 17,117 | $ | 33,332 | $ | 38,482 | $ | 37,270 | $ | 29,899 | $ | 26,566 | ||||||||||||||
Interest factor in rental expenses | 3 | 5 | 8 | 7 | 6 | 6 | 6 | |||||||||||||||||||||
Capitalized interest | — | — | — | — | — | — | 1 | |||||||||||||||||||||
Senior preferred stock and preferred stock dividends(2) | 1,519 | 503 | 675 | 398 | 270 | 260 | 260 | |||||||||||||||||||||
Total fixed charges including preferred stock dividends | $ | 13,790 | $ | 17,625 | $ | 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 $11.5 billion and $2.7 billion for the six months ended June 30, 2009 and June 30, 2008, respectively. 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 (loss), as adjusted by total fixed charges including preferred stock dividends. |