NOTE 9. Comprehensive Income (Loss)

          The balances in accumulated other comprehensive loss for the periods indicated are shown in the following tables:

		As of June 30, 2009
					Deferred
		Pre-Tax			Tax Expense				After-Tax
		Amount			(Benefit)				Amount
		(Dollars in millions)
Unrealized net losses on securities available for sale	$	(617	)	$	(233	)	$		(384	)
Unrealized net gains on cash flow hedges		148			56				92
Foreign currency translation adjustment		(10	)		(2	)			(8	)
Unrecognized net pension and postretirement costs		(692	)		(262	)			(430	)
Total	$	(1,171	)	$	(441	)	$		(730	)
As of June 30, 2009, accumulated other comprehensive income included $77 million of unrealized losses related to other-than-temporarily impaired securities.
		As of December 31, 2008
					Deferred
		Pre-Tax			Tax Expense				After-Tax
		Amount			(Benefit)				Amount
		(Dollars in millions)
Unrealized net losses on securities available for sale	$	(517	)	$	(193	)	$		(324	)
Unrealized net gains on cash flow hedges		76			28				48
Foreign currency translation adjustment		(9	)		-				(9	)
Unrecognized net pension and postretirement costs		(720	)		(273	)			(447	)
Total	$	(1,170	)	$	(438	)	$		(732	)

          The following table reflects the components of total comprehensive income for the three and six month periods ended June 30, 2009 and 2008, respectively.

		For the Three Months Ended						For the Six Months Ended
		June 30,						June 30,
		2009				2008		2009				2008
		(Dollars in millions)
Comprehensive income:
Net income	$		208		$	431		$	526		$	860
Other comprehensive income:
Change in unrealized net losses on securities			(95	)		(256	)		(60	)		(246	)
Change in unrealized net gains on cash flow hedges			36			20			44			13
Change in pension and postretirement liability			9			(1	)		17			(2	)
Net foreign currency translation adjustment			3			1			1			-
Total comprehensive income	$		161		$	195		$	528		$	625