Bank of America (BAC) 10-Q 2011 Q3 Quarterly report

Bank of America Corporation and Subsidiaries													Exhibit 12
Ratio of Earnings to Fixed Charges
Ratio of Earnings to Fixed Charges and Preferred Dividends
				Year Ended December 31
(Dollars in millions)	Nine Months Ended September 30, 2011			2010			2009			2008			2007			2006
Excluding Interest on Deposits
Income (loss) before income taxes	$	(2,662	)	$	(1,323	)	$	4,360		$	4,428		$	20,924		$	31,973
Equity in undistributed earnings (loss) of unconsolidated subsidiaries	(5,241		)	1,285			(1,833		)	(144		)	(95		)	(315		)
Fixed charges:
Interest expense	14,522			19,977			23,000			25,074			34,778			29,514
1/3 of net rent expense (1)	821			1,099			1,110			791			669			609
Total fixed charges	15,343			21,076			24,110			25,865			35,447			30,123
Preferred dividend requirements (2)	4,660			n/m			5,921			1,461			254			33
Fixed charges and preferred dividends	20,003			21,076			30,031			27,326			35,701			30,156
Earnings	$	7,440		$	21,038		$	26,637		$	30,149		$	56,276		$	61,781
Ratio of earnings to fixed charges (3)	0.48			1.00			1.10			1.17			1.59			2.05
Ratio of earnings to fixed charges and preferred dividends (2, 3, 4)	0.37			n/m			0.89			1.10			1.58			2.05
				Year Ended December 31
(Dollars in millions)	Nine Months Ended September 30, 2011			2010			2009			2008			2007			2006
Including Interest on Deposits
Income (loss) before income taxes	$	(2,662	)	$	(1,323	)	$	4,360		$	4,428		$	20,924		$	31,973
Equity in undistributed earnings (loss) of unconsolidated subsidiaries	(5,241		)	1,285			(1,833		)	(144		)	(95		)	(315		)
Fixed charges:
Interest expense	16,908			23,974			30,807			40,324			52,871			43,994
1/3 of net rent expense (1)	821			1,099			1,110			791			669			609
Total fixed charges	17,729			25,073			31,917			41,115			53,540			44,603
Preferred dividend requirements (2)	4,660			n/m			5,921			1,461			254			33
Fixed charges and preferred dividends	22,389			25,073			37,838			42,576			53,794			44,636
Earnings	$	9,826		$	25,035		$	34,444		$	45,399		$	74,369		$	76,261
Ratio of earnings to fixed charges (3)	0.55			1.00			1.08			1.10			1.39			1.71
Ratio of earnings to fixed charges and preferred dividends (2, 3, 4)	0.44			n/m			0.90			1.07			1.38			1.71

⁽¹⁾  Represents an appropriate interest factor.

⁽²⁾  Reflects the impact of $12.4 billion of goodwill impairment charges during 2010 which resulted in a negative preferred dividend requirement.

⁽³⁾  The earnings for the nine months ended September 30, 2011 were inadequate to cover the ratio of earnings to fixed charges and the ratio of earnings to fixed charges and preferred dividends. The earnings deficiency reflects the impact of $10.9 billion of mortgage banking losses. The coverage deficiency for fixed charges was $7.9 billion and the coverage deficiency for fixed charges and preferred dividends was $12.6 billion.

⁽⁴⁾  The earnings for 2009 were inadequate to cover fixed charges and preferred stock dividends. The earnings deficiency is a result of the accelerated accretion of $4.0 billion recorded as a result of the repurchase of TARP Preferred Stock. The coverage deficiency for fixed charges and preferred dividends was $3.4 billion.

n/m = not meaningful