KeyCorp (KEY) 10-Q 10 Aug 09 2009 Q2 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
	6 Months Ended Jun. 30, 2009	Aug. 07, 2009	Jun. 30, 2008
Document and Company Information [Abstract]
Entity Registrant Name	KeyCorp
Entity Central Index Key	0000091576
Document Type	10-Q
Document Period End Date	2009-06-30
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float (actual number)			5332568826
Entity Common Stock, Shares Outstanding (actual number)		878,544,699

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008	Jun. 30, 2008
ASSETS
Cash and due from banks	$723	$1,257	$1,912
Short-term investments	3,487	5,221	826
Trading account assets	771	1,280	1,483
Securities available for sale	12,174	8,437	8,312
Held-to-maturity securities (fair value: $25, $25 and $25)	25	25	25
Other investments	1,450	1,526	1,559
Loans, net of unearned income of $1,995, $2,345 and $2,532	70,803	76,504	75,855
Less: Allowance for loan losses	2,499	1,803	1,421
Net loans	68,304	74,701	74,434
Loans held for sale	909	1,027	1,833
Premises and equipment	858	840	748
Operating lease assets	842	990	1,089
Goodwill	917	1,138	1,598
Other intangible assets	106	128	146
Corporate-owned life insurance	3,016	2,970	2,917
Derivative assets	1,182	1,896	1,693
Accrued income and other assets	3,028	3,095	2,969
Total assets	97,792	104,531	101,544
Deposits in domestic offices:
NOW and money market deposit accounts	23,939	24,191	27,278
Savings deposits	1,795	1,712	1,809
Certificates of deposit ($100,000 or more)	13,486	11,991	8,699
Other time deposits	15,055	14,763	12,541
Total interest-bearing	54,275	52,657	50,327
Noninterest-bearing	12,977	11,485	10,561
Deposits in foreign office - interest-bearing	632	1,118	3,508
Total deposits	67,884	65,260	64,396
Federal funds purchased and securities sold under repurchase agreements	1,530	1,557	2,088
Bank notes and other short-term borrowings	1,710	8,477	5,985
Derivative liabilities	530	1,038	637
Accrued expense and other liabilities	1,616	2,523	4,447
Long-term debt	13,462	14,995	15,106
Total liabilities	86,732	93,850	92,659
Preferred stock, $1 par value, authorized 25,000,000 shares:
Common shares, $1 par value; authorized 1,400,000,000 shares; issued 865,070,221, 584,061,120 and 576,995,163 shares	865	584	577
Common stock warrant	87	87	0
Capital surplus	3,292	2,553	2,544
Retained earnings	5,878	6,727	7,461
Treasury stock, at cost (67,824,373, 89,058,634, and 91,333,157 shares)	(1,984)	(2,608)	(2,675)
Accumulated other comprehensive income	0	65	149
Key shareholders' equity	10,851	10,480	8,706
Noncontrolling interests	209	201	179
Total equity	11,060	10,681	8,885
Total liabilities and equity	97,792	104,531	101,544
Series A Preferred Stock
Preferred stock, $1 par value, authorized 25,000,000 shares:
Preferred stock	291	658	650
Series B Preferred Stock
Preferred stock, $1 par value, authorized 25,000,000 shares:
Preferred stock	$2,422	$2,414	$0

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data	Jun. 30, 2009	Dec. 31, 2008	Jun. 30, 2008
Held-to-maturity securities, Fair Value	$25	$25	$25
Unearned Income on Loans	$1,995	$2,345	$2,532
Preferred Stock, Par Value	1	1	1
Preferred Stock, Shares Authorized	25,000,000	25,000,000	25,000,000
Common Shares, Par Value	1	1	1
Common Shares, Shares Authorized	1,400,000,000	1,400,000,000	1,400,000,000
Common Shares, Shares Issued	865,070,221	584,061,120	576,995,163
Treasury Stock, Shares	67,824,373	89,058,634	91,333,157
Series A Preferred Stock
Preferred Stock, Liquidation Preference	100	100	100
Preferred Stock, Shares Authorized	7,475,000	7,475,000	7,475,000
Preferred Stock, Shares Issued, Total	2,904,839	6,575,000	6,500,000
Preferred Stock, Dividend Rate	7.750%	7.750%	7.750%
Series B Preferred Stock
Preferred Stock, Liquidation Preference	100,000	100,000	0
Preferred Stock, Shares Authorized	25,000	25,000	0
Preferred Stock, Shares Issued, Total	25,000	25,000	0

Consolidated Statements of Inco

Consolidated Statements of Income (USD $)
In Millions, except Share data in Thousands	3 Months Ended Jun. 30, 2009		3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
INTEREST INCOME
Loans	$857		$717	$1,740	$1,840
Loans held for sale	9		20	21	107
Securities available for sale	99		111	207	220
Held-to-maturity securities	0		0	1	1
Trading account assets	13		10	26	23
Short-term investments	3		8	6	17
Other investments	13		14	25	26
Total interest income	994		880	2,026	2,234
INTEREST EXPENSE
Deposits	296		347	596	775
Federal funds purchased and securities sold under repurchase agreements	1		15	2	43
Bank notes and other short-term borrowings	4		27	10	66
Long-term debt	101		133	212	279
Total interest expense	402		522	820	1,163
NET INTEREST INCOME	592		358	1,206	1,071
Provision for loan losses	850		647	1,725	834
Net interest (expense) income after provision for loan losses	(258)		(289)	(519)	237
NONINTEREST INCOME
Trust and investment services income	119		130	229	253
Service charges on deposit accounts	83		93	165	181
Operating lease income	59		68	120	137
Letter of credit and loan fees	45		51	83	88
Corporate-owned life insurance income	25		28	52	56
Electronic banking fees	27		27	51	51
Insurance income	16		20	34	35
Investment banking and capital markets income	17		80	35	88
Net securities gains (losses)	125	[1]	(1)	111	2
Net losses from principal investing	(6)		(14)	(78)	(3)
Net (losses) gains from loan securitizations and sales	(3)		33	5	(68)
Gain related to exchange of common shares for capital securities	95		0	95	0
Gain from sale/redemption of Visa Inc. shares	0		0	105	165
Other income	113		32	193	86
Total noninterest income	715		547	1,200	1,071
NONINTEREST EXPENSE
Personnel	377		402	738	809
Net occupancy	63		62	129	128
Operating lease expense	49		55	99	113
Computer processing	48		43	95	90
Professional fees	47		32	81	55
FDIC assessment	70		2	100	4
Equipment	25		23	47	47
Marketing	17		21	31	35
Intangible assets impairment	0		0	196	0
Other expense	174		137	296	225
Total noninterest expense	870		777	1,812	1,506
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(413)		(519)	(1,131)	(198)
Income taxes	(180)		610	(422)	713
LOSS FROM CONTINUING OPERATIONS	(233)		(1,129)	(709)	(911)
Income (loss) from discontinued operations, net of taxes of ($4), $1, ($6) and $2, respectively	10		2	(12)	3
NET LOSS	(223)		(1,127)	(721)	(908)
Less: Net income (loss) attributable to noncontrolling interests	3		(1)	(7)	0
NET LOSS ATTRIBUTABLE TO KEY	(226)		(1,126)	(714)	(908)
Loss from continuing operations attributable to Key common shareholders	(400)		(1,128)	(914)	(911)
Net loss attributable to Key common shareholders	(390)		(1,126)	(926)	(908)
Per common share:
Loss from continuing operations attributable to Key common shareholders	-0.69		-2.71	-1.71	-2.23
Income (loss) from discontinued operations, net of taxes	0.02		$0	-0.02	0.01
Net loss attributable to Key common shareholders	-0.68		-2.7	-1.73	-2.23
Per common share - assuming dilution:
Loss from continuing operations attributable to Key common shareholders	-0.69		-2.71	-1.71	-2.23
Income (loss) from discontinued operations, net of taxes	0.02		$0	-0.02	0.01
Net loss attributable to Key common shareholders	-0.68		-2.7	-1.73	-2.23
Cash dividends declared per common share	0.01		0.375	0.0725	0.375
Weighted-average common shares outstanding (000)	576,883		416,629	535,080	407,875
Weighted-average common shares and potential common shares outstanding (000)	576,883		416,629	535,080	407,875
Impairment losses on debt securities, total	7
Impairment losses on debt securities recognized in equity as a component of accumulated other comprehensive income	$1
[1]For the three months ended June 30, 2009, impairment losses totaled $7 million, of which $1 million was recognized in equity as a component of accumulated other comprehensive income on the balance sheet (see Note 5).

