Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
Nine Months | ||||||||||||||||||||||||||||
Ended September 30, | Year Ended December 31, | |||||||||||||||||||||||||||
2008(1) | 2007 | 2007(1) | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||
Net income (loss) before cumulative effect of changes in accounting principles | $ | (26,267 | ) | $ | (642 | ) | $ | (3,094 | ) | $ | 2,327 | $ | 2,172 | $ | 2,603 | $ | 4,809 | |||||||||||
Add: | ||||||||||||||||||||||||||||
Income tax expense (benefit) | 6,517 | (1,257 | ) | (2,883 | ) | (45 | ) | 358 | 609 | 2,198 | ||||||||||||||||||
Minority interests in earnings of consolidated subsidiaries | 8 | 22 | (8 | ) | 58 | 96 | 129 | 157 | ||||||||||||||||||||
Low-income housing tax credit partnerships | 346 | 354 | 469 | 407 | 320 | 282 | 199 | |||||||||||||||||||||
Total interest expense | 25,380 | 29,099 | 38,482 | 37,270 | 29,899 | 26,566 | 26,509 | |||||||||||||||||||||
Interest factor in rental expenses | 6 | 5 | 7 | 6 | 6 | 6 | 5 | |||||||||||||||||||||
Earnings, as adjusted | $ | 5,990 | $ | 27,581 | $ | 32,973 | $ | 40,023 | $ | 32,851 | $ | 30,195 | $ | 33,877 | ||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Total interest expense | $ | 25,380 | $ | 29,099 | $ | 38,482 | $ | 37,270 | $ | 29,899 | $ | 26,566 | $ | 26,509 | ||||||||||||||
Interest factor in rental expenses | 6 | 5 | 7 | 6 | 6 | 6 | 5 | |||||||||||||||||||||
Capitalized interest | — | — | — | — | — | 1 | — | |||||||||||||||||||||
Total fixed charges | $ | 25,386 | $ | 29,104 | $ | 38,489 | $ | 37,276 | $ | 29,905 | $ | 26,573 | $ | 26,514 | ||||||||||||||
Ratio of earnings to fixed charges(2) | — | — | — | 1.07 | 1.10 | 1.14 | 1.28 | |||||||||||||||||||||
(1) | For the ratio of earnings to fixed charges to equal 1.00, earnings, as adjusted must increase by $19.4 billion and $1.5 billion for the nine months ended September 30, 2008 and September 30, 2007, respectively. For the ratio of earnings to fixed charges to equal 1.00, earnings, as adjusted must increase by $5.5 billion for the year ended December 31, 2007. |
(2) | Ratio of earnings to fixed charges is computed by dividing earnings, as adjusted by total fixed charges. |