1_Consolidated Statements of In

Consolidated Statements of Income (Parenthetical) (USD $)
In Millions	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Net tax effect on income (loss) from discontinued operations	($4)	$1	($6)	$2

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity (USD $)
In Millions, except Share data in Thousands	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009		6 Months Ended Jun. 30, 2008		Dec. 31, 2008	Dec. 31, 2007
Beginning Balance			$10,681		$7,979
Net loss	(226)	(1,126)	(714)		(908)
Net loss	3	(1)	(7)		0
Net loss	(223)	(1,127)	(721)		(908)
Ending Balance	11,060	8,885	11,060		8,885		10,681	7,979
Common Stock Warrant
Beginning Balance			87		0
Ending Balance							87	0
Noncontrolling Interest
Beginning Balance			201		233
Net loss			(7)		0
Net distribution to noncontrolling interests					(54)
Net contribution from noncontrolling interests			15
Ending Balance	209	179	209		179		201	233
Capital Surplus
Beginning Balance			2,553		1,623
Deferred compensation			15		3
Common shares issued			781		893
Preferred stock issued					(20)
Common shares exchanged for Series A Preferred Stock			(167)
Common shares exchanged for capital securities			196
Common shares reissued - Acquisition of U.S.B. Holding Co., Inc.					58
Common shares reissued - Stock options and other employee benefit plans			(86)		(13)
Ending Balance	3,292	2,544	3,292		2,544		2,553	1,623
Treasury Stock at Cost
Beginning Balance			(2,608)		(3,021)
Common shares exchanged for Series A Preferred Stock			508
Common shares reissued - Acquisition of U.S.B. Holding Co., Inc.					290
Common shares reissued - Stock options and other employee benefit plans			116		56
Ending Balance	(1,984)	(2,675)	(1,984)		(2,675)		(2,608)	(3,021)
Retained Earnings
Beginning Balance			6,727		8,522
Net loss			(714)		(908)
Deferred compensation					(3)
Cash dividends declared on common shares ($.0725 per share) and ($.375 per share) respectively			(37)		(150)
Common shares exchanged for Series A Preferred Stock			(5)
Ending Balance	5,878	7,461	5,878		7,461		6,727	8,522
Retained Earnings | Series A Preferred Stock
Cash dividends declared on preferred stock			(22)
Retained Earnings | Series B Preferred Stock
Cash dividends declared on preferred stock			(63)
Amortization of discount on Series B Preferred Stock			(8)
Accumulated Other Comprehensive Income (Loss)
Beginning Balance			65		130
Net unrealized (losses) gains on securities available for sale, net of income taxes of ($23) and $10 respectively			(38)	[1]	15	[1]
Net unrealized (losses) gains on derivative financial instruments, net of income taxes of ($37) and $1 respectively			(61)		1
Foreign currency translation adjustments			21		(1)
Net pension and postretirement benefit costs, net of income taxes			13		4
Ending Balance	0	149	0		149		65	130
Comprehensive Income (Loss)
Net loss			(721)		(908)
Net unrealized (losses) gains on securities available for sale, net of income taxes of ($23) and $10 respectively			(38)	[1]	15	[1]
Net unrealized (losses) gains on derivative financial instruments, net of income taxes of ($37) and $1 respectively			(61)		1
Net distribution to noncontrolling interests					(54)
Net contribution from noncontrolling interests			15
Foreign currency translation adjustments			21		(1)
Net pension and postretirement benefit costs, net of income taxes			13		4
Total comprehensive (loss) income			(771)		(943)
Common Shares
Beginning Balance			584		492
Common shares issued			206		85
Common shares exchanged for Series A Preferred Stock			29
Common shares exchanged for capital securities			46
Ending Balance	865	577	865		577		584	492
Beginning Balance, Shares			495,002		388,793
Common shares issued, Shares (000)			205,439		85,106
Common shares exchanged for Series A Preferred Stock, Shares (000)			46,602
Common shares exchanged for capital securities, Shares (000)			46,338
Common shares reissued - Acquisition of U.S.B. Holding Co., Inc., Shares (000)					9,895
Common shares reissued - Stock options and other employee benefit plans, Shares (000)			3,865		1,868
Ending Balance, Shares	797,246	485,662	797,246		485,662		495,002	388,793
Preferred Stock
Beginning Balance			3,072		0
Preferred stock issued					650
Common shares exchanged for Series A Preferred Stock			(367)
Ending Balance	2,713	650	2,713		650		3,072	0
Beginning Balance, Shares			6,600		0
Preferred stock issued, Shares (000)					6,500
Common shares exchanged for Series A Preferred Stock, Shares (000)			(3,670)
Ending Balance, Shares	2,930	6,500	2,930		6,500		6,600	0
Preferred Stock | Series B Preferred Stock
Amortization of discount on Series B Preferred Stock			$8
[1]Net of reclassification adjustments.

2_Consolidated Statements of Ch

Consolidated Statements of Changes in Equity (Parenthetical) (USD $)
In Millions, except Per Share data	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Cash dividends declared on common shares, per share	0.0725	0.375
Retained Earnings
Cash dividends declared on common shares, per share	0.0725	0.375
Series A Preferred Stock | Retained Earnings
Cash dividends declared on Preferred Stock, per share/annum	3.875
Series B Preferred Stock | Retained Earnings
Cash dividends declared on Preferred Stock, per share/annum	0.05
Accumulated Other Comprehensive Income (Loss)
Income taxes effect on net unrealized (losses) gains on securities available for sale	($23)	$10
Income taxes effect on net unrealized (losses) gains on derivative financial instruments	(37)	1
Comprehensive Income (Loss)
Income taxes effect on net unrealized (losses) gains on securities available for sale	(23)	10
Income taxes effect on net unrealized (losses) gains on derivative financial instruments	($37)	$1

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
OPERATING ACTIVITIES
Net loss	($721)	($908)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Provision for loan losses	1,725	834
Intangible assets impairment	196	0
Depreciation and amortization expense	200	217
Net securities gains	(111)	(2)
Gain from sale/redemption of Visa Inc. shares	(105)	(165)
Gain related to exchange of common shares for capital securities	(95)	0
Gains on leased equipment	(62)	(15)
Gain from sale of Key's claim associated with the Lehman Brothers' bankruptcy	(32)	0
Net (gains) losses from loan securitizations and sales	(5)	68
Net losses from principal investing	78	3
Provision for losses on LIHTC guaranteed funds	16	6
Provision (credit) for losses on lending-related commitments	11	(29)
Liability to Visa	0	(64)
Deferred income taxes	(413)	(151)
Net increase in loans held for sale	73	48
Net decrease in trading account assets	509	(427)
Other operating activities, net	(676)	384
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	588	(201)
INVESTING ACTIVITIES
Proceeds from sale/redemption of Visa Inc. shares	105	165
Cash used in acquisitions, net of cash acquired	0	(157)
Net decrease (increase) in short-term investments	1,734	(244)
Purchases of securities available for sale	(8,031)	(793)
Proceeds from sales of securities available for sale	2,957	836
Proceeds from prepayments and maturities of securities available for sale	1,404	760
Purchases of held-to-maturity securities	(6)	(2)
Proceeds from prepayments and maturities of held-to-maturity securities	6	4
Purchases of other investments	(82)	(306)
Proceeds from sales of other investments	14	111
Proceeds from prepayments and maturities of other investments	41	71
Net decrease (increase) in loans, excluding acquisitions, sales and transfers	4,902	(1,560)
Purchases of loans	0	(18)
Proceeds from loan securitizations and sales	80	221
Purchases of premises and equipment	(73)	(87)
Proceeds from sales of premises and equipment	2	1
Proceeds from sales of other real estate owned	12	13
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	3,065	(985)
FINANCING ACTIVITIES
Net increase (decrease) in deposits	2,622	(509)
Net decrease in short-term borrowings	(6,794)	(2,505)
Net proceeds from issuance of long-term debt	456	3,900
Payments on long-term debt	(1,331)	(910)
Net proceeds from issuance of common shares and preferred stock	987	1,601
Net proceeds from reissuance of common shares	0	6
Tax benefits under recognized compensation cost for stock-based awards	(5)	(1)
Cash dividends paid	(122)	(298)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	(4,187)	1,284
NET (DECREASE) INCREASE IN CASH AND DUE FROM BANKS	(534)	98
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD	1,257	1,814
CASH AND DUE FROM BANKS AT END OF PERIOD	723	1,912
Additional disclosures relative to cash flows:
Interest paid	855	1,144
Income taxes (refunded) paid	(109)	322
Noncash items:
Assets acquired	0	2,810
Liabilities assumed	0	2,648
Loans transferred to portfolio from held for sale	92	3,284
Loans transferred to held for sale from portfolio	47	429
Loans transferred to other real estate owned	$91	$23

Basis of Presentation

Basis of Presentation
	6 Months Ended Jun. 30, 2009 USD / shares
Basis of Presentation [Abstract]
Basis of Presentation	1. Basis of Presentation The unaudited condensed consolidated interim financial statements include the accounts of KeyCorp and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. As used in these Notes: KeyCorp refers solely to the parent holding company; KeyBank refers to KeyCorps subsidiary bank, KeyBank National Association; and Key refers to the consolidated entity consisting of KeyCorp and its subsidiaries. The consolidated financial statements include any voting rights entity in which Key has a controlling financial interest. In accordance with Financial Accounting Standards Board (FASB) Revised Interpretation No.46, Consolidation of Variable Interest Entities, a variable interest entity (VIE) is consolidated if Key has a variable interest in the entity and is exposed to the majority of its expected losses and/or residual returns (i.e., Key is considered to be the primary beneficiary). Variable interests can include equity interests, subordinated debt, derivative contracts, leases, service agreements, guarantees, standby letters of credit, loan commitments, and other contracts, agreements and financial instruments. See Note 8 (Variable Interest Entities), which begins on page 26, for information on Keys involvement with VIEs. Management uses the equity method to account for unconsolidated investments in voting rights entities or VIEs in which Key has significant influence over operating and financing decisions (usually defined as a voting or economic interest of 20% to 50%, but not controlling). Unconsolidated investments in voting rights entities or VIEs in which Key has a voting or economic interest of less than 20% generally are carried at cost. Investments held by KeyCorps registered broker-dealer and investment company subsidiaries (primarily principal investments) are carried at fair value. Qualifying special purpose entities (SPEs), including securitization trusts, established by Key under the provisions of Statement of Financial Accounting Standards (SFAS) No.140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, are not consolidated. In June2009, the FASB issued SFAS No.166, Accounting for Transfers of Financial Assets, an amendment of FASB Statement No.140. This guidance will change the way entities account for securitizations and SPEs by eliminating the concept of a qualifying SPE, changing the requirements for derecognition of financial assets and requiring additional disclosures. Information on SFAS No.140 is included in Note 7 (Loan Securitizations and Mortgage Servicing Assets), which begins on page 23. For additional information regarding SFAS No.166, which is effective January1, 2010, for Key, see the section entitled Accounting Pronouncements Pending Adoption on page 11. Management believes that the unaudited condensed consolidated interim financial statements reflect all adjustments of a normal recurring nature and disclosures that are necessary for a fair presentation of the results for the interim periods presented. Some previously reported amounts have been recla

Earnings Per Common Share

Earnings Per Common Share
	6 Months Ended Jun. 30, 2009 USD / shares
Earnings Per Common Share [Abstract]
Earnings Per Common Share	2. Earnings Per Common Share Keys basic and diluted earnings per common share are calculated as follows: Three months ended June 30, Six months ended June 30, dollars in millions, except per share amounts 2009 2008 2009 2008 EARNINGS Loss from continuing operations $ (233 ) $ (1,129 ) $ (709 ) $ (911 ) Less: Net income (loss)attributable to noncontrolling interests 3 (1 ) (7 ) Loss from continuing operations attributable to Key (236 ) (1,128 ) (702 ) (911 ) Less: Dividends on SeriesA Preferred Stock 15 27 Noncash deemed dividend common shares exchanged for SeriesA Preferred Stock 114 114 Cash dividends on SeriesB Preferred Stock 31 63 Amortization of discount on SeriesB Preferred Stock 4 8 Loss from continuing operations attributable to Key common shareholders (400 ) (1,128 ) (914 ) (911 ) Income (loss)from discontinued operations, net of taxes (a) 10 2 (12 ) 3 Net loss attributable to Key common shareholders $ (390 ) $ (1,126 ) $ (926 ) $ (908 ) WEIGHTED-AVERAGE COMMON SHARES Weighted-average common shares outstanding (000) 576,883 416,629 535,080 407,875 Effect of dilutive convertible preferred stock, common stock options and other stock awards (000) Weighted-average common shares and potential common shares outstanding (000) 576,883 416,629 535,080 407,875 EARNINGS PER COMMON SHARE Loss from continuing operations attributable to Key common shareholders $ (.69 ) $ (2.71 ) $ (1.71 ) $ (2.23 ) Income (loss)from discontinued operations, net of taxes (a) .02 (.02 ) .01 Net loss attributable to Key common shareholders (.68 ) (2.70 ) (1.73 ) (2.23 ) Loss from continuing operations attributable to Key common shareholders assuming dilution $ (.69 ) $ (2.71 ) $ (1.71 ) $ (2.23 ) Income (loss)from discontinued operations, net of taxes (a) .02 (.02 ) .01 Net loss attributable to Key common shareholders assuming dilution (.68 ) (2.70 ) (1.73 ) (2.23 ) (a) In April2009, management made the decision to curtail the operations of Austin Capital Management, Ltd., an investment subsidiary that specializes in managing hedge fund investments for its institutional customer base. As a result of this decision, Key has accounted for this business as a discontinued operation. The loss from discontinued operations for the first quarter of 2009 was attributable to a $23million after tax, or $.05 per common share, charge for intangible assets impairment.

Acquisition and Divestiture

Acquisition and Divestiture
	6 Months Ended Jun. 30, 2009 USD / shares
Acquisition and Divestiture [Abstract]
Acquisition and Divestiture	3. Acquisition and Divestiture Acquisition and divestiture activity entered into by Key during 2008 and the first six months of 2009 is summarized below. Acquisition U.S.B. Holding Co., Inc. On January1, 2008, Key acquired U.S.B. Holding Co., Inc., the holding company for Union State Bank, a 31-branch state-chartered commercial bank headquartered in Orangeburg, New York. U.S.B. Holding Co. had assets of $2.8billion and deposits of $1.8billion at the date of acquisition. Under the terms of the agreement, Key exchanged 9,895,000 KeyCorp common shares, with a value of $348million, and $194million in cash for all of the outstanding shares of U.S.B. Holding Co. In connection with the acquisition, Key recorded goodwill of approximately $350million in the Community Banking reporting unit. The acquisition expanded Keys presence in markets both within and contiguous to its current operations in the Hudson Valley. Divestiture Austin Capital Management, Ltd. In April2009, Key made the decision to curtail the operations of Austin Capital Management, Ltd., an investment subsidiary of KeyCorp that specializes in managing hedge fund investments for its institutional customer base. As a result of this decision, Key has accounted for this business as a discontinued operation. The results of this discontinued business are presented on one line as income (loss)from discontinued operations, net of taxes in the Consolidated Statements of Income on page 4. The components of income (loss)from discontinued operations, net of taxes are as follows: Three months ended June 30, Six months ended June 30, in millions 2009 2008 2009 2008 Income (loss), net of taxes of ($4), $1, ($6) and $2, respectively $ 10 $ 2 $ (35 ) $ 3 Intangible assets impairment, net of taxes of $4 (23 ) Income (loss)from discontinued operations, net of taxes $ 10 $ 2 $ (12 ) $ 3 The discontinued assets and liabilities of Austin Capital Management, Ltd. included in the Consolidated Balance Sheets on page 3 are as follows: June 30, December 31, June 30, in millions 2009 2008 2008 Cash and due from banks $ 17 $ 12 $ 14 Goodwill 25 17 Other intangible assets 2 12 13 Accrued income and other assets 7 7 8 Total assets $ 26 $ 56 $ 52 Accrued expense and other liabilities $ 3 $ 18 $ 9 Total liabilities $ 3 $ 18 $ 9

Line of Business Results

Line of Business Results
	6 Months Ended Jun. 30, 2009 USD / shares
Line of Business Results [Abstract]
Line of Business Results	4. Line of Business Results Community Banking Regional Banking provides individuals with branch-based deposit and investment products, personal finance services, and loans, including residential mortgages, home equity and various types of installment loans. This line of business also provides small businesses with deposit, investment and credit products, and business advisory services. Regional Banking also offers financial, estate and retirement planning, and asset management services to assist high-net-worth clients with their banking, trust, portfolio management, insurance, charitable giving and related needs. Commercial Banking provides midsize businesses with products and services that include commercial lending, cash management, equipment leasing, investment and employee benefit programs, succession planning, access to capital markets, derivatives and foreign exchange. National Banking Real Estate Capital and Corporate Banking Services consists of two business units, Real Estate Capital and Corporate Banking Services. Real Estate Capital is a national business that provides construction and interim lending, permanent debt placements and servicing, equity and investment banking, and other commercial banking products and services to developers, brokers and owner-investors. This unit deals primarily with nonowner-occupied properties (i.e., generally properties in which at least 50% of the debt service is provided by rental income from nonaffiliated third parties). Real Estate Capital emphasizes providing clients with finance solutions through access to the capital markets. Corporate Banking Services provides cash management, interest rate derivatives, and foreign exchange products and services to clients served by both the Community Banking and National Banking groups. Through its Public Sector and Financial Institutions businesses, Corporate Banking Services also provides a full array of commercial banking products and services to government and not-for-profit entities, and to community banks. Equipment Finance meets the equipment leasing needs of companies worldwide and provides equipment manufacturers, distributors and resellers with financing options for their clients. Lease financing receivables and related revenues are assigned to other lines of business (primarily Institutional and Capital Markets, and Commercial Banking) if those businesses are principally responsible for maintaining the relationship with the client. Institutional and Capital Markets, through its KeyBanc Capital Markets unit, provides commercial lending, treasury management, investment banking, derivatives, foreign exchange, equity and debt underwriting and trading, and syndicated finance products and services to large corporations and middle-market companies. Through its Victory Capital Management unit, Institutional and Capital Markets also manages or offers advice regarding investment portfolios for a national client base, including corporations, labor unions, not-for-profit organizations, governments and individuals. These portfolios may be managed in separate accounts, common funds or the Victory family of mutual funds.

Securities

Securities
	6 Months Ended Jun. 30, 2009 USD / shares
Securities [Abstract]
Securities	5. Securities Securities available for sale. These are securities that Key intends to hold for an indefinite period of time but that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. Securities available for sale are reported at fair value. Unrealized gains and losses (net of income taxes) deemed temporary are recorded in equity as a component of AOCI on the balance sheet. Unrealized losses on equity securities deemed to be other-than-temporary are included in net securities gains (losses) on the income statement, as are actual gains and losses resulting from the sales of securities using the specific identification method. When Key retains an interest in loans it securitizes, it bears risk that the loans will be prepaid (which would reduce expected interest income) or not be paid at all. Key accounts for these retained interests as debt securities and classifies them as available for sale. Unrealized losses on debt securities deemed to be other-than-temporary are included in net securities gains (loss) or AOCI in accordance with Staff Position No.FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments, as further described on page 20 of this note. Other securities held in the available-for-sale portfolio are primarily marketable equity securities that are traded on a public exchange such as the NYSE or NASDAQ. Held-to-maturity securities. These are debt securities that Key has the intent and ability to hold until maturity. Debt securities are carried at cost, adjusted for amortization of premiums and accretion of discounts using the interest method. This method produces a constant rate of return on the adjusted carrying amount. Other securities held in the held-to-maturity portfolio consist of foreign bonds, trust preferred securities and preferred equity securities. The amortized cost, unrealized gains and losses, and approximate fair value of Keys securities available for sale and held-to-maturity securities are presented in the following tables. Gross unrealized gains and losses represent the difference between the amortized cost and the fair value of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these gains and losses may change in the future as market conditions change. June 30, 2009 Gross Gross Amortized Unrealized Unrealized Fair in millions Cost Gains Losses Value SECURITIES AVAILABLE FOR SALE U.S. Treasury, agencies and corporations $ 1,710 $ 1,710 States and political subdivisions 85 $ 1 86 Collateralized mortgage obligations 8,462 99 $ 38 8,523 Other mortgage-backed securities 1,525 74 1,599 Retained interests in securitizations 167 19 186 Other securities 66 6 2 70 Total securities available for sale $ 12,015 $ 199 $ 40 $ 12,174 HELD-TO-MATURITY SECURITIES States an

Loans and Loans Held for Sale

Loans and Loans Held for Sale
	6 Months Ended Jun. 30, 2009 USD / shares
Loans and Loans Held for Sale [Abstract]
Loans and Loans Held for Sale	6. Loans and Loans Held for Sale Keys loans by category are summarized as follows: June 30, December 31, June 30, in millions 2009 2008 2008 Commercial, financial and agricultural $ 23,542 $ 27,260 $ 25,929 Commercial real estate: Commercial mortgage 11,761 (a) 10,819 10,737 Construction 6,119 (a) 7,717 7,849 Total commercial real estate loans 17,880 18,536 18,586 Commercial lease financing 8,263 9,039 9,610 Total commercial loans 49,685 54,835 54,125 Real estate residential mortgage 1,753 1,908 1,928 Home equity: Community Banking 10,256 10,124 9,851 National Banking 934 1,051 1,153 Total home equity loans 11,190 11,175 11,004 Consumer other Community Banking 1,199 1,233 1,261 Consumer other National Banking: Marine 3,095 3,401 3,634 Education 3,636 3,669 3,584 Other 245 283 319 Total consumer other National Banking 6,976 7,353 7,537 Total consumer loans 21,118 21,669 21,730 Total loans $ 70,803 $ 76,504 $ 75,855 (a) In late March2009, Key transferred $1.5billion of loans from the construction portfolio to the commercial mortgage portfolio in accordance with regulatory guidelines pertaining to the classification of loans that have reached a completed status. Key uses interest rate swaps to manage interest rate risk; these swaps modify the repricing characteristics of certain loans. For more information about such swaps, see Note 15 (Derivatives and Hedging Activities), which begins on page 37. Keys loans held for sale by category are summarized as follows: June 30, December 31, June 30, in millions 2009 2008 2008 Commercial, financial and agricultural $ 51 $ 102 $ 212 Real estate commercial mortgage 288 273 994 Real estate construction 146 164 398 Commercial lease financing 30 7 42 Real estate residential mortgage 245 77 79 Education 148 401 103 Automobile 1 3 5 Total loans held for sale $ 909 $ 1,027 $ 1,833 Changes in the allowance for loan losses are summarized as follows: Three months ended June 30, Six months ended June 30, in millions 2009 2008 2009 2008 Balance at beginning of period $ 2,186 $ 1,298 $ 1,803 $ 1,200 Charge-offs (578 ) (554 ) (1,098 ) (702 ) Recoveries 39 30 67 57 Net loans charged off (539 ) (524 ) (1,031 ) (645 ) Provision for loan losses 850 647 1,725 834 Allowance related to loans acquired, net 32 Foreign currency translation adjustment

Loan Securitizations and Mortga

Loan Securitizations and Mortgage Servicing Assets
	6 Months Ended Jun. 30, 2009 USD / shares
Loan Securitizations and Mortgage Servicing Assets [Abstract]
Loan Securitizations and Mortgage Servicing Assets	7. Loan Securitizations and Mortgage Servicing Assets Retained Interests in Loan Securitizations A securitization involves the sale of a pool of loan receivables to investors through either a public or private issuance (generally by a qualifying SPE) of asset-backed securities. Generally, the assets are transferred to a trust that sells interests in the form of certificates of ownership. In previous years, Key sold education loans in securitizations; however, Key has not securitized any education loans since 2006 due to unfavorable market conditions. When Key sells loans in securitizations, Key records a gain or loss when the net sale proceeds and residual interests, if any, differ from the loans allocated carrying amount. Gains or losses resulting from securitizations are recorded as one component of net (losses)gains from loan securitizations and sales on the income statement. A servicing asset is recorded if Key purchases or retains the right to service securitized loans, and receives servicing fees that exceed the going market rate. Key generally retains an interest in securitized loans in the form of an interest-only strip, residual asset, servicing asset or security. Keys mortgage servicing assets are discussed under the heading Mortgage Servicing Assets on page 25. All other retained interests are accounted for as debt securities and classified as securities available for sale. In accordance with Revised Interpretation No.46, Consolidation of Variable Interest Entities, qualifying SPEs, including securitization trusts, established by Key under SFAS No.140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, are exempt from consolidation. In June2009, the FASB issued SFAS No.166, Accounting for Transfers of Financial Assets, an amendment of FASB Statement No.140. This guidance will change the way entities account for securitizations and SPEs. Information related to Revised Interpretation No.46 is included in Note 1 (Basis of Presentation), which begins on page 7. For additional information regarding SFAS No.166, which is effective January1, 2010, for Key, see Note 1 under the heading Accounting Pronouncements Pending Adoption on page 11. Management uses certain assumptions and estimates to determine the fair value to be allocated to retained interests at the date of transfer and at subsequent measurement dates. Primary economic assumptions used to measure the fair value of Keys retained interests in education loans and the sensitivity of the current fair value of residual cash flows to immediate adverse changes in those assumptions at June30, 2009, are as follows: dollars in millions Fair value of retained interests $ 187 Weighted-average life (years) .8 - 6.6 PREPAYMENT SPEED ASSUMPTIONS (ANNUAL RATE) 4.00% - 26.00 % Impact on fair value of 1% CPR adverse change $ (5 ) Impact on fair value of 10% CPR adverse change (54 ) EXPECTED CREDIT LOSSES (STATIC RATE) 2.00% - 80.00 % Impact on fair value of 5% adverse change $ (5 ) Impact on fair value of 10% adverse change

Variable Interest Entities

Variable Interest Entities
	6 Months Ended Jun. 30, 2009 USD / shares
Variable Interest Entities [Abstract]
Variable Interest Entities	8. Variable Interest Entities A VIE is a partnership, limited liability company, trust or other legal entity that meets any one of the following criteria: The entity does not have sufficient equity to conduct its activities without additional subordinated financial support from another party. The entitys investors lack the authority to make decisions about the activities of the entity through voting rights or similar rights, and do not have the obligation to absorb the entitys expected losses or the right to receive the entitys expected residual returns. The voting rights of some investors are not proportional to their economic interest in the entity, and substantially all of the entitys activities involve or are conducted on behalf of investors with disproportionately few voting rights. Keys VIEs, including those consolidated and those in which Key holds a significant interest, are summarized below. Key defines a significant interest in a VIE as a subordinated interest that exposes Key to a significant portion, but not the majority, of the VIEs expected losses or residual returns. Consolidated VIEs Unconsolidated VIEs June 30, 2009 Total Total Total Maximum in millions Assets Assets Liabilities Exposure to Loss Low-income housing tax credit (LIHTC) funds $ 217 $ 202 LIHTC investments N/A 919 $ 411 N/A = Not Applicable Keys involvement with VIEs is described below. Consolidated VIEs LIHTC guaranteed funds. Key Affordable Housing Corporation (KAHC) formed limited partnerships (funds) that invested in LIHTC operating partnerships. Interests in these funds were offered in syndication to qualified investors who paid a fee to KAHC for a guaranteed return. Key also earned syndication fees from these funds and continues to earn asset management fees. The funds assets primarily are investments in LIHTC operating partnerships, which totaled $207million at June30, 2009. These investments are recorded in accrued income and other assets on the balance sheet and serve as collateral for the funds limited obligations. Key has not formed new funds or added LIHTC partnerships since October2003. However, Key continues to act as asset manager and provides occasional funding for existing funds under a guarantee obligation. As a result of this guarantee obligation, management has determined that Key is the primary beneficiary of these funds. Key recorded expenses of $16million related to this guarantee obligation during the first six months of 2009. Additional information on return guarantee agreements with LIHTC investors is presented in Note 14 (Contingent Liabilities and Guarantees) under the heading Guarantees on page 34. The partnership agreement for each guaranteed fund requires the fund to be dissolved by a certain date. In accordance with SFAS No.150, Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity, the third-party interests associated with these funds are considered mandatorily redeemable instruments and are recorded in accru

Nonperforming Assets and Past D

Nonperforming Assets and Past Due Loans
	6 Months Ended Jun. 30, 2009 USD / shares
Nonperforming Assets and Past Due Loans [Abstract]
Nonperforming Assets and Past Due Loans	9. Nonperforming Assets and Past Due Loans Impaired loans totaled $1.9billion at June30, 2009, compared to $985million at December31, 2008, and $628million at June30, 2008. Impaired loans had an average balance of $1.7billion for the second quarter of 2009 and $733million for the second quarter of 2008. Keys nonperforming assets and past due loans were as follows: June 30, December 31, June 30, in millions 2009 2008 2008 Impaired loans $ 1,915 $ 985 $ 628 Other nonaccrual loans 273 240 186 Total nonperforming loans 2,188 1,225 814 Nonperforming loans held for sale 145 90 342 Other real estate owned (OREO) 182 110 26 Allowance for OREO losses (11 ) (3 ) (2 ) OREO, net of allowance 171 107 24 Other nonperforming assets (a) 47 42 30 Total nonperforming assets $ 2,551 $ 1,464 $ 1,210 Impaired loans with a specifically allocated allowance $ 1,731 $ 876 $ 564 Specifically allocated allowance for impaired loans 393 178 166 Accruing loans past due 90days or more $ 581 $ 433 $ 367 Accruing loans past due 30 through 89days 1,169 1,314 852 (a) Primarily investments held by the Private Equity unit within Keys Real Estate Capital and Corporate Banking Services line of business. At June30, 2009, Key did not have any significant commitments to lend additional funds to borrowers with loans on nonperforming status. Management evaluates the collectability of Keys loans as described in Note 1 (Summary of Significant Accounting Policies) under the heading Allowance for Loan Losses on page 79 of Keys 2008 Annual Report to Shareholders.

Capital Securities Issued by Un

Capital Securities Issued by Unconsolidated Subsidiaries
	6 Months Ended Jun. 30, 2009 USD / shares
Capital Securities Issued by Unconsolidated Subsidiaries [Abstract]
Capital Securities Issued by Unconsolidated Subsidiaries	10. Capital Securities Issued by Unconsolidated Subsidiaries KeyCorp owns the outstanding common stock of business trusts that issued corporation-obligated mandatorily redeemable preferred capital securities. The trusts used the proceeds from the issuance of their capital securities and common stock to buy debentures issued by KeyCorp. These debentures are the trusts only assets; the interest payments from the debentures finance the distributions paid on the capital securities. The capital securities provide an attractive source of funds: they constitute Tier 1 capital for regulatory reporting purposes, but have the same tax advantages as debt for federal income tax purposes. During the first quarter of 2005, the Board of Governors of the Federal Reserve (Federal Reserve) adopted a rule that allows bank holding companies to continue to treat capital securities as Tier 1 capital, but imposed stricter quantitative limits that would have taken effect March31, 2009. On March17, 2009, in light of continued stress in the financial markets, the Federal Reserve Board delayed the effective date of these new limits until March31, 2011. Management believes the new rule will not have any material effect on Keys financial condition. KeyCorp unconditionally guarantees the following payments or distributions on behalf of the trusts: required distributions on the capital securities; the redemption price when a capital security is redeemed; and the amounts due if a trust is liquidated or terminated. On June3, 2009, KeyCorp commenced an offer to exchange KeyCorps common shares, $1 par value, for any and all institutional capital securities issued by the KeyCorp Capital I, KeyCorp Capital II, KeyCorp Capital III and KeyCorp Capital VII trusts. The institutional exchange offer, which expired on June30, 2009, is a component of KeyCorps comprehensive capital plan, which was submitted to the Federal Reserve Bank of Cleveland on June1, 2009, following the May7, 2009, announcement of the results of the forward-looking capital assessment, or stress test, conducted pursuant to the Supervisory Capital Assessment Program (SCAP) initiated by the United States Department of the Treasury (U.S. Treasury) and the federal banking regulators. As previously disclosed, KeyCorps regulators determined that KeyCorp needed to increase its Tier 1 common equity by $1.8billion in order to satisfy the requirements of the SCAP. In an effort to further enhance its Tier 1 common equity, on July8, 2009, KeyCorp commenced a separate offer to exchange KeyCorps common shares, $1 par value, for any and all retail capital securities issued by the KeyCorp Capital V, KeyCorp Capital VI, KeyCorp Capital VIII, KeyCorp Capital IX and KeyCorp Capital X trusts. On July22, 2009, KeyCorp amended its retail exchange offer, which expired on August4, 2009, to reduce the maximum aggregate liquidation preference amount that would be accepted from $1.740billion to $500million. For further information related to the status of these exchange offers and other capital-generating activities, see Note 11 (Shareholders Equity), which begins on page 31. Additional inform

Shareholders Equity

Shareholders Equity
	6 Months Ended Jun. 30, 2009 USD / shares
Shareholders Equity [Abstract]
Shareholders' Equity	11. Shareholders Equity Preferred Stock Private Exchanges During April and May2009, KeyCorp entered into agreements with certain institutional shareholders who had contacted KeyCorp to exchange KeyCorps 7.750% Noncumulative Perpetual Convertible Preferred Stock, SeriesA (SeriesA Preferred Stock) held by the institutional shareholders for KeyCorps common shares, $1 par value. In the aggregate, KeyCorp exchanged 17,369,926 common shares, or 3.25% of the issued and outstanding KeyCorp common shares at May18, 2009, the date on which the last of the exchange transactions settled, for 1,539,700 shares of the SeriesA Preferred Stock. The exchanges were conducted in reliance upon the exemption set forth in Section3(a)(9) of the Securities Act of 1933, as amended, for securities exchanged by the issuer and an existing security holder where no commission or other remuneration is paid or given directly or indirectly by the issuer for soliciting such exchange. KeyCorp utilized treasury shares to complete the transactions. Supervisory Capital Assessment Program and KeyCorps Capital-Generating Activities To implement the U.S. Treasury Capital Assistance Program (CAP), the Federal Reserve, the Federal Reserve Banks, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency commenced a review of the capital of the nineteen largest U.S. banking institutions. This review, referred to as the SCAP, involved a forward-looking capital assessment, or stress test, of all domestic bank holding companies with risk-weighted assets of more than $100billion, including KeyCorp, at December31, 2008. As announced on May7, 2009, under the SCAP assessment, KeyCorps regulators determined that it needed to generate $1.8billion in additional Tier 1 common equity or contingent common equity (i.e., mandatorily convertible preferred shares). Information regarding the CAP and KeyCorps final SCAP assessment is included in the Capital section under the heading Financial Stability Plan on page 93. Pursuant to the requirements of the SCAP assessment, KeyCorp submitted a comprehensive capital plan to the Federal Reserve Bank of Cleveland on June1, 2009, describing KeyCorps action plan for raising the required amount of additional Tier 1 common equity from nongovernmental sources. In conjunction with its action plan, during the second quarter of 2009, KeyCorp completed various transactions to generate the additional capital, as discussed below. Common stock offering. On May11, 2009, KeyCorp launched a public at-the-market offering of up to $750million in aggregate gross proceeds of its common shares, $1 par value. KeyCorp subsequently increased the aggregate gross sales price of the common shares to be issued to $1.0 billion on June2, 2009, and on the same date, announced that it had successfully issued all $1.0 billion in additional common shares. In conjunction with the common stock offering, KeyCorp issued 205,438,975 common shares at an average price of $4.87 per share. SeriesA Preferred Stock public exchange offer. On June3, 2009, KeyCorp launched an offer to exchange KeyCorps common shares, $1 par value, for any a

Employee Benefits

Employee Benefits
	6 Months Ended Jun. 30, 2009 USD / shares
Employee Benefits [Abstract]
Employee Benefits	12. Employee Benefits Pension Plans The components of net pension cost for all funded and unfunded plans are as follows: Three months ended June 30, Six months ended June 30, in millions 2009 2008 2009 2008 Service cost of benefits earned $ 13 $ 13 $ 25 $ 26 Interest cost on projected benefit obligation 14 16 29 32 Expected return on plan assets (16 ) (24 ) (32 ) (47 ) Amortization of prior service cost 1 1 Amortization of losses 11 3 21 6 Net pension cost $ 22 $ 9 $ 43 $ 18 Other Postretirement Benefit Plans Key sponsors a contributory postretirement healthcare plan that covers substantially all active and retired employees hired before 2001 who meet certain eligibility criteria. Retirees contributions are adjusted annually to reflect certain cost-sharing provisions and benefit limitations. Key also sponsors life insurance plans covering certain grandfathered employees. These plans are principally noncontributory. Separate Voluntary Employee Beneficiary Association trusts are used to fund the healthcare plan and one of the life insurance plans. The components of net postretirement benefit cost for all funded and unfunded plans are as follows: Three months ended June 30, Six months ended June 30, in millions 2009 2008 2009 2008 Service cost of benefits earned $1 $1 Interest cost on accumulated postretirement benefit obligation $1 1 $2 2 Expected return on plan assets (1 ) (1 ) (2 ) Amortization of unrecognized: Prior service benefit (1 ) (1 ) (1 ) (1 ) Cumulative net gain (1 ) (1 ) Net postretirement benefit income $(1 ) $(1 )

Income Taxes

Income Taxes
	6 Months Ended Jun. 30, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	13. Income Taxes Lease Financing Transactions During the second quarter of 2009, Key and the IRS resolved all outstanding federal income tax issues for tax years 1997-2003, including all outstanding lease in, lease out (LILO) and sale in, sale out (SILO) tax issues for all open tax years through the execution of closing agreements in the first and second quarter. Key and the IRS are currently completing the final tax calculations for the tax years 1997-2003 and the IRS is continuing its audits of Keys 2004-2006 tax years. Key has deposited $2.0billion with the IRS to cover the anticipated amount of taxes and associated interest cost due to the IRS for all tax years affected by the LILO/SILO tax settlement. During 2009, Key will amend its state tax returns to reflect the impact of the settlement on prior years state tax liabilities. While the settlement with the IRS provides a waiver of federal tax penalties, management anticipates that certain statutory penalties under state tax laws will be imposed on Key. Although Key intends to vigorously defend its position against the imposition of any such penalties, Key accrued an additional $1million of potential state tax penalties during the second quarter of 2009, and has a total of $32million accrued for potential penalties in accordance with current accounting guidance. Pursuant to FASB Staff Position No.13-2, Accounting for a Change or Projected Change in the Timing of Cash Flows Relating to Income Taxes Generated by a Leveraged Lease Transaction, management updated its assessment of the timing of the tax payments associated with the LILO/SILO settlement during both the second and first quarters of 2009. As a result, Key recognized a $4 million ($2million after tax) increase to earnings during the second quarter and a $5million ($3 million after tax) increase during the first quarter. Unrecognized Tax Benefits As permitted under FASB Interpretation No.48, Accounting for Uncertainty in Income Taxes, it is Keys policy to recognize interest and penalties related to unrecognized tax benefits in income tax expense.

Contingent Liabilities and Guar

Contingent Liabilities and Guarantees
	6 Months Ended Jun. 30, 2009 USD / shares
Contingent Liabilities and Guarantees [Abstract]
Contingent Liabilities and Guarantees	14. Contingent Liabilities and Guarantees Legal Proceedings Tax disputes. The information pertaining to lease financing transactions presented in Note 13 (Income Taxes) is incorporated herein by reference. Taylor litigation. On August11, 2008, a purported class action case was filed against KeyCorp, its directors and certain employees (collectively, the Key parties), captioned Taylor v. KeyCorp et al., in the United States District Court for the Northern District of Ohio. On September16, 2008, a second and related case was filed in the same district court, captioned Wildes v. KeyCorp et al. The plaintiffs in these cases seek to represent a class of all participants in Keys 401(k) Savings Plan and allege that the Key parties breached fiduciary duties owed to them under the Employee Retirement Income Security Act (ERISA). On January7, 2009, the Court consolidated the Taylor and Wildes lawsuits into a single action. Plaintiffs have since filed their consolidated complaint, which continues to name certain employees as defendants but no longer names any outside directors. Key strongly disagrees with the allegations contained in the complaints and the consolidated complaint, and intends to vigorously defend against them. Madoff-related claims. In December2008, Austin Capital Management, Ltd. (Austin), an investment subsidiary that specializes in managing hedge fund investments for its institutional customer base, determined that its funds had suffered investment losses of up to approximately $186 million resulting from the crimes perpetrated by Bernard L. Madoff and entities that he controls. The investment losses borne by Austins clients stem from investments that Austin made in certain Madoff-advised hedge funds. Several lawsuits, including putative class actions and direct actions, and one arbitration proceeding were filed against Austin seeking to recover losses incurred as a result of Madoffs crimes. The lawsuits and arbitration proceeding allege various claims, including negligence, fraud, breach of fiduciary duties and violations of federal securities laws and the ERISA. In the event Key were to incur any liability for this matter, Key believes such liability would be covered under the terms and conditions of its insurance policy, subject to a $25million self-insurance deductible and usual policy exceptions. In April2009, management made the decision to curtail Austins operations and expects that the related charges will not be material. Information regarding the Austin discontinued operations is included in Note 3 (Acquisition and Divestiture), on page 12. Other litigation. In the ordinary course of business, Key is subject to other legal actions that involve claims for substantial monetary relief. Based on information presently known to management, management does not believe there is any legal action to which KeyCorp or any of its subsidiaries is a party, or involving any of their properties that, individually or in the aggregate, would reasonably be expected to have a material adverse effect on Keys financial condition. Guarantees Key is a guarantor in various agreements with third parties. The follow

Derivatives and Hedging Activit

Derivatives and Hedging Activities
	6 Months Ended Jun. 30, 2009 USD / shares
Derivatives and Hedging Activities [Abstract]
Derivatives and Hedging Activities	15. Derivatives and Hedging Activities Key, mainly through its subsidiary bank, KeyBank, is party to various derivative instruments that are used for interest rate risk management, credit risk management and trading purposes. Derivative instruments are contracts between two or more parties that have a notional amount and underlying variable, require no net investment and allow for the net settlement of positions. The notional amount serves as the basis for the payment provision of the contract and takes the form of units, such as shares or dollars. The underlying variable represents a specified interest rate, index or other component. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the market value of the derivative contract. The primary derivatives that Key uses are interest rate swaps, caps, floors and futures, foreign exchange contracts, energy derivatives, credit derivatives and equity derivatives. Generally, these instruments help Key manage exposure to interest rate risk, mitigate the credit risk inherent in the loan portfolio, and meet client financing and hedging needs. Interest rate risk represents the possibility that economic value or net interest income will be adversely affected by fluctuations in interest rates. Credit risk is defined as the risk of loss arising from an obligors inability or failure to meet contractual payment or performance terms. Derivative assets and liabilities are recorded at fair value on the balance sheet, after taking into account the effects of master netting agreements. These master netting agreements allow Key to settle all derivative contracts held with a single counterparty on a net basis, and to offset net derivative positions with related cash collateral, where applicable. As a result, Key could have derivative contracts with negative fair values included in derivative assets on the balance sheet and contracts with positive fair values included in derivative liabilities. At June30, 2009, after taking into account the effects of bilateral collateral and master netting agreements, Key had $250million of derivative assets and $107million of derivative liabilities that relate to contracts entered into for hedging purposes. As of the same date, after taking into account the effects of such agreements, and a reserve for potential future losses, Key had derivative assets of $932million and derivative liabilities of $423million that were not designated as hedging instruments. Interest Rate Risk Management Fluctuations in net interest income and the economic value of equity may result from changes in interest rates, and differences in the repricing and maturity characteristics of interest-earning assets and interest-bearing liabilities. To minimize the volatility of net interest income and the economic value of equity, Key manages exposure to interest rate risk in accordance with guidelines established by the Asset/Liability Management Committee. The primary derivative instruments used to manage interest rate risk are interest rate swaps, which modify the interest rate charact

Fair Value Measurements

Fair Value Measurements
	6 Months Ended Jun. 30, 2009 USD / shares
Fair Value Measurements [Abstract]
Fair Value Measurements	16. Fair Value Measurements Fair Value Determination As defined in SFAS No.157, Fair Value Measurements, fair value is the price to sell an asset or transfer a liability in an orderly transaction between market participants in Keys principal market. Key has established and documented its process for determining the fair values of its assets and liabilities, where applicable. Fair value is based on quoted market prices, when available, for identical or similar assets or liabilities. In the absence of quoted market prices, management determines the fair value of Keys assets and liabilities using valuation models or third-party pricing services. Both of these approaches rely on market-based parameters when available, such as interest rate yield curves, option volatilities and credit spreads, or unobservable inputs. Unobservable inputs may be based on managements judgment, assumptions and estimates related to credit quality, liquidity, interest rates and other relevant inputs. Valuation adjustments, such as those pertaining to counterparty and Keys own credit quality and liquidity, may be necessary to ensure that assets and liabilities are recorded at fair value. Credit valuation adjustments are made when market pricing is not indicative of the counterpartys credit quality. Most classes of derivative contracts are valued using internally developed models based on market-standard derivative pricing conventions, which rely primarily on observable market inputs, such as interest rate yield curves and volatilities. Market convention implies a credit rating of AA equivalent in the pricing of derivative contracts, which assumes all counterparties have the same creditworthiness. In determining the fair value of derivatives, management considers the impact of master netting and cash collateral exchange agreements and, when appropriate, establishes a default reserve to reflect the credit quality of the counterparty. Liquidity valuation adjustments are made when management is unable to observe recent market transactions for identical or similar instruments. Management adjusts the fair value to reflect the uncertainty in the pricing and trading of the instrument. Liquidity valuation adjustments are made based on the following factors: the amount of time since the last relevant valuation; whether there is an actual trade or relevant external quote available at the measurement date; and volatility associated with the primary pricing components. Key ensures that fair value measurements are accurate and appropriate through its various controls, including: an independent review and approval of valuation models; a detailed review of profit and loss conducted on a regular basis; and a validation of valuation model components against benchmark data and similar products, where possible. Management reviews any changes to valuation methodologies to ensure they are appropriate and justified, and refines valuation methodologies as more market-based data becomes available. Fair Value Hierarchy SFAS No.157 establishes a three-level valuation hierarchy for determining fair value that is bas